HomeMy WebLinkAboutVIII-19 2nd Reading - Adopt Ordinance - City Code Chapter 34.03 - Fee Schedule
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: Chris Eitemiller, Finance Manager
Date: December 16, 2024
Item: Second Reading of Chapter 34: Fees
Council Action Requested:
Council is requested to hold the second reading of an ordinance amendment adjusting various
City fees.
There have been some small corrections from the first reading that Council saw in the December 2,
meeting. These changes are mostly just one or two cents, but staff wanted to make sure Council is
aware.
Background Information:
Utility fees
In 2023, the City worked with Northland Securities on a Utility Rate review which looked at the
sustainability of our utility funds to cover projected capital needs over the next several years. The
review recommends rate increases for water, sewer, and storm water.
In accordance with this review, staff recommends a 3.5% operational increase in water rates, plus
an additional 6.5% increase to build revenue associated with future debt payments for the first of
three water treatment plants that will be needed to meet federal drinking water standards. Another,
yet-to-be-determined rate increase is planned for July 2025 once total non-bond revenues are
known.
A 4.5% increase is recommended for our sewer rates. This adjustment keeps the fund in line with
inflationary increases to expenditures and assist with funding the infrastructure improvements
and capital asset purchases in the coming years.
A 4% increase is also recommended for our Storm Water Fund. The Storm Water Fund’s
future capital projects are driving this proposed increase.
Storm Water and Sewer rate increases match what was implemented for 2024, due largely to
increased capital expenditure projections. Water’s operational increase matches what was
implemented for 2024. The additional increase is required to fund the new water treatment
plant planned to begin construction in 2025.
Other Public Works fees
The Public works department proposes a number of maintenance-related increases in the
Water utility. Among the changes are increases to meter replacements, bulk water purchases,
and charges to turn on or off Water services. These fees need to be increased to meet rising
costs, as it has been several years since these fees were increased.
Another change is adding new fees for staff and equipment costs for those instances when
departmental staff is called out. One example of this type of instance would be if a streetlight
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has been broken off because of an automobile accident.
One fee for water hydrants associated with temporary construction projects, is recommended
to be removed from the fee schedule.
NSF Fee
No change to the fee is recommended, but because ACHS fees can also be charged an NSF
fee as well as checks, staff requests that this be renamed from “NSF Check Fee” to “NSF
Bank Fee.”
Arena Fees
The Parks Department proposes to increase Prime and Non-Prime ice rental rates, beginning
on July 1, 2025, to help offset continually increasing operating expenses. The department is
also proposing to increase Off-Season ice rental rates effective March 17,2025 and
Advertising rates effective January 1, 2025.
With these rate increases, Hastings will remain within the fee schedule ranges of facilities in
our region. We will not be the lowest and will not be the highest in any category and will
remain competitive. These should be reviewed for potential mid-year adjustment ahead of the
2025-2026 season.
Financial Impact:
Utility Fees
The proposed rate increase is included in the 2025 budget. It is anticipated this increase will
create a revenue stream from each of the utility funds to meet operational increases as well as
increased debt service payments for the new water treatment plant planned for 2025. Rate
increase requests in future years will be evaluated based on the fund health and are expected to be
in line with inflationary measures and capital projects.
If approved, the updated fee structure will be effective with the January 2025 billing.
Residential Impact Chart – quarterly bill
Other Public Works fees
The other proposed fee changes for Public Works would not generate substantial revenues
and are intended to maintain a level of revenue sufficient to offset cost increases.
Arena Fees
The ice rental rates, will help pay for increasing debt service and operating costs. Staff estimate
approximately $80,000 of increased revenue with these fee changes.
2024 2025 Variance
Water-Consumption 18.79$ 20.67$ 1.88$
Water-Fixed 20.80$ 22.88$ 2.08$
MN Test Fee 2.43$ 2.43$ -$
Water-Total 42.02$ 45.98$ 3.96$
Sewer-Consumption 68.91$ 72.01$ 3.10$
Sewer-Fixed 20.29$ 21.20$ 0.91$
Sewer-Total 89.20$ 93.21$ 4.01$
Storm Water-Fixed 22.41$ 23.31$ 0.90$
Total Bill 153.63$ 162.50$ 8.87$
City Average Based on 15,000 Gallons
Average Single Family Home
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Advisory Commission Discussion:
N/A
Council Committee Discussion:
The November 25th Finance Committee meeting included discussion on the utility funds and rate
increase requests.
