HomeMy WebLinkAbout7B 2019 Official Fee Ordinance Public Hearing and Code Amendment Report
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL AGENDA REPORT
MEETING
DATE:
DECEMBER 3, 2018
AGENDA #: 7B
PREPARED
BY:
JASON ETTER, ACCOUNTING MANAGER
PRESENTED
BY:
CATHY ERICKSON, FINANCE DIRECTOR
AGENDA
ITEM:
PUBLIC HEARING TO CONSIDER APPROVAL OF THE PROPOSED 2019 OFFICIAL
FEE SCHEDULE AND CONSIDER APPROVAL OF AMENDMENT TO THE PRIOR
LAKE CITY CODE, SECTION 113 (ADOPTION OF THE OFFICIAL FEE SCHEDULE),
SECTION 401 RELATING TO BUILDING PERMIT FEES AND SECTION 704 RELAT-
ING TO UTILITY CHARGES AND A RESOLUTION APPROVING THE SUMMARY OF
ORDINANCE FOR PUBLICATION
GOAL AREA
AND OBJEC-
TIVE:
High-Value City Services
1. Establish financial stability for all funds.
DISCUS-
SION:
Introduction
The purpose of this agenda item is threefold; 1) hold a public hearing for the proposed
2019 Official Fee Schedule and 2) consider approval of an Ordinance amending Section
113 relating to the Official Fee Schedule, Section 401 relating to building permit fees and
Section 704 relating to utility charges 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 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 2019 official
fee schedule will be discussed and allow for citizen input. A public hearing is being held
on December 3, 2018. City code provides that the fee schedule be addressed at the
city council’s annual meeting but may be addressed prior to this time when appropriate.
For the past several years we have attempted to adopt the fee schedule in December of
the previous year, so the new fees will be in effect for the entire new year.
Current Circumstances
During the 2019 budget process, staff presented the significant changes to the fee sched-
ule as part of the budget workshops. The major items that were discussed that have been
reflected in the 2019 budget and listed on the proposed fee schedule include:
1. Utility Rates
2. Acreage charges for trunk water, sewer, and stormwater and water/sewer con-
nection fees
3. Street Oversize Acreage Charges (removed from fee schedule)
2
Following is a list of other changes that are being proposed and the reason for the
change. The input received from the public hearing and City Council on December 3 will
be incorporated into the 2019 Official Fee Schedule.
Conclusion
The 2019 Official Fee Schedule will be incorporated into the City Code with an effective
date of January 1, 2019. Additions or modifications are proposed for about 50 fees.
Due to the significant amount of changes to the 2019 Official Fee Schedule, the entire
fee schedule is attached with color coding.
Blue – Changes in heading/name of fee, specifying timeframe (i.e. per month, per
billing cycle). No new fees or changes to the amount of fees.
Orange – New fees or changes in fees. Explanations are listed below.
Red – Deleted fees. No longer applicable or were duplicates.
Explanation of Changes to Fees (orange highlighted items)
1–2. Acreage Charges for Trunk Water, Trunk Sewer, &Trunk Storm; Charges for
Water Connection, Sewer Connection, and Water Tower (Storage): These fees are
commonly adjusted on an annual basis, and a study is typically done as part of the com-
prehensive plan update. Public Works Director Wedel is finalizing his review of the wa-
ter/sewer infrastructure costs as part of the comprehensive plan update, so these are
preliminary fee changes and may be adjusted when presented to the Council as part of
the comprehensive plan update.
• A 10% increase is proposed for sewer and stormwater trunk and connection
fees to make up for increased inflationary costs which have not been reflected in
our development fees.
• A 4% increase is proposed for the water trunk and connection fees. Rates were
last determined in 2005 as part of the comprehensive plan capital update. At
the time, the plan contemplated that the city would build its own water treatment
facility, add a water tower, and add wells. With the SMSC joint water treatment
facility and water purchase agreement, we anticipate our water infrastructure
costs, adjusted for inflation, will be lower than anticipated in 2005.
Acreage Charges for Street Oversizing: We are removing the street oversizing trunk
fee from the fee schedule, per the recent court ruling regarding the Woodbury case.
We are currently reviewing options for collecting the revenue necessary to meet our
street buildout needs contemplated in our comprehensive plan update
3-5. Utility Rates:
At the CIP workshop on July 16, and at the CIP Public Hearing on August 6, staff pre-
sented rate increases necessary to fund operations as well as capital projects identified
in the 2019-2023 Capital Improvements Program. The 2019-2023 Water, Sewer, and
Stormwater Plan include $3,7M, $2.6M , and 1.5M respectively in use of funds that will
be transferred to the Construction fund for the utility cost portion of street projects. The
contributions from the utility funds for transportation/street projects varies by year,
based on the projects. The proposed utility rate increases noted below are based on
Staff recommendations made in conjunction with the annual review of the Capital Im-
3
provement Program and the Council adopted 2019-2023 Capital Improvement Pro-
gram. 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.
Summer Sewer Lock/Cost Break:
We bill sewer based on water consumption, however, we provide a summer sewer lock.
(City ordinance 704.404 Sanitary Sewer Rate Cap) Residents pay 1.5 times the aver-
age of the Feb and April consumption for the June, August, October and December bill-
ing cycle. The billing cycles cover the following time periods highlighted in blue:
The summer sewer lock is intended to consider pool filling, lawn and garden sprinkling,
etc. that do not flow into the sanitary sewer system. The summer sewer lock was es-
tablished years ago. This is reducing our annual billed sewer consumption.
The Council indicated that they would support modifying or phasing out the summer
sewer lock. as a means of increasing the City’s billed sewer flow. (See July 16 CIP
workshop report attached for summer sewer lock specifics.) Staff is proposing elimi-
nating the summer sewer lock for the June and December billing cycles. This would
generate about $100k in revenue annually. Residents would still receive the summer
sewer lock on their August and October utility bills which cover the period from May 21-
September 20. This change has been reflected in the adopted 2019-2023 Capital Im-
provement Program Sewer Plan and the 2019 Sewer Fund budget. It will be included
in the proposed update to the City ordinance 704.404 Sanitary Sewer Rate Cap.
3a-3b & 5. Water Rates and Storm Water Charge In the approved Transportation
Plan, there are $3.7 million of water projects and $1.5 million of storm water utility pro-
jects planned over the next five years. Staff is proposing a 3% rate increase for Water
and a 5% rate increase for Stormwater to cover the projected capital and operating
costs of these utilities.
4a & 4b. City Portion of Sewer Rate and Met Council Portion of Sewer Rate (MCES):
MCES Rate: The Metropolitan Council adopted a Regional Wastewater Charge for
2019 of $227.4 million. MCES continues to use an allocation method to calculate each
municipality’s charges. The method uses 2017 calendar year flow to allocate the
$227.4 million of total metropolitan charges to customer communities. Based on the fi-
nal MCES information, the 2019 cost increase for the City of Prior Lake is 7.25%.
The MCES sets the rates based on the actual flow from 2017 (two years prior histori-
cal). The cost increase is comprised of two components as follows:
1) A volume increase of 2.8% based on the change in metered flow from 2016 to
2017.
2) A rate increase of 4.4%. The MCES total regional wastewater charge is up
3.5%. The total regional flow is down -.083%, but the cost is still spread over
Month Billing Cycle
Feb Nov 21 - Jan 20
Apr Jan 21 - March 20
June March 21 - May 20
Aug May 21- July 20
Oct July 21-Sept 20
Dec Sept 21- Nov 20
4
the same users. The City of Prior Lake’s proportionate share results in a 4.4%
rate increase.
Prior Lake’s portion of the 2019 Metropolitan Wastewater Charge is $1,544,728. It is the
City’s intent that the charges incurred from the MCES be considered a pass-through cost
and that the residents pay the actual cost of receiving the service. For 2019 the recom-
mended rate is $2.81, an increase of $0.14. Staff has reflected the MCES rate increase
in the 2019 Sewer Fund budget.
City Sewer Rate:
As discussed with the Council at the August 6 budget workshop and CIP Council meet-
ing presentation, Staff has been evaluating the impact of billed sewer flows on reve-
nues and the impact of capital project expenditures on the sewer fund reserves. This
will be evaluated on an on-going basis as conditions change and continues to be a fo-
cus of our planning process.
Staff has identified several options for the Council to consider to maintain an appropri-
ate fund balance in the Sewer Fund, and the Council supported the following:
1. Increase the City portion of the sewer rate.
2. Modifying the summer sewer rate lock, as noted above.
3. Financing the sewer fund portion of the transportation projects on a paygo basis
instead of issuing debt.
In the approved Transportation Plan, there are $2.6 million of sewer projects planned
over the next five years. The only sewer cost in 2019 is related to the CR21 project and
that cannot be delayed. The biggest portion of the proposed sewer cost in 2020 is for
Fish Point Road. That street is in very poor condition and would be difficult to delay. In
2021 we are proposing to complete projects in the Pershing/Green Heights neighbor-
hood, including the private streets such as Inguadona. This will require significant fund-
ing from the sewer fund. In 2022 we are proposing mostly full depth reclamation pro-
jects to help ease the strain on the sewer fund. Based on this transportation plan there
are not a lot of opportunities to reduce the burden on the sewer fund in the near term.
To fund the utility improvements out of fund balance, staff recommends the rate of
$3.39/1,000 gallons for the City portion of the sewer rate. This is an increase of $0.45
over the 2018 rate of $2.94. This rate is recommended to keep the total sewer rate in-
crease for the combined City and MCES portions at $0.59 per 1,000 gallons or about a
10% increase.
Staff’s recommendation for utility rate changes for each fund follows:
Fee Description 2018 Amount Proposed 2019 Amount
Water Rate – First 25,000
gallons
$4.67/1,000 gallons $4.81/1,000 gallons
Water Rate – Over 25,000
gallons
$6.44/1,000 gallons $6.63/1,000 gallons
Storm Water Charge $14.34 (residential)
$43.02/acre
$15.06 (residential)
$45.18/acre
Met Council Sewer Rate
(MCES)
$2.67/1,000 gallons $2.81/1,000 gallons
5
Sewer Rate – City $2.94/1,000 gallons $3.39/1,000 gallons
This results in a proposed annual utility cost increase of about $39 for an average user
with water consumption of 8,000 gallons/billing cycle. (This is a proposed total utility
cost increase of 6.1%.)
Permits:
6a. Building Permit: The Building Permit fee schedule is proposed to be updated.
The City of Prior Lake has been using a fee schedule that was prepared in 2003 by the
League of Minnesota Cities and the Association of Metropolitan Municipalities
(AMM). The 2003 AMM Schedule has not been updated since its adoption. Due to the
Building Permit fees not being updated for many years and to encourage uniformity
within Scott County and the metropolitan area, city staff is recommending adoption of
the revised building permit fee schedule, which is also used by Scott County, the City of
Savage and City of New Prague and many other communities throughout the metro
area.
New fees added in 2019:
Permits:
6b. Commercial Contractor’s Deposit: This deposit is collected and retained in es-
crow if the contractor has remaining work to be completed prior to issuance of a certifi-
cate of occupancy. The deposit is based only on the remaining work and not the entire
project cost.
8. Driveway Permit (Multi-family residential & commercial parking lots and pri-
vate streets: a split was made between single-family and multi-family residential to
better capture costs associated with the size of the project.
9. Demolition Permit: new fee added in 2019.
10. Reimbursement of Permit Fees for Failure to Initiate Work: 80% of building
permit fee will be returned.
11. Small Wireless Facility Collocation Agreement Application Fee: fee to install
small wireless facilities on City owned support structures.
Park Facility Rentals:
14. Non-refundable Cancellation Fee for Seasonal Boat Slip Rentals: new fee
added in 2019.
Field Reservations:
16. Field Lighting: to help cover the operation and repair of field lights.
Recreation and Club Prior Programs:
17. Adult Sports Programs: W e are no longer listing each individual program. The
costs will be shown in the Recreation catalog.
