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SW�DT Fee Review December 1,2014 Page 4 Additionally, the code provides for a reduction or rebate of a portion of the fees when a developer provides stormwater facilities providing treatment beyond that required for the development site. The ordinance indicates the City reserves the right to develop policies for such a credit. No policies have ever been established. The developer of the Lakeview Golf site has questioned whether the calculated SW&DT fee of over $500k is justified, given that nearly half of the property will be placed in conservation easements. Again, note that the current code only allows for a 'conservation easement reduction' in the 5-acre zone, not in the 2-acre zone in which Lakeview is located. The developer has suggested a number of potential justifications for a reduction of the fee which are further explored later in this memo. Future Needs for Stormwater Funding It is important to include in this discussion the magnitude of the City's future funding needs for stormwater management and potential sources for meeting those needs. Implementation of the needed stormwater projects and activities identified in the 2011 Orono Surface Water Management Plan (SWMP) generally exceed $250,000 per year on an ongoing basis. Future needs include maintaining and upgrading existing stormwater infrastructure; adding new stormwater facilities where they are lacking; and anticipated mandates to address TMDL's and existing phosphorus loading issues within Orono's various water bodies. Following is an excerpt from the SWMP: 9.5 FUNDING Funding for the projects and programs identified in Table 9.3 will typically come from development fees, the stormwater utility, and grant opportunities. Development fees will pay for the instatlation of permanent BAAPs to mitig�e the imp�cts from stormw�er runoff, a reduction in sedimerti# loads by implementing �asion ��i �ec�m�rtt control techniques during developmen#, and implementat� of ti� City of Orono's wrettand protection ordinance. The City of Orono's Stormwater Utility will pay for activities such as MS4 education, stormwater system operation and maintenance, and implementation of the City's phosphorus reduction program. The Stormwater Utility annually generates approximately$135,000; therefore, the City will need to utilize other funding mechanisms to make up the difference for the estimated $232,000 to $331,000 SWMP implementation costs. These costs will be made up by reviewing the annual Stormwater Utility fee and making adjustments to the fee, prioritizing projects, and utilizing the funding sources in the list below. If the City needs to prioritize funding towards specific projects it will place highest priority on those projects that give the City the best opportunity to meet the phosphorus reduction goals required by the MCWD. 1. Grant monies possibly secured from various agencies. This could include MCWD, Hennepin County, Board of Water and Soil Resources, and the MnDNR.