2023.12.18 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: 2024 Fees, Rates and Charges DATE: For the City Council Meeting of December 18, 2023 DESIRED COUNCIL ACTION Adopt Ordinance Approving 2024 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 2024. The Finance Department offers the following with respect to each different type of fee that is proposed to change. PUBLIC WORKS RELATED Fees for Public Works personnel and equipment charges were first added to the fee schedule in 2013 and were last adjusted in 2020. These are fees charged for a service performed that is over and above what is normally offered. Staff is recommending an increase in the hourly rates to reflect updated employee wages and insurance costs. UTILITY RELATED The fees for various sized water meters and utility hardware have been updated to reflect manufacturer’s prices. Staff is also recommending an increase to the fee charged for blocking access to water meters that are in need of repair or need attention for other reasons. MISCELLANEOUS CHARGES Staff is recommending adding a service charge fee for disputed credit card transactions to the fee schedule. This is a fee charged to the City by our credit card processor when a customer disputes a credit card payment that they initiated. If the error is on the customer side staff is recommending that it be their responsibility to cover the fee.