HomeMy WebLinkAboutItem 6
City of Lakeville
Finance Department
Memorandum
To: Mayor and City Council
From: Jerilyn Erickson, Finance Director
Copy: Justin Miller, City Administrator
Date: October 26, 2020
Subject: 2021 Proposed Fee Schedule
Introduction
The purpose of this agenda item is to discuss the proposed changes to the City of Lakeville
2021 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 2021 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 7, 2020. The requirements
to adopt a fee schedule set out in Minnesota Statute 462.353 subd. 4 will be met at the
December 7, 2020 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 26th work session
and public hearing on December 7th will be incorporated into the 2021 Official Fee
Schedule.
Staff is not currently proposing any changes to the watermain, sanitary sewer and storm
sewer connection charges, however, these fees will be evaluated in early 2021 following
review by a consultant in reference to the 2040 comprehensive plan and the projected
costs of planned infrastructure expansion.
Conclusion
The 2021 Official Fee Schedule will be incorporated into the City Code with an effective
date of January 1, 2021 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
# FEE DESCRIPTION 2020 Fee Proposed 2021 Fee
1
Residential (High-Density) $2,352 per dwelling unit $2,470 per dwelling unit
Residential (Medium-Density) $3,068 per dwelling unit $3,221 per dwelling unit
Residential (Low-Density) $4,509 per dwelling unit $4,734 per dwelling unit
Commercial $7,693 per acre $7,693 per acre
Industrial $4,558 per acre $4,558 per acre
2
City Engineer $169.00 $174.00
Assistant City Engineer $151.00 $155.00
Senior Project Engineer $142.00 $146.00
Project Engineer $127.00 $130.00
Civil Engineer $106.00 $110.00
Graduate Engineer $95.00 $98.00
GIS Manager $119.00 $123.00
GIS Analyst $95.00 $98.00
Environmental Resources Manager $127.00 $130.00
Environmental Resources Specialist $100.00 $103.00
Environmental Resources Technician $89.00 $92.00
City Forester $119.00 $123.00
Forester Technician $80.00 $82.00
Administrative Assistant $80.00 $82.00
Public Works Coordinator n/a (new position title 2020) $155.00
Construction Services Superintendent $142.00 $146.00
Senior Construction Representative $106.00 $110.00
Construction Representative $95.00 $98.00
Facility Attendant $50.00/hour $60.00/hour
Bar Service/Other
3 Charges for other recreational services can be obtained by contacting the Parks and Recreation
Department at 952-985-4600. Cancellation/administrative fees will be applied to any cancellations per the
Program/Facility Refund Policy. Any other special/requests/reoccuring rental/usage will be reviewed by the
Parks and Recreation Staff. Rental fee may be adjusted per recommendation of Parks and Recreation
Department, per adopted policy.
4
Associate Planner $119.00/hour $123.00/hour
Planning Director $190.00/hour $196.00/hour
5 Transfer ownership or replacement $1.00 $1.00
6 Police Officers $97.00/hr.$104.00/hr.
Community Service Officers $48.00/hr.$50.00/hr.
7 Chief Officer (Fire)$125.00/hr $160.00/hr
Fire District Chief n/a new in 2021 $21.00/hr.
8
Part-time seasonal $39.00 $39.00
Service Tech $83.00 $87.00
Maintenance II $79.00 $87.00
Lead Maintenance $84.00 $98.00
Lead Service Tech $88.00 $98.00
Fleet, Streets, Parks Supervisor $113.00 $123.00
Superintendent $142.00 $146.00
Administration $80.00 $82.00
Part-time seasonal $39.00 $39.00
Maintenance II $79.00 $87.00
Lead Maintenance $84.00 $98.00
Supervisor $119.00 $123.00
Superintendent $151.00 $155.00
Administration $80.00 $82.00
9 Motor Grader $58.00 $80.00
Utilities staff services (per hour)
Other public safety charges
Streets and Parks staff services (per hour)
Equipment Use Fees (per hour) (Hourly fees are typically charged in cases where FEMA is involved, or if City staff assists another
community/agency in an emergency situation).
