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Home My WebLink AboutX-E-2a 1st Reading and Order Public Hearing Amend CIty Code Chapter 34 Fees City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Chris Eitemiller, Finance Manager Date: December 6, 2021 Item: First Reading/Ordinance Amendment – Adjustment of Fees Council Action Requested: Council is requested to conduct a First Reading and order a Public Hearing for December 20th, 2021 to consider an ordinance amendment adjusting various City fees. Background Information: Utility fees In 2020, the City worked with Ehlers 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, water tower painting, and well #9 elevated storage projects. A 1% 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. Each utility’s rate increase equals what was implemented for 2021. Ambulance Fees The Fire/EMS department proposes to increase ambulance run fees. The ambulance fees were last increased in 2016. 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. The separate rates for resident and non-resident customers will be eliminated, replaced with a single service rate. Because operating costs are the same for residents and non-residents, it was determined that charging a single rate was preferable. Safety Inspection Fees The state of MN requires periodic safety inspections for schools, hotels, churches and daycare facilities. Inspections for schools, hotels and churches must occur every three years. Daycare licensing inspections are annual, but aren’t as numerous. These school, hotel and church inspections will occur in 2022. Currently, the Fire/EMS department provides these inspections free of charge. By contracting with the state of MN, the City can receive payment at a rate set by state statute. X-E-2a Fire Extinguisher Training The department currently offers extinguisher training as a service to the community. We have been utilized by both private for profit, and non-profit organizations, as well as youth and community groups. This service requires staff time, supplies, and maintenance of extinguishers, and training props. This fee allows the department to capture expenses incurred while providing this training. Aquatics Fees In previous meetings this year, the Council has approved increasing seasonal wages in the Parks Department to help attract the necessary staff to provide services and programming. In an effort to help offset the increase needed at the Aquatic Center, the Parks department will increase multiple fees, such as daily admission, pool rental, birthday parties and seasonal passes. Arena Fees The Parks Department proposes to increase ice rental rates, beginning on July 1, 2022 to help offset continually increasing operating expenses. The department plans to have a similar increase again, effective July 1, 2024. Even with this increase, Hastings will have lower prime time rental rates that all but one of 20 ice arenas in this immediate area. Non-prime time rental rates will also be near the bottom of this area, with 7 of the 20 arenas having lower rates at non-prime times. The spring/summer rental rates are also near the bottom of this group of arenas. Water Meters The cost of water meters, and the mobile meter readers has increased. The Water utility is increasing fees to match their increased expenses. X-E-2a Financial Impact: Utility Fees The proposed rate increase is included in the 2022 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. If approved, the updated fee structure will be effective with the January 2022 billing. Residential Impact Chart – quarterly bill 2021 2022 Variance Water-Consumption 16.95$ 17.54$ 0.59$ Water-Fixed 18.76$ 19.42$ 0.66$ Water-Total 35.71$ 36.96$ 1.25$ Sewer-Consumption 64.05$ 64.69$ 0.64$ Sewer-Fixed 18.85$ 19.04$ 0.19$ Sewer-Total 82.90$ 83.73$ 0.83$ Storm Water-Fixed 19.92$ 20.72$ 0.80$ MN Test Fee 2.43$ 2.43$ -$ Total Bill 140.96$ 143.84$ 2.88$ Average Single Family Home