Minutes - Council Work Session - 11/22/2011

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3) 2012 Schedule of Rates, Fees & Charges Finance Officer Lund reviewed the staff report, noting it has been updated based on staff's direction at the last Work Session. Councilmember Elvig asked about the rationale for reverting the trunk charges back to the 2010 rate, a 3.7% decrease from the 2011 rate. Public Works Director Olson stated he looked at the Department of Interior costs for pipeline and street construction projects and found there was a variation with prices being more similar to construction prices in 2010. He noted it is also justified by the consumer price index. Acting Mayor Wise noted the cost for photocopies has a $5 minimum so he thinks a lot of fees may not fit the service being given and the City is making money. Finance Officer Lund explained that charge is related to police services, perhaps a copy of an incident report, so she is not sure what it entails. Acting Mayor Wise asked whether the Finance Committee should look at the fee schedule and make a recommendation. Councilmember Tossey questioned a fee for special HRA meetings and asked who pays for it. Deputy City Administrator Nelson stated it is paid by the developer if the developer requests a meeting outside of the HRA's regular meeting schedule. She explained this has become an issue with the Planning Commission when a developer wants an action by a date certain. If the meeting schedule is shifted, there is an additional cost. Councilmember Tossey noted the HRA has held a lot of meetings over one development and asked if that developer was charged a fee. He also asked how it is determined when to charge to assure consistency. Councilmember Tossey asked about the rate charged to businesses for police services (such as at a special event) and if it is based on the officer's rate of pay. Finance Officer Lund explained the charge to End Zone was based on the officer who responded, a senior officer. However, the new fee schedule contains a flat rate that is weighted rate based on all officers. Finance Officer Lund referenced the utility charges, noting they will go out in April for first quarter billing, and the only change is related to storm drainage and water. She explained storm drainage is based on the CIP cash flow and water rates are based on the water study that is in place, reflecting a 5% increase. Finance Officer Lund advised that Ramsey is in the middle line of what other cities charge for water rates and the increase is due to the requirement for conservation rates to qualify for bonding. She noted if cuts are made in fees, there needs to be a corresponding cut in expenditures to create a balanced budget. City Council Work Session / November 22, 2011 Page 7 of 10