HomeMy WebLinkAbout[05] Fee Schedule t.rry co' ST. jusEru Council Agenda Item 5
MEETING DATE: December 15, 2011
AGENDA ITEM: Public Hearing - 2012 Fee Schedule, Requested Action: Adopt the 2012
Fee Schedule
SUBMITTED BY: Finance
BOARD/ COMMISSION /COMMITTEE RECOMMENDATION: The Park Board, Fire Board and
EDA reviewed the fee schedule with no recommendations for changes except adding a Round -Up fee for
park equipment and Disc Golf tournament fee.
PREVIOUS COUNCIL ACTION: None
BACKGROUND INFORMATION: A public hearing is required under State Statutes prior to
changing the fee schedule. Staff published a public hearing notice in the December 9, 2011 St. Joseph
Newsleader. The proposed fee schedule was placed on the City website for public viewing.
Staff added a couple new fees to the fee schedule after discussions with various boards and research
with other communities. The fees include advertising, Round -Up program and disc golf tournaments.
Other changes to the proposed fee schedule compared to the previous two years are highlighted in
yellow. The proposed rate changes are based on vendor rates, staff and Council time, supply rates ,
repair costs, and future cost studies. Inspectron determined building permit fees do not need to
change. The only development fees proposed to increase include water permit fees (based on supplier
costs) and Water Access Charges (WAC). The second water filtration plant debt shows an increasing
WAC fee each year until the WAC fee reaches $5,000. To help offset this increase and based on current
debt revenue needs, the SAC fee is proposed to remain unchanged. The rates were compared to the
area cities and other regional agencies.
The proposed fee for the compost permit is based on the idea of purchasing land and opening a joint
local government site. Discussions are still on -going between jurisdictions. Staff will propose a solution
to Council once the jurisdictions find a resolution. St. Wendel Township was removed from the fee
schedule for compost permits based on Council's decision earlier in 2011 to only allow a one year
extension. Council would consider including St. Wendel Township once the aged pass through invoice
for sewer studies is paid. The Township has not paid the invoice at this time.
Utility rates included in Appendix "C" are proposed to change. Water, sewer and storm water show rate
increases while refuse shows a rate decrease in general. The refuse rate decrease is based on the
current 3 -year bid from Allied Waste approved by the Council. The refuse senior rate shows a $0.50
monthly rate increase to get closer to the actual cost the City is charged for a 30 gallon cart. Currently
other refuse users are covering the gap of the senior cart rate versus Allied Waste charge.
Sewer shows a slight usage rate increase to cover projected projects, St. Cloud conveyance and
treatment facility project debts, depreciation and increasing operational costs. The sewer fund has two
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costly operational costs. One cost is for sewer televising and "patch" lining (to include killing root
intrusion). With the aging clay sewer mains in various areas in the City, televising and repairs are
increasingly necessary. The other expensive sewer operational cost is chemical pretreatment to reduce
hydrogen sulfide in the forcemain to St. Cloud. The distance traveled (4 miles) causes the sewage to mix
and give off the noxious gas. St. Cloud requires the pretreatment based on the Sewer Use Agreement.
Staff proposes water rates to increase to cover operations, debt, depreciation and capital. The City's
WAC reserve has been depleted with the low construction years since 2007/2008. Construction in 2011
has been good with 10 new home starts, Cone Castle, Laundromat, and the CSB student dorms.
Coborns also paid their deferred WAC /SAC charges from their new store. Connection fees collected in
2011 coupled with current water rates kept the water fund in the black including covering debt
payments. To continue keeping the water fund solvent rates should increase for 2012, and are
projected to increase each of the next five years. For 2013, the City is required to implement
conservation rates beyond what the City is currently charging. Current projections consider the impact
of implementing a new rate structure for 2013 and beyond.
Council should consider the adoption of the 2012 fee schedule to begin charging new rates beginning
January 1, 2012.
BUDGET/FISCAL IMPACT: Varies
ATTACHMENTS: RCA: Fee Schedule .. 5:1 -2
Proposed 2012 Fee Schedule 5:3 -10
Appendix A — Bail Schedule of Fees 5:11 -12
Appendix B — Building Permits 5:13 -14
Appendix C — Utility Charges 5:15
Hearing Notice 5:16
REQUESTED COUNCIL ACTION: Allow public comment on the proposed fee schedule and
consider adoption the proposed 2012 Fee Schedule.
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