File #: BL-17-043    Version: 1 Name:
Type: Bylaw Status: Filed
File created: 1/17/2017 In control: City Council
On agenda: 9/5/2017 Final action: 9/5/2017
Title: Approval of 2018 Fees, Charges & Bylaws Presented by: Anne Victoor, Financial Services Manager
Attachments: 1. Bylaw 41-2017 - Master Rates Amendment, 2. City Council Policy C-FS-16, Municipal Fees and Charges, Schedule 12, Master Rates and Bylaws Fees and Charges, 3. Fees Defined by City Council Policy C-IS-02, Wastewater Service Line Disruptions and Maintenance, 4. Fines and Penalties Schedule, 5. C-FS-16 Fees and Charges Schedule, 6. Fees and Charges Budget Impact Summary

TAMRMS#:  B06

 

 

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Approval of 2018 Fees, Charges & Bylaws

Presented by: Anne Victoor, Financial Services Manager

 

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RECOMMENDATION(S)

recommendation

1.                     That Bylaw 41/2017, being a bylaw to amend Master Rates Bylaw 1/82, be read a first time.

 

2.                     That Bylaw 41/2017 be read a second time.

 

3.                     That unanimous consent be given for consideration of third reading of Bylaw 41/2017.

 

4.                        That Bylaw 41/2017 be read a third and final time.

 

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PURPOSE OF REPORT

 

Administration is proposing adjustments to the City’s municipal fees, charges and bylaws, as part of the 2018-2020 Municipal and Utility Budget Process.  The adjustments are designed to reflect Council’s policy direction where applicable. The budget impact of the recommended adjustments is detailed in the report below.

 

COUNCIL DIRECTION

 

On August 21, 2017, Council passed the following motions:

 

AR-17-069

That the proposed new rates as indicated in the attachment titled “City Council Policy C-FS-16, Municipal Fees and Charges, Schedule 12, Master Rates and Bylaws Fees and Charges” to the Council Agenda Report dated August 21, 2017, be incorporated into the appropriate amending bylaws for fees, charges and fines and presented to Council on September 5, 2017 for consideration.

 

That Council provide notices of motion by August 25, 2017 for any proposed changes to fees and/or fines contained in bylaw or governed by Council Policy C-IS-02 Wastewater Service Line Disruptions and Maintenance to be debated at the September 5, 2017 Council meeting.

 

That the rates governed by Council Policy C-FS-16 Municipal Fees and Charges, Council Policy C-IS-02 Wastewater Service Line Disruptions and Maintenance and contained in bylaws, be used in the development of the 2018-20 Municipal Operating Budget and the 2018 Utility Operating Budget.”

 

BACKGROUND AND DISCUSSION

 

Administration is proposing adjustments to the City’s municipal fees, charges and bylaws, as part of the 2018-2020 Municipal Budget Process.  The adjustments are designed to reflect Council’s policy direction where applicable. The budget impact of the recommended adjustments is detailed in the report below.

 

User fees are a critical element of a municipality’s revenue mix.  Together with government transfers and property taxation, they represent a significant portion of the City’s revenue stream.  User fees also reflect the City’s support for a ‘user pay’ philosophy, such that wherever possible, the user of a particular program or service pays the cost of delivering or providing that program or service.

 

There are four types of fees/fines which are listed below:

 

1.                     The first type of fee is a non-optional user fee set in a stand-alone bylaw or the Master Rates Bylaw 1/82 and requires Council approval to make changes. These fees are regulated and there is no ability to opt out without amending or repealing a bylaw. This includes things such as development permits, building permits, tobacco retail licensing and electrical fees. The attachment named Bylaw 41/2017 - Master Rates Amendment is the amending bylaw that details all fee adjustments to any stand-alone bylaw or the Master Rates Bylaw 1/82.

 

2.                     The second type of fee is within Council Policy C-IS-02 Wastewater Service Line Disruptions and Maintenance relating to wastewater service disruption callout charges.

 

3.                     The third type relates to fines that are within bylaw which are levied to people who are not complying with a bylaw. However, fines are set at an appropriate rate in order to act as an effective deterrent to certain behaviour and are not intended to be used for revenue generation. Adjusting levels of fines is done in conjunction with a corresponding review of the bylaw to determine if the fine is having the desired effect on deterring behaviour, for example, exceeding noise regulations under the Noise Bylaw or operating a local business without a required license.

 

4.                     The fourth type relates to “optional” fees that are covered within the attachment named Council Policy C-FS-16 Municipal Fees and Charges. This policy delegates approval to the City Manager and to be used in the development of the 2018 Municipal Operating Budget. Fees within this policy are charges that people pay if they wish to access or use an “optional” service. This includes things such as recreational memberships, facility rentals and transit fares.

