2017.12.18 CC Packet - Laserfiche WebLink

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CITY OF 14669 Fitzgerald Avenue North, Hugo, MN55038 • (651) 762-6300 • www.cLhugo.mn.us EST. 19Q6 TO: Honorable Mayor Tom Weidt and Members of the City Council FROM: Ron Otkin, Finance Director SUBJECT: 2018 Fees, Rates and Charges DATE: For the City Council Meeting of December 18, 2017 DESIRED COUNCIL ACTION Adopt Ordinance Approving 2018 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 2018. 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. OTHER BUSINESSES A Small Cell Permit fee has been added to the fee schedule. The permit fee is applicable to equipment that is installed in the public right-of-way. The fee is $1,000 plus $200 per site up to a maximum of 15 sites per permit. PLANNING & ZONING SUBDIVISION RELATED The escrow for any subdivision over 100 lots will be $30,000 to cover the costs of engineering and related expenses. UTILITY METER RELATED: The water meter rental fees have been adjusted to account for fluctuating prices from the supplier. For those common meter sizes the dollar amount has been listed on the fee schedule. The fee is basically cost plus 10%. For uncommon meter sizes the amount will be determined when we order it (but still based on cost plus 10%).