2016.12.19 CC Packet - Laserfiche WebLink

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6. V r CITY OF 14669 Fitzgerald Avenue North, Hugo, MN55038 • (651) 762-6300 • www.ci.hugo.mn.us EST. 1806 TO: Honorable Mayor Fran Miron and Members of the City Council FROM: Ron Otkin, Finance Director SUBJECT: 2017 Fees, Rates and Charges DATE: For the City Council Meeting of December 19, 2016 DESIRED COUNCIL ACTION Adopt Ordinance Approving 2017 Fees, Rates and Charges. INTRODUCTION In the fall of 2001, the City Council engaged the consulting firm of ISM, Inc., to undertake a study to determine if fees, rates and charges were adequate to finance the proposed 2002 budget five-year Capital Improvement Program. Specific attention was paid to fees charged as opposed to property taxes when there is not necessarily a direct benefit to a majority of citizens. In short, fees are paid by those who benefit most. The fees included in the report considered the past operating cost of each fund and department and allocated administrative costs appropriately. Ultimately, the City Council adopted a schedule of fees, rates and charges that were based upon the study. Staff was instructed to review these charges annually to ensure adequate reserves and fund balances. Since the authority to establish the various fees is found throughout the municipal code, the City Attorney drafted and the City Council adopted an ordinance that contained a comprehensive list of fees for easy reference. In keeping with the City Council's instructions, the Finance Department consulted with the various department heads and drafted a recommended fee schedule for 2017. The Finance Department offers the following with respect to each different type of fee that is proposed to change. These changes appear in red on the attached fee schedule. UTILITY RELATED: The water meter rental fee for the 1&1/2" meter (commercial and irrigation) increased from $575 to $800. This is necessary as the water department is migrating to radio read meters. Staff is cognizant that fees cannot be excessive. In fact, state law restricts the setting of fees in excess of the cost of providing the corresponding service. The Finance Department has thoroughly reviewed each of our fees to ensure compliance with state restrictions. To reiterate, the City Council directed staff to review these fees and recommend changes annually. The Finance Department recommends adoption of the fee schedule for 2017 as proposed. ATTACH M E NTS Ordinance Setting 2017 Fees, Rates and Charges