Budget proposal includes impact fee increases

The largest increases in the next biennial budget come in the way of impact fees, as the city continues to implement a phased-in plan to bring impact fees up to the average of nine surrounding cities.

Several fees and charges will be going up throughout the city as part of next year’s budget, though most of the increase that will affect residents are minor.

The city council this week heard from the Planning, Administrative Services, Community Services, Fire Department, courts and City Attorney as part of the budget review process for the 2015-16 biennium.

The largest increases in the next biennial budget come in the way of impact fees, as the city continues to implement a phased-in plan to bring impact fees up to the average of nine surrounding cities.

For example, the transportation impact fee for a single residential unit will increase from $1,430.72 in 2014 to $2,214.44 in 2015 and then increase again to $2,951.17 in 2016.

According to Planning Director Chip Vincent, the increases were planned as part of a multi-year program. Vincent said when he started with the city in 2008, fees had not been increased in 15 years and were lagging behind inflation.

However, because the increase would be so “radical,” the council opted to phase them over several years. In 2012, the city gave notice that fees would not be changing for 18 months, but then would begin to increase.

“Beginning Jan. 1, 2014, the fee went up 30 percent,” Vincent said. “Then, in 2015, another third and finally Jan. 1, 2016, the final third kicks in.”

The next two years complete that cycle and bring the city’s fees up to the mean of surrounding municipalities.

“The trick was finding the sweet spot,” Vincent said of the fees.

The Planning department has been busy this year as the economy pulls out of the recession and Vincent said his department is nearly $1 million over budget this year. Next year, the department will get 2.5 employees, paid for by the surplus and an increased workload, to help meet the additional challenges.

the city is also increasing park impact fees from $963 to $1,441 on single family residential homes and the water and wastewater system development charges are also increasing.

Some of the city’s recreational fees will also be increasing next year.

The cost of a round of golf at Maplewood, for example, will go up a couple of bucks, while the cost of a pass card at Henry Moses Aquatic Center will increase from $50 to $60 for residents and from $100 to $120 for non-residents.

In addition, the city will finish paying off the golf course bonds in 2015.

The boat launch fee at Coulon Park will increase by the same amount.

“We feel this is appropriate … to cover our expenses,” Director Terry Higashyama told the council. “The public has told us to take care of the assets we have.”

In the administrative services department, the big change for next year is the switch to a business and occupation tax. With that comes a change to how the city processes business licenses, though the cost should, generally, remain the same for businesses.

The Administrative Services Department is also hiring 3.5 new staff members to help meet the service increases of the past few years. The new hires will take the department to 42 fulltime employees, still well below the 2008 staff of 52.5.

The next step in the process will be continuing presentations to the Committee of the Whole from each city department explaining their budget requests, as well as a public hearing scheduled for 7 p.m. Oct. 20.

The first reading of the budget ordinances is expected Oct. 27 with adoption expected Nov. 3.