2019.12.16 CC Packet - Laserfiche WebLink

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W_7 r CITY OF EST. 1906 14669 Fitzgerald Avenue North, Hugo, MN55038 • (651) 762-6300 • www.ci.hugo.mn.us TO: Honorable Mayor Tom Weidt and Members of the City Council FROM: Ron Otkin, Finance Director SUBJECT: 2020 Fees, Rates and Charges DATE: For the City Council Meeting of December 16, 2019 DESIRED COUNCIL ACTION Adopt Ordinance No. 2019-496 Approving 2020 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 2020. The Finance Department offers the following with respect to each different type of fee that is proposed to change. BUILDING PERMIT SURCHARGES The City is required by Minnesota Statute 3266.148 to collect surcharges on all building, plumbing, mechanical, electrical, and city utility permits. These surcharges are then remitted to the State of Minnesota on a quarterly basis. , Staff inserted the current formula found in state statute in the fee schedule for information purposes only. TECHNOLOGY FEE During the 2020 budget process staff recommended implementation of a 3% technology fee on all building and building related permits and plan reviews to partially defray the annual costs of permitting software. This fee is included in the 2020 fee schedule. ELECTRICAL PERMITS These fees are set by the private inspection firm the city has under contract. The fee schedule directs the reader to the City's website for details.