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AGENDA ITEM — 3D <br />,-ARZEN HILLS <br />MEMORANDUM <br />DATE: November 27, 2023 <br />TO: Honorable Mayor and City Councilmembers <br />Dave Perrault, City Administrator <br />FROM: Julie Hanson, Assistant to the City Administrator/City Clerk <br />SUBJECT: Draft 2024 Fee Schedule <br />Budgeted Amount: Actual Amount: Funding Source: <br />Council Should Consider <br />Council should consider providing feedback on the proposed 2024 draft fee schedule. <br />Background/Discussion <br />The City Council annually establishes a fee schedule for administrative, building construction, liquor <br />licensing, park and recreation facility usage, planning and zoning, utilities, business licenses, utility <br />fees, and other miscellaneous permits and penalties that are enforced by the City. <br />The following recaps the fee schedule changes that were made in 2023: <br />• Building permit and plan review fees — Fees were based on 2022 Minnesota State Statutes <br />326B.153 and 326B.148. <br />• Building Plan Review fees were based on 2022 Statute as well and the escrow fee for <br />residential new construction/additions was changed from a flat fee of $2,000 to "To Be <br />Determined by the Building Official", affording the City more latitude to cover costs of items <br />that are no longer readily accessible or that have costs that have dramatically increased. <br />• Electrical fees increased and Pete Tokle of Tokle Inspections also changed his fee structure so <br />that commercial fees are based on valuation, similar to building permits. He noted that fees <br />would be easier to calculate and the structure would eliminate the need to increase future <br />commercial fees. <br />• Parks and Recreation — There were no changes in 2023. <br />• Planning and Zoning — There were no changes in 2023. <br />• Public Works/Engineering — Inflationary increases were made to fees for right-of-way, right- <br />of-way small cell wireless facilities and also sewer and grading and erosion control permit <br />fees. <br />• Utility Hookup Charges — Inflationary increases were made for water and sewer permits, <br />reinspection fees, connection/disconnection fees, restoration and hydrant meter rentals. <br />Page 1 of 3 <br />