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HomeMy WebLinkAbout7B 2016 Fee Schedule Report 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: DECEMBER 14, 2015 AGENDA #: 7B PREPARED BY: CATHY ERICKSON, ACCOUNTING MANAGER PRESENTED BY: DON URAM, FINANCE DIRECTOR AGENDA ITEM: PUBLIC HEARING TO CONSIDER APPROVAL OF THE PROPOSED 2016 OFFI- CIAL FEE SCHEDULE AND CONSIDER APPROVAL OF AMENDMENT TO THE PRIOR LAKE CITY CODE, SUBSECTION 106.600 (ADOPTION OF OFFICIAL FEE SCHEDULE) AND A RESOLUTION APPROVING THE SUMMARY OF ORDI- NANCE FOR PUBLICATION DISCUSSION: Introduction The purpose of this agenda item is threefold; 1) to hold a public hearing for the pro- posed 2016 Official Fee Schedule and 2) to consider approval of an Ordinance amending Section 106 of the Prior Lake City Code to include the Official Fee Sched- ule as required pursuant to Minnesota Statute 462.353 and 3) consider a resolution approving a summary ordinance and publication thereof. History Annually, staff reviews the fee schedule as part of the budget process and makes recommendations to the City Council for changes or additions as needed. The Coun- cil is required to announce the time and place of the council meeting at which the 2016 official fee schedule would be discussed and which would allow for citizen input. A public hearing, as required by State Statute 462.353, is being held on December 14 2015. The requirements to adopt a fee schedule set out in Minnesota Statute 462.353, subd. 4 will be met at the December 14, 2015 Council meeting so this item has been included on the City Council agenda. Current Circumstances The input received from the public hearing and City Council on December 14 will be incorporated into the 2016 Official Fee Schedule. Conclusion The 2016 Official Fee Schedule will be incorporated into the City Code with an effec- tive date of January 1, 2016. Modications are proposed for 28 of a total of 240 fees the city charges. New fees (including fees that have historically been charged but haven’t been re- flected on the fee schedule) and proposed changes are indicated in the table below alongside their present amount (Please see the description of the changes following the table): 2 Proposed Change Fee Description 2015 Amount 2016 Amount Development Fees: 1. Street Oversize Acreage Charge $4,920 / ac. $5,412 / ac. 2. Trunk Sewer Acreage Charge $3,040 / ac. $3,344 / ac. 3. Trunk Water Acreage Charge $5,500/ ac. $6,692 / ac. Trunk Stormwater Acreage Charge: 4. Low density residential (R1,R2,R3) $2,790 / ac. $3,069 / ac 5. High density residential (R4) $4,600.00 / ac. $5,060.00 / ac. 6. Commercial/industrial $5,780.00 / ac. $6,358.00 / ac Permits: Common Home Improve- ments 7. Additions/Decks State aver- age Value per square Foot Use State Average Value or use Contrac- tor/Homeowner Value, whichever is greater 8. Re-roofing $74.75 $103.00 9. Re-siding $74.75 $103.00 10. Windows $74.75 $103.00 11. Lower level finish (1 room) $34.75 $122.69 12. Lower level finish (2 room) $62.25 $147.11 13. Lower level finish (3 room) $74.75 $171.95 14. Lower level finish (4 room) $87.25 $221.63 15. Swimming pool (above ground) $74.75 $196.79 16. Swimming pool (below ground) $162.25 $445.16 Utility Billing: 17a. Water Rate – First 25,000 gallons $4.15/1,000 gallons $4.40/1,000 gallons 17b. Water Rate – Over 25,000 gallons $5.72/1,000 gallons $6.06/1,000 gallons 18. Storm Water Charge $13.38 (residential) / $40.14/acre $13.52 (residential) / $40.56/acre 19. Met Council Sewer Rate (MCES) $2.16/1,000 gallons $2.22/1,000 gallons Connection Permit Charges: 20. Sewer Connection Charge $600 $660 21. Water Connection Charge $900 $1,095 22. Water Tower Charge $1,000 $1,400 Park Facility Rentals: 3 Lakefront Park Pavilion Rental: 23. School District #719, Prior Lake youth organizations, Prior Lake non-profit civic groups & Prior Lake Churches (Mon-Fri- day, 2 hr min. w/ 1hr. setup at no charge) $25/hour, $200 dam- age deposit Change to (Mon-Fri- day, 3 hr min.) No change in hourly rate or damage deposit 24. School District #719, Prior Lake youth organizations, Prior Lake non-profit civic groups & Prior Lake Churches ( Mon-Friday bathrooms only) --- $35.00/day 25. Park Facility Reservation Change Fee (Lakefront Park pavilion only) Resident / non-resident Change to Change/Cancel Fee No change in rate 26. Park Facility Reservation Change Fee (All other shel- ters, Club Prior, Boat Slips, Canoe/Kayak Rack) Change to Change/Cancel Fee No change in rate Club Prior Membership: 27. Voluntary Annual Member- ship per Person (Nonresi- dent) $50 No Fee 28. Non-Member per Person per Event charge for Exer- cise(Nonresident) $6 No Fee Explanation of Changes 1- 4. Acreage Charges for Street Oversizing, Trunk Sewer & Trunk Water/ 21-22. Connection Fees for Sewer and Water: For the water trunk fees (residential acreage charge, connection fee and tower charge) Staff recommends adjusting the fees based on the proposed increases as presented in the 2005 water plan fee analysis. The proposed increases were identi- fied in the 2005 water plan fee analysis to support construction of a new treatment facility, well and water storage tower. For the sewer and storm water trunk fees, the current rates were determined in 2005 as part of the comprehensive capital plan. During review of the CIP, Staff rec- ommended increases to the trunk fees. The suggested increases adjust the 2005 fees to 2016 using the construction cost index (CCI). Since 2005, the CCI has in- creased 36%, however, Staff is recommending phasing in the CCI increase over sev- eral years. The incremental increase recommended is 10% over the next three years, with an updated rate study defining future rate adjustments. 