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Memo Patrick Klaers, City Administrator To: From: Stacie Kvilvang Date: April 9, 2014 Subject: Storm Water System Development Costs Ehlers was asked to review the most common ways in which municipalities cover the cost to construct storm water management systems. Of particular interest are larger projects that incorporate an area-wide or regional storm water management component. Generally speaking, most municipalities require that development pays its own way to construct any necessary storm water management system. This is typically accomplished by imposing an impact fee at the time of development, or as a direct requirement of the developer to construct and pay for the necessary system. Alternatively, cites may pay the up-front costs to build-out a larger system and recover those costs through future impact fees and/or special assessments. Once established, these systems are often turned over to the municipality for ongoing operation and maintenance. Many communities fund this ongoing expense through a storm water utility fee that then applies city-wide. Attached to this memorandum is a table providing some examples of regional or larger storm water systems that have been constructed and how they were funded. Since new sanitary sewer lines will need to be installed as developments come on line, we have also attached a chart delineating how these same cities construct and pay for these systems. As noted, there are a multitude of ways to pay for both systems and these examples were provided to provide the Council basic background and set the framework for future policy discussions with them on how to finance and pay for the construction of these systems. Please contact me at 651-697-8506 with any questions.