2021.12.20 CC Packet - Laserfiche WebLink

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14669 Fitzgerald Avenue North, Hugo, MN 55038 • (651) 762‐6300 • www.ci.hugo.mn.us TO: Honorable Mayor Tom Weidt and Members of the City Council FROM: Anna Wobse, Finance Director SUBJECT: 2022 Fees, Rates and Charges DATE: For the City Council Meeting of December 20, 2021 DESIRED COUNCIL ACTION Adopt Ordinance Approving 2022 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 and 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 2022. The Finance Department offers the following with respect to each different type of fee that is proposed to change. TOBACCO LAW VIOLATIONS In response to the Federal T21 Law, the State enacted State Statute 461.12, which prohibits the sale of tobacco products to those under 21 years of age and establishes minimum penalties in addition to the required suspension of license for a third violation within 36 months. The City’s Fee Schedule has been adjusted to reflect this. RESIDENTIAL BURNING PERMITS With direction from the Fire Chief, the fee charged for a residential open burning permit has been adjusted to closer reflect the actual costs of administration and inspection time related to issuing a burning permit.