HomeMy WebLinkAboutItem 8
City of Lakeville
Finance Department
Memorandum
To: Mayor and City Council
From: Jerilyn Erickson, Finance Director
Copy: Justin Miller, City Administrator
Date: October 28, 2019
Subject: 2020 Proposed Fee Schedule
Introduction
The purpose of this agenda item is to discuss the proposed changes to the City of Lakeville
2020 Fee Schedule.
Summary
Annually staff reviews the fee schedule as part of the budget process and makes
recommendations to the City Council for changes or additions as needed. The Council is
required to announce the time and place of the council meeting at which the 2020 official
fee schedule would be discussed, and which would allow for citizen input. A public hearing
as required by State Statute 462.353 is being held on December 2, 2019. The requirements
to adopt a fee schedule set out in Minnesota Statute 462.353 subd. 4 will be met at the
December 2, 2019 Council meeting.
The public hearing will allow citizens and other interested parties to voice their opinions
regarding the fees and charges. The input received from the October 28th work session
and public hearing on December 2nd will be incorporated into the 2020 Official Fee
Schedule.
Note this draft of proposed changes does not currently include changes to credit card
fees. This is a separate agenda item and any approved changes will be added to the fee
schedule changes in November/December 2019 before the 2020 fee schedule is finalized.
Conclusion
The 2020 Official Fee Schedule will be incorporated into the City Code with an effective
date of January 1, 2020 unless noted otherwise. New fees, including fees that have
historically been charged but haven’t been reflected on the fee schedule, and proposed
changes are indicated in the table on the following pages alongside their present amount.
Please see the description of the changes following the table.
Attachment:
1) Proposed Fee Schedule Changes and Explanations
Explanations of Fee Changes
1. The charges for future improvements to adjacent streets to be removed from the
fee schedule, following recent Minnesota Supreme Court activity and per the City
attorney’s recommendation.
2. The residential park dedication fees are proposed to increase by 5.0% as of January
1, 2020, to coincide with the increase in estimated market value of unplatted land.
3. Removal of the Special assessment search fee of $25. This fee is no longer used
because the information is now available online.
4. Revised the staff hourly fees to reflect estimates for 2020 cost of living adjustments.
Consistent with prior years, the rates are calculated using 2.5 times payroll costs (to
account for benefit and other indirect costs). Also added new Forester Technician
position (new in 2019 budget), and revised titles to match the recent compensation
study results.
5. Changes to Small Wireless Facilities Application fees:
a. Updated nomenclature on the Small Wireless Facilities Application fees to
better reflect FCC regulation language.
b. Removal of the small cell management/right-of-way permit fee as this fee
is already covered under the right of way excavation permit fee (see permit
section of fee schedule).
c. Revision of the Small cell co-location on city facility administration fee to
“Small Wireless Facility Application Fees”, including changes to the fee
amount to $1,000 per unit based on State Statute and FCC regulations. This
amount will be sufficient to recover costs of city staff time to be spent
reviewing and processing applications.
6. Revised the fee charged for delinquent city code violations that are certified to
property taxes (special assessment fee) to $35. This is consistent with the
certification fee charged for late utility payments and ensures recovery of City costs
incurred during the certification process.
7. Created a new fee for unpaid false alarm charges that are certified to property taxes
(special assessment fee) of $35 per property, consistent with the certification fee for
delinquent utilities and city code violations.
8. Removal of the Taxicab license fee as this is no longer required per Ordinance 1008.
9. Increased the Youth Athletic Association Participation Fees from $5 per player per
season to $10 per player per season for Lakeville associations and from $100 per
field per season to $200 per field per season for non-Lakeville associations, to better
recover costs of maintaining the fields. The per person fee was first charged in 2009
as a way to assist the City with the administrative and maintenance costs involved
with field usage, and was $2.50 per player per season at that time. The fee increased
in 2010 to recover a greater portion of the costs. There hadn’t been an increase to
the per player fee for ten years, until this proposed 2020 increase. The per field per
season fee for non-Lakeville associations is proposed to double in 2020 as well, to
remain proportionate to the increase in the fee for Lakeville associations.
