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M0U__N_DitSVVfE_W_ <br />of Mounds View Staff R <br />Item No: 08F <br />Meeting Date: August 26, 2019 <br />Type of Business: Council Business <br />City Administrator Review: <br />To: Honorable Mayor and City Council <br />From: Jon Sevald, Community Development Director <br />Item Title/Subject: Resolution 9159, Amending the 2019 Fee Ordinance <br />regarding Rental Dwelling License Fees <br />Introduction: <br />Mounds View licenses 1,748 rental units, including single-family homes, townhomes, and <br />apartments. According to the Census, about 30% of Mounds View households are renter <br />occupied. As part of 2020 budget discussions, Staff is requesting to increase Rental Dwelling <br />License Fees to cover Staff's time. By increasing user fees, there is less reliance on the <br />General Fund to supplement the Rental program. <br />Discussion: <br />The City's Rental program is staffed by the Housing/Code/Fire Inspector, and Permit <br />Technician. The estimated City's cost is about $72,000 per year (1/2 of the inspector's time, and <br />'/a of the Permit Technician's time). The City's five year average annual revenue is about <br />$33,000. Staff's goal is to close the $39,000 gap. In comparing our fees to neighboring cities, <br />Mounds View charges less than half. <br />Staff is proposing to increase fees (summarized): <br />Existing <br />Proposed <br />Base Fee $60 <br />$100 <br />Fee per unit if more than one unit $8 <br />$25 <br />Revenue est. $28,368 2019 <br />$71,375 2020 <br />Rental property owners can receive a discount if participating in a Crime Free Rental Housing <br />program: <br />Discount <br />Activit summarized <br />20% <br />The owner/manager shall distribute the Crime/Drug-Free Addendum to every tenant; and <br />attend a one -day training course within the previous five years. <br />33% <br />Completion of the above, and receive an on-site security assessment from the Mounds View <br />Police Department; certification as a Crime -Free Multi -Housing property; and complete <br />criminal background checks of all rental applicants 7 -count metro). <br />50% <br />Completion of all of the above; host a crime prevention meeting every year (e.g. Night to <br />Unite); and complete criminal background checks of all rental applicants (Minnesota, and/or <br />revious state of residence). <br />By increasing fees dramatically, it is more likely that owners/managers will participate in the <br />program, and receive a discount. <br />Strategic Plan Strategy/Goal: <br />Enhance Revenue Sources without relying on property taxes. <br />Financial Impact: <br />The Mounds View Vision <br />A Thriving Desirable Community <br />