2024.12.16 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: 2025 Fees, Rates and Charges DATE: For the City Council Meeting of December 16, 2024 DESIRED COUNCIL ACTION Adopt Ordinance Approving 2025 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 2025. The Finance Department offers the following with respect to each different type of fee that is proposed to change. DEVELOPMENT RELATED Developers are charged Street Maintenance fees as part of the Development Agreement. The fee collected is used to cover the cost of the first chip seal of the streets in the Plat, however Public Works and Engineering staff are no longer recommending chip seals as part of the pavement preservation practice due to performance issues. Staff has reviewed the use of a different product by Corrective Asphalt Materials called Reclamite. The City Engineer is recommending that the fee be increased to $4.50 per lineal foot to reflect the updated cost of the Reclamite. The fee is calculated per lineal foot and is based on the length of streets within the Plat. PUBLIC WORKS RELATED Fees for Public Works personnel and equipment charges were first added to the fee schedule in 2013 and were adjusted last year. 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, insurance costs and equipment costs.