18. Late Pick Up Fee: fee added to cover staff time when children are not picked up
on time.
Miscellaneous:
20. Staff recommends a fee for lost key cards when rooms are reserved at City Hall.
21. Staff recommends a fee for flash drives when information is requested from the
City.
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Changes to fees in 2019:
7. Common Home Improvements, 12. Street Overlay/Resurfacing Assessment,
13. Police Contracted Rate, 15. Park Facility Rentals, 19. Zoning/Subdivision
Fees and Permits: Staff is recommending an increase to cover the City’s annual cost
increases.
Fees removed in 2019:
A. Street Oversize Acreage Charge: In August 2018, the Minnesota Supreme Court
issued its decision in the Woodbury v. Harstad case related to street fees. The Court
held that a statutory city does not have express authority under Minn. Stat. § 462.358,
Subd. 2a, to condition approval of a subdivision application on the payment of an infra-
structure charge for future road-improvement projects. This means that a city cannot
use its subdivision authority to impose street infrastructure fees.
B. Common Home Improvements – Lower level finish (1 room): This was re-
moved from the fee schedule and replaced with a lower level finish (2 rooms or
less). Lower level finishes, even if they are only one room, generally require a mini-
mum of three inspections. This change was made to assure the inspection time was
accounted for.
C. Club Prior Rental: We are no longer taking reservations for the space.
D. Boat Trailer Parking, E. Daily Admission (Sand Point), F. Season Park
Sticker, G. Beach Groups Parking fee: Due to enforcement issues and to be con-
sistent across the City, the City is no longer charging a parking fee at Sand Point
Beach.
H. GIS Final Plat fee: The GIS property boundaries for final plats are completed by
Scott County, not the City of Prior Lake so this fee is not necessary.
I. Sign Permit Deposit (temporary): This deposit was collected to ensure removal of
temporary signs following the permitted period. City staff has not identified a need to
collect this deposit so as a business-friendly initiative, this deposit is proposed to be re-
moved.
J. Survey Waiver: Certain projects require a survey while others do not. There is not
an ability for a resident to pay for the waiver of this requirement, so the fee is proposed
to be removed.
ISSUES: This public hearing for the proposed fee schedule is the opportunity for the public to com-
ment or ask questions about the proposed 2019 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, staff can
respond to the questions and council members can ask additional questions or add to
the responses already made. This format will allow council members and staff to have a
reasonable and informative discussion which should enhance the public’s understanding
of the proposed 2019 Official Fee Schedule.
FINANCIAL
IMPACT:
The fee schedule identifies those types of service charges and license fees charged 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 20% of its support from charges for services,
licenses and permits.
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ALTERNA-
TIVES:
1.If all questions have been answered: 1) Approve an Ordinance amending Section
113 relating to the Official Fee Schedule, Section 401 relating to building permit fees
and Section 704 relating to utility charges as proposed or with changes as specified,
and 2) Adopt a resolution approving the Summary of the Ordinance and ordering the
publication of said summary.
2.Delay action if the Council requires additional information.
RECOM-
MENDED
MOTION:
ATTACH-
MENTS:
1.Alternative #1
1.Marked 2019 Official Fee Schedule
2.Ordinance (Exhibit A to Summary
Resolution)
3.Summary Resolution
4.July 16 CIP Workshop Report
Color Coded Fee Schedule Change Key:
2019 PROPOSED FEE SCHEDULE
City of Prior Lake
# of Explanation of Change 2018 Charges 2019 Proposed Charges
DEVELOPMENT FEES:
Administration Fee on Development Agreements 4.0%4.0%
Administrative Charge for No-Notice to Commence Construction for Utility Connections $100.00 $100.00
Construction Observation and Professional Service Fee on Development Agreements Minimum of 5.0% or such larger amount as desired by the
developer
Minimum of 5.0% or such larger amount as desired by the
developer
Escrow for Preliminary and Final Plats
3 lots or fewer $1,000.00 $1,000.00
4 - 10 lots $2,500.00 $2,500.00
11 or more lots $5,000.00 $5,000.00
Park Dedication Fee
Residential $3,750.00 / unit $3,750.00 / unit
Commercial/industrial $6,400.00 / ac.$6,400.00 / ac.
A Street Oversize Acreage Charge $6,549.00 / ac.N/A
UTILITY DEVELOPMENT FEES:
1a Trunk Sewer Acreage Charge $4,046.00 / ac.$4,450.00 / ac.
1b Trunk Water Acreage Charge $7,217.00 / ac.$7,506.00 / ac.
Trunk Stormwater Acreage Charge
2a Low density residential (R1,R2)$3,713.00 / ac.$4,085.00 / ac.
2b High density residential (R3)$6,123.00 / ac.$6,735.00 / ac.
2c Commercial/industrial $7,693.00 / ac.$8,462.00 / ac.
Trunk Line Availability Charge - Sanitary Sewer (AKA Connection Charge)$9,000.00 $9,000.00
Trunk Line Availability Charge - Water (AKA Connection Charge)$9,000.00 $9,000.00
UTILITY CONNECTION AND PERMIT CHARGES:
1c Sewer Connection Charge $799.00 $878.00
1d Water Connection Charge $1,136.00 $1,180.00
MCES Direct Interceptor Connect Permit Review Charge $1,000.00 $1,000.00
MCES Metro Sewer Availability Charge $2,485.00 $2,485.00
1e Water Tower Charge $1,452.00 $1,510.00
Water Permit
Industrial, commercial, multi-residential 1.0% of cost (25.50 min.)1.0% of cost (25.50 min.)
Residential $30.50 $30.50
Sewer Permit
Industrial, commercial, multi-residential 1.0% of cost (25.50 min.)1.0% of cost (25.50 min.)
Residential $30.50 $30.50
Blue – Changes in heading/name of fee, specifying timeframe (i.e. per month, per billing cycle). No new fees or changes to the amount of fees.
Orange – New fees or changes in fees. Explanation # is shown in the left-most column below. Explanations are detailed on the agenda report.
Red – Deleted fees. No longer applicable or were duplicates.
2019 PROPOSED FEE SCHEDULE
City of Prior Lake
# of Explanation of Change 2018 Charges 2019 Proposed Charges
UTILITY RATES AND CHARGES:
Minimum Charge for Water $2.50 per billing cycle $2.50 per billing cycle
Minimum Charge for Sewer $2.50 per billing cycle $2.50 per billing cycle
3a Water Rate $4.67/1000 gals. 1st 25,000 gals.$4.81/1000 gals. 1st 25,000 gals.
3b Water Rate $6.44/1000 gals. above 25,000 gals. $6.63/1000 gals. above 25,000 gals.
4a Sewer Rate (City)$2.94/1,000 gals.$3.39/1,000 gals.
Intergovernmental Utility Rates:
Sewer (City)Cost per Agreement Cost per Agreement
Water Cost per Agreement Cost per Agreement
Sewer Rate - for users connected to the Municipal Sewer System but not the Municipal Water System $25.00 per billing cycle $25.00 per billing cycle
4b Met Council Sewer Rate (MCES) - in addition to City Sewer Rate $2.67/1000 gals.$2.81/1000 gals.
Bulk Water Charge $5.00/1000 gals.$5.00/1000 gals.
Prepaid Card Initial/Replacement Fee (for bulk water)$5.00 $5.00
Bulk Water Meter Rental
Administrative Fee $100.00 $100.00
Meter Deposits < 1 1/2 inch - $500.00 < 1 1/2 inch - $500.00
>or = 1 1/2 inch - $1,500.00 >or = 1 1/2 inch - $1,500.00
5 Storm Water Charge $14.34 (residential) / $43.02 acre $15.06 (residential) / $43.02 acre
Capital Facility Charge 10.00/billing cycle 10.00/billing cycle
Water Meter - residential 5/8"cost plus 15%cost plus 15%
Pressure Reducer cost plus 15%cost plus 15%
Frost Plates $7.50 $7.50
Meter Testing Costs Actual cost Actual cost
Delinquent Utility Account - Door Hanger Charge $25.00 $25.00
Water Shut-off Charge (Day/Night)$45.00/$95.00 $45.00/$95.00
Water service thawing 1st time – no charge All subsequent times – actual cost 1st time – no charge All subsequent times – actual cost
Odd-Even Sprinkling Ban Penalties:
First Offense Warning Warning
Second Offense $50.00 $50.00
Third Offense $100.00 $100.00
Each Subsequent Offense Shall Double from the Prior Offense Shall Double from the Prior Offense
Meter Tampering Penalty $100.00 $100.00
2019 PROPOSED FEE SCHEDULE
City of Prior Lake
# of Explanation of Change 2018 Charges 2019 Proposed Charges
PERMITS:
6a Building Permit 2003 AMM Schedule Per City Code Section 401.300
Building Permit Technology Charge $5.00 per permit $5.00 per permit
Change of Occupancy Permit $45.00 $45.00
6b Commercial Contractor's Deposit (Escrow prior to Certificate of Occupancy)110% of remaining work
Common Home Improvements Fixed valuation fee Fixed valuation fee
Additions/Decks
Use State Average Value or use Contractor/Homeowner
Value, whichever is greater
Use State Average Value or use Contractor/Homeowner
Value, whichever is greater
Re-roofing $108.00 $108.00
Re-siding $108.00 $108.00
Windows $108.00 $108.00
B Lower level finish (1 room)$127.69 N/A
7a Lower level finish (2 rooms or less)$152.11 $200.00
7b Lower level finish (3 room)$176.95 $250.00
7c Lower level finish (4 room)$226.63 $300.00
Swimming pool (above ground)$201.79 $201.79
Swimming pool (below ground)$450.16 $450.16
Driveway Permit (Single-family residential)$35.00 $35.00
8 Driveway Permit (Multi-family residential & commercial parking lots and private streets)$150.00
9 Demolition Permit $200.00
Electrical Inspection Per State Electrical Inspection Fee Schedule Per State Electrical Inspection Fee Schedule
Excavation & Grading Permits & Escrows
Permit for Residential < 1 acre $105.00 $105.00
Escrow for Residential >= 1 acre $955.00 / month; $250 minimum $955.00 / month; $250 minimum
Security for Residential Restoration $2,005 / acre $2,005 / acre
Escrow for Commercial/Developers $955.00 / month; $250 minimum $955.00 / month; $250 minimum
Security for Commercial/Developer Restoration $2,005 / acre $2,005 / acre
Plan Review 65% Building Permit Fee 65% Building Permit Fee
Repetitive Plan Review 25% Building Permit Fee 25% Building Permit Fee
10 Reimbursement of Permit Fees for Failure to Initiate Work 80% Building Permit Fee
Construction Observation - work performed by city appointed outside consultant Per Estimate Per Estimate
Structural Review - work performed by city appointed outside consultant Per Estimate Per Estimate
Retaining Wall Structural Review Actual cost Actual cost
11 Small Wireless Facility Collocation Agreement Application Fee $1,500.00
2019 PROPOSED FEE SCHEDULE
City of Prior Lake
# of Explanation of Change 2018 Charges 2019 Proposed Charges
PERMITS:
Plumbing Permits
Industrial, commercial, multi-residential 1.0% of cost ($49.50 min.)1.0% of cost ($49.50 min.)
Residential - new construction (single/two family)$154.50 $154.50
Residential - additions/alterations $54.50 $54.50
Mechanical Permits
Industrial, commercial, multi-residential 1.0% of cost ($49.50 min.)1.0% of cost ($49.50 min.)
