2022.12.19 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: 2023 Fees, Rates and Charges DATE: For the City Council Meeting of December 19, 2022 DESIRED COUNCIL ACTION Adopt Ordinance Approving 2023 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 2023. The Finance Department offers the following with respect to each different type of fee that is proposed to change. ROOM RENTAL FEES The Oneka Room at City Hall, the Rice Lake Centre at the former Public Works Building, the Gathering Room at the Hanifl Shelter and the new Peder Pedersen Pavilion at Lions Volunteer Park are available for Hugo residents, non‐ residents and organizations to rent. Room rental fees were first added to the fee schedule in 2007 and the rates have remained the same since first implemented. With the upcoming launch of online facility rentals and the opening of the new Peder Pedersen Pavilion, staff felt it was a good time to review the room rental rates. The resident rental rate did not change for the Oneka Room, Hanifl Gathering Room or Rice Lake Centre. Staff felt that rates should be lower for residents, than non‐residents, because public funds made these facilities possible. Rental rates will now be based on less than four hours of use and more than four hours of use. Non‐profits will now be able to use the Rice Lake Centre for free and the Oneka Room and Hanifl Gathering Room at discounted rates. The City’s Fee Schedule has been adjusted to reflect these updates.