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VI.3. Approve Resolution 2014-071, Increasing Parking Permit Fees for 2015 November 5, 2014 Council Report 2014-124 PROPOSED PARKING PERMIT FEE INCREASES Proposed Action Staff recommends adoption of the following: Move to approve Resolution 2014-071 Parking Permit Rate Increase. Approval of the motion will increase parking permit fees as follows: daily fee and overnight fee– no change; monthly fee – from $27 to $30; quarterly fee from $65 to $70; the annual fee from $215 to $225, and no change to the Electric Car Permit fee of $280 for an annual permit or $77 for a quarterly permit. Overview Current ramp and municipal lot parking permit fees are $3 per day, $27 per month, $65 per quarter, $215 per year along with an overnight parking fee of $25. An increase in the parking permit rates will help offset the raising cost of maintenance and enforcement of the city owned municipal lots and the aging municipal ramp. The sources of revenue for the maintenance of the parking facilities are permit fees, court fines and interest. As our facilities age, especially the parking ramp which is over 20 years old, we will need to provide the resources to adequately maintain them. Current fund balance in the parking fund as of October 20, 2014 is $143,645 which is down from a high of $358,150 in 2001. The fund balance has declined every year since 2001. We have tentatively budgeted $250,000 for masonry repairs in the ramp based on a 2013 conditions appraisal. This expenditure will put a strain on the Parking Fund and we may need to explore other financing options for this project or do it in phases. Primary Issues to Consider Why is the rate increase recommended? € Past permit rates € What are the proposed capital improvement projects? € Staff Recommendation Finance recommends increasing the current parking permit rates as stated above to provide revenue for the continued st enforcement and maintenance of city owned parking lots and ramp. The change in rates would take effect January 1, 2015. Supporting Information Resolution 2014-071 € Summary budget information € Analysis of past rate increases € Christine M. Harkess, CPA, CGFM Finance Director Financial Impact: approximately $3,000 Budgeted: Y/N X N Source: Parking Fund Related Documents (CIP, ERP, etc.): __CIP __ Notes: ____________________ CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION 2014-071 PARKING PERMIT RATE INCREASE WHEREAS , the City of Hopkins has established Ordinance No. 91-1310, City Code section 1310.11 which defines parking permit rates and allows adoption of fees through council resolution, and, WHEREAS, it is estimated the present parking permit rates are not sufficient to cover operating and enforcement expenses over the next five years and will not provide sufficient funding for capital improvements to the municpal lot and parking ramp; NOW, THEREFORE , be it hereby resolved that the City Council of the City of Hopkins hereby sets the parking permit fees at the following rates: Parking Permits Electric Car Permits Annual $225 Annual $280 (no change) Quarterly $ 70 Quarterly $ 77 (no change) Monthly $ 30 Monthly not available Daily $ 3 (no change) Daily not available Overnight $ 25 (no change) EFFECTIVE DATE: The provisions