HomeMy WebLinkAbout7A 2016 Fee Schedule
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEET-
ING
DATE:
DECEMBER 21, 2015
AGENDA
#:
7A
PRE-
PARED
BY:
CATHY ERICKSON, ACCOUNTING MANAGER
PRE-
SENTED
BY:
DON URAM, FINANCE DIRECTOR
AGENDA
ITEM:
PUBLIC HEARING TO CONSIDER APPROVAL OF THE PROPOSED 2016 OFFICIAL
FEE SCHEDULE AND CONSIDER APPROVAL OF AMENDMENT TO THE PRIOR
LAKE CITY CODE, SUBSECTION 106.600 (ADOPTION OF OFFICIAL FEE SCHED-
ULE) AND A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE FOR
PUBLICATION
DISCUS-
SION:
Introduction
The purpose of this agenda item is threefold; 1) to hold a public hearing for the proposed
2016 Official Fee Schedule and 2) to consider approval of an Ordinance amending Sec-
tion 106 of the Prior Lake City Code to include the Official Fee Schedule as required
pursuant to Minnesota Statute 462.353 and 3) consider a resolution approving a sum-
mary ordinance and publication thereof.
History
Annually, staff reviews the fee schedule as part of the budget process and makes rec-
ommendations to the City Council for changes or additions as needed. The Council 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 hear-
ing, as required by State Statute 462.353, was published for December 14, 2015. Owing
to the press of business the city council elected to open the public hearing and then
continue it until tonight, December 21, 2015. The requirements to adopt a fee schedule
set out in Minnesota Statute 462.353, subd. 4 will also be met tonight so this item has
been included on the City Council agenda.
Current Circumstances
The input received from the public hearing and City Council tonight will be incorporated
into the 2016 Official Fee Schedule.
Conclusion
The 2016 Official Fee Schedule will be incorporated into the City Code with an effective
date of January 4, 2016, which is the first business day of the new year. Modications
are proposed for 27 of a total of 240 fees the city charges.
2
New fees (including fees that have historically been charged but haven’t been reflected
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):
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
No change
17b. Water Rate – Over 25,000
gallons
$5.72/1,000
gallons
No change
18. Storm Water Charge $13.38
(residential)
/
$40.14/acre
$13.52 (residential) /
$40.56/acre
3
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:
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
4
the 2005 water plan fee analysis. The proposed increases were identified 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 recommended
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 increased 36%, however,
Staff is recommending phasing in the CCI increase over several 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 allo-
cated 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 al-
located to their issuance, inspection, and closure of. Building permit fees have not
been changed in over a decade. They were last adjusted in 2003. Staff is recom-
mending 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 increases
are based on Staff recommendations made in conjunction with the approval of the Cap-
ital 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 $.25/1000 gallons water rate increase that was recommended in con-
junction with the approval of the Capital Improvement Program (2016-2020) has
been removed from the list of proposed changes to the fee schedule. During the
Council work session on December 14, the 2016 street projects were discussed.
The Council indicated that they were favoring Option D for the Manitou street pro-
ject. This would have an impact on the sewer rate. We are asking the Council to
defer action on any water rate or sewer rate (#17a & #17b on the proposed rate
change table) until January 11. Staff is reviewing alternative funding options for
the street project capital costs in the utility funds, and will bring this back to the
Council for discussion at the January 11 work session and Council meeting. At
that time, Council could adjust the water/city portion of sewer rates, and amend
the budget accordingly. Staff has revised (reduced) the 2016 Water Fund revenue
budget to reflect that there is no change in the water rates. This results in an
increase in planned use of reserves in the water fund of about $202,000.
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.
5
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/activity
costs.
ISSUES: This public meeting for the proposed fee schedule is the primary opportunity for the pub-
lic 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.
FINAN-
CIAL
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.
ALTER-
NA-
TIVES:
1. If all questions have been answered: 1) close the public official fee schedule portion
of the meeting and 2) Approve an Ordinance amending subsection 106.600 (Adop-
tion 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 4, 2016.