Residential - heating/air (single/two family)$154.50 $154.50
Residential - gas fireplaces $54.50 $54.50
Residential - additions/alterations $54.50 $54.50
Moving Permit $55.00 $55.00
Residential Contractor's Deposit $2,500.00 $2,500.00
Short Term Rental Permit $205.00 $205.00
Tree Deposit $100 per inch of required replacement; minimum $500 $100 per inch of required replacement; minimum $500
Right-of-Way Permit and Telecommunications User Registration
Yearly Registration Fee for Online Program – paid by each applicant with the first Right-of-Way Permit they obtain each year $30.00 $30.00
Right of Way Permit (waived for companies with franchise agreements with City)$250.00 $250.00
Delay Penalty $100.00 per day $100.00 per day
Right of Way Security Boulevards (waived for companies with franchise agreements with City)$500.00 $500.00
Right of Way Security Streets 125% of restoration estimate 125% of restoration estimate
Telecommunications User Registration Fee $255.00 $255.00
Failure to Obtain Right-of-Way Permit or Failure to Register N/A N/A
Water Tower Access Permit N/A N/A
Short Term Rental Permit N/A N/A
2019 PROPOSED FEE SCHEDULE
City of Prior Lake
# of Explanation of Change 2018 Charges 2019 Proposed Charges
SERVICE CHARGES:
Assessment Search $25.00 $25.00
Customer Lists (annual charge)$55.00 $55.00
Administrative Fee for Assessment of Delinquent Charges $60.00 $60.00
Erosion and Sediment Control or Cleanup (gravel driveways, private property erosion, etc.)1) Street sweeping - $155.00/hr. (Min. $150.00)1) Street sweeping - $155.00/hr. (Min. $150.00)
2) Other methods – Actual cost 2) Other methods – Actual cost
Late License Processing Charge $55.00 $55.00
Merchant Fees for Debit/Credit Card Payments - All Services Paid by Customer Paid by Customer
NSF Charge $30.00 $30.00
Plumbing Registration $30.00 $30.00
Public Works Contracted Service $36/ hour $36/ hour
Public Works Contracted Service Overtime $60/ hour $60/ hour
Recurring autopayments/ACH completed through online service provider Paid by Customer Paid by Customer
12 Street Overlay/Resurfacing Assessment $1,200 /Residential Equivalent Density Unit (RED) $1,266 /Residential Equivalent Density Unit (RED) -
5.53% increase based on Construction Cost Index
POLICE, FIRE & RESCUE SERVICE CHARGES:
Burning Permit $40.00 $40.00
False Alarms (effective upon 4th false alarm each year)$100.00 / $150.00 / $200.00 / $250.00 $100.00 / $150.00 / $200.00 / $250.00
Police Accident Reports $5.00 $5.00
13 Police Contracted Rate $90/ hour $93/ hour
LIQUOR LICENSES:
On Sale Intoxicating - Club $650.00 $650.00
Consumption & Display License (Temporary)$25.00 $25.00
Consumption & Display License $550.00 $550.00
Off Sale Intoxicating $380.00 w/100.00 credit available for training $380.00 w/100.00 credit available for training
Off Sale 3.2 Malt Liquor $100.00 $100.00
On Sale Intoxicating $6,600.00 $6,600.00
On Sale 3.2 Malt Liquor $500.00 $500.00
On Sale Sunday Liquor $200.00 $200.00
Temporary On Sale & Temporary On Sale 3.2 Malt Liquor (1-3 days)$75.00 $75.00
On Sale Wine License $2,000.00 $2,000.00
Investigation Fee - On/Off Sale Intoxicating $500 min./actual cost up to $10,000 max.$500 min./actual cost up to $10,000 max.
Investigation Fee - On Sale 3.2 Malt Liquor $100.00 $100.00
Investigation Fee - Off Sale 3.2 Malt Liquor $50.00 $50.00
Refund Retainage Fee - On Sale Intoxicating $400.00 $400.00
Late Fee for License Renewals $50.00 $50.00
On-Sale Malt Liquor Brewer Taproom $650.00 $650.00
Off-Sale Malt Liquor Small Brewer (Growler)$200.00 $200.00
On-Sale Malt Liquor Brew Pub $650.00 $650.00
Off-Sale Malt Liquor Brew Pub (Growler)$200.00 $200.00
2019 PROPOSED FEE SCHEDULE
City of Prior Lake
# of Explanation of Change 2018 Charges 2019 Proposed Charges
MISCELLANEOUS LICENSES & PERMITS:
Animal License (Cats and Dogs)
Spayed/Neutered Pets $20.00 $20.00
Non-Spayed/Neutered Pets $30.00 $30.00
Temporary Gambling Permit $40.00 $40.00
Gambling Premise Permit $105.00 $105.00
Cigarette License $255.00 $255.00
Community Event Application $50/$100 $50/$100
Community Event Costs 100% cost recovery 100% cost recovery
Community Event Costs: Co-Sponsored % of cost recovery as determined by City Manager % of cost recovery as determined by City Manager
Dog Boarding Fees $15.00 $15.00
Dog Impoundment Fines 1st licensed/unlicensed - $30.00/$55.00 1st licensed/unlicensed - $30.00/$55.00
2nd offense - $55.00 2nd offense - $55.00
3rd offense - $105.00 3rd offense - $105.00
Dangerous Dog Annual Registration $55.00 $55.00
Fireworks Application $100/display $100/display
Kennel License $55.00 $55.00
Massage Therapy License $105.00 $105.00
Investigation Fee actual cost up to $500 max.actual cost up to $500 max.
Public Private Gathering Event Permit $30.00 $30.00
Refuse Haulers License 1st truck - $255.00 1st truck - $255.00
each additional truck - $50.00 each additional truck - $50.00
Peddler's Permit application $50.00 $50.00
Taxi Cab License $105.00/$55.00 each additional cab $105.00/$55.00 each additional cab
Golf Cart Permit $30.00 $30.00
Special Hunting Permit $50.00 $50.00
2019 PROPOSED FEE SCHEDULE
City of Prior Lake
# of Explanation of Change 2018 Charges 2019 Proposed Charges
PARK FACILITY RENTALS:
Boat slip rental
Resident/non-resident-weekday (Monday noon through Friday 10:00 a.m.)$70.00/$90.00 $70.00/$90.00
Resident/non-resident-weekend (Friday noon through Monday 10:00 a.m.)$85.00/$115.00 $85.00/$115.00
Seasonal $3,500/boat slip $3,500/boat slip
14 Non-refundable cancellation fee for seasonal boat slip rental $350.00
Canoe/Kayak Rack rental (Sandpoint) - Seasonal (05/01 - 09/30)
Resident $60.00 $60.00
Non-Resident $150.00 $150.00
C Club Prior Rental:
Resident (Mon-Fri, 2 hr. min./Sat, Sun, City Holidays 4 hr. min)$50.00/hour, $200.00 damage deposit N/A
Non-Resident (Mon-Fri, 2 hr. min./Sat, Sun, City Holidays 4 hr. min)$75.00/hr, $200.00 damage deposit N/A
Community Garden (05/01 - 10/31) Rental - Resident/Nonresident:Cost Per Agreement Cost Per Agreement
Lakefront Park Pavilion Rental (includes Gazebo):
Monday - Thursday (not holidays):
15a Resident Group (private) $300.00/day, $200.00 damage deposit $150.00/day, $150.00 damage deposit
15b Non-Resident* Group (private, public or business) $450.00/day, $200.00 damage deposit $300.00/day, $150.00 damage deposit
Friday - Sunday:
15c Resident Group (private)$300.00/day, $200.00 damage deposit $300.00/day, $300.00 damage deposit
15d Non-Resident* Group (private, public or business)$450.00/day, $200.00 damage deposit $450.00/day, $300.00 damage deposit
*Outside of corporate city limits of Prior Lake
Picnic Shelter/Band Shell (Community Parks)
Resident/non-resident $80.00 - $130.00/day $80.00 - $130.00/day
Prior Lake Lions Club (Sand Point Beach Only)No Charge No Charge
School District #719, Youth Organizations, Non-Profit Civic Groups, Churches and
Governmental Agencies No Charge - Monday through Friday No Charge - Monday through Friday
Other:
Park Facility Reservation Change/Cancel Fee (Lakefront Park pavilion only) (Resident/Non-resident)$55.00 $55.00
Park Facility Reservation Change/Cancel Fee (All other shelters, Boat Slips, Canoe/Kayak Rack)$30.00 $30.00
2019 PROPOSED FEE SCHEDULE
City of Prior Lake
# of Explanation of Change 2018 Charges 2019 Proposed Charges
CITY FACILITY RENTALS:
Facility Usage Fee (City Hall, Beaches, Main St., Athletic facilities) Resident/Non-resident $300/$450/day, Clean-up fee, if needed $300/$450/day, Clean-up fee, if needed
Athletic Tournament Fee (Resident/Non-resident)$300/$450/per tournament $300/$450/per tournament
Fire Station, City Hall Conference Room-Parkview and Council –Resident/Non-resident Clean-up fee, if needed Clean-up fee, if needed
FIELD RESERVATIONS:
Field Reservations (with maintenance services)Cost Per Agreement Cost Per Agreement
Field Reservations (no maintenance services)$50/$100 per field, per day $50/$100 per field, per day
Field Striping
Initial Layout $0.20/ft.$0.20/ft.
Restripe $0.06/ft.$0.06/ft.
16 Field Lighting $20 per hour, per field
SOFTBALL TOURNAMENTS:Cost Per Agreement Cost Per Agreement
RECREATION AND CLUB PRIOR PROGRAMS Cost Per Agreement Cost Per Agreement
Registration late fee (registrations received after the deadline)$10.00/registration $10.00/registration
17 Adult Sports Programs Cost Per Agreement
Adult Kickball $35-$50/team N/A
Adult Softball Team Fee:
Men's/Women's/Church Summer Program $725/team N/A
Co-Rec Summer Program $425/team N/A
Co-Rec Fall Program $305/team N/A
Adult Volleyball Team Fee:
Co-Rec Summer Program $210/team N/A
Classes $3-$40/person/class $3-$40/person/class
Community Events Free Free
Youth Camps $15-$160/week/camp $15-$160/week/camp
Youth/Senior Trips Cost Per Agreement Cost Per Agreement
18 Late Pick Up Fee $1/minute, per child after 10 minute grace period
PARK PERMITS
D Boat Trailer Parking (Sand Point Beach) -Saturday, Sunday & Holidays $25.00/day N/A
E Daily Admission (Sand Point Beach) - Saturday, Sunday & Holidays $5.00/day N/A
F Season Park Sticker (resident/non-resident)$30.00 / $55.00 N/A
G Beach Groups Parking Fee $20.00 / bus N/A
Barricades (minimum 2 barricades)$13.00 / barricade $13.00 / barricade
Garbage Barrels (minimum 2 barrels)$13.00 / barrel $13.00 / barrel
Picnic Table Moves (minimum 4 tables)$18.00 / table $18.00 / table
2019 PROPOSED FEE SCHEDULE
City of Prior Lake
# of Explanation of Change 2018 Charges 2019 Proposed Charges
ZONING/SUBDIVISION FEES:
Administrative Plat Fee $255.00 $255.00
CIC Plat Fee $255.00 $255.00
19a Comprehensive Plan Amendment $755.00 $555.00
Concept Plan $255.00 $255.00
19b Conditional Use Fee $505.00 $530.00
19c Conditional Use Major Amendment $255.00 $280.00
Fence Permit n/c n/c
Final Plat Application Fee $255.00 + $10/lot $255.00 + $10/lot
Final Plat Major Modification $205.00 $205.00
H GIS final plat fee $30.00 + $15/lot N/A
19d Interim Use Permit $505.00 $530.00
Home Occupation Permit $15.00 $15.00
Letter of Credit (residential building relocation)$5,000.00 $5,000.00
Metes & Bounds Subdivision $255.00 $255.00
19e P.U.D. (prelim)$755.00 $780.00
P.U.D. (final)$505.00 $505.00
P.U.D. Minor Amendment $255.00 $255.00
19f P.U.D. Major Amendment $605.00 $630.00
19g Preliminary Plat Application Fee $505.00 + $15/lot $530.00 + $15/lot
19h Preliminary/Final Plat Combination Fee $505.00 + $15/lot $530.00 + $15/lot
19i Registered Land Survey $255.00 $280.00
19j Rezoning $755.00 $555.00
Sidewalk Sales Permit $105.00 $105.00
Sign Permit (permanent) - Single Tenant Buildings $80.00 - 1st 40 sq. ft. plus .50/sq. ft. thereafter $80.00 - 1st 40 sq. ft. plus .50/sq. ft. thereafter
Sign Permit (permanent) - Multiple Tenant Buildings $80.00 - 1st 40 sq. ft. plus .50/sq. ft. thereafter $80.00 - 1st 40 sq. ft. plus .50/sq. ft. thereafter
Sign Permit (temporary)$55.00 $55.00
I Sign Permit Deposit (temporary)$105.00 N/A
19k Site Plan $505.00 $255.00
J Survey Waiver $55.00 N/A
Tree Preservation Lot Deposit $100 per inch of required replacement; minimum $500 $100 per inch of required replacement; minimum $500
Vacation Fee $305.00 $305.00
19l Variance Fee $505.00 $530.00
Zoning Code Amendment $505.00 $505.00
19m Zoning Appeal (Administrative & Planning Commission)$255.00 $305.00
Zoning Verification Letter $40.00 $40.00
2019 PROPOSED FEE SCHEDULE
City of Prior Lake
# of Explanation of Change 2018 Charges 2019 Proposed Charges
MUNICIPAL FINANCING APPLICATION FEES:
Annexation Filing Fee (plus city expenses)$500.00 $500.00
Bond Administration fee (new money)The greater of $10,000 or .5% of the principle amount of
the bonds allocated to the city.