Planning & Zoning
Heritage Center
Staff Services (planning and zoning)
Public Safety
Animal Fees/Licenses
2021 FEE SCHEDULE CHANGES
City of Lakeville
Connection Charges and Development Fees
Engineering Charges
Engineering and Construction Services Staff Services
Park Dedication Fee
Note: The City's full fee schedule is 30 pages long. Only the proposed fee changes are listed below.
# FEE DESCRIPTION 2020 Fee Proposed 2021 Fee
10
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)
$32.00 per valve replacement $43.00 per valve replacement
11
Base Charge- per dwelling unit, per quarter $9.59 $10.17
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.
$4.75/1000 Gal $5.04/1000 Gal
Flat rate- per dwelling unit, per quarter shall be charged to those residential customers who do not have
metered water.
$95.09 $100.89
Base Charge- per account, per quarter $9.05 $10.17
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.
$4.75/1000 Gal $5.04/1000 Gal
12
Base Charge- per dwelling unit, per quarter $8.37 $9.04
Usage Charge
• Based on actual metered gallons consumed each quarter
Tier 1- up to 30,000 gallons per quarter $1.67/1000 Gal $1.80/1000 Gal
Tier 2- over 30,000 gallons up to 49,000 gallons per quarter $2.66/1000 Gal $2.87/1000 Gal
Tier 3- over 49,000 gallons per quarter $4.55/1000 Gal $4.91/1000 Gal
Irrigation sprinkler meters $4.55/1000 Gal $4.91/1000 Gal
Base Charge- per account, per quarter $8.37 $9.04
Usage Charge
• Based on actual metered gallons consumed each quarter
Tier 1- up to 30,000 gallons per quarter $1.67/1000 Gal $1.80/1000 Gal
Tier 2- over 30,000 gallons per quarter $2.66/1000 Gal $2.87/1000 Gal
Irrigation sprinkler meters $4.55/1000 Gal $4.91/1000 Gal
Usage Charge $5.11/1000 Gal $5.52/1000 Gal
Out of Cycle Meter Read (during normal business hours only)
13 Third and subsequent out of cycle meter reads $56.00/visit $62.00/visit
14 Special meter read for tenant/owner changes n/a- new fee in 2021 $62.00/visit
15 5/8" to 1"$57.00 $59.00
16 During normal business hours $56.00/visit $62.00/visit
After normal business hours $128.00/visit $132.00/visit
17 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 $231 for
installation
Actual cost of mini manhole
cover + 15%; plus $251 for
installation
18 Paper copy of utility bills (mailed to customer in lieu of or in addition to electronic bills provided via
Payment Service Network)
n/a- new fee in 2021 $1.00/ bill
19 Utility Bill Refunds (for customers no longer requiring utility services at a particular property):
•No refunds issued for balances under $10.00
•Balances greater than or equal to $10.00 will be applied to the resident’s active account (if they remain in
Lakeville), or refunded via check (for customer’s with no remaining active account).
No refunds issued for
balances under $5.00
20
If enrolled on or before Dec 7, 1998: 30% discount on water and sanitary sewer services to homesteaded
residential properties as described above. Also exempt from street light charges.
If enrolled after Dec 7, 1998: 30% discount on water, street light and sanitary sewer services to
homesteaded residential properties as described above, subject to a maximum discount based on ten
thousand gallons of usage. Households must be utilizing city water/sewer services in order to receive the
discount. No discount is provided on the environmental resources fees.
