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HomeMy WebLinkAboutFCS-17-171 - 2018 User Fees R EPORT TO: Finance and Corporate Services Committee DATE OF MEETING: October 30, 2017 SUBMITTED BY: Ryan Hagey, Director of Financial Planning 519-741-2200 Ext 7353 PREPARED BY: Debra Fagerdahl, Manager of Financial Planning 519-741-2200 Ext 7114 WARD(S) INVOLVED: All DATE OF REPORT: October 18, 2017 REPORT NO.: FCS-17-171 SUBJECT: 2018 User Fees ______________________________________________________________________ RECOMMENDATION: THAT the proposed fees and charges contained in the 2018 User Fee Schedule attached to Finance and Corporate Services Department Report FCS-17-171 be approved; and, THAT Legal Services staff be directed to prepare the necessary by-laws to amend The City of Kitchener Municipal Code Chapters for fees and charges pertaining to licensing, planning applications, building permits and Committee of Adjustment applications. BACKGROUND: A comprehensive review of fees and charges forms part of the annual budget process. Council normally approves a new fee schedule each fall to provide time to secure Provincial approvals and by-law amendments before fees are increased effective the beginning of the following year. Fees and charges are used by municipalities as an alternative to fully funding various programs and services through property taxes. Fees and charges are often used for programs and services where customers have a choice whether or not to use them and, for this reason, the use of fees and charges tends to be favoured over property taxes alone. REPORT: A comprehensive schedule of proposed fees and charges is attached to this report. The fee schedule includes hundreds of existing fees as well as a small number of new fees (all new fees are indicated in the schedule). Utility rates are not included in this schedule as they are finalized as part of the annual budget process. * ** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 2 - 1 When setting individual rates, departments consider a range of factors including cost recovery, legislation, rates of other municipalities and market conditions. For 2018, departments were provided with a guideline to increase fees and charges by 2%, approximating the rate of inflation. Failure to adjust user fees to cover inflationary impacts would shift program costs to the property tax base and necessitate property tax increases above the rate of inflation. In general, fees are increasing by the guideline amount, or something close to it. Some fee increases differ from the guideline in order to come to a rounded amount (e.g. nearest $0.25, $1, or $5). The table below breaks down the change in fees into different categories. This breakdown shows the majority of fees (950) are increasing by an amount close to the guideline, while the next largest category is fees being held flat (183). Summary of Change in User Fees Compared to Prior Year Fee change# of Fees Fee decrease (i.e. less than 0%) 33 No change (i.e. 0%) 183 Between 0% - 1.5% 30 Between 1.5% - 2.5% 950 Greater than 2.5% 70 New fee 2 3 T he remainder of the report highlights fee changes that differ from the inflationary guideline. Highlighted Fee Changes Aquatic Programs (fees 79 - 228 on the detailed fee schedule) Some fees have not been increased in order to remain comparable to the surrounding municipalities. Community Programs & Services (fees 229 - 450 on the detailed fee schedule) Kitchen fees are lower than the recommended 2% to reflect the type and use of space. Licensed event fees have been held flat or reduced to be comparable to industry pricing. Some new fees have been added for: · A new program room (#4) at the Forest Heights Community Centre (fee 327) · Books of 20 tickets for Pay As You Play programming (fees 428 & 431) · Private (fees 434-436) and semiprivate (fee 438-440) programs based on demand Cemeteries (fees 451 - 665 on the detailed fee schedule) Some of the Cemetery fees differ from the 2% guideline in order to remain within a comparable range with other municipal cemeteries. Many of the fees are legislated or based on cost recovery and therefore will not always align with the target increase. Some new fees have been added for: · An arbour tree columbarium unit (fee 541) · Memorial benches including a bronze plaque (fee 651) · Same lot burials when used for urns (fees 662 & 665). Golf Fees (fees 666 - 712 on the detailed fee schedule) Golf cart rental fees have been held flat (fees 699-705) in order to remain comparable with competitors in the industry. Some other increases differ from the guideline to arrive at rounded prices. 2 - 2 K MAC (fees 713 - 764 on the detailed fee schedule) The fee for shinny hockey (fee 738) and admissions (fees 740 - 743) have not been increased to be comparable with industry rates. Fee for affiliated track & field (fee 745) has a higher increase to be comparable with other municipalities. Sport Development (fees 765 - 773 on the detailed fee schedule) The Budd Park Lounge Rental fee (fee 773) has not been increased to remain competitive. Fire Fees (fees 774 - 855 on the detailed fee schedule) Fire Paid Duty – Special Events (fee 800) A new user fee has been created to recover costs of a fire prevention staff as a result of the demands placed on Fire related to mandatory inspections of special events from a regulatory and fire safety perspective. The growth in recent years of for-profit commercial special events has had an impact on divisional resources, as Kitchener has continued to develop itself as a tourism friendly community. Fire prevention staff is also active in supporting City sponsored special events. Kitchener Fire is looking to emulate a similar process as Waterloo Regional Police who currently charge for paid duty officers. Alarm Monitoring Residential (fees 819 - 820) No increase is recommended for residential alarm monitoring fees. There is no justification for an increase at this time. The program is service based, not profit based, and costs are being covered at the recommended rates. The mandate is to provide service in highest risk fire categories, which are the single family homes. Fire losses are significantly less in homes that are monitored compared to homes that are not monitored. There is a community benefit by keeping fee increases to a minimum. Building (fees 975 - 1074 on the detailed fee schedule) After reducing many building fees by 5% in 2017, the Building enterprise is proposing no change to permit fees for the 2018 budget. The Director of Building met with the Waterloo Region Home Builder Liaison Committee and the membership supported no change in permit fees for 2018. Favourable results over the last few years have allowed the Building Stabilization reserve fund to reach its target level so no increases are recommended at this time. Legislated Services (fees 1134 - 1156 on the detailed fee schedule) Committee of Adjustment (fees 1139 - 1145) These fees have been increased to align the City with neighbouring municipalities and for cost recovery due to increased staffing costs. Minor Variance (fees 1140 - 1141) These fees have been increased by an additional $25 in accordance with the Council approved recommendation for sign notification as part of the Residential Intensification in Established Neighbourhoods Study (see report CSD-17-009). Commissioning of Non-City Related Documents (fee 1146) This is a new fee that was created to align the City’s fee structure with that of neighbouring municipalities. 