Memorandum

City of Lawrence

City Manager’s Office

 

TO:

David L. Corliss, City Manager

 

FROM:

Cynthia Boecker, Assistant City Manager

 

CC:

Diane Stoddard, Assistant City Manager

Casey Toomay, Budget Manager

 

DATE:

June 1, 2009

 

RE:

Review of City of Lawrence Fees and Charges related to General and Recreation Funds

 

 

Over the course of the year, departments throughout the organization continually review existing fees and charges to ensure the levels are appropriate based on costs to provide the service and in comparison to similar rates in other communities.  This memo is intended to provide an update on recent and on-going fee review in the General Fund and Recreation Fund.

 

GENERAL FUND

 

Franchise Fees

Franchise fees are collected to offset the cost of acquiring and maintaining the right-of-way used by providers of natural gas, electric, telecommunication, and cable television services in the operation of their business.  Existing agreements require each provider to pay the City five percent (5%) of their gross receipts.  In 2008, franchise fee revenues totaled $5.5 million.

 

Finance staff has begun spot checking franchise fee payments to ensure accurate collection of applicable franchise fees. 

 

Municipal Court Fines and Fees

Fines and fees are reviewed annually to ensure that fees are in line with those charged in other municipalities. In the coming weeks, city staff will be proposing municipal court fine enhancements that will generate an estimated $250,000 in additional revenues to the General Fund.  These include:  increased parking fines (in areas outside the downtown area); increases to all traffic fines; and an increase to the insufficient funds fee. 

 

Review of the existing fine structure indicates we are below the rates currently charged in the majority of surrounding communities.  However, with implementation of these increases, we will move to be more in line with the amounts charged in other municipalities.

 

In 2008, municipal court fines and fees totaled $2.1 million. 

 

 

Building Permits

Fees are collected for all new construction, remodel, electrical, mechanical, plumbing and miscellaneous building permits.  Revenues in 2008 totaled $775,000.

 

Attached is a 2008 Year End Report developed by the Planning and Development Services Department as a requirement of City Code.  The report, which is provided on an annual basis, takes into consideration the costs of regulating building activity as part of the review of how building permit fees are set.

 

Planning Related Fees

Fees charged for land use approvals (plats, site plans, etc) will be reviewed in 2009.  In 2008, planning related fees generated $20,000 in revenues. 

 

Ambulance Fees

In 1997, Douglas County Ambulance Services and the Lawrence Fire Department were merged into a new entity, the Lawrence-Douglas County Fire Medical Department (LDCFM).  An agreement between the City and Douglas County was signed in 1996, requiring the City to fund 74% of the department budget (excluding longevity and capital expenses), with the County funding the remaining 26%.  The County also provides funding for replacement of ambulances.  The County receives 100% of ambulance revenues.  In 2008, revenues collected totaled $1.5 million. 

 

Alarm Fees

Staff in the City Manager’s Office, Police Department, Fire/Medical Department, City Clerks Office and Legal Department has reviewed the alarm ordinance and determined that the benefits of licensing alarm users and charging for false alarms do not outweigh the costs of those programs. These provisions of the ordinance have not been enforced for a number of years due to the administrative costs of enforcement.  Staff is preparing an amended ordinance to remove licensing provisions and penalties for false alarms from the City Code. These changes are anticipated to be presented to the City Commission for review yet this summer.  These changes will have no significant impact on city revenues. The city will continue to require licensing of alarm companies.    

 

In 2008, alarm fee revenues totaled $9,900.

 

Cemetery Fees

Fees charged for sale of cemetery plots and costs related to burial were reviewed in the fall of 2008, with new rates approved by the City Commission and implemented January 1, 2009.  The attached outlines a $50 per year increase in cemetery fees beginning in 2009 and continuing through 2013. 

 

In 2008, cemetery fee collections totaled $149,000.

 

 

RECREATION FUND

Fees and charges related to class and athletic league participation as well as shelter and facility rentals are outlined in the program brochure published twice yearly.  In preparation for publication of these brochures, programs are evaluated for participation numbers and costs in order to determine if changes to the rates should be considered.  Review of charges in other communities is included as well.  Fees are then adjusted as necessary. 

 

The Parks Advisory Board and Lawrence Parks and Recreation Department hosted a public forum in April to obtain feedback regarding current service level and the fees charged for various parks and recreation programs.  A survey instrument was developed and distributed to those in attendance and subsequently made available to the public online for a two-week period.

 

More than 130 individuals attended the public forum, which was held to gain input for potential changes in programming and services, assisting in setting department priorities in 2010 and beyond.  At the forum, 121 attendees completed the survey.   More than 1,050 citizens completed the online survey.

 

The results of the survey are still being reviewed, however initial results indicate that citizens would support a slight increase in fees for programming; small admission fees for services and facilities currently offered for free; support for the city band funding and advocate for continued Downtown beautification. However, in many instances the survey also showed equal support, and in some cases more support, to maintain the current level of services at the current fees associated with the service and reduce hours and/or levels of service provided.

 

As previously noted, the department is further analyzing the data, departmental structure, and delivery of services. Recommendations, including implementation of a fee at the Nature Park and wading pool along with increased marketing and sponsorship possibilities are included in a recommendation which will be reviewed by the Parks and Recreation Board at their June 9 meeting.

 

Parks and recreation charges for service in 2008 totaled $1,566,000.