10. Revised the staff hourly fees to reflect estimates for 2020 cost of living adjustments.
Consistent with prior years, the rates are generally calculated using 2.5 times payroll
costs (to account for benefit and other indirect costs).
11. Addition of a Stage Extension Removal fee of $200/production to better recover
staff costs incurred when a production group requires a stage extension to be
removed, a process that requires two staff at a minimum. This will be a new fee in
2020.
12. Increase in permit fee for private sewer systems (both new installation and repair)
from $200 to $250 per installation or repair. The City now engages a contractor for
these types of inspections due to minimal activity and the special license required
by the inspector. The City pays $200 per permit to the contractor. The additional
$50 is to recover the City’s administrative fees in processing the permit.
13. Increase to the Cost Recovery Fee for Code Enforcement activities from $70 per re-
inspection to $100 per re-inspection to more adequately recover the costs
associated with performing the re-inspection and the related administrative duties
(staff time, mileage on city vehicle, follow-up correspondence, and potential
conversation(s) with the violator/complainant).
14. Change to the Notice of Appeal fee from $100 per notice to a $500 escrow, to better
reflect the potential staff time associated with reviewing and processing the appeal
through the City Council.
15. Revised the Planning and Zoning Staff Services rates for the Associate Planner and
the Planning Director to reflect estimates for 2020 cost of living adjustments.
Consistent with prior years, the rates are calculated using 2.5 times payroll costs (to
account for benefit and other indirect costs).
16. Removal of the Dog license fee as the City has ceased charging this fee.
17. Reduced the Massage center investigation fee from $300 to $150 to coincide with
the Massage therapist and Tobacco investigation fees.
18. Removal of the Billable Transaction Fees- Electronic and Manual, as the City no
longer utilizes these fees.
19. Increased the Public Safety Staff Services fees (Police Officers, Community Service
Officers, and Fire Inspection Services) for estimated 2020 cost of living adjustments,
compensation study adjustments, and 2020 PERA adjustments, the goal being to
ensure City costs are recovered for when these services are billed.
20. Updated staff rates to reflect estimated 2020 payroll changes. Consistent with prior
years, the rates are calculated using 2.5 times payroll costs (to account for benefit
and other indirect costs).
21. Increased the fee for valve replacement from $29/valve to $32/valve to ensure the
City is recovering costs incurred on each valve replacement service.
22. Sewer rates are proposed to increase in order to cover infrastructure improvements
to lift stations in the 2020-2024 Capital Improvement Plan, as well as a 3.15%
increase in the MCES charges, which are not controllable by the City. The
recommended increase is a $.54 per quarter for the basic sewer charge and $.27 per
thousand gallons of discharge. For the average residence using 18,000 gallons, the
increase in the quarterly bill is $5.38. More detail is provided in the October 28 Utility
Budget/Rate memo. Staff is also recommending removal of the language that
discusses no charges required for a separate deduct meter.
23. Water rates are proposed to increase to cover infrastructure improvements and
future debt payments associated with those improvements as proposed in the
2020-2024 Capital Improvement Plan. The recommended increase is $1.12 per
quarter for the basic water charge and $0.22 per thousand gallons of consumption
(tier 1), $0.36 per thousand gallons of consumption (tier 2), and $0.61 per thousand
gallons of consumption (tier 3). For the average residence using 18,000 gallons of
water, the increase in the quarterly bill is $5.16. More detail is provided in the
October 28 Utility Budget/Rate memo.
24. Street lights rates are proposed to increase to finance the cost of operating City
street lights and will increase a resident’s quarterly bill by $1.00. More detail is
provided in the October 28 Utility Budget/Rate memo.
25. Increased the fee for third and subsequent out of cycle meter reads to be $56/visit,
consistent with the utility service call fees (during normal business hours).
26. Increased the water meter testing fee for 5/8” to 1” meters to ensure we are
recovering costs incurred on water meter testing.
27. The water service call fees are proposed to be increased from $54/visit to $56/visit
for calls during normal business hours and from $111/visit to $128/visit for service
calls after normal business hours. The purpose of these increases is to better reflect
the actual costs incurred by the City in performing the service calls. These fees are
charged for water disconnection, water reconnection, other service calls, and for
meter reading of customers who have opted out of the radio-read type meters
(meter must be read manually).