2 - 3 Lottery/Bingo License Fee (fee 1154) The lottery license fee has been held at no increase. Lottery licensing fees are mandated by the Alcohol and Gaming Commission of Ontario. The license fees are charged to charitable and non-profit organizations who wish to hold lottery events in the City. Charitable and non- profit organizations have experienced significant drops in lottery event revenues. As these groups are raising much needed funds for many community programs, it is difficult to justify higher license fees. Death Registration (fee 1155) The death registration fee has been held at no increase in order to maintain parity with neighbouring municipalities. Increasing the 2018 death registration fee may result in a substantial decline in the number of registrations processed and a corresponding revenue loss to the City. Revenue Fees (fees 1263 - 1279 on the detailed fee schedule) Most Revenue fees have not been increased in order to maintain parity with neighbouring municipalities. Engineering (fees 1371 - 1504 on the detailed fee schedule) Several of the Engineering fees differ from the 2% guideline as they have been either rounded to the dollar or to the nearest five dollars for ease of payment. Fees that have changed for other reasons include: Water Service Fees – 300mm (12”) Road (fees 1466 1469) A new fee has been added in order to accommodate larger diameter water pipe installations. Fire Hydrant installation by private contractor (fee 1473) A new fee has been added for developers wanting to install their own fire hydrants. This amount is held as a deposit, and is returned (less an administrative fee of 11%) once work has been completed properly. Transportation Planning (fees 1505 – 1508 on the detailed fee schedule) Three new fees have been added to be consistent with area municipalities as detailed in report INS-17-067. Road Occupancy Permit (fee 1506) This is a new fee that all contractors are required to pay to do work within a City roadway right of way. Roadway Closure (fee 1507) This is a new fee that all contractors are required to pay when all or a portion of the City roadway is closed. Mobile Crane Operation (fee 1519) This is a new fee that all contractors are required to pay when the operation of a crane is required within a City roadway. 2 - 4 Parking (fees 1509 – 1531 on the detailed fee schedule) As presented during the 2017 budget, parking garage rates are recommended to remain flat for 2018 with modest increases of 1.5% on surface lots. The rationale for this change is fourfold: 1) The City’s parking rates are already the highest in the market; 2) Increasing rates further will only reduce market share as competitor pricing has remained flat; 3) Increasing rates may negatively impact future development in the downtown core; and, 4) Reduction in the supply of parking due to development together with continued demand for surface parking. There are two exceptions to the above general increase. Theatre Rates (fees 1522 - 1523 on the detailed fee schedule) Effective September 2018, an increase from $7.50 to $8 for the regular theatre rate and from $9 to $10 for the premium theatre rate is being proposed. The last increase to these rates was in 2014 as the preference is to adjust periodically rather than have small increases every year. Electric Charging Station Rate (fee 1531) This fee was previously $0.20/kwh and is being changed to an hourly rate of $0.50 for 2018. Re-evaluating the parking supply/demand model and the pricing formula should occur after an independent parking study in the fall of 2017, as well after assessing the impacts of the implementation of the Light Rail Transit (LRT), as part of the 2019 and 2020 budget. Utilities (fees 1532 – 1609 on the detailed fee schedule) Water Heater Rentals (fees 1537 - 1569) Market research has shown that customers prefer to receive a larger increase every few years as opposed to small annual increases. Fees were last increased in 2015, and the 5% increase in 2018 approximates inflationary increases over the last three years. Kitchener Utilities remains a very competitively priced water heater supplier in the local market. FOLLOW UP FROM AUDIT COMMITTEE ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The recommendation of this report supports the achievement of the city's strategic vision through the delivery of core service. FINANCIAL IMPLICATIONS: The proposed 2018 tax supported budget includes a 2% increase to user fees. Not all fees would be increased by 2% as some fees are sensitive to factors like cost recovery, legislation, rates of other municipalities, and market conditions. 2 - 5 COMMUNITY ENGAGEMENT: I NFORM and CONSULT This report has been listed on the City’s website. In addition, the finalized listing will be posted on the City’s website subsequent to adoption by Council. The Planning, Engineering and Building fees were reviewed with development industry stakeholders at a Waterloo Region Homebuilders Liaison committee meeting with no objections on Friday, September 15, 2017. ACKNOWLEDGED BY: Michael Goldrup, Acting Deputy CAO, Finance and Corporate Services 2 - 6 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 7 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 8 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 9 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 10 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 11 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 12 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 13 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 14 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 15 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 16 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 17 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 18 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 19 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 20 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 21 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 22 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 23 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 24 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 25 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 26 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 27 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 28 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 29 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 30 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 31 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 32 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 33 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 34 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 35 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 36 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 37 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 38 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 39 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 40 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 41 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 42 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 43 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 44 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 45 Note - total fee including applicable taxes will be rounded to the nearest five cents 2 - 46