2. Delay action if the Council requires additional information recognizing that Implemen-
tation of any approved revisions will be delayed accordingly.
RECOM-
MENDED
MOTION:
1. Alternative #1
ATTACH-
MENTS:
1. McCaslin & Tofte Email
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:
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
Water Connection Charge $1,095.00
Water Tower Charge $1,400.00
2
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 or on December 21,
2015 whichever is later.
Passed by the City Council of the City of Prior Lake this 21st Day of December, 2015.
ATTEST:
_________________________ __________________________
City Manager Mayor
Summary Ordinance to be published in the Prior Lake American on the 2nd day of January, 2016.
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 21, 2015; and
WHEREAS, On December 21, 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 21, 2015.
PASSED AND ADOPTED THIS 21st 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 21, 2015.
Approved for publication by the City Council for the City of Prior Lake, Minnesota this 21st day of December,
2015.
ATTEST:
_________________________ __________________________
Frank Boyles, City Manager Kenneth Hedberg, Mayor
Published in the Prior Lake American on the 2nd day of January, 2016.
From: Mark McCaslin [mailto:mccaslin@integra.net]
Sent: Saturday, December 12, 2015 10:35 AM
To: Ken Hedberg; Annette Thompson; Monique Morton; Rick Keeney; Mike McGuire
Cc: Frank Boyles; Larry Poppler
Subject: Proposed changes to property value used to determine improvement limits
Mark McCaslin & Jessica Tofte
14543 Pine Rd. NE
Prior Lake, MN 55372
mccaslin@integra.net
612-308-9421
To: Prior Lake Mayor and City Council;
Last summer we began thinking of moving our detached garage to connect with our current structure via an addition to the
house. We sketched out some ideas with a general contractor, and after he visited with the city about this in August – we hired
an architect to formalize the design, and we got a new site survey. The city also asked for a new appraisal for our current
structure since although the new addition conforms with bluff and street setback, the existing house (first built in 1957 and
remodeled under city permit in 2013) does not. Based on these conversations with the City Planning Dept., we understood the
scope of our addition would be tied to the appraised value of the existing house. In early October we submitted the building
plans, site survey and an appraisal to the City Planning Dept with a request for a building permit.
The City had questions about the property value of the appraisal compared with the Scott county assessed value, so we obtained
a second appraisal – with a substantially equivalent appraised value for the current structures. The city asked for a third
opinion, to be contracted by the city and paid for by us – this time to review the two appraisals. When we learned this could not
be completed on a timely basis we all agreed to ask the county assessor to review the two appraisals, which is now in process.
Last week the city informed us that at the Dec 14 council meeting the council would be considering a proposal to change
components of the process for which building permits, including changes to the property value used to determine improvement
limits. Both of us will be out of town on business and will unfortunately miss the meeting. If the city council decides to
accept the proposed changes, we request that the changes not be applied to permit applications that are currently under
review – regardless of when the permit is issued. We have been trying to cooperate with all city requests on this matter in a
timely manner, but it has somehow turned into a much more complicated process than our 2013 remodel with several
unanticipated twists and turns. Over the last several weeks we been in regular contact with Mr. Poppler and/or Mr. Boyles to
make sure we understood city requests. Although we may be a very close to having everything now requested in the city’s
hands early this week, and the permit granted by year end – the timeline is dependent on the county assessor, our contracted
appraisers (who have asked for and received an additional fee for the incremental work requested), and the City Planning
Dept. We have invested several thousand dollars in site survey, architect/design fees and property appraisals - all performed in
the good faith assumption that we were doing what was necessary to begin this building project, and that the project met all
current requirements. We love living in Prior Lake and are excited about our decision to invest in improving our property –
consistent with the zoning and planning rules and processes in place when we first formalized our permit request with the city
last August. Thank you for your consideration of our request.
Sincerely,
Mark and Jessica