28. The annual MN State Test Fee for utility bills will increase on 1/1/20 from $6.36 to
$9.72, meaning that the surcharge on City utility bills will increase from
$1.59/quarter to $2.43/quarter. This amount is not controllable by the City; it
collects from customers and passes on to the State.
29. Increased fees for mini manhole cover installation to ensure we are recovering costs
incurred in providing these services (increase due to increase in staff costs).
30. Added that no refunds will be issued for utility customer balances under $5.00 for
customers no longer requiring utility services at a particular property, as it is not
cost effective for the City to process refunds under that amount.
31. The Environmental Resources Fee is proposed to be increased $2.16 per quarter to
offset the costs associated with environmental and forestry related programs. More
detail is provided in the October 28 Utility Budget/Rate memo.
There was also a desire from the council to review the fee charged when filing for public
office. The current fee is $5 and is set by ordinance. Per state statute, the maximum
amount the City of Lakeville can charge is $40.
State Statute:
Subd. 3.Filing fees.
(a) Except as otherwise provided in this section, the filing fee for a municipal office is as
follows:
(1) in first class cities, $20;
(2) in second and third class cities, $5; and
(3) in fourth class cities and towns, $2.
(b) A home rule charter or statutory city may adopt, by ordinance, a filing fee of a
different amount not to exceed the following:
(1) in first class cities, $80;
(2) in second and third class cities, $40; and
(3) in fourth class cities, $15.
Below are a few examples of comparable cities and their filing fees:
Bloomington $50
Apple Valley $40
Maple Grove $40
Burnsville $20
Plymouth $ 5
Eagan $ 5
If the council wishes to change our fee, staff would need direction to create a new
ordinance and submit it for approval at a future council meeting.
# FEE DESCRIPTION Jan 1 2019 Fee Jan 1 2020 Fee
Connection charges and Development fees
1
Residential - Urban $107.00 per Front Foot $107.00 per Front Foot
Residential - Rural $62.00 per Front Foot $62.00 per Front Foot
Commercial and Industrial - Urban $160.00 per Front Foot $160.00 per Front Foot
Commercial and Industrial - Rural $94.00 per Front Foot $94.00 per Front Foot
2
Residential (High-Density) $2,240 per dwelling unit $2,352 per dwelling unit
Residential (Medium-Density) $2,922 per dwelling unit $3,068 per dwelling unit
Residential (Low-Density) $4,294 per dwelling unit $4,509 per dwelling unit
Commercial $7,693 per acre $7,693 per acre
Industrial $4,558 per acre $4,558 per acre
Engineering Charges
3 Special Assessment Search $25.00/parcel $25.00/parcel
4 Engineering and Construction Services Staff Services (Hourly fees)
City Engineer $158.00 $169.00
Assistant City Engineer $131.00 $151.00
Senior Project Engineer $124.00 $142.00
Project Engineer $113.00 $127.00
Civil Engineer $98.00 $106.00
Graduate Engineer $77.00 $95.00
GIS Manager $113.00 $119.00
GIS Analyst $81.00 $95.00
Environmental Resources Manager $113.00 $127.00
Environmental Resources Specialist $81.00 $100.00
Environmental Resources Technician $108.00 $89.00
City Forester $103.00 $119.00
Forester Technician N/A- new to fee schedule in
2020 $80.00
Administrative Assistant $74.00 $80.00
Construction Services Superintendent $124.00 $142.00
Senior Construction Representative $98.00 $106.00
Construction Representative $77.00 $95.00
General Government services
5 Small Cell Wireless Facilities Application fees:
Small Cell Management/Right-of-Way Permit Fee $225/location plus $100 for
each supplemental
application
$225/location plus $100 for
each supplemental application
Small Cell Co-location on City Facility Administration Fee Small Wireless Facility Application fees
$2,500/location plus $1,000
for each supplemental
application
$1,000 per unit
$2,500/location plus $1,000
for each supplemental
application
6 City Code Violations - Special Assessment Fee $90.00/lot plus 18% interest
per year
$35.00/lot plus 18% interest
per year
7 Delinquent false alarm charges- Special Assessment Fee N/A- new to fee schedule in
2020
$35.00/property plus 18%
interest per year
8 Taxicab $25.00 $25.00
Parks & Recreation- Field Rental fees
Other shelter-related fees
9 Youth Athletic Association Participation Fee (Lakeville)$5 per player, per season $10 per player, per season
Youth Athletic Association Participation Fee (Non-Lakeville)$100 per field, per season $200 per field, per season
Heritage Center
10 Facility Attendant $45.00/hour $50.00/hour
Future Improvement to Adjacent Street Charge
Park Dedication Fee
Parks & Recreation Staff Services
(hourly fees are associated with staff time to facilitate rentals when the building would not otherwise be open).
