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Home My WebLink About7A Fee Schedule AGENDA #: PREPARED BY: SUBJECT: DATE: INTRODUCTION: BACKGROUND: DISCUSSION: ALTERNATIVES: 7 (A) RALPH TESCHNER FINANCE DIRECTOR CONSIDER APPROVAL OF 1994 FEE SCHEDULE JANUARY 3, 1994 The purpose for this agenda item is to consider Council approval of the 1994 City of Prior Lake Fee Schedule. The majority of the fee amount changes are associated with development charges and related building permit fees considered by the Council during the course of the 1994-1998 capital improvement program discussion at the August 16, 1993 meeting. Attached is a copy of the revenue analysis, which served as the rationale basis for that discussion plus the proposed development fees which were reviewed at the informational hearing conducted on 9/20/93. Outlined below are those fees that are recommended to be increased as approved within the context of the 1994 Operating Budget revenues: Fee Description 1993 Amount 1994 Amount Liquor On Sale $5,150.00 $5,300.00 Trunk Acreage Fee $2,750.00 $3,000.00 Collector Acreage Fee $750.00 $1,250.00 MWCC SAC $750.00 $800.00 City SAC $350.00 $450.00 City WAC $350.00 $450.00 Water Tower Fee $500.00 $600.00 Collector Street Fee $250.00 $350.00 Park Support Fee $350.00 $650.00 Attached is the proposed 1994 Fee Schedule which identifies virtually all license fees and service charges. The remaining fee amounts within the context of this schedule are unchanged from the prior year. Since the majority of these fee increases affect the building permit cost, a letter was sent to contractors, which do business in the community, informing them of these changes. The following alternatives are available to the City Council: 1. Adopt the 1994 Fee Schedule as submitted. 2. Approve the 1994 Fee Schedule subject to any specific Council amendments. 4629 Dakota S1. S.E., Prior Lake, Minnesota 55372 I Ph. (612) 447-4230 Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLDYER r T 3. Delay action on the Fee Schedule if additional information is required by the Council. RECOMMENDATION: Staff would recommend that the City Council approve the 1994 Fee Schedule at this time so that the above referenced changes may be applied effective on January 1, 1994. ACTION REQUIRED: A motion to approve the City of Prior Lake 1994 Fee Schedule. A2.WRT r T" MEMORANDUM TO: FROM: Mayor & City Council Ralph Teschner, Finance Director 1994-98 CIP August 16, 1993 RE: DATE: Capital Improvement Program (1994-1998) Revenue Analysis Capital improvement programs (C.I.P.) are aggressive planning documents which provide a blueprint of construction projects and revenue sources for the next five years. The projects are determined necessary both to provide the appropriate infrastructure for a growing community but also for those improvements required to protect our existing investment Project need and resource availability are the two primary factors that are used to prioritize which projects are to be completed during the course of a CIP. To ensure the success of our capital improvement program, the following three criteria must exist: 1. Funding sources must be available to fmance the improvement costs. 2. Revenue mix and balance must be achieved to avoid single source dependence. 3. Revenue levels must provide adequate cash flow to fund those expenditures that are reliant upon dedicated sources. The intent of this analysis is to evaluate the above revenue criteria. The purpose is to identify the citizen cost involved, if applicable, and to layout those revenue levels so that the City can identify potential shortfalls and correct those deficits. [Property tax impact calculation is a cumulative amount of dollars over the duration of the CIP based upon an average Prior Lake home with a market value of $110,000.00.] Financing Method: Property Tax Impact: Capsule Synopsis: Strategy: Financing Method: Property Tax Impact: Capsule Synopsis: Strategy: Property Tax $36.68 Approved projects, using direct property tax support, would be incorporated into the annual operating budget. Council control Referendum $94.01 Exclusive use of property tax as authorized by public would generate twenty year taxation stream. Public determination 4629 Dakota 5t. 5.E., Prior Lake, Minnesota 55372 I Ph. (612) 447-4230 I Fax (612) 447-4245 AN EQUAL oPPORTUNITY EMPLOYER . ......