Introduce Ordinance #23-17:  2024 Schedule of Rates, Fees and Charges

The City annually adopts a schedule of rates, fees and charges which outlines the fees that the city charges for such items as building construction, business licenses, utility rates and planning and zoning.  

A listing of the schedule of rates, fees and charges is attached. Changes are noted on the far right column of the schedule. The majority of the changes from 2023 to 2024 are reflected in the building construction section, which includes updating the ICC Building Valuation from using the 2017 data to using the 2021 valuation data. Utility rates are proposed to be increased by 5% for both quarterly water utility billings & storm water utility billings. Water increases are needed to assist in funding the water treatment plant and related water distribution lines, whereas, storm utility increases will be to fund the storm water projects related to several road reconstruction and overlay projects. Lastly, sewer quarterly utility charges are proposed to increase 10% to offset the 10.65% rate increase the Met Council put in place for 2024.

There are four additions/changes to the schedule since the last work session when the information was initially presented. Additions:  First addition under the Business Section on page 4: Hemp, Low-Potency Edible Retailer Registration. The second and third additions are under the Residential Rental License Section on page 8: Background Check for New Management Company and Late Fee for Rental License Renewal. The last change is the reduction of the water rates being reduced from a 10% increase to a 5% increase.

The Schedule of Rates, Fees and Charges is adopted annually by ordinance. A public hearing on the ordinance is held in November to allow the thirty-day waiting period and have the rates become effective January 1, 2024.

The ordinance will come back for final consideration and a Public Hearing on November 28, 2023. 

1.  Accept the rates as proposed.
2.  Hold all rates constant with 2023 rates.
3.  Recommend changes that arise from input at public hearing.

Staff's recommendation is Option 1 and to Introduce Ordinance #23-17:  2024 Schedule of Rates, Fees and Charges.

Motion to Introduce Ordinance #23-17:  2024 Schedule of Rates, Fees and Charges.

Roll Call Vote: 
Councilmember Musgrove
Councilmember Riley
Councilmember Olson
Councilmember Woestehoff
Councilmember Specht
Councilmember Howell
Mayor Kuzma