The greater of $10,000 or .5% of the principle amount of
the bonds allocated to the city.
Bond Administration fee (refunding)The greater of $10,000 or .25% of the principle amount of
the bonds allocated to the city.
The greater of $10,000 or .25% of the principle amount of
the bonds allocated to the city.
Conduit bond financing origination fee and annual reporting
Non-Refundable application fee $2,500.00 $2,500.00
TIF Application Fee (plus additional city expenses incurred)$5,000.00 $5,000.00
TIF Reassignment Cost Cost
PUBLICATIONS: (many are available online at no charge)
Comprehensive Utility Plans (each)$30.00 $30.00
Public Works Design Manual $15.00 $15.00
MAPS: (many are available online at no charge)
Aerial Maps (small/regular/large)$10.00 / $15.00 / $20.00 $10.00 / $15.00 / $20.00
City Maps (small/regular/large)$7.50 / $10.00 / $15.00 $7.50 / $10.00 / $15.00
GIS data files (cd format)
2-ft contours, planimetric data $12.00/ac.$12.00/ac.
parcels only $.05/parcel $.05/parcel
custom data $50.00/hr.$50.00/hr.
Plan Copies (regular/large)$10.00 / $15.00 $10.00 / $15.00
Developers will be given 1 set of S&W as-builts at no charge-add'l prints will be charged above rate
Topo Maps (small/regular/large)$15.00/ $20.00 / $30.00 $15.00/ $20.00 / $30.00
MISCELLANEOUS:
Copy charge per 8 1/2 x 11 page in accordance with MN Government Data Practices Act $.25 ea.$.25 ea.
Charge for compiling data in accordance with MN Government Data Practices Act Actual Cost Actual Cost
DVD/VHS copies $5.00 $5.00
20 Lost key cards (external meeting room users only)$5.00
21 Flash Drive Cost
Any failure to obtain required permit/license/approval/registration for project/work/activity/business Double the Stated Fee Double the Stated Fee
Memorial benches: 6' metal coated $1,500.00 $1,500.00
Memorial plaques $225.00 $225.00
Memorial plaque stand $75.00 $75.00
Memorial trees $300.00 $300.00
Sand bags Actual cost Actual cost
Street standard plates (cd format)$10.00 $10.00
Wetland marker signs $10.00 $10.00
Wetland Conservation Act (WCA) application fee $150.00 $150.00
Wetland field estimate $250.00 $250.00
Wetland Conservation Act (WCA) administration Actual Cost Actual Cost
4646 Dakota Street SE
Prior Lake, MN 55372
CITY OF PRIOR LAKE
ORDINANCE NO. 118-__
AN ORDINANCE OF THE CITY OF PRIOR LAKE, MINNESOTA,
AMENDING CITY CODE SECTION 113 RELATING TO THE OFFICIAL FEE SCHEDULE,
SECTION 401 RELATING TO BUILDING PERMIT FEES, SECTION 704 RELATING TO THE
SUMMER SEWER RATE LOCK AND ADOPTING BY REFERENCE CITY CODE SECTION 104,
WHICH, AMONG OTHER THINGS, CONTAINS PENALTY PROVISIONS.
THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, MINNESOTA, ORDAINS:
Section 1: City Code Section 113, the City Fee Schedule, is amended by revising the names of the
following fees:
Existing Name: Revised Name:
PERMITS:
Driveway Permit Driveway Permit (Single-family residential)
Residential - additions Residential - additions/alterations
Residential - additions Residential - additions/alterations
Residential Contractor's Deposit
January 1st through December 31st
Residential Contractor's Deposit
PARK FACILITY RENTALS:
Lakefront Park Pavilion Rental (includes
Gazebo):
Resident Group (private)
Non-Resident* Group (private, public or
business)
Lakefront Park Pavilion Rental (includes
Gazebo):
Monday - Thursday (not holidays):
Resident Group (private)
Non-Resident* Group (private, public or
business)
Friday - Sunday:
Resident Group (private)
Non-Resident* Group (private, public or
business)
Park Facility Reservation Change/Cancel Fee
(All other shelters, Club Prior, Boat Slips,
Canoe/Kayak Rack
Park Facility Reservation Change/Cancel Fee
(All other shelters, Boat Slips, Canoe/Kayak
Rack
Section 2: City Code Section 113, the City Fee Schedule, is amended by updating various fees as
follows:
UTILITY DEVELOPMENT FEES: Trunk Sewer Acreage Charge $4,450.00 / ac.
2
Trunk Water Acreage Charge $7,506.00 / ac.
Trunk Stormwater Acreage Charge
Low density residential (R1,R2) $4,085.00 / ac.
High density residential (R3) $6,735.00 / ac.
Commercial/industrial $8,462.00 / ac.
UTILITY CONNECTION AND PERMIT CHARGES:
Sewer Connection Charge $878.00
Water Connection Charge $1,180.00
Water Tower Charge $1,510.00
UTILITY RATES AND CHARGES:
Water Rate $4.81/1000 gals. 1st 25,000 gals.
Water Rate $6.63/1000 gals. above 25,000 gals.
Sewer Rate (City) $3.39/1,000 gals.
Met Council Sewer Rate (MCES) - in addition to City
Sewer Rate
$2.81/1000 gals.
Storm Water Charge $15.06 (residential) / $43.02 acre
PERMITS:
Building Permit Per City Code Subsection 401.300
Commercial Contractor's Deposit (Escrow prior to
Certificate of Occupancy)
110% of remaining work
Lower level finish (2 rooms or less) $200.00
Lower level finish (3 room) $250.00
Lower level finish (4 room) $300.00
Driveway Permit (Multi-family residential & commercial
parking lots and private streets)
$150.00
Demolition Permit $200.00
Electrical Inspection Per State Electrical Inspection Fee
Schedule
Reimbursement of Permit Fees for Failure to Initiate Work 80% Building Permit Fee
Small Wireless Facility Collocation Agreement
Application Fee
$1,500.00
SERVICE CHARGES:
Street Overlay/Resurfacing Assessment $1,266 /Residential Equivalent Density
Unit (RED) - 5.53% increase based on
Construction Cost Index
POLICE, FIRE & RESCUE SERVICE CHARGES:
Police Contracted Rate $93/ hour
PARK FACILITY RENTALS:
Non-refundable cancellation fee for seasonal boat slip
rental
$350.00
Lakefront Park Pavilion Rental (includes Gazebo):
Monday - Thursday (not holidays):
Resident Group (private) $150.00/day, $150.00 damage deposit
Non-Resident* Group (private, public or business) $300.00/day, $150.00 damage deposit
Friday - Sunday:
Resident Group (private) $300.00/day, $300.00 damage deposit
Non-Resident* Group (private, public or business) $450.00/day, $300.00 damage deposit
3
FIELD RESERVATIONS:
Field Lighting $20 per hour, per field
RECREATION AND CLUB PRIOR PROGRAMS:
Adult Sports Programs Cost Per Agreement
Late Pick Up Fee $1/minute, per child after 10 minute
grace period
ZONING/SUBDIVISION FEES:
Comprehensive Plan Amendment $555.00
Conditional Use Fee $530.00
Conditional Use Major Amendment $280.00
Interim Use Permit $530.00
P.U.D. (prelim) $780.00
P.U.D. Major Amendment $630.00
Preliminary Plat Application Fee $530.00 + $15/lot
Preliminary/Final Plat Combination Fee $530.00 + $15/lot
Registered Land Survey $280.00
Rezoning $555.00
Site Plan $255.00
Variance Fee $530.00
Zoning Appeal (Administrative & Planning Commission) $305.00
MISCELLANEOUS:
Lost key cards (external meeting room users only) $5.00
Flash Drive Cost
Section 3: City Code Section 113, the City Fee Schedule, is amended by deleting the following fees:
DEVELOPMENT FEES: Street Oversize Acreage Charge
PERMITS:
Lower level finish (1 room)
PARK FACILITY RENTALS:
Club Prior Rental:
Resident (Mon-Fri, 2 hr. min./Sat, Sun, City Holidays 4 hr. min)
Non-Resident (Mon-Fri, 2 hr. min./Sat, Sun, City Holidays 4 hr. min)
RECREATION AND CLUB PRIOR PROGRAMS:
Adult Kickball
Adult Softball Team Fee:
Men's/Women's/Church Summer Program
Co-Rec Summer Program
Co-Rec Fall Program
Adult Volleyball Team Fee:
Co-Rec Summer Program
PARK PERMITS:
Boat Trailer Parking (Sand Point Beach) -Saturday, Sunday & Holidays
Daily Admission (Sand Point Beach) - Saturday, Sunday & Holidays
4
Season Park Sticker (resident/non-resident)
Beach Groups Parking Fee
ZONING/SUBDIVISION FEES:
GIS final plat fee
Sign Permit Deposit (temporary)
Survey Waiver
Section 4: City Code Section 401, Subsection 401.300, Table 1-A is amended by updating the fees
relating to valuation as follows:
TABLE 1-A: BUILDING PERMIT FEES
TOTAL VALUATION FEE
$1.00 to $500 $29.50
$501 to $2,000 $28 for the first $500 plus $3.70 for each additional $100, or
fraction thereof, to and including $2,000.
$2,001 to $25,000 $83.50 for the first $2,000 plus $16.55 for each additional
$1,000 or fraction thereof, to and including $25,000.
$25,001 to $50,000 $464.15 for the first $25,000 plus $12 for each additional
$1,000 or fraction thereof, to and including $50,000.
$50,001 to $100,000 $764.15 for the first $50,000 plus $8.45 for each additional
$1,000, or fraction thereof, to and including $100,000.
$100,001 to $500,000 $1,186.65 for the first $100,000 plus $6.75 for each additional
$1,000 or fraction thereof, to and including $500,000.
$500,001 to $1,000,000 $3,886.65 for the first $500,000 plus $5.50 for each additional
$1,000 or fraction thereof, to and including $1,000,000.
$1,000,000 and up $6,636.65 for the first $1,000,000 plus $4.50 for each
additional $1,000 or fraction thereof.