-.--.---- T t - Financing Method: Property Tax Impact: Capsule Synopsis: Strategy: Financing Method: Property Tax Impact: Capsule Synopsis: Strategy: Financing Method: Property Tax Impact: Capsule Synopsis: Strategy: Financing Method: Property Tax Impact: Capsule Synopsis: Strategy: Special Assessments Limited application Costfbenefit situation whereby only those property owners benefiting by improvement would incur assessment. Council colllrol Project Levy $510.88 Nature of these projects are of general citywide benefit. The financing is leveraged by Chapter 429 bond issues which utilizes special assessments of a minimum of 20%. The difference between the amount assessed and the project cost becomes a levy upon the property taxes. OptiollS to manage this taxation level primarily involve project standards and timing. The majority of the project levy amounts involve county road projects that are improved under urban or rural standards. Urban standards are more expellSive because they involve curb & gutter, lighting and landscape costs. The Council may wish to either modify cost participation elements, elect rural standards or delay the project. Intergovernmental n/a Project oversight is under jurisdiction of either federal, state, county or Indian community control. Majority of funding is responsibility of these entities wi~ in most cases, a significantly lesser amount matched by Prior Lake in the form of a project levy. Agency control Municipal State Aid n/a The City's Municipal State Aid account balance is currently $1,188,028.50. Of this amount an estimated $975,000.00 is encumbered for the construction of Carriage Hills Road and FISh Point Road for this year. Our annual construction allotment is projected to be $300,000.00. Therefore, the total amount available for MSA construction activities based upon future aUocations and our remaining account balance, is approximately $1,700,000.00. Aggregate expenditure needs within the CIP equal $1,734,000.00. Basically our MSA requirements cash flow in total, however a deficit does occur in the year 1997 because cOllStruction activity is double our annual appropriation. The Council has five options to consider which would correct this situation: 1. Scale back project scope with respect to trails and sidewalks. 2. Borrow against our future MSA appropriations. The State of .- f Financing Method: Property Tax Impact: Capsule Synopsis: Strategy: Financing Method: Property Tax Impact: Capsule Synopsis: Strategy: Minnesota does allow cities an advance of up to three years in allocations. 3. Revise city policy to include greater cost participation by the developer ie; site grading, assess a residential road equivalent charge, etc. 4. Require developer to pay 100% of the cost in those cases whereby the improvement is petitioned but may not be scheduled within the CIP timeframe. 5. Delay the project until our MSA futuls are adequately reserved and available. Capital Park Fund n/a Dedicated funds generated by park dedication fees and park support fees on new construction building permits for the purpose of developing the City's neighborhood park system. The current fund balance is $96,000.00 Assuming annual building permit volume of an average of 250 units the following projections would exist: $437,500.00 (supportfees... 