7-16. Common Home Improvement Permits: Recently, the City began using a time tracking software whereby building permit categories can be sorted by the time 4 allocated to permits and plan review. Staff has performed an evaluation of the building permit fees collected in comparison with our time tracking. The review has found that fees charged for residential remodeling and residential addition permits do not cover the City expenses for these permits. All other types of permits are covering the time allocated to their issuance, inspection, and closure of. Building permit fees have not been changed in over a decaded. They were last adjusted in 2003. Staff is recommending that fees associated with additions and remodeling permits be raised to cover costs for inspections and administration. 17-18. Water Rates, City Portion of Sewer Rate, and Storm Water Charge in- creases are based on Staff recommendations made in conjunction with the approval of the Capital Improvement Program (2016-2020). These rates are charged each billing cycle and intended to reimburse the City for operating costs for each utility and a portion of the capital costs. The proposed $0.25 increase per 1000 gallons is incorporated in the fee schedule and is subject to discussion as part of the public hearing. However, as the City Counci will hear in the December 14 work session, the staff will be looking at revisions to our bonding practice which may delay the need for such increases in the immedi- ate future. 19. Met Council Portion of Sewer Rate (MCES) The Metropolitan Council adopted a Metropolitan Wastewater Charge for 2016 of $201.0 million. This is an increase of 5.4% from the 2014 budget of $190.7 million. Prior Lake’s portion of the 2016 Metropolitan Wastewater Charge is $1,323,005.01 23-24. Lakefront Park Pavilion Rentals are fee changes that Staff recommends to cover a greater portion of City expenditures and meet the requested needs of the pavilion users. 25-26. Park Facility Reservation Change Fee: Staff recommends a wording change to including cancellations. This will partially offset our lost reservation rental income due to cancellations. 27-28. Club Prior Membership: Staff recommends eliminating these fees from the fee schedule as costs for nonresidents have been incorporated into individual trip/ac- tivity costs. ISSUES: The City also completed an evaluation of liquor license fees and will be recommend- ing an increase. State law requires a 30 day notice to license holders, so it could not be included with this agenda. The licenses renew annually on July 1, so the proposed changes will be brought to the Council in early 2016. This public meeting for the proposed fee schedule is the primary opportunity for the public to comment or ask questions about the proposed 2016 Official Fee Schedule. It is suggested that the city council solicit and record resident questions during the public portion of the meeting. Once everyone wishing to speak has had a chance to, then the staff can respond to the questions and council members can ask additional questions or append onto responses already made. This format will provide council members and staff to have a reasonable and informative discussion which should enhance the public’s understanding of the proposed 2016 Official Fee Schedule. 5 FINANCIAL IMPACT: The fee schedule identifies those types of service charges and license fees charges on a user basis to recover City-associated costs. Charges for services, licenses and permits are a significant part of the revenue stream supporting the City’s budgets. For example the General Fund budget receives about 18% of its support from charges for services, licenses and permits. ALTERNATIVES: 1. If all questions have been answered: 1) close the public official fee schedule por- tion of the meeting and 2) Approve an Ordinance amending subsection 106.600 (Adoption of Official Fee Schedule) as proposed or with changes as specified, and 3) Adopt a resolution approving the Summary of the Ordinance and ordering the publication of said summary so the new fees will be effective on January 1 and so affected persons can become familiar with the revisions before the new year. 2. Delay action if the Council requires additional information. RECOMMENDED MOTION: 1. Alternative #1 4646 Dakota Street SE Prior Lake, MN 55372 CITY OF PRIOR LAKE ORDINANCE NO. 115-xx AN ORDINANCE OF THE CITY OF PRIOR LAKE, MINNESOTA, REVISING SECTION 106.600 OF THE PRIOR