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License fees for rental housing <br />Page 2 of 5 <br /> <br /> <br /> <br />Staff contacted several neighboring cities to determine rental dwelling license fees and <br />has learned the following. Blaine has a $60 annual license fee for single-family dwellings <br />while multiple dwellings have a $50 base fee and a $10-per dwelling unit fee. Shoreview <br />2008 fee schedule reflects a $50 fee for single-family dwellings with multiple dwellings at <br />a $100 base fee plus a $7-per unit fee; the per-unit fee is reduced to $5 per unit for <br />participation in the Ramsey County Crime Prevention Program. New Brighton does not <br />license and inspect single-family rental property. The 2008 New Brighton fee schedule <br />establishes no base fee and a per-unit fee of $10.25 per unit plus an additional $5 per <br />unit for crime free multi housing. This is a different approach from Shoreview and <br />Mounds View; both cities offer a discount for participating in Crime Prevention Activities. <br />New Brighton also directs $5 of each unit fee into a special fund to offset the cost of a <br />dedicated Crime Free Multi-Housing police officer. <br /> <br />During previous discussions about this, the City Council requested that license fees <br />closely reflect the actual cost of delivering the service. In order to set this, the finance <br />department determined that the actual hourly cost, including FICA, Medicare, workers <br />comp insurance and fringe benefits rates, for the housing/code enforcement inspector will <br />be $34.25 in 2009. When analyzing the scenario for single-family rental dwellings, city <br />staff used the following parameters: <br /> <br />Mounds View Single Family Rental Dwellings <br />Scheduling 15 minutes = .25 <br />Initial Inspection 30 minutes = .50 <br />Report Writing 15 minutes = .25 <br />Total 1.0 Hours @ $34.25 <br />Follow Up Inspection 15 minutes = .25 <br />Report Writing 15 minutes = .25 <br />Total .50 @ $34.25 = $17.13 <br />Inspection totals $51.38 <br /> <br /> <br />It is reasonable to assess miscellaneous administrative costs into the above inspection <br />total to take into account costs such as paper, postage, copy machine usage, and the <br />time of the community development administrative assistant to process returned <br />applications and enter into the database. Therefore, the actual cost to the City for <br />inspecting a single-family rental unit is near $60. <br /> <br />Using the following example on an apartment building with multiple rental dwellings yields <br />the following: