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IV.4. Proposed Parking Permit Fee Increases; Harkess (CR2015-131) November 2, 2015 Council Report 2015-131 PROPOSED PARKING PERMIT FEE INCREASES Proposed Action Staff recommends adoption of the following: Move to approve Resolution 2015-084 Parking Permit Rate Increase. Approval of the motion will increase parking permit fees by $1 per month as follows: daily fee and overnight fee– no change; monthly fee – from $30 to $31; quarterly fee from $70 to $74; the annual fee from $225 to $237, 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, $30 per month, $70 per quarter, $225 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, 2015 is $171,893 which is down from a high of $358,150 in 2001. The fund balance has declined every year since 2001. We have budgeted $250,000 for masonry repairs in the ramp based on a 2013 conditions appraisal. This was originally budgeted in 2015 but has been pushed back to 2016. 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 Financial performance of the Parking Fund Past permit rates Proposed capital expenditure 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, 2016. Supporting Information Resolution 2015-084 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 2015-084 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 $237 Annual $280 (no change) Quarterly $ 74 Quarterly $ 77 (no change) Monthly $ 31 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, 2016. nd Adopted by the City Council of the City of Hopkins, Minnesota, this 2 day of November 2015. _______________________________ Eugene J. Maxwell, Mayor ATTEST: ___________________________________ Amy Domeier, City Clerk DEPARTMENT - PARKINGFUND 214 REVENUE AND EXPENDITURE DETAIL SUMMARY 9/22/2015 ActualActualActualBudgetBudgetPercent CODE20132014201520152016Change REVENUE 360Court Fines$22,207 $17,474 $12,525 $22,000 $22,000 370Interest Earned(644) 2,169 2,115 500 1,000 100.00% 381Leased Parking70,167 87,291 112,944 74,000 115,000 55.41% TOTAL91,729 106,934127,583 96,500 138,000 43.01% EXPENDITURES Salaries and Employee Benefits 500Regular Employees38,279 38,195 28,372 42,190 42,246 0.13% 503Part-Time Employees669 542 667 500 500 524SL/Converted-LTD- - - - 313 525P.E.R.A. Contribution2,776 2,552 2,015 3,165 3,169 0.13% 526F.I.C.A. Contribution2,952 2,707 2,084 3,266 3,271 0.15% 527Employee Benefit Plan368 418 315 390 11,397 2822.31% 531Workers' Compensation Insurance291 232 135 281 265 -5.69% 535Paid Leave Accrual(723) 259 178 267 268 0.37% TOTAL44,612 44,905 33,767 50,059 61,429 22.71% Material, Supplies and Services 540Office Supplies- - - - - 541Uniforms/Clothing510 417 147 500 500 542General Supplies3,076 84 - 1,100 1,100 543Equipment & Vehicle Parts2,358 402 4 750 750 549Motor Fuels and Lubricants3,175 2,620 265 3,200 3,200 560Postage- - 1 - - 565Maint. & Repair- Structures10,040 6,758 13,915 2,000 2,100 5.00% 563Maint. & Repair- Equip. & Vehicles41 50 13 500 500 568Printing858 325 - 750 750 580Audit150 150 150 150 150 582Expert & Professional Services28,000 - - - - 583Other Contractual Services12,585 15,743 6,370 4,000 6,000 50.00% 584Telephone - Local869 831 555 1,000 925 -7.50% 587Radio46 - - 480 - -100.00% 604Electricity12,101 11,809 7,553 10,000 9,000 -10.00% 621Space Allocation5,746 5,624 3,693 5,540 5,682 2.56% 622Administrative Fee2,048 2,036 1,225 1,839 1,626 -11.58% 623Garage - Labor & Burden2,016 1,764 - 800 2,000 150.00% 624Equipment Allocation1,287 1,349 940 1,410 1,895 34.40% 651Fleet Liability417 460 213 320 483 50.94% 652General Liability4,212 4,487 2,982 4,490 4,533 0.96% 653Property Insurance5,083 6,840 3,677 5,516 6,977 26.49% TOTAL94,620 61,750 41,703 44,345 48,171 8.63% Capital Outlay 720Other Improvements- - - 45,000 250,000 455.56% EXPENDITURE TOTAL $139,232 $106,655$75,470 $139,404$359,600 157.96% NET SOURCE (USE) OF FUND BALANCE 279(47,502) 52,114 (42,904) (221,600) 416.50% Fund Balance 9-22-2015 181,692181,692 1 CITY OF HOPKINS, MN ANALYSIS OF PROPOSED PARKING PERMIT FEE INCREASES Percent IncreaseAnnualized YearDailyMonthlyQuarterlyAnnualOvernightDailyMnthlyQtlyAnnualOvernightMonthlyQuarterlnnual yA 20163.00$ 31.00$ 74.00$ 237.00$ 25.00$0.00%3.33%5.71%5.33%0.00%$ 296.00372.00$ 237.00$ +1.00/mo+ 4.00/qtr+ 12.00/yr$ Savings over quarterly(59.00) = $1.00/mo= $1.00/mo$ (135.00)(76.00)$ Savings over monthly 20153.00$ 30.00$ 70.00$ 225.00$ 25.00$ 0.00%11.11%7.69%4.65%0.00% +3.00/mo+ 5.00/qtr+ 10.00/yr = $1.66/mo= $0.83/ mo 20143.00$ 27.00$ 65.00$ 215.00$ 25.00$ 0.00%8.00%8.33%7.50% +2.00/mo+ 5.00/qtr+ 15.00/yrnew = $1.66/mo= $1.25/ mo 20123.00$ 25.00$ 60.00$ 200.00$ 0.00%0.00%9.09%8.11% 20113.00$ 25.00$ 55.00$ 185.00$ 0.00%25.00%17.02%15.63% 20093.00$ 20.00$ 47.00$ 160.00$ 0.00%17.65%9.30%6.67% 20053.00$ 17.00$ 43.00$ 150.00$ 50.00%13.33%7.50%7.14% 20042.00$ 15.00$ 40.00$ 140.00$ 20032.00$ 15.00$ 38.00$ 130.00$ 20012.00$ 15.00$ 35.00$ 120.00$ 19972.00$ 15.00$ 32.00$ 110.00$ 19961.50$ 14.00$ 30.00$ 105.00$ 19951.00$ 13.00$ 28.00$ 100.00$ 19941.00$ 12.00$ 26.75$ 96.00$ 19921.00$ 11.50$ 25.50$ 92.00$