Section 5: City Code Section 704, Subsection 704.404 is amended as follows:
704.404 Sanitary Sewer Rate Cap. The charge for sanitary sewer usage for each billing cycle for bills
issued in June, August and, October and December (actual usage May 21 through September
20 March 21 through November 20) shall not exceed one hundred and fifty percent (150%)
of the average charge for sanitary sewer usage for the bills issued in February and April
(actual usage November 21 through March 20). The purpose for this sanitary sewer cap is to
provide consideration for lawn and garden sprinkling and other related outside water usage,
which does not flow into the sanitary sewer system.
Section 6: City Code Section 104 entitled “General Penalty” is adopted in its entirety, by reference, as
though repeated verbatim herein.
Section 7: This ordinance shall become effective from and after its passage and publication or on
January 1, 2019, whichever occurs later.
Passed by the City Council of the City of Prior Lake this 03 day of December, 2018.
5
ATTEST:
_________________________ __________________________
Frank Boyles, City Manager Kirt Briggs, Mayor
Summary Ordinance to be published in the Prior Lake American on the 15 day of December, 2018.
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 18-____
A RESOLUTION APPROVING THE SUMMARY OF ORDINANCE NO. _____ AND
ORDERING THE PUBLICATION OF SAID SUMMARY
Motion By: Second By:
WHEREAS,
On December 3, 2018 the City Council adopted Ordinance No. ____ amending
Section 113 relating to the Official Fee Schedule, Section 401 relating to building
permit fees and Section 704 relating to the summer sewer rate lock; and
WHEREAS, Minnesota Statutes requires publication of an ordinance in the official newspaper
before it becomes effective; and
WHEREAS, Minnesota Statutes also allows the publication of a summary of an ordinance if the
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 Sections 113,
401 and 704 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. Ordinance No. _____________ is lengthy.
3. The text of summary of Ordinance No. __________________, attached hereto as Exhibit A,
conforms to M.S. § 331A.01, Subd. 10, and is approved, and publication of the title and
summary of the Ordinance will clearly inform the public of the intent and effect of the
Ordinance.
4. The title and summary shall be published once in the Prior Lake American in a body type no
smaller than brevier or eight-point type.
5. A complete text of the newly amended City Code will be available for inspection at City Hall
or in the Document Center on the City of Prior Lake Website after December 15, 2018.
PASSED AND ADOPTED THIS 3rd DAY OF DECEMBER 2018
VOTE Briggs McGuire Thompson Braid Burkart
Aye ☐ ☐ ☐ ☐ ☐
Nay ☐ ☐ ☐ ☐ ☐
Absent ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
_____________________________
Frank Boyles, City Manager
2
Exhibit A
SUMMARY ORDINANCE NO. __________
CITY OF PRIOR LAKE
ORDINANCE NO. _________
AN ORDINANCE OF THE CITY OF PRIOR LAKE, MINNESOTA,
AMENDING CITY CODE SECTION 113 RELATING TO THE OFFICIAL FEE
SCHEDULE,SECTION 401 RELATING TO BUILD ING PERMIT FEES, SECTION 704
RELATING TO THE SUMMER SEWER RATE LOCK AND ADOPTING BY REFERENCE
CITY CODE SECTION 104, WHICH, AMONG OTHER THINGS, CONTAINS PENALTY
PROVISIONS.
The following is only a summary of Ordinance No. ____________. The full text will be
available for public inspection after December 15, 2018 by any person during regular office
hours at City Hall or in the Document Center on the City of Prior Lake Website.
SUMMARY: The Ordinance amends Section 113 relating to the Official Fee Schedule by
updating the fees and charges listed for 2019. The Ordinance amends Subsection 401.300 by
updating the building permit fees in table 1-A. The Ordinance amends Subsection 704.404
relating to the summer sewer rate lock.
This ordinance shall become effective from and after its passage and publication.
Passed by the City Council of the City of Prior Lake this 3rd day of December 2018.
ATTEST:
_________________________ __________________________
Frank Boyles, City Manager Kirt Briggs, Mayor
Summary published in the Prior Lake American on the 15th day of December 2018.
1
4646 Dakota Street SE
Prior Lake, MN 55372
CITY COUNCIL WORKSHOP REPORT
MEETING DATE: JULY 16, 2018
PREPARED BY: CATHY ERICKSON, FINANCE DIRECTOR
JASON WEDEL, PUBLIC WORKS DIRECTOR/CITY ENGINEER
PRESENTED
BY:
CATHY AND JASON
TOPIC: 2019-2023 CAPITAL IMPROVEMENT PROGRAM
DISCUSSION: Introduction
The purpose of this workshop is to complete a City Council review and receive input
regarding the proposed 2019-2023 Capital Improvement Program (CIP)
This year, the CIP Council Workshops are divided into two parts.
June 18 Workshop -Part 1: City Council review of the proposed 2019-2023 Capital
Improvement Program (CIP) for the following draft plans:
1) Transportation Plan
2) Equipment Replacement Plan
3) Park Plan
4) Facilities Management Plan
5) Street Overlay Plan
July 16 Workshop - Part 2: The remaining CIP draft plans, noted below, will be
reviewed at the July 16 Council workshop
1) Technology Plan
2) Water Operating Plan
3) Sanitary Sewer Operating Plan
4) Water Quality Operating Plan
History
Description of the Capital Improvement Plan (CIP)
Prior Lake’s five-year Capital Improvement Program is a planning tool used to support
the City’s 2040 Vision and Strategic Plan. Each year, forecasts for projects that will
be needed, estimated costs and possible funding sources are programmed into the
CIP for the next five years. The CIP is typically updated, evaluated and approved
each year by the City Council as projects are completed and priorities change. The
2
purpose of the CIP is to assure that funds are available when projects are required to
meet community needs.
Current Circumstances
1. Technology Plan
The Technology Plan assists the City with planning for current and long-range
information technology needs, including hardware, software and other IT-related
items. See the “Technology Plan – 2019-2023 Proposed Expenditures” attachment for
more specific details of proposed significant annual expenditures.
The Technology Plan itself summarizes operating and capital expenditures in
accordance with our policy. This document is also attached. The expenditures
summarized in the Technology Plan are part of the General Fund tax levy. While this
plan is reflective of the needs of our various departments the actual request could
change as part of the budget review process. This plan is discussed as part of the
CIP because have an annual investment in technology and we need to plan for our
current and long-range IT needs.
2, 3 and 4. Water, Sewer and Storm Water Plans
Utility Capital Projects
As a reminder, the Water, Sewer, and Storm Water Plans include projects associated
with the Transportation Plan. This means that fund balances are directly impacted by
the transportation plan projects where there is utility reconstruction completed below
the street. (Funds will be transferred to the Construction fund for the utility cost portion
of street projects.) A copy of the transportation plan is attached for reference.
Minimal street reconstruction with utilities in 2019:
Due to the significant road projects in 2018 and 2019, Director Wedel is
recommending one smaller scale street rehab in 2019 with no utility related work.
The only 2019 utility work will be on the CR 21/TH13/Main Ave/Arcadia road project
for an estimated total of $100,000 and $250,000 for the water and street utilities
respectively. This will give us an opportunity to build cash reserves to fund some of
the future year projects in the 2019-2023 CIP.
Utility reconstruction on private streets in 2021
The transportation plan includes utility reconstruction on the Pershing/Dunkirk area
streets in 2021. At this time the utilities under the Inguadona area private streets will
also be reconstructed. The street portion of the cost for the Inguadona area private
streets is $591,570. This cost is shared equally between the Water and Sewer Funds
at $295,785 each and is included as a use of funds in the plans.
Council has directed staff to explore the establishment of a Utility Special District for
properties served by private streets. The Utility Special District funds will be collected
from the private street properties to help offset the cost to replace the private streets
after replacement of the public utilities below the street. This process will start with
discussions with HOAs/neighborhoods with private streets to provide education on the
use of the funds and respond to resident questions/ concerns. Staff anticipates that
this item will be brought to the Council for approval in 2019. Revenue estimate per
3
year for the special billing district for private streets is $200,000. The revenue is
shared equally between the Water and Sewer Funds at $100,000 each and has been
included as a source of funds in the plans starting in 2020. Staff has also included
use of funds for future private street replacement in the water and sewer plans.
Utility Rate Study
The city plans to issue an RFP for a utility rate study to be completed in 2019. The
use of funds for the rate study will be reflected in the plans, and the cost will be split
evenly between the water, sewer and water quality plans. The last utility rate study
was done in 2004. As part of the utility rate study/plan updates, staff plans to revisit
our tiered rate structure to address appropriate charges and number of tiers for high
consumption. Currently our summer water usage is up to 3 times our winter usage
which can be attributed directly to irrigation. The existing tiered rates have had
minimal impact on irrigation usage.
Moreover, some decades ago the city implemented a program which encouraged
water users to fill their pools early in the year so that water quantity would not be
included in the water usage average which determines the bi-monthly sewer usage
calculation. This appropriateness of this policy is to come under scrutiny as well (See
Sewer Plan discussion below).
Considering the significant investment the City is putting into infrastructure to support
these uses, it would be beneficial to adjust the tiered rates to collect additional
revenue from the users who are largely responsible for these capital improvement
costs.
Utility Billing System Upgrade
The Water and Sewer Plans include a use of funds of $70,000 for an upgraded utility
billing system. Incode, our utility billing vendor is requiring an upgrade from our
current version. Staff is considering changing to our current financial system vendor,
BS&A, so all financial modules are integrated within the same financial software
system, and due to the limitations of the Incode product. Staff is proposing to do a
RFP in 2019 with a 2020 implementation date.
Water Plan:
Water Purchase and Facility Expansion Agreement with the SMSC
In November 2017, the City Council approved the Water Purchase and Facility
Expansion Agreement between the City and the SMSC. The agreement sets the
water purchase price and funds a portion of the new water treatment facility costs for
construction of filter cells used for water storage.
The water plan has been updated to reflect the water purchase rate/1000 gallons
established in the agreement.
The water plan has also been updated in 2018 and 2019 to reflect expenditures of
1.5M and $600,000 respectively to construct the filter cells the city will use at the
new SMSC south plant (funding from the Water Storage Fund) and expenditures in
2019 of $1.3M to extend the raw watermain from Well 6 to the new water treatment
plant (funding from the Trunk Oversizing Fund).
4
Utility Capital Projects:
The 2019-2023 Water Plan includes $3,711,250 in use of funds that will be
transferred to the Construction fund for the utility cost portion of street projects. This
includes about $296,000 for the Inguadona area private street replacement. The
contributions from the Water Utility Fund for transportation/ street projects varies by
year, based on the projects. The five-year (2019-2023) contribution average is about
742,000.
AMRS Project:
The budget for the annual cost of meter replacements has been reduced by $70,000,
as the city will replace approximately 6,000 meters as part of the Meter/Automated
Meter Reading System replacement project approved by the Council in June.
2019 Water Rates:
For 2019, staff recommends a minimal rate increase of 3% for the Water Plan to
cover estimated increases in operating and maintenance costs. For 2020 forward,
the rate structure will be based on the updated plans from our consultants.
Sewer Plan:
2018 Sanitary Sewer Rates:
Utility Capital Projects:
The 2019-2023 Sanitary Sewer Plan includes $2,593,905 in use of funds that will be
transferred to the Construction fund for the sanitary sewer utility cost portion of street
projects. This includes about $296,000 for the Inguadona area private street
replacement. The contributions from the Sewer Utility Fund for transportation/ street
projects varies by year, based on the projects. The five-year (2019-2023) contribution
average is about $519,000.
Concrete Sewer Lining Replacement:
We anticipate that there will be a use of funds for future concrete sewer lining
replacement. Over the ten-year period beginning in 2022, we have included costs of
1.9M.
Staff has been evaluating the impact of billed sewer flows on revenues and the
increase in capital project expenditures on the sewer fund reserves.