Publications
*S G G S f f
Other general government fees
Licenses
Other license fees
# FEE DESCRIPTION Jan 1 2019 Fee Jan 1 2020 Fee
Arts Center
11
Stage Extension Removal N/A- new fee in 2020 $200.00/production
Permits
12 Private sewer systems: New installation $200.00 $250.00
Private sewer system repair $200.00 $250.00
Planning & Zoning
13 Cost Recovery Fee (Code Enforcement Activities)(Adopted by Ordinance)$70 per re-inspection $100 per re-inspection
14 Notice of Appeal $100.00 $500.00 escrow
15
Associate Planner $108.00/hour $119.00/hour
Planning Director $158.00/hour $190.00/hour
Public Safety
16 Dog license (bi-annual)$20.00 $20.00
17 Massage center $300.00 $150.00
18 Billable Transaction Fee- Electronic $1.50/transaction $1.50/transaction
Billable Transaction Fee- Manual $2.50/transaction $2.50/transaction
Other public safety charges
19 Police Officers $90.00/hr.$97.00/hr.
Community Service Officers $46.00/hr.$48.00/hr.
Fire inspection services (provided to other cities)
Regular time
Overtime
$86.00/hour
$107.00/hour
$90.00/hour
$113.00/hour
Public Works
20
Part-time seasonal $35.00 $39.00
Service Tech $80.00 $83.00
Maintenance II $76.00 $79.00
Lead Maintenance $81.00 $84.00
Lead Service Tech $85.00 $88.00
Fleet, Streets, Parks Supervisor $103.00 $113.00
Superintendent $124.00 $142.00
Administration $67.00 $80.00
Utilities staff services (per hour)
Part-time seasonal $35.00 $39.00
Maintenance II $76.00 $79.00
Lead Maintenance $81.00 $84.00
Supervisor $103.00 $119.00
Superintendent $124.00 $151.00
Administration $67.00 $80.00
Other public works fees
21 Valve replacement (fee includes cost of the valve and staff time to replace the valve; typically
completed only as needed at the time of water meter replacement)
$29.00 per valve replacement $32.00 per valve replacement
22 SEWER USAGE RATES- Quarterly Charges
Residential, Apartments and Manufactured Homes
(Apartment & Manufactured Homes Base charge and consumption limits are multiplied by the # of units at the time the
meter is read)
Base Charge- per dwelling unit, per quarter $9.05 $9.59
Usage Charge
• Based on actual consumption during the first quarter of the year, or actual water consumption during
the billing period,
whichever is less
• When an account is newly established, the maximum sewer usage charge shall be set at 18,000
gallons. Sewer for the
remainder of the year will be set at this figure or actual usage, whichever is less.
• Residential customers shall be billed for a minimum of 5,000 gallons per quarter.
• For apartments and manufactured homes served by a single meter, the usage charge is determined
by dividing the
total gallons of water by the # of units
$4.48/1000 Gal $4.75/1000 Gal
Flat rate- per dwelling unit, per quarter shall be charged to those residential customers who do not
have metered water.
$89.69 $95.09
Commercial, Industrial and Institutional
Base Charge- per account, per quarter $9.05 $9.59
Usage Charge
• Based on actual consumption during the first quarter of the year, or actual water consumption during
the billing period,
whichever is less
• When an account is newly established, the maximum sewer usage charge shall be set at 18,000
gallons. Sewer for the
remainder of the year will be set at this figure or actual usage, whichever is less.
