Discussion of rental license fees and rental license renewal schedule, as it relates to the proposed crime-free housing and rental housing inspection programs.

As part of the proposed Crime-Free and Rental Housing Inspection Programs, it has been discussed that the fees collected from rental licenses will cover the costs of staff inspections/enforcement (police and planning), planning inspection vehicle and equipment. Currently, the city has 474 rental licenses. Each license is valid for a term of 3 years. The cost for a rental license is $25 for 3 years, which is the lowest license fee in the metro area. The majority of communities have a yearly renewal with a much higher license fee. Staff is recommending an increase in fees and to require a yearly renewal rather than a renewal based on a 3 year cycle. 

The goal of the Ramsey rental license fee is to cover the implementation of crime-free housing (multi-tenant, police department managed) and rental inspection programs (multi-tenant and single-family rentals, planning department managed). Although Ramsey does not have a formal program in place, the Code Enforcement Officer spends a vast amount of staff time addressing complaints about rental properties through inspections and bringing the properties into compliance with city codes. Attached is a spreadsheet outlining current fees collected for the rental licenses and what could be collected if fees were increased. Currently, for a 3 year licensing cycle, $15,850.00 is collected. Staff proposes to increase the fee, as shown on the spreadsheet. If fees were increased to the proposed amount, fees collected for a 3 year licensing cycle would be approximately $199,600.00 over a span of 3 years or if the City Council chose to approve a yearly rental license, the amount collected each year would be the same ($199,600.00). 

The proposed fees for the program include the yearly wage for a full-time Rental Housing Inspector at approximately $94,000, initial cost of $30,000 for an inspection vehicle, and costs associated with equipment (desk and vehicle computer, cell phone, etc).   Not included in the fees is the part-time work of police department staff needed for the crime-free housing program, in which the Police Chief will need to determine the actual costs.

Proposed fees will be added to the 2024 Fee Schedule for formal adoption by the City Council in December 2023, becoming effective January 1, 2024.

Rental license fees will be generated to assist with the cost for program implementation (staff inspections/enforcement, vehicle, equipment).

Community Development Planning Division and Polic Department

Staff is seeking direction to determine the increased amount of rental license fees and whether to modify the 3 year license renewal schedule to every year. Fees would be added to the 2024 Fee Schedule to assist with the funding of a Rental Housing Inspections Program and possibly the Crime-Free Housing Program.