Senior Citizen discount (applies to heads of households over 65 years of age or living on social security or pension income
OTHER UTILITY FEES
Testing of Water Meters (only if meter tests correct, in accordance with Ordinance 7-5-4-6)
Water Disconnection, Reconnection or other Service Call
Other
Commercial, Industrial and Institutional
Bulk Water Accounts
Residential, Apartments and Manufactured Homes
Public Works (continued)
Other public works fees
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)
Commercial, Industrial and Institutional
WATER USAGE RATES- Quarterly Charges
Page 2 of 3 Effective January 1, 2019
# FEE DESCRIPTION 2020 Fee Proposed 2021 Fee
21
-Single family (residential equivalent utility factor) Environmental Resources Fee $16.54/dwelling unit/quarter $16.87/dwelling unit/quarter
Utility accounts not served by water and/or sanitary sewer shall be billed annually.
-Residential equivalent utility factor Environmental Resources Fee $66.16/dwelling unit/year $67.48/dwelling unit/year
New subdivisions, as part of development contracts; one-time fee $66.16/dwelling unit $67.48/dwelling unit
Other
ENVIRONMENTAL RESOURCES FEE
Utility accounts served by water and/or sanitary sewer
Utility accounts NOT served by water and/or sanitary sewer
Page 3 of 3 Effective January 1, 2019
Explanations of Fee Changes
1. The residential park dedication fees are proposed to increase by 5.0% as of January
1, 2021, to coincide with the increase in estimated market value of unplatted land.
2. Revised the staff hourly fees to reflect estimates for 2021 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 Public Works
Coordinator position (new in 2020 due to staff turnover).
3. Added language in the parks section to allow the Parks and Recreation department
staff flexibility in providing adjustments to hourly rental fees for reoccurring rentals
by the same groups. The purpose is to recognize the value of a committed
reoccurring rental in terms of guaranteed revenue, minimal staff time after
commitment of a rental, etc. The Parks and Recreation department will formalize
the specific terms within their rental policy/information for use in 2021.
4. Revised the Planning and Zoning Staff Services rates for the Associate Planner and
the Planning Director to reflect estimates for 2021 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).
5. Removal of the “Transfer ownership or replacement” fee of $1.00 in the Animal
Fees/Licenses section, because the City no longer sells dog licenses.
6. Increased the Public Safety Staff Services fees (Police Officers, Community Service
Officers) for estimated 2021 cost of living adjustments, the goal being to ensure
City costs are recovered for when these services are billed.
7. Revised the Chief Officer hourly fees to reflect changes in wages over the past
several years (this fee has not been adjusted in a number of years), and added a
new fee for district chiefs based on actual payroll rates
8. Revised the staff hourly fees to reflect estimates for 2021 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).
9. Revised the hourly equipment use fee for the motor grader from $58 to $80 per
hour to match the rate per the FEMA schedule.
10. Increased the fee for valve replacement from $32/valve to $43/valve to ensure the
City is recovering costs incurred on each valve replacement service.
11. Sewer rates are proposed to increase in order to cover infrastructure improvements
to lift stations in the 2021-2025 Capital Improvement Plan, as well as a 2.82%
increase in the MCES charges, which are not controllable by the City. The
recommended increase is a $.58 per quarter for the basic sewer charge and $.29 per
thousand gallons of discharge. For the average residence using 18,000 gallons, the
increase in the quarterly bill is $5.73. More detail is provided in the October 26 Utility
Budget/Rate memo.
12. Water rates are proposed to increase to cover infrastructure improvements and
future debt payments associated with those improvements as proposed in the
2021-2025 Capital Improvement Plan. The recommended increase is $0.67 per
quarter for the basic water charge and $0.13 per thousand gallons of consumption
(tier 1), $0.21 per thousand gallons of consumption (tier 2), and $0.36 per thousand
gallons of consumption (tier 3). For the average residence using 18,000 gallons of
water, the increase in the quarterly bill is $3.01. More detail is provided in the
October 26 Utility Budget/Rate memo.
13. Increased the fee for third and subsequent out of cycle meter reads to be $62/visit,
consistent with the utility service call fees (during normal business hours).
14. Added a new fee entitled “special meter read for tenant/owner changes.” This fee is
meant to recover costs incurred by the City in processing tenant/owner changes, as
this activity has significantly increased in recent years. This fee is intended to be
similar to the third/subsequent out of cycle meter read, and the rate is set at the
same amount of $62/visit.