Summer Sewer Lock/Cost Break:
We bill sewer based on water consumption, however, we provide a summer sewer
lock. Residents pay the average of the Feb and April consumption for the June,
August, October and December billing cycle. The billing cycles cover the following
time periods highlighted in blue:
Month Billing Cycle
Feb Nov 21 - Jan 20
Apr Jan 21 - March 20
June March 21 - May 20
Aug May 21- July 20
Oct July 21-Sept 20
Dec Sept 21- Nov 20
5
The summer sewer lock is intended to give consideration to pool filling, lawn and
garden sprinkling, etc. that do not flow into the sanitary sewer system. The summer
sewer lock was established years ago. This is reducing our annual billed sewer
consumption.
Our 2017 billed sewer consumption was about 529.3M gallons. Our MCES actual
flow was 612.2M gallons. The unbilled consumption is the due to the summer sewer
consumption lock and inflow & infiltration(I&I). I&I is the storm water and ground
water that comes from other sources than water consumption, such as wet weather
and enters the sanitary sewer through leaking sanitary sewer pipes and manholes. If
the city billed sewer based on actual water consumption, without the summer sewer
lock, we could generate the revenue needed to cover the actual MCES flow. The
additional revenue that could be generated for this unbilled flow was about $460,000
based on 2017 rates (MCES of $220,000 and City Sewer of $240,000).
Billing for sewer based on actual water consumption could have the added benefit of
encouraging water conservation.
Many cities provide a summer sewer lock to some level, but ours is more generous
than some. However, staff would like the Council to consider phasing this out. If this
is something that the Council is receptive to, staff will provide additional analysis and
phase out options.
Sewer Fund Balance:
Based on the current plans it is likely that the fund balance will drop below the
recommended amount in 2019.
Staff has identified several options the Council can consider to maintain an
appropriate fund balance in the Sewer Fund:
1. Increase the City portion of the sewer rate.
2. Consider modifying or phasing out the summer sewer lock.
3. Issue debt to fund at least a portion of the 2020/2021 $2.2M capital needs.
4. Consider postponing one or more projects to a future year.
5. Consider a combination of the above.
If no change is made to the current billing structure, Staff recommends an increase in
the City portion of the rate of $.60 and $.50 in 2019 and 2020 respectively. The
current city portion of the sewer rate is $2.94/1,000 gallons. If the average household
uses 8,000 gallons of water per month the proposed $0.60 increase would equate to
an additional $4.80 per month.
Staff would prefer to finance the sewer fund portion of the transportation projects on a
paygo basis instead of issuing debt. In 2018, we knew we had planned bonding for
the one-time AMRS replacement project, so a one-time financing of the utility portion
of a transportation project in conjunction with the bonding was a reasonable
approach. Staff would prefer not to issue debt annual to finance sewer fund capital
projects.
6
The only sewer cost in 2019 is related to the CR21 project and that cannot be
delayed. The biggest portion of the proposed sewer cost in 2020 is for Fish Point
Road. That street is in very poor condition and would be difficult to delay. In 2021 we
are proposing to complete projects in the Pershing/Green Heights neighborhood,
including the private streets such as Inguadona. This will require significant funding
from the sewer fund. In 2022 we are proposing mostly full depth reclamation projects
to help ease the strain on the sewer fund. Based on this transportation plan there are
not a lot of opportunities to reduce the burden on the sewer fund in the near term.
For 2021 forward, the rate structure will be based on the updated utility rate study,
and Council consideration of the options outlined above
MCES impact on the Sewer Fund:
The Metropolitan Council Environmental Services (MCES) annual operating budget
plans for the resources necessary to support its two core functions: wastewater
collection and treatment and water resource planning. Based on the MCES budget
workshop information presented in May, the proposed 2019 cost increase is 7.25%.
The MCES sets the rates based on the actual flow from 2017 (two years prior
historical). The cost increase is comprised of two components as follows:
1) A volume increase of 2.8% based on the change in metered flow from 2016 to
2017.
2) A rate increase of 4.4%. The MCES total regional wastewater charge is up
3.5%. The total regional flow is down -.083%, but the cost is still spread over
the same users. The City of Prior Lake’s proportionate share results in a 4.4%
rate increase. The Sewer plan currently reflects a 7.5% increase in the
MCES cost, which will be adjusted if there is a change in the final information
that is received from the MCES in early August.
Storm Water Plan:
The Storm Water Plan includes pond maintenance and retrofit projects.
Utility Capital Projects:
The 2019-2023 Storm water plan includes $1,545,565 in use of funds that will be
transferred to the Construction fund for the storm water utility cost portion of street
projects. Staff is seeing an increase in annual stormwater infrastructure costs due to
increased regulation and requirements. A recent example is the cost for the Rolling
Oaks stormwater infrastructure which included land acquisition costs for the
construction of a filtration basin as well as SAFL Baffle inserts for all of the catch
basins. The SAFL Baffle is a stormwater pretreatment system that removes sediment
and chemicals. The SAFL Baffles alone were $36,540.
2019 Storm Water Rates:
For 2019, staff recommends a rate increase of 5% for the Storm Water Plan due to
the increase in stormwater project costs that we are experiencing. The cost for the
Huron area streets stormwater work is estimated at $348,000. With this project, the
city earns credit toward future stormwater project costs. As this credit is earned, staff
will adjust the stormwater plan costs accordingly, which may result in a reduction in
future use of funds. For 2020 forward, the rate structure will be based on the updated
rate study.
7
ISSUES:
Conclusion
Once the City Council has completed the review of the CIP plans, and provided
direction on project priorities by plan, staff will make any revisions before the public
presentation.
Council direction is specifically needed on the following items:
Proposed rate increases for the utility plans. The water and storm water
recommended rate increases are minimal, but the city sewer rate increase is
proposed at $.60 and $.50 for 2019 and 2020 respectively. If the sewer rate
lock is phased out, the proposed rate increases could be reduced.
Any projects Council is hesitant about proceeding with that are programmed in
the CIP.
Any technology plan proposed upgrades or purchases for 2019.
Whether the CIP tax levy impact proposed for 2019 is acceptable.
A public presentation for the CIP is scheduled at the Council meeting on Monday,
August 6
FINANCIAL
IMPACT:
In reviewing the 2019-2023 Capital Improvement Program, the City Council should
consider the annual tax impact of the scheduled projects.
CIP Bonding:
The 2019-2023 CIP includes projects that are funded by bond proceeds. Bonds are
issued for the project costs that the City is funding through tax levies as well as the
costs that are specially assessed to property owners.
The 2019-2023 CIP anticipates the following bonding needs:
Transportation Plan projects for 2019-2023 of $14,403,000.
Bonding for the following major facility repairs, equipment replacements and
water/sewer plan capital projects by year:
Year Major Facility
Repairs
Equipment
Replacements
2019 - 325,000
2020 - -
2021 600,000 725,000
2022 - -
2023 - -
The equipment replacements are a Fire water tanker and pumper in 2019 and 2021
respectively.
The major facility expenditures are for City Hall and Police Station HVAC/carpet/ wall
coverings, and the Maintenance Center front parking lot and crane.
Summary of Projected Debt Balances
8
The chart below reflects the cumulative effect of proposed new debt issued and the
retirement of existing debt. The green line is the resulting total debt balance at the
end of the year.
Bond Repayment through Debt Service Tax Levy:
The impact of the 2019-2023 CIP and other anticipated bond payment adjustments on
the debt service property tax levy are reflected in the following tables.
Projected five-year annual change in debt levy:
The table below indicates that we are adding more CIP debt annually than the
existing debt that is falling off. In 2018 we bonded for the following projects, which
resulted in an estimated annual net debt levy average of $541,000.
Fire Pumper Replacement
Fire Station #2 SCBA and Parking Lot Replacement
2018 Street Improvement Projects
o Franklin Area
o Huron Area
2018 Street Reconstruction Projects
o Duluth Ave/TH 13
o County Wide Flashing Yellow Signal Conversion
9
Projected change in total CIP Tax Levy:
The funds/plans that have a CIP tax levy are shown below. The table below shows
the projected change in the CIP tax levy by component. For 2019, the estimated
increase in the tax levy for all CIP components for 2019 is 3.1%
Option to use Revolving Park Equipment Fund Reserves:
Upon further review of the Revolving Park Equipment Fund, staff is projecting
adequate fund balance to cover one mile ($100,000 cost) of trail replacement in 2019.
Based on this, Council could consider funding one mile of trail replacement in 2019
with Revolving Park Equipment Fund reserve. This will allow us to begin the annual
process of trail replacement without impacting the tax levy in 2019. The Revolving
Park Plan proposes an increase in the tax levy for trails, etc. of $100,000 annually
until 2024 when the levy is proposed at $425,000. By using fund reserves, we are not
building the trail replacement program as planned, and will not be able to sustain our
trail replacement.
The table below summarized the annual projected total CIP tax levy by component.
2019 2020 2021 2022 2023
Debt:
Existing CIP (425,209) ( 162,795) 12,313 (24,001) (223,176)
New CIP 545,639 242,296 319,059 359,849 396,308
Market Referendum 6,866 7,000 11,720 1,150 10,770
Change in Debt Levy 127,296 86,501 343,092 336,998 183,903
2019-2023 CIP Projected Change in Debt Levy
Tax Levies:2019 2020 2021 2022 2023
Equipment Revolving Fund 50,000 - - - -
Revolving Park Equip Fund 101,108 93,984 94,373 105,183 271,081
Facilities Management Fund - 30,000 50,000 - 25,000
PIR Fund 95,000 80,000 - 10,000 -
Debt Service 127,296 86,501 343,092 336,998 183,903
Total CIP Tax Levies 373,404 290,485 487,465 452,181 479,984
0.031
2019-2023 CIP Projected Change in CIP Tax Levy
2019 - Estimated % Increase in Tax Levy for
CIP components only
Tax Levies:2019 2020 2021 2022 2023
Equipment Revolving Fund 600,000 600,000 600,000 600,000 600,000
Revolving Park Equip Fund 339, 292 433,276 527, 649 632,832 903, 913
Facilities Management Fund - 30,000 80,000 80,000 105, 000
PIR Fund 95,000 175,000 175,000 185,000 185,000
Debt Service 3,497,468 3,583,968 3,927,061 4,264,059 4,447,962
Total CIP Tax Levies 4,531, 760 4,822, 244 5,309, 710 5,761,891 6,241,875
2019-2023 CIP Projected CIP Tax Levy
10
The projected debt service shown above is based on the 2018A bond issue financing
plan. Staff will update the debt service based on the July 16 finalized 2018A bond
issue results. The updated information will be presented at the CIP Public Hearing.
This project debt service levy estimate for years 2019-2023 is based on ten-year level
annual debt service payments.
Bond Repayment Debt Service supported by Water and Sewer Fund Revenues:
Revenues of the Water and Sewer Funds support the annual debt service for the
Water Treatment Plant debt refunding bond issues, the AMRS replacement, and the
Huron area street improvements. Utility Fund projected annual debt service is shown
below:
Based on Council direction, updated financial information related to the impact of the
proposed CIP on debt levels, fund balance reserves and average utility customer will
be distributed as part of the public presentation on the CIP at the Monday, August 6
Council meeting.
Approval of the CIP does not obligate the City to complete the proposed projects or
purchases. The 2019 projects/proposed purchases will be incorporated into the 2019
budget requests for budgeted funds. Further Council approvals may be necessary to
comply with state statutes and the city’s purchasing policy.
RECOMMENDED
ACTION:
The Council should provide comments on the elements of the plan in order that the
CIP process can proceed as planned.
Attached are the following documents for Council review and discussion at the
workshop:
2019-2023 CIP Plan select pages:
1) Technology Plan – 2019-2023 Proposed Expenditures
2) Technology Plan
3) Water Operating Plan
4) Sanitary Sewer Operating Plan
5) Water Quality Operating Plan
http://splash/teams/am/October 4 2010/07 16 2018/2019-2038 Technology Plan Budget Justification.docx
Plan Technology Plan – 2019-2023 Proposed Expenditures
General Fund
Computer Replacement
includes work station, lap tops,
tough books, iPads, etc.)
