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Home My WebLink AboutX-E-01 2nd Reading - Adopt Ordinance - City Code Chapter 34.03 - Fee Schedule City Council Memorandum To: From: Date: Item: Mayor Fasbender & City Councilmembers Chris Eitemiller, Finance Manager December 18, 2023 Second Reading of Chapter 34: Fees Council Action Requested: Council is requested to hold the second reading and approve ordinance amendment adjusting various City fees. Background Information: Utility fees In 2023, the City worked with Northland Securities on a Utility Rate review which looked at the sustainability of our utility funds to cover projected capital needs over the next several years. The review recommends rate increases for water, sewer, and storm water. In accordance with this review, staff recommends a 3.5% increase in water rates. This will help fund infrastructure improvements and other capital maintenance projects. Corrections were made to five fees from the first reading. A 4.5% increase is recommended for our sewer rates. This adjustment keeps the fund in line with inflationary increases to expenditures and assist with funding the infrastructure improvements and capital asset purchases in the coming years. A 4% increase is also recommended for our Storm Water Fund. The Storm Water Fund’s future capital projects are driving this proposed increase. Water and Storm Water rate increases match what was implemented for 2023, whereas the Sewer rates increased from 2.0% to 4.5% due to increased capital expenditure projections. Credit Card Convenience Fee The City must pay fees to credit card companies for each credit card transaction. Government agencies and private businesses are allowed to charge a convenience fee for customers paying with a credit card. For 2023, the average percentage of credit card transaction fees paid by the City is 3.7%. Staff requests permission to add this new charge to the City fee schedule. Ambulance Fees The Fire/EMS department proposes to increase ambulance run fees. The ambulance fees were last increased in 2022. In comparing rates with neighboring communities, Hastings was considerably lower. Meanwhile, costs have increased for operating our ambulance service. Increasing costs include maintenance, fuel, and replacement of the ambulances, as well as EMS supplies, medications, various EMS equipment and medical devices, as well as additional hiring. X-E-01 SAC/WAC Fees These fees charge development-related infrastructure to the new development, rather than passing the costs along to utility customers. As part of the utility rate study conducted by Northland Securities, and presented to the City Council on September 18, 2023, there are recommended increases. a. Increase WAC fee from $2,306.25 to $2,957 per unit b. Increase SAC fee from $708.75 to $945 per unit Arena Fees The Parks Department proposes to increase ice rental rates, dry floor rental, public skate session fees and birthday party packages beginning on July 1, 2024 to help offset continually increasing operating expenses. Even with this increase, Hastings will have lower prime time rental rates than all but one of twenty ice arenas in this immediate area. Non-prime time rental rates will also be near the bottom of this area, with seven of the twenty arenas having lower rates at non-prime times. The spring/summer rental rates are also near the bottom of this group of arenas. Other Parks Fees The Parks department proposes a number of maintenance-related rate increases in other areas, such as Park rentals and softball league fees. These fees are increased periodically to help offset increasing expenses. Some equipment rental and recreation programs have been discontinued, so this is also noted on the fee table. Police Fees The Police department requests to add some fees and update language to conform to state law. The department also requests increasing the animal impound fee to offset increased expenses paid to board these animals. Some of the Dangerous and Potentially Dangerous dog fees had been established in ordinance previously but had not yet been specifically defined in the fee schedule. Language to allow charging data subjects actual cost for requested documents was inadvertently omitted from the 1st