15. Increased the water meter testing fee for 5/8” to 1” meters to ensure we are
recovering costs incurred on water meter testing.
16. The water service call fees are proposed to be increased from $56/visit to $62/visit
for calls during normal business hours and from $128/visit to $132/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).
17. 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).
18. Added fee of $1 for customers to continue to receive paper bills. This is a new fee.
The purpose of this is to cover costs of processing and mailing paper bills, as well
as to encourage customers to move to electronic bills.
19. Added verbiage to the Senior Citizen discount to stipulate that in order to receive
the discount, households must be utilizing city water/sewer services and that no
discount is provided on the environmental resources fee.
20. Increased the threshold for providing utility bill refunds for customers moving out
of a property from $5.00 to $10.00. Also added that any balances greater than
$10.00 will be applied to a resident’s new account if they will remain in Lakeville, or
a check will be issued if they will not remain in Lakeville. The purpose of these
changes is to reduce the number of refunds to be processed, thereby reducing the
amount of staff time and cost associated with generating these refunds.
21. The Environmental Resources Fee is proposed to be increased $0.33 per quarter to
offset the costs associated with environmental and forestry related programs. More
detail is provided in the October 26 Utility Budget/Rate memo.
Staff would also like to provide additional information regarding the senior discount that
is currently offered on utility bills, if the Council would like to explore further. The discount
currently applies to heads of households over 65 years of age or living on social security
or pension income. There is no income limitation such as the U.S. poverty guidelines that
we currently use for special assessment hardship deferrals.We currently have 1,514
residents that are actively receiving the senior discount. 483 of these customers were
receiving the discount prior to 1998, meaning they receive a 30% discount on all usage
(water and sewer), and they do not pay any street light fees. Starting in 1998, the discount
changed to 30% of usage up to 10K gallons used, sewer and street lights.
Using most recent annual financial reporting from 2019, this equates to greater than
$86,000 in discounts provided. The number of customers enrolled in the discount
program continues to climb through 2020. The total cost of providing utility services
continues to rise year over year (with some fluctuation for volumes used in rainier years),
but providing a discount to seniors results in the rest of the rate payers subsidizing the
discount amounts.
The following chart shows the amount of discount that has reduced revenues in the
following Funds:
Since our utilities are intended to be self-sufficient, pay-as-you-go systems, staff believes
it would be most equitable to eventually eliminate the discount currently offered based
on age. Additionally, few of our peer cities offer any similar discount on utility bills. In a
survey completed during October 2020, the following results were noted:
Reduction of revenues due to senior discounts‐ by year
Years Water Sewer St Light Total
2020 YTD 17,804$ 38,118$ 26,946$ 82,868$
2019 18,054 40,828 27,327 86,209
2018 15,535 33,365 27,214 76,114
2017 12,891 27,663 28,272 68,826
2016 9,255 24,260 28,578 62,093
2005‐2015 73,178 167,021 326,428 566,627
Totals 146,717$ 331,255$ 464,765$ 942,737$
The City of Blaine offers a discount on the flat sewer fee, but no discount on
water fees.
The cities of Plymouth and Minnetonka historically offered a senior
discount, but both ended their program for new enrollment several years
ago. Both cities grandfathered in the senior discount program participants
until the property changes ownership
The following cities do not currently offer any senior discount: Eagan, Edina,
Apple Valley, St. Louis Park, Burnsville, Bloomington, Eden Prairie.
If the senior discount program is eliminated in the future, staff proposes the following:
No further enrollment effective immediately.
Further discussion between the two following elimination options-
o Complete elimination of the program. Provide one year of notice to
customers that the program is being discontinued, and then turn off
discounts one year later.
o Grandfather in current participants, but not allow any further
enrollment (immediately). Continue to offer the discount to those
currently receiving it until they no longer reside at their current
property in Lakeville.