1250 x $350) $75,000.00 (dedication cash... $15,OOOjyr) <$427,000.00> (less project expenditures) On paper the revenues generated appear to be sufficient. However, it takes on average three years for a subdivision to build out while the trails must be front-end funded at the initial stage of utility installation. Also it must be recognized that the development assumed is very minimal and provides only for basic playground structures and open air shelters. An upgrade would require an infusion of cash. The following is a sample of what other growth communities charge per lotfor trails supportfees: Chanhassen $1,000.00 Eagan $700.00 Eden Prairie $840.00 Lakeville $650.00 Plymouth $885.00 Based upon these assumptions our $350.00 charge is inadequate and should be revised to a minimum of $650.00. Grant/Contributions n/a Normally involves private funding activity such as. donations from community civic organizations. The only project identified within the context of this description is the water slide in Lakefront Park. Private sector control , . " Financing Method: Property TaxAmpact Capsule Synopsis: Strategy: Financing Method: Property Tax Impact: Capsule Synopsis: Strategy: Financing Method: Property Tax Impact: Capsule Synopsis: Strategy: Other/Street Collector Fund n/a The collector street fee is a funding mechanism to provide a supplementary source of revenue to ffiance those corridor/trail/parkway type improvements associated with the City's collector street system. On October 12, 1992 the City Council approved Resolution 92-28 establishing a collector street charge with the understanding that both the acreage and building permit fee amounts were less than needed. Below is a comparison of the fee amounts adopted versus necessary: Permit Charge... $250.00(250.00 Acreage Fee... $700.001$1950.00 This is an area that should be re-visited when the Council reviews the 1994 Fee Schedule. At the very least a step increase for the acreage fee should be considered. In order for the City to continue to develop, the transportation system must be in place. The Collector Fund balance is less than $50,000.00. In 1993 and 1994 we expect to expend virtually the entire balance Oil Carriage Hills Road. It is crucial that these fees be raised to a realistic level. The Council may wish to undertake this in steps. Increasing by 25% per year for five years might be one way of accomplishing the needed changes. Other{frunk Reserve Fund $ . Dedicated funds generated from utility connection permits and acreage fees assessed at time of water and sewer installation for the purpose of trunk oversizing costs and central municipal system improvements. The most common use of the Trunk Reserve Fund occurs when a developer is required to install trunk lines as part of the individual's development. 111ese reimbursement draws are virtually entirely driven and timed by development requests. Current fund balance is established at $697,000.00. The present charge of $2750.00jacre should be reviewed and increased if appropriate in 1994. Other/Utility Revenue User fee basis Either enterprise fund revenue would be pledged to finance improvements or revenue bonds would be issued to underwrite the cost of large expenditure projects supported by utility revenues. The City has established two enterprise funds; Water & Sewer Utility and most recently the Water Quality Utility. The water quality rates were established and designed to provide a revenue stream to offset approximately $100-120,000 of improvements including administration costs which is representative in the CIP. While the $5.00 CFAC charge (capitalfacility) on the water bills is providing an . ... ...0< .__....._-.----...m... .----_.----.------r--- Financing Method: Property Tax Impact: Capsule Synopsis: Strategy: CIPREV.WRT annual set aside of nearly $110,000 both the public works facility and the water treatmellt plant would require rate adjustments. OtherlDeveloper n/a Means of financing is solely the responsibility of a developer who is requesting that improvements to privately owned property be underwritten by the City as part of a bond issue and assessed accordingly. Or the developer compensates the City directly for costs attributed specifically to the development. Developer initiated _.... O'.._,_..._____..~_ T ... PROPOSED DEVELOPMENT FEES Current Proposed AMM Survey Revenue Fee Charge Charge Average 1. Collector Street Fee Bldg. Permit Fee $250.00 $350.00 n/a Acreage Charge $700.00 $1200.00 n/a 2. Trunk Charge Bldg. Permit Fee $700.00 $900.00 $1380.00 Acreage Charge $2750.00 $3000 .00 $3500.00 3. Water Tower Charge Bldg. Permit Fee $500.00 $600.00 n/a 4. Park Support/rrail Fee Bldg. Permit Fee $350.00 $650.00 $815.00 FEES.WRT ~. M.._.