 

The revenue for fees and fines are found in both the Municipal and Utility Operating budgets.

 

1.   Fees in Master Rates Bylaw 1/82 and other bylaws

(Changes requires Council approval)

 

Amendments to fees established by bylaw are being recommended to Council for approval. The impact of all proposed fee increases will equate to additional revenue of approximately $48,800 to the Municipal Operating Budget. No new schedules are proposed for the 2018 budget. The fee schedules can be found in the attachment named City Council Policy C-FS-16, Municipal Fees and Charges, Schedule 12, Master Rates and Bylaws Fees and Charges.

 

2.   Fees contained in Council Policy C-IS-02

(Adjustments made by Administration as per Policy)

 

Fees approved through Council Policy C-IS-02 have been calculated based on their specified policy criteria. The impact of the wastewater service disruption callout rate increases equates to additional revenue of approximately $5,100 to be added to the 2018 Utility Operating Budget. The fee schedules can be found in the attachment named Fees defined by City Council Policy C-IS-02, Wastewater Service Line Disruptions and Maintenance.

 

3.    Fines contained in bylaws

(Council approval required only if changes to fines are desired)

 

No additional revenue is generated in the 2018 operating budget from increasing fine rates. Administration feels that the fine rates are set at an appropriate level and are having the desired effect of deterring behavior. The fines schedules can be found in the attachment named Fines and Penalties Schedule, and are provided for information purposes only.

 

4.   Recommended Fee Revenue from Council Policy C-FS-16

 

Fees approved through Council Policy C-FS-16 have been calculated based on their specified policy criteria as outlined in their respective schedules. These fees have already been approved by the City Manager as per delegated authority and are presented to Council as information.

 

Administration is introducing two new products:

 

                     A senior/student LOCAL monthly pass

                     A low-income monthly commuter pass (to be known as the All-Aboard program)

 

The impact of Schedule 1 - 11 rate increases equates to additional revenue of approximately $114,000 to be added to the 2018 Municipal Operating Budget. The fee schedules can be found in the attachment named C-FS-16 Fees and Charges Schedule.

 

 

Summary of Proposed Changes

 

The total impact of all Fees/Charges/Fines/Penalties is approximately $162,800 increase in revenue to the Municipal Operating Budget and $5,100 increase in revenue to the Utility Operating Budget. The summary can be found in the attachment titled “Fees and Charges Budget Impact Summary”.

 

STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT

 

N/A

 

 

IMPLICATIONS OF RECOMMENDATION(S)

 

 

Financial:

                     Approval of the recommendation will generate $162,800 in Municipal Operating Revenue and $5,100 in Utility Operating Revenue. This will provide funding for the delivery of various municipal programs and services while continuing to support the City’s user pay philosophy.

 

Legal / Risk:

                     N/A

 

Program or Service

                     N/A

 

Organizational:

                     N/A

 

 

ALTERNATIVES AND IMPLICATIONS CONSIDERED

 

If Council does not wish to support the recommendation, the following alternatives could be considered:

 

1.                     Do not pass bylaw 41/2017.  This would leave fee(s) unchanged from the prior year. This will result in lower forecasted revenue generated from user fees.

 

2.                     Make changes to specific fees by resolution or bylaw. This may result in a changes in revenue which may either increase or decrease the tax rate.

 

STRATEGIC CONNECTIONS

 

SOCIAL - We are a friendly and inclusive community of passionate equals, where everyone feels a sense of belonging. We believe that community starts with the person next door.

ECONOMIC - We prosper and excel through a strong and diverse economy that is supported by forward-thinking commerce, outstanding local businesses and a dynamic downtown core.

CULTURE - We are proud of our storied history that has fed and nurtured our festive and culturally-rich community.

 

Governance Strategy

Council is committed to ensuring that the City of St. Albert is a responsive, accountable government that delivers value to the community.

 

Service Delivery Strategy

Council is committed to ensuring that the City of St. Albert is engaging residents to identify opportunities to improve delivery of services to the community.

 

Long Term Plans (e.g. MDP, Social Master Plan, Cultural Master Plan, etc.)

                     N/A

 

Corporate Objectives

                     Deliver programs and services that meet or exceed our standards

                     Exercise strong fiscal management

                     Ensure our customers are very satisfied

 

Council Policies, Bylaws or Federal/Provincial statutes

                     City Council Policy C-FS-16, Municipal Fees and Charges

 

Other Plans or Initiatives (Business Plans, Implementation Strategies, etc.)

                     N/A

 

Report Date (Council Meeting Date):  September 5, 2017

Author(s):  Anne Victoor, Financial Services Manager

Committee/Department:  Financial Services

General Manager:  Michelle Bonnici, GM of Corporate Services

City Manager:  Kevin Scoble