LAKE CITY CODE AND ESTABLISHING A FEE SCHEDULE FOR ALL CITY LICENSE FEES, USER CHARGES AND PERMIT CHARGES PURSUANT TO MINN. STAT. § 462.351 TO 462.364 The City Council of the City of Prior Lake does hereby ordain that Subsection 106.600 Official Fee Schedule is amended with the following changes: DEVELOPMENT FEES: Street Oversize Acreage Charge $5,412.00 / ac. Trunk Sewer Acreage Charge $3,344.00 / ac. Trunk Water Acreage Charge $6,692.00 / ac. Trunk Stormwater Acreage Charge Low density residential (R1,R2,R3) $3,069.00 / ac. High density residential (R4) $5,060.00 / ac. Commercial/industrial $,6,358.00 / ac. PERMITS: Common Home Improvements Fixed valuation fee Additions/Decks Use State average Value or use Contractor/Homeowner Value, whichever is greater Re-roofing $103.00 Re-siding $103.00 Windows $103.00 Lower level finish (1 room) $122.69 Lower level finish (2 room) $147.11 Lower level finish (3 room) $171.95 Lower level finish (4 room) $221.63 Swimming pool (above ground) $196.79 Swimming pool (below ground) $445.16 UTILITY BILLING RATES: Water Rate $4.40/1000 gals. 1st 25,000 gals. $6.06/1000 gals. above 25,000 gals. Met Council Sewer Rate (MCES) $2.22/1000 gals. Storm Water Charge $13.52 (residential) / $40.56 acre CONNECTION PERMIT CHARGES: Sewer Connection Charge $660.00 2 Water Connection Charge $1,095.00 Water Tower Charge $1,400.00 PARK FACILITY RENTALS: Lakefront Park Pavilion Rental (includes Gazebo): School District #719, Prior Lake youth organizations, Prior Lake non-profit civic groups & Prior Lake Churches (Mon-Friday, 3 hr min.) $25.00/hour, $200.00 damage deposit School District #719, Prior Lake youth organizations, Prior Lake non-profit civic groups & Prior Lake Churches (Mon-Friday bathrooms only) $35.00/day Park Facility Reservation Change/Cancel Fee (Lakefront Park pavilion only) (Resident/Non-resident) $50.00 Park Facility Reservation Change/Cancel Fee (All other shelters, Club Prior, Boat Slips, Canoe/Kayak Rack) $25.00 RECREATION AND CLUB PRIOR PROGRAMS Cost Per Agreement Club Prior Membership: Voluntary Annual Membership per Person (Nonresident) Eliminated fee Non-Member per Person per Event charge for Exercise(Nonresident) Eliminated fee This ordinance shall become effective from and after its passage and publication but not later than January 1, 2016. Passed by the City Council of the City of Prior Lake this 14th Day of December, 2015. ATTEST: _________________________ __________________________ City Manager Mayor Summary Ordinance to be published in the Prior Lake American on the 19th day of December, 2015. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 15-xxx A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE 115-xx AND ORDERING THE PUBLICATION OF SAID SUMMARY Motion By: Second By: WHEREAS, In accordance with Minnesota Statute 462.353, the City Council held a public hearing regarding amendments to Subsections 106.600 of the Prior Lake City Code on December 14, 2015; and WHEREAS, On December 14, 2015 the City Council adopted Ordinance 115-xx amending Subsection 106.600 of the Prior Lake City Code; and WHEREAS, Minnesota Statutes requires publication of the Ordinance Amendment in the official newspaper before it becomes effective; and WHEREAS, Minnesota Statutes also allows the publication of a summary of an ordinance if the City Council finds that the summary is an accurate representation of the Ordinance; and WHEREAS, The City Council desires to publish a summary of the amendments to Subsections 106.600 of the Prior Lake City Code and has determined the publication of a summary of this ordinance will meet the intent of the statute. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. That the City Council approves the attached summary of the amendments to Subsections 106.600 of the Prior Lake City Code adopted by Ordinance 115-xx, and authorizes publication of the same. 3. A complete text of the newly adopted city code can be found at City Hall or in the Document Center on the City of Prior Lake Website after December 14, 2015. PASSED AND ADOPTED THIS 14th day of December, 2015. VOTE Hedberg Keeney McGuire Morton Thompson Aye ☐ ☐ ☐ ☐ ☐ Nay ☐ ☐ ☐ ☐ ☐ Abstain ☐ ☐ ☐ ☐ ☐ Absent ☐ ☐ ☐ ☐ ☐ ______________________________ Frank Boyles, City Manager 2 SUMMARY ORDINANCE NO. 115-xx CITY OF PRIOR LAKE SCOTT COUNTY, MINNESOTA AN ORDINANCE OF THE CITY OF PRIOR LAKE, MINNESOTA, ESTABLISHING THE CITY FEES AND CHARGES FOR 2016 By the enactment of this Ordinance, the City Council establishes fees and charges required by the City Code for the year 2016 and to comply with Minnesota Statutes 462.353, subd. 4. A complete text of the newly adopted city code can be found at City Hall during regular office hours or in the Document Center on the City of Prior Lake Website after December 14, 2015. Approved for publication by the City Council for the City of Prior Lake, Minnesota this 14th day of December, 2015. ATTEST: _________________________ __________________________ Frank Boyles, City Manager Kenneth Hedberg, Mayor Published in the Prior Lake American on the 19th day of December, 2015.