City Average Based on 15,000 Gallons Ambulance Fees The proposed rate increase is included in our 2022 budget. The rate increase, while supporting Ambulance services, will simultaneously help reduce the amount of property taxes needed to provide this service. The rate increase will generate approximately $108,000 annually. Safety Inspection Fees Anticipated revenue for these inspections is approximately $13,000. Again, inspections for schools, churches and hospitals are done every three years, so this revenue will not be received again until 2025. The revenues generated by daycare licensing inspections annually are expected to be relatively minor. Fire Extinguisher Training This fee will be $200 for groups up to 20 people. Additional trainees, up to 20, can be added for a total of $75. This will generate approximately $1,000 and will help cover department expenses related to these training sessions. Aquatics Fees Fee increases will generate approximately $34,000, which will be used to increase the hourly rate paid to seasonal staff. Arena Fees The ice rental rates, beginning on July 1, 2022 would generate approximately $25,800 to help pay for increasing costs, including the hourly rate paid to seasonal staff. X-E-2a Water Meters and Mobile Meter Reader Units The fee increase for meters will offset increased expenses, with no net revenue increase. A new charge will be added for installing the mobile meter reader units. It takes Public Works staff an hour on average to install a mobile reader. A charge of $64 will be added for this service. The charge is reflective of the average total hourly cost for the staff that would be installing these readers. Advisory Commission Discussion: N/A Council Committee Discussion: The September 7th Finance Committee meeting included discussion on the utility funds and rate increase requests. Attachments: Ordinance amendment and full Building Permit Fee Schedule X-E-2a Updated 12/1/21 1st READING CITY OF HASTINGS, MINNESOTA ORDINANCE NO. 2021- 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 Current (2021) Proposed (2022) Water Base Charges 5/8” Meter $18.76 $19.42 1.0” Meter $46.91 $48.55 1.25” & 1.5” Meter $93.82 $97.10 2.0” Meter $150.10 $155.35 3.0” Meter $281.45 $291.30 4.0” Meter $609.78 $631.12 6.0” Meter $1,313.37 $1,359.34 Irrigation Base Charges 5/8” Meter $37.52 $38.84 1.0” Meter $93.82 $97.09 1.25” & 1.5” Meter $187.64 $194.22 2.0” Meter $300.20 $310.70 3.0” Meter $562.90 $582.60 4.0” Meter $1219.56 $1262.24 6.0” Meter $2626.74 $2718.69 Section 34.03 Effective Date Water Consumption Current (2021) Proposed (2022) Residential Users (applies all year) 0 – 15,999 gallons $1.13/1,000 gallons $1.17/1,000 gallons 16,000 – 30,999 gallons $1.47/1,000 gallons $1.52/1,000 gallons 31,000 – 60,999 gallons $2.35/1,000 gallons $2.43/1,000 gallons 61,000 gallons and above $4.46/1,000 gallons $4.62/1,000 gallons X-E-2a Updated 12/1/21 Current (2021) Proposed (2022) Other Users 0 – 15,999 gallons $1.13/1,000 gallons $1.17/1,000 gallons 16,000 – 75,999 gallons $1.47/1,000 gallons $1.52/1,000 gallons 76,000 – 200,999 gallons $2.35/1,000 gallons $2.43/1,000 gallons 201,000 gallons and above $4.46/1,000 gallons $4.62/1,000 gallons Sewer Fixed Charges $18.85 $19.04 Sewer Consumption Charge (based on metered use during winter billing quarter) $4.27/1,000 gallons $4.31/1,000 gallons Storm Water Utility Rates Low Density Residential $19.92/lot $20.72/lot Medium Density Residential $10.95/lot $11.39/lot High Density Residential $77.67/acre $80.77/acre Manufactured Housing $59.74/acre $62.13/acre Commercial/Office $95.58/acre $99.40/acre Industrial $83.63/acre $86.97/acre Public/Institutional Exempt/acre Exempt/acre Golf Course $17.93/acre $18.65/acre Open Space/Vacant $19.92/lot $20.72/lot Agricultural $19.92/lot $20.72/lot Ambulance Rates Code BLS $1,373.00 $1,510.00 Code BLS Non-resident $1,523.00 0.00 Code ALS-1 $1,631.00 $1,795.00 Code ALS-1 Non-resident $1,781.00 0.00 Code ALS-2 $1,803.00 $1,984.00 Code ALS-2 Non-resident $1,853.00 0.00 Code ALS-Treat/No transport $522.00 $522.00 Code ALS-Treat/No transport-cardiac arrest 0.00 $1,100 Code ALS-Treat/No transport – Non-resident $702.00 0.00 Non-resident fee $150.00 0.00 Fire Extinguisher Training Training Fee – 1st 20 attendees 0.00 $200.00 Training Fee – additional 20 attendees 0.00 75.00 Safety Inspections School Inspections 0.00 0.14/square foot Daycare/Foster care Inspections 0.00 50.00 Hotel Inspections 0.00 0.14/square foot Church Inspections 0.00 0.14/square foot X-E-2a Updated 12/1/21 Current (2021) Proposed (2022) Aquatic Center Pool Rental $125.00 $140.00 Staff Costs 0-50 Guests $108.00 $120.00 51+ Guests $156.00 $175.00 Birthday Parties Option A 0-10 Guests $150.00 $165.00 Additional Guests over 10 $15.00 $15.00 Lunch per person $4.00 $5.00 Option B 0-10 Guests $100.00 $115.00 Additional Guests over 10 $9.00 $10.00 Lunch per person $4.00 $5.00 Daily Admission Over 42” $7.50 $9.00 Under 42” $5.75 $7.00 After 5 p.m. $5.00 $7.00 Family Swim $5.00 or season pass or punch card $7.00 Lap Swim $4.00 or season pass or punch card $5.00 Lap Swim Season Pass Resident $37.00 $45.00 Non-Resident $44.00 $56.00 Punch Cards 10 Punches $58.00 $65.00 20 Punches $94.00 $105.00 30 Punches $110.00 $123.00 40 Punches $126.00 $141.00 Each add’l 10 punches over 40 $30.50 $35.00 Season Pass-Resident Single $58.00 $65.00 Family of 2 $105.00 $118.00 Family of 3 $154.00 $172.00 Family of 4 $203.00 $227.00 Family of 5 $252.00 $282.00 Family of 6 $301.00 $337.00 Family of 7 + $350.00 $392.00 Season Pass-Non-Resident Single $68.00 $76.00 Family of 2 $125.00 $140.00 Family of 3 $184.00 $206.00 Family of 4 $243.00 $272.00 Family of 5 $302.00 $338.00 Family of 6 $361.00 $404.00 Family of 7 + $419.00 $469.00 X-E-2a Updated 12/1/21 Current (2021) Proposed (2022) Swimming Lessons Private $60.00 for three 30-minutes lessons $70.00 Semi-private $60.00 for three 30-minutes lessons $70.00 Swim Lesson Express $7.00 for a 1 – 45-minute lesson/swimmer $15.00 One day/week classes $40.00 for a 4 – 45-minute classes $50.00 Monday through Thursday classes $45.00 for 8 – 30-minute classes/student $55.00 Tuesday and Thursday classes $45.00 for 8 – 30-minute classes/student $55.00 Lifeguard Training $200.00 $225.00 Jr. Lifeguard Training $50.00 $75.00 Tons of Tots $5.00 or season pass/punch card $7.00 Water Fitness $4.00 each or season pass or punch card $5.00 Water Walking $4.00 daily or $37.00 season or Season Pass or Punch Card $5.00 Arena Dry Floor Rental Per hour $82.00 $85.00 Ice Rental Prime (7am to 9:30pm) $200.00 $215.00 Non-Prime (9:30pm to 7am) $150.00 $160.00 Off-season Ice Rates 1-10 hours $0.00 $160.00 11-25 hours $0.00 $150.00 26 or more $0.00 $140.00 Public Skate Ice Skating $4.50 $5.00 Ice Hockey $6.00 $7.50 Free Style $6.00 $10.00 Skate Rental $2.50 $3.00 Skate Sharpening $5.00 $6.00 Community Development Annexation $500 + $1,000 escrow $500 + $3,000 escrow Environmental Assessment $500 + $1,000 escrow $500 + $3,000 escrow Sign Permits $ 1 - $ 500 $30 $0 $ 1 - $ 1000 $50 $50 $1001-2500 $75 $0 $2501 + $100 $0 $1001 + $0 $100 X-E-2a Updated 12/1/21 Current (2021) Proposed (2022) Water Meters – Utilities Fees 3/4" IPERL with MXU $320 $384 1" IPERL with MXU $375 $474 1 1/2" T2 OMNI irrigation meter with MXU $1,000 $1,219 1 1/2" C2 OMNI commercial meter with MXU $1,355 $1,679 This ordinance shall be effective with the January 2022 billing, with the exception of Arena rate changes, which will take effect July 1, 2022. X-E-2a Updated 12/1/21 Moved by Councilmember , seconded by Councilmember to adopt the ordinance as presented. Adopted by the Hastings City Council on this 20th day of December, 2021, 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 20th day of December, 2021, as disclosed by the records of the City of Hastings on file and of record in the office. Kelly Murtaugh, City Clerk X-E-2a