Reading. Cannabis License Fees Based on changes in state law earlier this year, the cannabis retail license fees are being amended. Financial Impact: Utility Fees The proposed rate increase is included in the 2024 budget. It is anticipated this increase will create a neutral or positive revenue stream from each of the utility funds. Rate increase requests in future years will be evaluated based on the fund health and are expected to be in line with inflationary measures and capital projects. X-E-01 If approved, the updated fee structure will be effective with the January 2024 billing. Residential Impact Chart – quarterly bill Credit Card Convenience Fee Credit card transaction expenses currently absorbed the City are projected to total approximately $112,000 in 2023. By adding 3.7% to each credit card payment processed, the City will generate revenue to provide this service rather than needing tax revenues to offset these expenses. Ambulance Fees The proposed rate increase is not included in our 2024 budget. Due to two years of poor Ambulance revenues, staff requests this rate increase be allowed as a method to improve the Fire/EMS fund’s financial position. Whatever the new rates generate would first go to replenishing the Fire/EMS fund’s equity. The 2024 revenues generated would provide a dependable baseline to be used in building the 2025 budget. Eventually, increased ambulance revenues, while supporting Ambulance services, will simultaneously help reduce the amount of property taxes needed to provide this service. Arena Fees The ice rental rates are schedule to begin on July 1, 2024, and would generate funding to help pay for increasing costs. Other Parks and Police Fees The other proposed fee changes for both Police and Parks would not generate substantial revenues and are intended to maintain a similar level of revenue to offset cost increases. Advisory Commission Discussion: N/A Council Committee Discussion: The November 27th Finance Committee meeting included discussion on the utility funds and rate increase requests. Attachments: Ordinance amendment and full Fee Schedule changes X-E-01 SECOND READING CITY OF HASTINGS, MINNESOTA ORDINANCE NO. 2023- THIRD SERIES AN ORDINANCE OF THE CITY OF HASTINGS, MINNESOTA AMENDING CHAPTER 34 OF THE HASTINGS CITY CODE PERTAINING TO FEES FOR MUNICIPAL SERVICES BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS: Chapter 34 of the Hastings City Code is hereby amended as follows: Section 34.03 Fee Schedule Public Works Fee Changes Current Proposed SAC Fee $780.75 per unit $945.00 per unit WAC Fee $2,306.25 per unit $2,957.00 per unit Water Base Charges 5/8” & ¾” Meter $20.10 $20.80 1.0” Meter $50.25 $52.00 1.25” & 1.5” Meter $100.50 $104.02 2.0” Meter $160.79 $166.42 3.0” Meter $301.50 $312.05 4.0” Meter $653.21 $672.81 6.0” Meter $1,406.92 $1,456.16 Irrigation Base Charges 5/8” & ¾” Meter $40.20 $41.60 1.0” Meter $100.50 $104.00 1.25” & 1.5” Meter $201.00 $208.04 2.0” Meter $321.58 $332.84 3.0” Meter $603.00 $624.10 4.0” Meter $1306.42 $1,345.62 6.0” Meter $2,813.84 $2,912.32 X-E-01 Section 34.03 Water Consumption Residential Users (applies all year) 0 – 15,999 gallons $1.21/1,000 gallons $1.25/1,000 gallons 16,000 – 30,999 gallons $1.57/1,000 gallons $1.62/1,000 gallons 31,000 – 60,999 gallons $2.52/1,000 gallons $2.61/1,000 gallons 61,000 gallons and above $4.78/1,000 gallons $4.95/1,000 gallons Other Users 0 – 15,999 gallons $1.21/1,000 gallons $1.25/1,000 gallons 16,000 – 75,999 gallons $1.57/1,000 gallons $1.62/1,000 gallons 76,000 – 200,999 gallons $2.52/1,000 gallons $2.61/1,000 gallons 201,000 gallons and above $4.78/1,000 gallons $4.95/1,000 gallons Sewer Rates Sewer Fixed Charges $19.42 $20.29 Sewer Consumption Charge (based on metered use during winter billing quarter) $4.40/1,000 gallons $4.60/1,000 gallons Storm Water Utility Rates Low Density Residential $21.55/lot $22.41/lot Medium Density Residential $11.85/lot $12.32/lot High Density Residential $84.00/acre $87.36/acre Manufactured Housing $64.62/acre $67.20/acre Commercial/Office $103.38/acre $107.52/acre Industrial $90.45/acre $94.07/acre Public/Institutional Exempt/acre Exempt/acre Golf Course $19.40/acre $20.18/acre Open Space/Vacant $21.55/lot $22.41/lot Agricultural $21.55/lot $22.41/lot Parks and Recreation Fee Changes Current Proposed Civic Arena Dry Floor Rental (effective July 1, 2024) Per hour $85.00 plus tax $90.00 plus tax All Day $780.00 plus tax $900.00 plus tax Civic Arena Ice Rental (effective July 1, 2024) Prime $215.00 per hour plus tax $220.00 per hour plus tax Birthday Party Package $100.00 plus tax $120.00 plus tax Public Skate: Ice Skating $5.00 $6.00 Ice Hockey $7.50 $8.00 Free Style $10.00 $12.00 Session book of 10 $40.00 $50.00 Skate Rental $3.00 $4.00 X-E-01 Disc Golf Tournament Resident $100.00 plus tax per day $120.00 plus tax per day Non-Resident $150.00 plus tax per day $170.00 plus tax per day Park Rentals: Open Air Shelter Rental Resident $40.00 plus tax $50.00 plus tax Non-Resident $50.00 plus tax $60.00 plus tax Enclosed Shelter Rental Resident $50.00 plus tax $60.00 plus tax Non-Resident $60.00 plus tax $70.00 plus tax Park Space Rental Resident $40.00 plus tax $50.00 plus tax Non-Resident $50.00 plus tax $60.00 plus tax Levee Park: Rent entire park Resident $300.00 plus tax $310.00 plus tax Non-Resident $360.00 plus tax $370.00 plus tax Rotary Pavilion – Full Day Resident $150.00 plus tax $160.00 plus tax Non-Resident $180.00 plus tax $190.00 plus tax Rotary Pavilion – Half Day Resident $80.00 plus tax $90.00 plus tax Non-Resident $100.00 plus tax $110.00 plus tax Amphitheater Resident $100.00 plus tax $110.00 plus tax Non-Resident $120.00 plus tax $130.00 plus tax Party Wagon Multiple rates $125.00 plus tax Softball/Per team: Adult Spring/Summer Men’s League $740.00 $750.00 Women’s League $590.00 $600.00 Co-ed League $510.00 $600.00 Adult Fall Men’s League $360.00 $375.00 Co-ed League $360.00 $375.00 Adult Sand Volleyball $260.00 tax included Adult Bags League $50.00 tax included Memorial Bench Sponsorship $800.00 $1000.00 Parks and Recreation Fees to Remove as Offerings and Programs are no longer in place: 1) Park Equipment, Winter Equipment, and Picnic Table Rental X-E-01 2) Recreation fees for Basketball, Broomball, Disc Golf, Dodge Ball, Football, Kickball Fire Fees Current Proposed Code BLS $1,510.00 $1,992.00 Code ALS-1 $1,795.00 $2,685.00 Code ALS-2 $1,984.00 $2,826.00 Finance Fees Current Proposed Credit Card Convenience fee 3.7% Late Payment Penalty 10% of amount billed or $25.00, whichever is greater 10% of amount billed Police Fees Current Proposed False Alarms 4th False Alarm $150.00 $200.00 5th and each subsequent alarm $250.00 $300.00 Dog License Two-year (non-spayed or non- neutered) $12.00 $15.00 Dog Pick Up Impound Fees $70.00 $80.00 Potentially Dangerous/Dangerous Dog Dangerous Dog Annual Registration Fee $500.00 $500.00 Potentially Dangerous Dog Annual Registration Fee $0.00 $250.00 Dangerous Dog Warning Symbol Signage (required) $0.00 $15.00 Dangerous Dog Warning Symbol Tag (required) $0.00 $7.00 Dangerous Dog Non-refundable Appeal Filing Fee $200.00 $200.00 Police Reports Commercial Use Reports – Accident Reports $0.00 $0.50 per record Commercial Use Reports – Arrest and Citation Reports $0.00 $0.25 per page single-sided $0.50 per page double-sided Copies – Member of the Public – 100 or fewer pages black and white copies $0.25 per page $0.25 per page single-sided $0.50 per page double-sided Copies – Member of the Public – 100 or fewer pages color copies $0.25 per page $0.50 per page single-sided $1.00 per page double-sided X-E-01 Copies – Data Subject $0.00 Actual Cost Photos $5.00 Actual Cost Video $5.00 Actual Cost Audio Recording Statements $5.00 Actual Cost City Clerk Current Proposed Cannabis Product Retail License $8,000.00 $500.00 Initial and First Renewal $1000.00 Subsequent Renewals Cultivation License $200.00 $0.00 X-E-01 Moved by Councilmember , seconded by Councilmember to adopt the ordinance as presented. Adopted by the Hastings City Council on this 18th day of December 2023, by the following vote: Ayes: Nays: Absent: CITY OF HASTINGS ATTEST: Mary Fasbender, Mayor Kelly Murtaugh, City Clerk I hereby certify that the above is a true and correct copy of the Ordinance presented to and adopted by the City of Hastings, County of Dakota, Minnesota, on the 18th day of December 2023, as disclosed by the records of the City of Hastings on file and of record in the office. Kelly Murtaugh, City Clerk X-E-01