Agenda Date: 10/20/2020
Subject:
Title
Resolution 72-2020: Adopting the 2021 Fee Schedule
Body
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Prepared by: |
Tiffany Hooten, Finance Director |
PURPOSE:
Does city council support adoption of the 2021 Fee Schedule?
PRESENTATIONS:
Staff Presenter(s): Tiffany Hooten, Finance Director
Additional Presenter(s): N/A
SUMMARY:
Fees are charged to customers, citizens, and other parties for city services and must be commensurate with the service provided. The fee should recapture the cost of providing these services. The fee schedule does not encompass all city-wide fees such as library and museum fees or license fees such as liquor and medical marijuana.
During the budget sessions September 8th, 9th, and 24th, staff proposed increases to the sewer and stormwater utility fee schedule and the defensive driving class fees. Discussions related to short-term rentals and a license fee have been ongoing. A short-term rental license fee is included. One additional fee that is included for 2021 is a slight increase in the open records request hourly fee. The “red-lined” 2021 fee schedule is attached which includes comparative fee changes.
PRIOR ACTIONS OR DISCUSSIONS:
These fee changes were discussed during the budget sessions held on September 8th, 9th, and 24th except for the open records request fee which has been requested by staff.
ANALYSIS:
Staff Analysis
Staff has reviewed the recommended fee changes. The 2021 recommended fee schedule is attached as part of the resolution and referenced as Exhibit A.
Council Goal, Objective, and/or Guiding Principle
The fee schedule is directly related to Goal 2 Financial Sustainability by providing a mechanism to fund services with fees.
Fiscal Impacts
The following are the proposed fee changes for 2021.
Sewer and Stormwater Utilities Fees
Annual sewer utility fees are proposed to increase by 3% for operational and capital needs of the sewer utility system. The estimated additional annual revenue in 2021 is $671,130.
Annual stormwater utility fees are proposed to increase by 40% for operational and capital needs of the stormwater drainage system. The estimated additional revenue in 2021 is $474,710.
The total impact to a single-family residence for both sewer and stormwater fee increases in 2021 is $27.32 annually or approx. $2.28 per month.
Defensive Driving Class Fees
City council created a defensive driving school fund which was to provide funding for instructor and material costs related to a defensive driving school. The current fee charged is $30 per participant for the class. Littleton is the only municipality in the area that hosts its own defensive driving school.
Finance and Court worked together to complete a cost of service study for the Littleton Defensive Driving Course instructed by the police department to determine the true cost of providing this service. After gathering costs related to the program such as time provided by court clerks, instructors, material costs and using the cost of service model, the cost of providing the class reflects $217 per participant. It is not feasible to charge this amount for this class and therefore, staff is recommending a charge of $60 per participant.
While it is the intent of the city to charge full cost of providing services, the court recommends the fee be increased to $60 per participant to recuperate a portion of administrative costs, sustain current service level, and be more in line with other providers for like services. The estimated additional revenue for this fee is approx. $13,000 annually and will depend on the number classes and participants per class.
Short-Term Rental License Fees
There have been numerous discussions related to short-term rentals. In an effort to provide regulation of short-term rentals and recoup staff costs related to this effort, staff is recommending a license fee of $200 with an annual renewal fee of $200 each year thereafter. While this fee is not commensurate with the costs of providing regulation of short-term rentals, it provides a mechanism to require licensing and help offset staff costs of issuing the license and enforcing the regulations associated with the license. The estimated additional revenue for this fee is approx. $8,600 annually and will depend on the number of licensed properties.
Open Records Request Hourly Fee
To align the hourly rate of open records requests with the State and other jurisdictions, staff is recommending an increase from $30.00 to $33.00 per hour. The additional revenue for this fee is negligible.
Alternatives
Option 1 - Adopt fees as proposed.
Option 2 - Adopt differing fees, understanding the impact to current and future projects.
Option 3 - Maintain fees at the 2020 level, understanding the impact to current and future projects.
STAFF RECOMMENDATION:
Staff recommends approval of the 2021 fee schedule.
PROPOSED MOTION:
Proposed Motion
I move to approve the resolution adopting the 2021 fee schedule.