__.~....~._..._.._. ..............--.- f' .. 1994 FEE SCHEDULE City of Prior Lake ASSESSMENT RATES: Sewer Rate for Unassessed Parcels* Water Rate for Unassessed Parcels* Sewer & Water Acreage Charge* Collector Street Acreage Charge'" Stonn Water Charge* (residential) SEWER & WATER RATES: Capital Facility Charge Stonn Water Charge SERVICE CHARGES: Assessment Search Plumbing Registration School District Rental of Antenna Space FIRE & RESCUE SERVICE: Ambulance Rate Fire Call Fire, Rescue Agreement/Credit River Fire, Rescue Agreement/Spring Lake LIQUOR LICENSES: On Sale Intoxicating Sunday Liquor Off Sale Intoxicating Off Sale Non-intoxicating Set Up License On Sale Non-intoxicating Wine License Club License Investigation Fee-On/Off Intoxicating Investigation Fee-On Sale Non-intoxicating Investigation Fee-Off Sale Non-intoxicating Temporary On Sale Non-intoxicating(I-3 day) MISCELLANEOUS LICENSES: Cigarette License Personal Service Masseuse License Investigation Fee Bingo/Gambling License Outdoor Concert Pennit/(clean-up deposit) Taxi Cab License Dog Licenses Dog Boarding Fees Kennel License Redemption of Dogs 40.00/ff 20.00/ff 3000.00/ac 1 250.00/ac 16.8/sf 1.05/1000 gals...water 2.3011000 gals...sewer 5.00/billing cycle $3.75 (Residential) 10.00 10.00 200.00 300.00 350.00 67,830.00 72,705.00 5,300.00 200.00 150.00 50.00 100.00 200.00 1,250.00 650.00 500.00/10,000 (maximum) 100.00 50.00 25.00 30.00 100.00 500.00 (maximum) 10.001100.00 200.00/225.00 100.00 50.00-each additional cab 5.00110.00 7.50 50.00 1O.00-1st licensed 15.00-1st unlicensed 25.00-2nd Offense 100.00 25.00-each addn'l truck 25.00-1'011 off containers "-----------r- . 1994 FEE SCHEDULE City of Prior Lake PERMITS: Building Pennit Plan Review Plumbing Pennit Mechanical Pennits Sign Pennit Solicitor Pennit Moving Penn it Excavation/Filling Penn it Residential Contractor's Deposit CONNECTION PERMIT CHARGES: Metro Sewer Availability Water Connection Charge Sewer Connection Charge Water Tower Fee Collector Street Charge Water Meter Pressure Reducer Frost Plates Water Inspection Sewer Inspection Septic System Pennit PARK PERMITS: Park Daily Admission Boat Trailer Parking Park ReseIVation (resident) Park ReseIVation (non-resident) Park Season Sticker (resident) Park Season Sticker (non-resident) Athletic Facility Use Pennit Park Program Surcharge (non-resident) Park Support Fees ZONING/SUBDIVISION: Home Occupation Pennit Variance Fee Vacation Fee Conditional Use Fee Rezoning P.U.D. Subdivision Fee (application) Hardshell Fee Administrative Plat Fee Comprehensive Plan Amendment (minor/major) Zoning Code Amendment Letter of Credit (residential building relocation) ... MUNICIPAL FINANCING APPLICATION FEES: TIP Application IDRB Application Annexation Filing Fee .State Building Code .65% Bldg Pennit Fee 6.00 per fixture .Graduated Fee Schedule 25.00-1st 40 sq. ft. plus .25/sq. ft. thereafter 50.00 50.00 50.00 1500.00 800.00 450.00 450.00 600.00 350.00 95.00 45.00 7.50 17.50 17 .50 40.50 4.00 7.00 35.00 100.00 15.00 25.00 35.00 5.00 350.00 25.00 75.00 100.00 100.00 200.00 + 2.00/gross acre 300.00 + 4.00/gross acre 200.00 5.00/lot 75.00 500.00/1000.00 100.00 .5,000.00 500.00 500.00 500.00-2500.00 - r . 1994 FEE SCHEDULE City of Prior Lake PUBLICATIONS: Agenda Reports (annual) Audit Booklet Sign Ordinance Budget Booklet CIP Booklet Comprehensive Plan Booklet (park & planning) Subdivision Booklet Zoning Ordinance Booklet Police Accident Reports Plan Sets City Code Book AGENDAlMINUTES:(annuaI) City Council Agenda Planning Commission Agenda City Council Minutes Planning Commission Minutes Copies MAPS: City Maps Blue Line Prints: Developers will be given 1 set of S& W asbuilts at no charge-addn'l prints will be charged $3.00 per blueline. Topo Maps SAND BAGS: * Rate subject to adjustment annually by City Council per Engineer's Cost Index Pl!l!S94. WRT 35.00 10.00 10.00 15.00 15.00 15.00 15.00 15.00 5.00 15.00 50.00 (purchase) 10.00 (annual update) 15.00 15.00 35.00 35.00 .50/ea. 1.00 8.00 per acre .45 ea. , . ~'-+--__.. V