of this resolution shall take effect January 1, 2015. Adopted by the City Council of the City of Hopkins, Minnesota, this 5th day of November 2014. _______________________________ Eugene J. Maxwell, Mayor ATTEST: ___________________________________ Amy Domeier, City Clerk CITY OF HOPKINS, MN ANALYSIS OF PROPOSED PARKING PERMIT FEE INCREASES Percent Increase YearDailyMonthlyQuarterlyAnnualOvernightDailyMnthlyQtlyAnnualOvernight 20153.00$ 30.00 0.00%11.11%7.69%4.65%0.00% $ $ 7 0.00$ 225.00$ 25.00 +3.00/mo+ 5.00/qtr+ 10.00/yr = $1.66/mo= $0.83/ mo 20143.00$$ 27.000.00%8.00%8.33%7.50% $ 65.00$ 2 15.00$ 25.00 +2.00/mo+ 5.00/qtr+ 15.00/yrnew = $1.66/mo= $1.25/ mo 20123.00$$ 25.000.00%0.00%9.09%8.11% $ 60.00$ 2 00.00 20113.00$$ 25.000.00%25.00%17.02%15.63% $ 55.00$ 1 85.00 20093.00$$ 20.000.00%17.65%9.30%6.67% $ 47.00$ 1 60.00 20053.00$$ 17.0050.00%13.33%7.50%7.14% $ 43.00$ 1 50.00 20042.00$$ 15.00 $ 40.00$ 1 40.00 20032.00$$ 15.00 $ 38.00$ 1 30.00 20012.00$$ 15.00 $ 35.00$ 1 20.00 19972.00$$ 15.00 $ 32.00$ 1 10.00 19961.50$$ 14.00 $ 30.00$ 1 05.00 19951.00$$ 13.00 $ 28.00$ 1 00.00 19941.00$$ 12.00 $ 26.75$ 9 6.00 19921.00$$ 11.50 $ 25.50$ 9 2.00 DEPARTMENT - PARKINGFUND 214 REVENUE AND EXPENDITURE DETAIL SUMMARY 07/31/2014 ActualActualActualBudgetBudgetPercent CODE20122013201420142015Change REVENUE 360Court Fines$22,420 $22,207 $9,816 $22,000 $22,000 370Interest Earned788 (644) 2,248 1,000 500 -50.00% 381Leased Parking74,884 70,167 74,182 73,000 74,000 1.37% TOTAL 91,72998,092 86,246 96,000 96,500 0.52% EXPENDITURES Salaries and Employee Benefits 500Regular Employees37,592 38,279 21,756 41,023 42,190 2.84% 503Part-Time Employees533 669 376 500 500 525P.E.R.A. Contribution2,729 2,776 1,469 2,974 3,165 6.42% 526F.I.C.A. Contribution2,889 2,952 1,563 3,177 3,266 2.80% 527Employee Benefit Plan552 368 268 390 390 531Workers' Compensation Insurance250 291 141 335 281 -16.12% 535Paid Leave Accrual249 (723) 151 259 267 3.09% TOTAL44,794 44,612 25,724 48,658 50,059 2.88% Material, Supplies and Services 540Office Supplies- - - - - 541Uniforms/Clothing519 510 349 500 500 542General Supplies878 3,076 84 2,100 1,100 -47.62% 543Equipment & Vehicle Parts889 2,358 192 750 750 549Motor Fuels and Lubricants3,145 3,175 1,708 3,200 3,200 565Maint. & Repair- Structures6,076 10,040 1,676 6,000 2,000 -66.67% 563Maint. & Repair- Equip. & Vehicles61 41 25 500 500 568Printing696 858 - 750 750 580Audit150 150 150 150 150 582Expert & Professional Services- 28,000 - - - 583Other Contractual Services3,792 12,585 2,127 3,550 4,000 12.68% 584Telephone - Local1,243 869 485 1,000 1,000 587Radio257 46 - 480 480 604Electricity10,061 12,101 6,093 9,500 10,000 5.26% 621Space Allocation5,688 5,746 3,280 5,624 5,540 -1.49% 622Administrative Fee2,961 2,048 1,188 2,036 1,839 -9.68% 623Garage - Labor & Burden714 2,016 1,596 800 800 624Equipment Allocation1,355 1,287 787 1,349 1,410 4.52% 651Fleet Liability306 417 187 320 320 652General Liability3,652 4,212 2,543 4,359 4,490 3.01% 653Property Insurance5,127 5,083 2,475 4,243 5,516 30.00% TOTAL47,570 94,620 24,944 47,211 44,345 -6.07% Capital Outlay 720Other Improvements26,055 - - - 250,000 EXPENDITURE TOTA L$118,419 $139,232$50,667 $95,869 $344,404 259.24% NET SOURCE (USE) OF FUND BALANCE (47,502)(20,327) 35,579 131 (247,904) -189339.69% 1