2019: $ 26,520
2020: $20,285
2021: $19,670
2022: $25,917
City computers are on a six-year replacement schedule and laptops/tough
books on a five-year replacement schedule.
Website Redesign 2019: $45,000
2020: $8,000 (annual license fee)
2021: $8,000
2022: $8,000
Redesign of city website. An external audit of city’s network security
indicated that the platform on which the city’s website resides is a
security risk for hackers because the programming is outdated and no
longer supported. New website would include email sign up on specific
topics and capability to send alerts. Updated website would allow for live
stream of Council meetings, which current system cannot support.
Phone System Replacement 2019: $70,000 Current city phone system is over 12+ years old and failing. The new
phone system combines 7 buildings’ phone systems into one.
Managed Services Contract
virtual Helpdesk)
2019: $23,000 This contract would provide virtual Helpdesk support. Rather than hire
additional FTEs at this time to support our IT Department, this contract
would provide Helpdesk support as well as regular monitoring of our
network to prevent ransomware, hackers and other security threats.
recurring annual cost moving forward)
Copiers 2021: $18,731 (large map)
2022: $8,500 (Public Works)
2023: $10,000 (Police)
Copier replacements.
Servers 2020 - $8,758
2021 - $8,845
Replacement/upgrade of physical servers that run all city virtual servers.
Epson Projector 2020 - $5,667 Replacement of Parkview Conference Room projector.
http://splash/teams/am/October 4 2010/07 16 2018/2019-2038 Technology Plan Budget Justification.docx
NIMBLE SANS Controller 2019 - $16,000 Upgrade the interface to the City’s network on the storage controller unit
for virtual servers.
Citizens Online Portal 2019 - $15,914
Split between general/water/sewer funds)
Online service request module for public works complaints.
Water Fund
BS&A Utility Billing System 2019 - $17,552
2020 - $17,552
Switch from Incode to BS&A for water meter reading replacement
project.
Sewer Fund
BS&A Utility Billing System 2019 - $17,552
2020 - $17,552
Switch from Incode to BS&A for water meter reading replacement
project.
Cable Fund
Tightrope Channel 2022 - $7,727 Replacement of playback system on cable channel. Part of three-year
Council Chamber audio/visual enhancement project.
Audio System for Chambers 2019 - $15,000 Part of three-year Council Chamber audio/visual enhancement project.
DRAFT 07/16/2018
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Use of Funds:
Hardware
Administration 7,534$ 10,976$ 7,393$ 6,997$ 6,168$ 10,468$ 8,465$ 10,578$ 7,541$ 7,120$
Building Inspection/Engineering 3,570 1,133 - - 6,263 2,984 3,790 1,203 - -
Community/Economic Development 2,150 6,800 1,041 2,102 1,168 1,179 - 7,218 1,105 1,116
Finance 1,122 2,576 - 3,363 1,000 2,573 1,191 2,734 - 3,570
Fire - 8,655 - - - - - - - -
Police 16,934 2,885 8,949 10,993 6,062 14,903 21,007 8,312 5,413 8,880
Public Works 7,161 3,503 7,284 7,462 5,095 6,218 7,905 3,719 5,744 7,921
Cable Television 17,805 18,958 - 7,883 - 37,413 - 2,734 4,584 77,323
Printers/Scanners 3,162 3,946 22,576 24,504 21,316 15,975 1,083 7,929 3,424 6,694
Network Infrastructure 19,117 22,258 30,867 14,322 14,752 68,801 15,650 25,416 25,993 17,101
Miscellaneous 250 6,697 3,642 1,997 - - - - - -
Total Hardware 78,805$ 88,385$ 81,752$ 79,623$ 61,824$ 160,514$ 59,092$ 69,843$ 53,803$ 129,724$
Software
Existing / Maintenance / Upgrades 169,958$ 173,217$ 138,278$ 139,591$ 143,760$ 148,055$ 152,479$ 157,035$ 166,558$ 166,562$
Proposed Software 175,314 9,500 9,500 9,500 - - - - - -
Total Software 345,272$ 182,717$ 147,778$ 149,091$ 143,760$ 148,055$ 152,479$ 157,035$ 166,558$ 166,562$
Total Use of Funds 424,077$ 271,102$ 229,531$ 228,713$ 205,585$ 308,570$ 211,570$ 226,879$ 220,361$ 296,286$
Source of Funds:
General Fund 295,847$ 148,835$ 163,031$ 143,115$ 134,687$ 197,107$ 134,502$ 143,428$ 138,097$ 133,680$
Water Fund 54,804 52,897 33,980 35,914 34,063 36,800 39,873 41,651 38,594 39,488
Sewer Fund 53,682 50,013 32,107 41,379 35,230 36,800 36,733 38,588 38,594 45,289
Water Quality Fund 1,938 400 412 424 1,604 450 463 477 492 506
Cable Franchise Fund 17,805 18,958 - 7,883 - 37,413 - 2,734 4,584 77,323
Total Source of Funds 424,077$ 271,102$ 229,531$ 228,713$ 205,585$ 308,570$ 211,570$ 226,879$ 220,361$ 296,286$
Net Source (Use) of Funds -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Operating Budget 216,864$ 204,346$ 187,252$ 203,327$ 184,268$ 214,054$ 211,570$ 217,582$ 210,972$ 212,270$
Capital Improvement Plan 207,213$ 66,756$ 42,279$ 25,386$ 21,316$ 94,515$ -$ 9,296$ 9,389$ 84,017$
Source of Funds (Operating Budget):
General Fund 149,348$ 124,911$ 120,752$ 123,414$ 113,371$ 131,063$ 134,502$ 134,132$ 128,708$ 126,986$
Water Fund 31,947 35,345 33,980 33,071 34,063 35,728 39,873 41,651 38,594 39,488
Sewer Fund 30,825 32,460 32,107 38,536 35,230 35,728 36,733 38,588 38,594 45,289
Water Quality Fund 1,938 400 412 424 1,604 450 463 477 492 506
Cable Franchise Fund 2,805 11,230 - 7,883 - 11,086 - 2,734 4,584 -
Total Source of Funds: Op. Budget 216,864$ 204,346$ 187,252$ 203,327$ 184,268$ 214,054$ 211,570$ 217,582$ 210,972$ 212,270$
Source of Funds (CIP):
General Fund 146,499$ 23,924$ 42,279$ 19,700$ 21,316$ 66,044$ -$ 9,296$ 9,389$ 6,694$
Water Fund 22,857 17,553 - 2,843 - 1,072 - - - -
Sewer Fund 22,857 17,553 - 2,843 - 1,072 - - - -
Water Quality Fund - - - - - - - - - -
Cable Franchise Fund 15,000 7,727 - - - 26,327 - - - 77,323
Total Source of Funds: CIP 207,213$ 66,756$ 42,279$ 25,386$ 21,316$ 94,515$ -$ 18,686$ 9,389$ 644,185$
CITY OF PRIOR LAKE
2019 - 2028 TECHNOLOGY PLAN
CITY OF PRIOR LAKE Draft 7/16/2018
2019 - 2028 WATER OPERATING PLAN
2019-2028
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Totals
Use of Funds:
Operations & Maintenance 2,028,101$ 2,129,506$ 2,235,981$ 2,347,780$ 2,465,169$ 2,588,428$ 2,717,849$ 2,853,742$ 2,996,429$ 3,146,250$ 25,509,236
Capital Projects 2,132,130 1,323,743 2,473,325$ 650,088$ 805,387$ 2,090,924$ 1,055,477$ 1,059,392$ 1,063,423$ 1,067,576$ 13,721,467
Interfund Transfer 350,220 358,630 372,286$ 381,209$ 395,393$ 404,859$ 414,600$ 424,639$ 434,979$ 445,631$ 3,982,446
Debt Service 698,369 707,173 725,762$ 736,630$ 763,950$ 770,985$ 786,617$ 784,292$ 790,958$ 797,875$ 7,562,611
Total Use of Funds 5,208,820 4,519,052 5,807,355 4,115,707 4,429,899 5,855,196 4,974,544 5,122,065 5,285,789 5,457,332 50,775,760
Source of Funds:
Water Usage Charge 4,071,504 4,237,529 4,409,881 4,588,792 4,774,504 4,967,268 5,025,398 5,083,527 5,286,874 5,497,898 47,943,173
Special Utility Billing District 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 900,000
Other Revenues 115,000 117,300 119,646 122,039 124,480 126,969 129,509 132,099 134,741 137,436 1,259,218
Bond Proceeds - - - - - - - - - - 0
Trunk Fund Contribution 1,900,000 - - - - - - - - - 1,900,000
Total Source of Funds 6,086,504 4,454,829 4,629,527 4,810,831 4,998,984 5,194,238 5,254,906 5,315,626 5,521,615 5,735,333 49,202,391
Change in Fund Balance 877,684$ (64,223)$ (1,177,828)$ 695,123$ 569,085$ (660,959)$ 280,362$ 193,561$ 235,826$ 278,001$ (1,573,368)$
Beginning Fund Balance 3,557,191$ 4,434,874$ 4,370,651$ 3,192,823$ 3,887,946$ 4,457,031$ 3,796,072$ 4,076,434$ 4,269,995$ 4,505,821$ 4,783,822$
Ending Fund Balance 4,434,874$ 4,370,651$ 3,192,823$ 3,887,946$ 4,457,031$ 3,796,072$ 4,076,434$ 4,269,995$ 4,505,821$ 4,783,822$ 3,210,454$
CITY OF PRIOR LAKE Draft 7/16/2018
2019 - 2028 SANITARY SEWER OPERATING PLAN
2019-2028
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Totals
Use of Funds:
Operations & Maintenance 1,065,866$ 1,097,842$ 1,130,777$ 1,164,701$ 1,199,642$ 1,235,631$ 1,272,700$ 1,310,881$ 1,350,207$ 1,390,713$ 12,218,959
MCES Fees 1,591,810 1,692,094 1,798,426 1,911,162 2,030,675 2,157,362 2,291,641 2,433,954 2,584,769 2,744,581 21,236,473
Capital Improvement Projects 487,136 722,660 1,437,794 638,032 1,014,173 1,024,480 1,055,861 1,088,536 1,121,443 1,154,586 9,744,701
Interfund Transfer 277,147 283,365 294,763 301,361 313,149 320,148 327,348 334,769 342,412 350,288 3,144,749
Debt Service 152,383 153,123 155,243 157,180 153,930 155,550 156,905 152,985 153,925 154,575 1,545,798
Total Use of Funds 3,574,343 3,949,083 4,817,003 4,172,435 4,711,569 4,893,171 5,104,454 5,321,125 5,552,756 5,794,743 47,890,680
Source of Funds:
Wastewater Collection Revenue 3,825,279 4,233,878 4,417,394 4,609,349 4,810,171 5,020,309 5,240,236 5,470,450 5,656,072 5,850,691 49,133,831
Special Utility Billing District 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 900,000
Other Revenues 15,300 15,606 15,918 16,236 16,561 16,892 17,230 17,575 17,926 18,285 167,531
Bond Proceeds - - - - - - - - - - -
Total Source of Funds 3,840,579 4,349,484 4,533,312 4,725,586 4,926,733 5,137,202 5,357,466 5,588,025 5,773,999 5,968,976 50,201,361
Change in Fund Balance 266,237$ 400,401$ ( 283,691)$ 553,151$ 215,164$ 244,031$ 253,013$ 266,900$ 221,243$ 174,233$ 2,310,681$
Beginning Fund Balance 1,413,219$ 1,679,456$ 2,079,856$ 1,796,165$ 2,349,316$ 2,564,480$ 2,808,511$ 3,061,524$ 3,328,424$ 3,549,666$
Ending Fund Balance 1,679,456$ 2,079,856$ 1,796,165$ 2,349,316$ 2,564,480$ 2,808,511$ 3,061,524$ 3,328,424$ 3,549,666$ 3,723,900$
CITY OF PRIOR LAKE Draft 7/16/2018
2019- 2028
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Totals
Use of Funds:
Operations & Maintenance 631, 581$ 511,707$ 524, 207$ 537, 072$ 560, 313$ 563,942$ 577,972$ 592,415$ 607,281$ 622,586$ 5,729,078$
Capital Projects 385, 000 499,835 740, 250 319, 760 855, 720 431,152 706,152 706,152 706,152 706,152 6,056,325
Total Use of Funds 1,016, 581 1,011,543 1,264, 457 856, 832 1,416, 033 995,094 1,284,124 1,298,567 1,313,433 1,328,738 11,785,403
Source of Funds:
Interest Earnings (1.5%)11,688$ 6,243$ 5,915$ 6,324$ 4,356$ 8,322$ 6,160$ 9,541$ 9,519$ 9,759$ 77,827$
Charges for Services 978, 675 1,038,056 1,101, 040 1,167, 846 1,238, 705 1,257, 285 1,276,145 1,308,240 1,341,142 1,374,871 12,082,004
Grants - - - - - - - - - - -
Total Source of Funds 990, 363 1,044,299 1,106, 955 1,174, 170 1,243, 060 1,265, 607 1,282,305 1,317,782 1,350,663 1,384,633 12,159,837$
Change in Fund Balance (26,218)$ 32,756$ (157, 502)$ 317, 338$ ( 172, 973)$ 270,514$ (1,820)$ 19,215$ 37,229$ 55,896$ 374,434$
Beginning Fund Balance 499, 406$ 473,188$ 505, 943$ 348, 441$ 665, 779$ 492,806$ 763,319$ 761,499$ 780,713$ 817,941$
Ending Fund Balance 473, 188$ 505,943$ 348, 441$ 665, 779$ 492, 806$ 763,319$ 761,499$ 780,713$ 817,941$ 873,833$
2019 - 2028 WATER QUALITY OPERATING PLAN
Page 1
City of Prior Lake, Minnesota
8,745,000
General Obligation Bonds, Series 2018A
Bond Sale Summary
July 16, 2018
PURPOSE: Proceeds from the Bonds will be used to purchase equipment; to finance a capital
improvement plan project, an improvement project, a permanent improvement revolving
fund project, a water project, a sewer project, a street reconstruction project and to
finance the costs associated with the issuance of the Bonds.