Attachments:
Ordinance amendment and full Fee Schedule changes
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Updated 11/30/23
SECOND READING
CITY OF HASTINGS, MINNESOTA
ORDINANCE NO. 2024- THIRD SERIES
AN ORDINANCE OF THE CITY OF HASTINGS, MINNESOTA AMENDING CHAPTER
34 OF THE HASTINGS CITY CODE PERTAINING TO FEES FOR MUNICIPAL
SERVICES
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HASTINGS AS FOLLOWS:
Chapter 34 of the Hastings City Code is hereby amended as follows: Section 34.03
Fee Schedule
Public Works Fee Changes
Current Proposed
Water Base Charges
5/8” & ¾” Meter $20.80 $22.88
1.0” Meter $52.00 $57.20
1.25” & 1.5” Meter $104.02 $114.42
2.0” Meter $166.42 $183.06
3.0” Meter $312.05 $343.26
4.0” Meter $672.81 $740.20
6.0” Meter $1,456.16 $1,601.78
Irrigation Base Charges
5/8” & ¾” Meter $41.61 $45.76
1.0” Meter $104.02 $114.40
1.25” & 1.5” Meter $208.03 $228.84
2.0” Meter $332.84 $366.12
3.0” Meter $624.11 $686.52
4.0” Meter $1,352.14 $1,480.20
6.0” Meter $2,912.32 $3,203.56
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Updated 11/30/23
Section 34.03
Water Consumption
Residential Users (applies all
year)
0 – 15,999 gallons $1.25/1,000 gallons $1.38/1,000 gallons
16,000 – 30,999 gallons $1.62/1,000 gallons $1.78/1,000 gallons
31,000 – 60,999 gallons $2.61/1,000 gallons $2.87/1,000 gallons
61,000 gallons and above $4.95/1,000 gallons $5.45/1,000 gallons
Other Users
0 – 15,999 gallons $1.25/1,000 gallons $1.38/1,000 gallons
16,000 – 75,999 gallons $1.62/1,000 gallons $1.78/1,000 gallons
76,000 – 200,999 gallons $2.61/1,000 gallons $2.87/1,000 gallons
201,000 gallons and above $4.95/1,000 gallons $5.45/1,000 gallons
Sewer Rates
Sewer Fixed Charges $20.29 $21.20
Sewer Consumption Charge
(based on metered use during
winter billing quarter)
$4.60/1,000 gallons $4.81/1,000 gallons
Storm Water Utility Rates
Low Density Residential $22.41/lot $23.31/lot
Medium Density
Residential
$12.32/lot $12.81/lot
High Density Residential $87.36/acre $90.85/acre
Manufactured Housing $67.20/acre $69.89/acre
Commercial/Office $107.52/acre $111.82/acre
Industrial $94.07/acre $97.83/acre
Public/Institutional Exempt/acre Exempt/acre
Golf Course $20.18/acre $20.99/acre
Open Space/Vacant $22.41/lot $23.31/lot
Agricultural $22.41/lot $23.31/lot
Other Public Works Fees
Current Proposed
Meter Replacement
¾” IPERL with MXU $384.00 $446.40
1” IPERL with MXU $474.00 $564.00
1.5” T2 OMNI with MXU $1,219.00 $1,555.00
1.5” C2 OMNI with MXU $1,679.00 $2,162.40
Larger than 1.5” TBD – based on cost
Hydrant Meters (temp
construction)
Installation $150.00 Remove from fee schedule
Usage $0.01/gallon up to 1,000 gallons Remove from fee schedule
Usage $10.00 per 1,000 gallons Remove from fee schedule
Fill Station Water $4.50/1,000 gallons $10.00/1,000 gallons
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Updated 11/30/23
Current Proposed
Water Shut Off
During regular work hours (7:00
a.m. to 3:00 p.m.)
$50.00 $55.00
Outside regular work hours $240.00 $250.00
Water Turn On
7:00 a.m. to 3:00 p.m. No charge if same day as a turn
off
No change
7:00 a.m. to 3:00 p.m. $50.00 $55.00
Outside regular work hours $120.00 $250.00
Winter Emergency Water Turn off – Dec 1 – April 15
7:00 a.m. to 3:00 p.m. No charge if same day as a turn
off
No change
7:00 a.m. to 3:00 p.m. $100.00 $110.00
Outside regular work hours $240.00 $250.00
Winter Water Turn On
7:00 a.m. to 3:00 p.m. No charge if same day as a turn
off
No change
7:00 a.m. to 3:00 p.m. $100.00 $110.00
Outside regular work hours $240.00 $250.00
Equipment (plus operator fees)
Pickup Truck $35.00/hour $$50.00/hour
New addition-staff time for call-outs
Public Works Operator
7:00 a.m. to 3:00 p.m. 0 $50.00/hour
Outside regular work hours -
minimum 2-hour charge
0 $75.00/hour
NSF Check Bank Fee $30.00 Change description, not rate
Ice Rental
Prime (7am to 9:30 pm) $230 (effective October 17,
2025)
$260 (effective July 1, 2025)
Non-prime (9:30 am to 7am) $160 (effective October 17,
2025)
$160 (effective July 1, 2025)
Ice Rental, Off Season (rates
effective 3/17/2025
1-10 hours $160 per hour plus tax $170 per hour plus tax
11-25 hours $150 per hour plus tax $160 per hour plus tax
26 or more hours $140 per hour plus tax $150 per hour plus tax
Advertising
Rink Wall Ad 4’ X 6’ $350 per year $450 per year
Rink Wall Ad 4’ X 6’ $196 per year $350 per year
Zamboni – 23 3/4” X 75 5/8” x
3/16”
$600 per year $700 per year
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Updated 11/30/23
Moved by Councilmember ______________ , seconded by Councilmember ______________ to
adopt the ordinance as presented.
Adopted by the Hastings City Council on this 16th day of December 2024, by the following vote:
Ayes:
Nays:
Absent:
CITY OF HASTINGS
ATTEST:
Mary Fasbender, Mayor
Kelly Murtaugh, City Clerk
I hereby certify that the above is a true and correct copy of the Ordinance presented to and
adopted by the City of Hastings, County of Dakota, Minnesota, on the 16th day of December
2024, as disclosed by the records of the City of Hastings on file and of record in the office.
Kelly Murtaugh, City Clerk
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