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CR 2013-113 Proposed Parking Permit Fee IncreasesNovember 4, 2013 City of Hopkins Council Report 2013-113 PROPOSED PARKING PERMIT FEE INCREASES Proposed Action Staff recommends adoption of the following: Move to approve Resolution 2013-071 Parking Permit Rate Increase. Approval of the motion will increase parking permit fees as follows: daily fee — no change; monthly fee — from $25 to $27; quarterly fee from $60 to $65; and the annual fee from $200 to $215 and no change to the Electric Car Permit fee of $280 for an annual permit or $77 for a quarterly permit. This action will also implements an annual overnight parking fee of $25. All increases/fees will be effective January 1, 2014. Overview Current ramp and municipal lot parking permit fees are $3 per day, $25 per month, $60 per quarter and $200 per year. 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. New for 2014 is the implementation of a $25 fee for overnight parking. This fee is similar to the fee charged for the residential disabled transfer and parking zone permits. 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 30, 2013 is $146,400 which is down from a high of $358,150 in 2001. The fund balance has declined every year since 2001. We have no high maintenance or capital items in the 2014 budget which with the rate increase is balanced. 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 enforcement and maintenance of city owned parking lots and ramp. The change in rates would take effect January 1", 2014. Supporting Information • Resolution 2013-071 • 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 2013-071 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 Annual Quarterly Monthly Daily Overnight $215 $ 65 $ 27 $ 3 (no change) $ 25 Electric Car Permits Annual $280 (no change) Quarterly $ 77 (no change) Monthly not available Daily not available EFFECTIVE DATE: The provisions of this resolution shall take effect January 1, 2014. Adopted by the City Council of the City of Hopkins, Minnesota, this 4th day of November 2013. Eugene J. Maxwell, Mayor ATTEST: Kristine A. Luedke, City Clerk DEPARTMENT - PARKING FUND 214 REVENUE AND EXPENDITURE DETAIL SUMMARY 10/31/2013 Actual Actual Actual Budget Budget Percent CODE 2011 2012 2013 2013 2014 Change REVENUE 360 Court Fines $ 21,901 $ 22,420 $ 17,706 $ 20,000 $ 22,000 10.00% 370 Interest Earned 1,190 788 332 1,500 1,000 -33.33% 381 Leased Parking 66,525 74,884 69,407 67,000 73,000 8.96% TOTAL 89,616 98,092 87,445 88,500 96,000 8.47% EXPENDITURES Salaries and Employee Benefits 500 Regular Employees 36,791 37,592 29,924 39,902 41,023 2.81% 503 Part -Time Employees - 533 669 - 500 525 P.E.R.A. Contribution 2,667 2,729 2,171 2,893 2,974 2.80% 526 F.I.C.A. Contribution 2,786 2,889 2,319 3,052 3,177 4.10% 527 Employee Benefit Plan 418 552 300 100 390 290.00% 531 Workers' Compensation Insurance 190 250 254 261 335 28.35% 535 Paid Leave Accrual 247 249 210 252 259 2.78% TOTAL 43,100 44,794 35,846 46,460 48,658 4.73% Material, Supplies and Services 540 Office Supplies - - - - - 541 Uniforms/Clothing 282 519 510 500 500 542 General Supplies 184 878 3,076 1,250 2,100 68.00% 543 Equipment & Vehicle Parts 261 889 939 750 750 549 Motor Fuels and Lubricants 2,967 3,145 2,429 2,250 3,200 42.22% 565 Maint. & Repair- Structures 1,240 6,076 9,284 3,000 6,000 100.00% 563 Maint. & Repair- Equip. & Vehicles 76 61 41 800 500 -37.50% 568 Printing 345 696 - 1,000 750 -25.00% 580 Audit 150 150 150 175 150 -14.29% 582 Expert & Professional Services - - 28,000 - - 583 Other Contractual Services 7,331 3,792 10,277 3,550 3,550 584 Telephone - Local 736 1,243 726 1,050 1,000 -4.76% 587 Radio 382 257 46 480 480 604 Electricity 10,983 10,061 9,431 8,500 9,500 11.76% 621 Space Allocation 5,897 5,688 4,788 5,746 5,624 -2.12% 622 Administrative Fee 3,279 2,961 1,707 2,349 2,036 -13.32% 623 Garage - Labor & Burden 1,080 714 2,016 800 800 624 Equipment Allocation 1,215 1,355 1,073 1,288 1,349 4.74% 651 Fleet Liability 303 306 290 348 320 -8.05% 652 General Liability 3,513 3,652 3,525 4,232 4,359 3.00% 653 Property Insurance 4,860 5,127 3,608 4,330 4,243 -2.01% TOTAL 45,083 47,570 81,917 42,398 47,211 11.35% Capital Outlay 720 Other Improvements 26,055 - - - - EXPENDITURE TOTAL $ 114,238 $ 92,364 $ 117,762 $ 88,858 $ 95,869 7.89% NET SOURCE (USE) OF FUND BALANCE (24,623) 5,728 (30,317) (358) 131 -136.59% CITY OF HOPKINS, MN ANALYSIS OF PROPOSED PARKING PERMIT FEE INCREASES Percent Increase Year Daily Monthly Quarterly Annual Overnight Daily Mnthly Qtly Annual Overnight 2014 $ 3.00 $ 27.00 $ 65.00 $ 215.00 $ 25.00 0.00% 8.00% 8.33% 7.50% new +2.00/mo + 5.00/qtr + 15.00/yr new _ $1.66/mo = $1.25/ mo 2012 $ 3.00 $ 25.00 $ 60.00 $ 200.00 0.00% 0.00% 9.09% 8.11% 2011 $ 3.00 $ 25.00 $ 55.00 $ 185.00 0.00% 25.00% 17.02% 15.63% 2009 $ 3.00 $ 20.00 $ 47.00 $ 160.00 0.00% 17.65% 9.30% 6.67% 2005 $ 3.00 $ 17.00 $ 43.00 $ 150.00 50.00% 13.33% 7.50% 7.14% 2004 $ 2.00 $ 15.00 $ 40.00 $ 140.00 2003 $ 2.00 $ 15.00 $ 38.00 $ 130.00 2001 $ 2.00 $ 15.00 $ 35.00 $ 120.00 1997 $ 2.00 $ 15.00 $ 32.00 $ 110.00 1996 $ 1.50 $ 14.00 $ 30.00 $ 105.00 1995 $ 1.00 $ 13.00 $ 28.00 $ 100.00 1994 $ 1.00 $ 12.00 $ 26.75 $ 96.00 1992 $ 1.00 $ 11.50 $ 25.50 $ 92.00