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HomeMy WebLinkAbout8C - Waiver of Fees Policy MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT i'fr<j k! ~ 10 November 6, 2000 ^~ :~ank Boyles, City Manage~ 'i57 CONSIDER APPROVAL OF ADMINSTRATIVE POLICY REGARDING WAIVER OF FEES. History: The City Council has previously directed the preparation of a policy to provide guidance regarding fee waiver. The City Attorney has cautioned the Council regarding the issues associated with waiving fees. The Council previously received a draft of a potential waiver policy for information. Current Circumstances: The attached fee waiver policy is intended to be restrictive in its application. The policy provides for waiver only when the following three conditions are met: 1. The sponsoring group is non-profit, civic and Prior Lake based. 2. The event for which waiver is requested provides direct financial benefit to the City. 3. Only the license fee for the event is subject to waiver. Examples of the events for which fee waiver may be contemplated are the Rotary Bikathon, district softball tournament and Lakefront Days. Each meet the waiver criteria in their own unique way. The Bikathon is sponsored by the Prior Lake Rotary. The Bikathon raises money which is used to buy books and materials used by Prior Lake Police Officers to teach the DARE program. Without this fund raiser, the City would have to pay for such materials. Annually, a district softball tournament is sponsored by a local softball team. One-half of the revenues from the tournament are provided to the City to be used for park and recreation purposes. Lakefront Days used to be sponsored solely by the City. The Chamber of Commerce assumed sponsorship responsibility a number of years ago. While the City does continue to contribute time and money to this annual, City-wide event, considerable savings are realized because of the Chamber's active planning and sponsorship of this City-wide event. Other events may meet the criteria set forth in the policy. Under the policy, it is the City Manager's responsibility for making that determination and authorizing or denying the waiver request accordingly. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 1:\COUNCIL\AGNRPTS\2000\1106_8C.DOC AN EQUAL OPPORTUNITY EMPLOYER It ISSUES: The City Council should determine if the proposed waiver guidelines are too narrow or too broad. If approved, a copy of the policy can be provided to area civic and non-profit organizations. ALTERNATIVES: (1) Adopt the Fee Waiver Policy as proposed. , (2) Adopt the Fee Waiver Policy with amendments. (3) Take no action. RECOMMENDED MOTION: Alternative (1) or (2). 1:\COUNCIL\AGNRPTS\2000\1106_8C.DOC POLICY REGARDING WAIVER OF FEES GENERAL The City, from time to time, receives requests to waive fees. Fee waiver requests have been received for zoning and other development related fees as well as building permit fees. Fee waiver requests have also been requested for liquor licenses, facility rental fees and outdoor concerts fees. Typically, organizations requesting waiver have included churches, civic organizations, schools and individuals. The purpose of this policy is to assure conformance with equal protection provisions of the Constitution, and to preserve the integrity of the user fee concept by establishing a uniform policy for considering fee waiver requests. PURPOSE AND PHILOSOPHY FOR FEES The City Council concurs with the philosophy of charging user fees wherein an individual or organization pays reasonable costs associated with a service or application process requested. Fifteen percent (15%) of the City's annual budgetary revenues are derived from user fees. Such fees are received in lieu of property taxes to support the City's budget. Therefore, the Council's policy is not to waive fees except in unique circumstances where a compelling public interest can be identified. WAIVER License fee waiver (i.e. park usage fee, liquor license, outdoor concert fee, etc.) may be considered for the following events if they are sponsored by a non-profit or civic organization based in Prior Lake such as: (1) Bike-a-thon (funding for DARE program materials); (2) Softball tournament (funding for park and recreation), (3) Lakefront Days (elimination of City costs in sponsoring this annual community event), or (4) other similar events which provide the City with a direct financial benefit. LIMITATION The criteria used to determine if an event falls within a category similar to the Bikathon, district softball tournament or Lakefront Days is made by the City Manager based upon the following: . Is the sponsoring group non-profit or civic in nature and based in Prior Lake? . Does the event for which waiver is requested provide a direct financial benefit to the City? . Is the fee for which waiver is requested eligible for waiver (i.e. park usage fee, on-sale liquor license, outdoor concert fee, and the like). After making a waiver determination on these criteria, the City Manager shall set out in writing the basis for his decision and share it with the requesting party. 1:\Agreemnt\FEEWAIVER.DOC last revision: Nov. 2000 ~_.__...._...-r-----r--_.