FINANCE PLAN: The Capital Improvement Plan Portion, the Improvement Portion, the Water Portion, the
Sewer Portion and the Street Reconstruction Portion of the Bonds have been structured
over 10 years, with relatively level annual debt service payments. The Equipment
Portion has been structured over nine years, with relatively level annual debt service
payments. The PIR Fund Portion has been structured over five years with relatively level
annual debt service payments.
RESULTS:
The City received seven bids.
Bonds were purchased by Piper Jaffray, Minneapolis, Minnesota.
Bonds were rated AA+ by S&P.
Final
on
07/ 16/2018
Finance
Plan
06/ 18/2018
Par Amount $8,270,000* $8,745,000
Average Interest Rate 4.61% 2.79%
All Inclusive Cost (AIC) 2.56% 3.07%
True Interest Cost (TIC) 2.41% 2.93%
Final par amount was reduced by the reoffering premium and rounding on the Equipment, CIP
and Improvement portions of the Bonds.
Page 2
EXHIBIT A – SOURCES AND USES
Equipment CIP Improvement PIR Fund Water Sewer
Street
Reconstruction
Issue
Summary
Sources Of Funds
Par Amount of Bonds $605,000.00 $560,000.00 $2,655,000.00 $490,000.00 $ 1,320,000.00 $1,320,000.00 $ 1,320,000.00 $8,270,000.00
Reoffering Premium 69,561.85 69,643.00 330,934.70 34,493.30 167,617.50 167,617.50 167,617.50 1,007,485.35
Total Sources $674,561.85 $629,643.00 $2,985,934.70 $524,493.30 $ 1,487,617.50 $1,487,617.50 $ 1,487,617.50 $9,277,485.35
Uses Of Funds
Deposit to Project Construction Fund 665,000.00 620,000.00 2,940,000.00 485,000.00 1,300,000.00 1,300,000.00 1,300,000.00 8,610,000.00
Deposit to Project Construction Fund (Premium)---31,238. 72 165,380.69 165,380.69 165, 380.69 527, 380.79
Costs of Issuance 5,353.52 4,955.36 23,493.71 4,335.94 11,680.49 11,680.49 11,680.49 73,180.00
Total Underwriter's Discount (0.459%)2,775.27 2,568.84 12,179.06 2,247.74 6,055.12 6,055.12 6,055.12 37,936.27
Deposit to Construction Fund (Unused Discount)2,063.05 1,909.60 9,053.55 1,670.90 4,501.20 4,501.20 4,501.20 28,200.70
Rounding Amount (629.99)209.20 1,208.38 ----787.59
Total Uses $674,561.85 $629,643.00 $2,985,934.70 $524,493.30 $ 1,487,617.50 $1,487,617.50 $ 1,487,617.50 $9,277,485.35
EXHIBIT B – PRICING SUMMARY
Maturity Type of Bond Coupon Yield
Maturity
Value Price YTM Call Date Call Price Dollar Price
12/15/2019 Serial Coupon 4.000%1.550% 760,000.00 103.219% ---784,464.40
12/15/2020 Serial Coupon 4.000%1.700% 860,000.00 105.237% ---905,038.20
12/15/2021 Serial Coupon 4.000%1.800% 805,000.00 107.084% ---862,026.20
12/15/2022 Serial Coupon 4.000%1.900% 835,000.00 108.693% ---907,586.55
12/15/2023 Serial Coupon 4.000%2.000% 870,000.00 110.067% ---957,582.90
12/15/2024 Serial Coupon 4.000%2.150% 790,000.00 110.897% ---876,086.30
12/15/2025 Serial Coupon 5.000%2.270% 805,000.00 118.343% ---952,661.15
12/15/2026 Serial Coupon 5.000%2.380% 830,000.00 119.695% ---993,468.50
12/15/2027 Serial Coupon 5.000%2.450% 870,000.00 119.112%c 2.672%12/15/2026 100.000%1,036,274.40
12/15/2028 Serial Coupon 5.000%2.510% 845,000.00 118.615%c 2.902%12/15/2026 100.000%1,002,296.75
Total ---$8,270,000.00 -----$9,277,485.35
Bid Information
Par Amount of Bonds $8,270,000.00
Reoffering Premium or (Discount)1,007,485.35
Gross Production $9,277,485.35
Total Underwriter's Discount (0.459%)$(37,936.27)
Bid (111.724%)9,239,549.08
Total Purchase Price $9,239,549.08
Bond Year Dollars $48,636.67
Average Life 5.881 Years
Average Coupon 4.6100679%
Net Interest Cost (NIC)2.6166149%
True Interest Cost (TIC)2.4108861%
Page 3
EXHIBIT C – DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I Fiscal Total
08/15/2018 -----
06/15/2019 --303,583.34 303,583.34 -
12/15/2019 760,000.00 4.000%182,150.00 942,150.00 1,245,733.34
06/15/2020 --166,950.00 166,950.00 -
12/15/2020 860,000.00 4.000%166,950.00 1,026,950.00 1,193,900.00
06/15/2021 --149,750.00 149,750.00 -
12/15/2021 805,000.00 4.000%149,750.00 954,750.00 1,104,500.00
06/15/2022 --133,650.00 133,650.00 -
12/15/2022 835,000.00 4.000%133,650.00 968,650.00 1,102,300.00
06/15/2023 --116,950.00 116,950.00 -
12/15/2023 870,000.00 4.000%116,950.00 986,950.00 1,103,900.00
06/15/2024 --99,550.00 99,550.00 -
12/15/2024 790,000.00 4.000%99,550.00 889,550.00 989,100.00
06/15/2025 --83,750.00 83,750.00 -
12/15/2025 805,000.00 5.000%83,750.00 888,750.00 972,500.00
06/15/2026 --63,625.00 63,625.00 -
12/15/2026 830,000.00 5.000%63,625.00 893,625.00 957,250.00
06/15/2027 --42,875.00 42,875.00 -
12/15/2027 870,000.00 5.000%42,875.00 912,875.00 955,750.00
06/15/2028 --21,125.00 21,125.00 -
12/15/2028 845,000.00 5.000%21,125.00 866,125.00 887,250.00
Total $8,270,000.00 -$2,242,183.34 $ 10,512,183.34 -
Date And Term Structure
Dated 8/15/2018
Delivery Date 8/15/2018
First available call date 12/15/2026
Call Price 100.000%
Yield Statistics
Bond Year Dollars $48,636.67
Average Life 5.881 Years
Average Coupon 4.6100679%
Net Interest Cost (NIC)2.6166149%
True Interest Cost (TIC)2.4108861%
All Inclusive Cost (AIC)2.5634188%
December 3, 2018
1
Acreage Charges and Connection Fees
2
10% increase is proposed for sewer and
stormwater trunk and connection fees
A 4% increase is proposed for the water
trunk and connection fees
Staff is proposing to remove the street
oversizing trunk fee from the fee
schedule
Building Permit Fee Schedule
3
Proposed adoption of a revised building
permit fee schedule
The current schedule was prepared in
2003 by the LMC and the AMM
Encourage uniformity within Scott
County and the metropolitan area
The Utility Plans fund operations as well as
capital projects identified in the 2019-2023
Capital Improvements Program.
The 2019-2023 Water, Sewer, and Stormwater
Plan include $3,7M, $2.6M, and 1.5M
respectively in use of funds for the utility cost
portion of street projects.
Utility Plans –Changes
4
The city needs to generate revenue to cover our
total sewer flow metered by the Met Council
Summer sewer lock:
▪Used to determine sewer flow billed in summer
months
▪Recognizes that water used to water lawns, fill pools,
etc will not enter the sanitary sewer system
▪Summer sewer lock = (1.5 x Average of Feb & April
billed water consumption)
Utility Plans –Changes
5
‣Summer sewer lock (continued)
▪Proposal to eliminate the summer sewer lock for the
June and December billing cycles.
▪Residents would still receive the summer sewer lock on
their August & October utility bills (May 21-Sept 20
use)
▪This would generate revenue of $100k annually
Utility Plans-Changes cont.
6
Month Billing Cycle
Feb Nov 21 - Jan 20
Apr Jan 21 - March 20
June March 21 - May 20
Aug May 21 - July 20
Oct July 21 - Sept 20
Dec Sept 21 - Nov 20
‣The sewer rate is also impacted by the fee charged by the
Metropolitan Council to treat the City’s sewer.
▪The 2019 cost increase for the City of Prior Lake is
7.25%
▪Pass-through cost to residents for Metropolitan Council
services to treat the City’s sewer.
Utility Plans-Changes cont.
7
Utility Fees: Approved CIP 8.6.2018
Current & Proposed* Rates:
2018 2019 *
Water <25000 4.67$ 4.81$
Water >25000 6.44$ 6.63$
Sewer-MCES 2.67$ 2.81$
Sewer-City 2.94$ 3.39$
Storm Water 14.34$ 15.06$
CFAC-Water 5.00$ 5.00$
CFAC-Sewer 5.00$ 5.00$
2019:
Water rate change 3%
Stormwater rate change 5%
Total Sewer/Wastewater Rate Change (MCES & City Combined)10%
Total Change 6%
Utility Plans-Changes cont.
9
Based on 8,000 gallons / cycle
For an average water user, the proposed utility cost increase is
about:
•$6.50 per billing cycle
•$39 per year
2018 2019
Costs Per Cycle:106.58$ 113.13$
$$ Change from PY 4.32$ 6.54$
% Change from PY 4.2%6.1%
Annual Costs:639.50$ 678.75$
$$ Change from PY 25.93$ 39.25$
% Change from PY 4.2%6.1%
Request to Open Public Hearing/
Council Discussion
10