• Industrial, Institutional, and Commercial customers shall be billed for a minimum of 5,000 gallons per
quarter
$4.48/1000 Gal $4.75/1000 Gal
When a separate deduct meter is installed and is limited to uses that cannot enter the sewer
system, no charge shall be made for sewer on the water metered for said meter.
23 WATER USAGE RATES- Quarterly Charges
Residential, Apartments and Manufactured Homes
Base Charge- per dwelling unit, per quarter $7.25 $8.37
Other planning and zoning fees
Investigation Fees
Technical Services Fees
Sewer and Water Permits (Adopted by Ordinance)
Staff Services (planning and zoning)
Animal Fees/Licenses
Streets and Parks staff services (per hour)
# FEE DESCRIPTION Jan 1 2019 Fee Jan 1 2020 Fee
Usage Charge
• Based on actual metered gallons consumed each quarter
Tier 1- up to 30,000 gallons per quarter $1.45/1000 Gal $1.67/1000 Gal
Tier 2- over 30,000 gallons up to 49,000 gallons per quarter $2.30/1000 Gal $2.66/1000 Gal
Tier 3- over 49,000 gallons per quarter $3.94/1000 Gal $4.55/1000 Gal
Irrigation sprinkler meters $3.94/1000 Gal $4.55/1000 Gal
Commercial, Industrial and Institutional
Base Charge- per account, per quarter $7.25 $8.37
Usage Charge
• Based on actual metered gallons consumed each quarter
Tier 1- up to 30,000 gallons per quarter $1.45/1000 Gal $1.67/1000 Gal
Tier 2- over 30,000 gallons per quarter $2.30/1000 Gal $2.66/1000 Gal
Irrigation sprinkler meters $3.94/1000 Gal $4.55/1000 Gal
Bulk Water Accounts
Usage Charge
o Based on actual metered gallons consumed each quarter
$4.42/1000 Gal $5.11/1000 Gal
24 STREET LIGHTS
Utility accounts served by water and/or sanitary sewer
Residential and multiple family units $9.12/dwelling unit/quarter $10.12/dwelling unit/quarter
Commercial, Industrial and Institutional $0.2551/front foot/quarter $0.2832/front foot/quarter
New subdivisions, as part of development contract $36.48/residential dwelling
unit
$40.48/residential dwelling
unit
Utility accounts NOT served by water and/or sanitary sewer shall be billed annually
Residential and multiple family units $36.48/dwelling unit $40.48/dwelling unit
25
Third and subsequent out of cycle meter reads $54.00/visit $56.00/visit
26 Testing of Water Meters (only if meter tests correct, in accordance with Ordinance 7-5-4-6)
5/8" to 1"$55.00 $57.00
27 Water Disconnection, Reconnection or other Service Call
During normal business hours $54.00/visit $56.00/visit
After normal business hours $111.00/visit $128.00/visit
Other
28 MN State water supply service connection fee (state testing fee) $1.59/quarter/connection $2.43/quarter/connection
29 Mini Manhole Cover plus installation
*Includes cost of mini manhole plus an additional 15% for staff administrative processing time, and
staff time to install (including staff use of City patch truck).
Actual cost of mini manhole
cover + 15%; plus $224 for
installation
Actual cost of mini manhole
cover + 15%; plus $231 for
installation
30 Utility Bill Refunds (for customers no longer requiring utility services at a particular property) No refunds issued for
balances under $5.00
31 ENVIRONMENTAL RESOURCES FEE
Utility accounts served by water and/or sanitary sewer
-Single family (residential equivalent utility factor) Environmental Resources Fee $14.38/dwelling unit/quarter $16.54/dwelling unit/quarter
Utility accounts not served by water and/or sanitary sewer shall be billed annually.
-Residential equivalent utility factor Environmental Resources Fee $57.52/dwelling unit/year $66.16/dwelling unit/year
New subdivisions, as part of development contracts; one-time fee $57.52/dwelling unit $66.16/dwelling unit
Other
Out of Cycle Meter Read (during normal business hours only)
Utility accounts NOT served by water and/or sanitary sewer