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The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community <br />engagement that encourages and inspires prosperity <br /> <br />Request for Action <br /> <br />To <br />City Council <br />Item Number <br />7.5 <br /> <br />Meeting Date <br />November 17, 2025 <br />Prepared By <br />Tina Allard, City Clerk <br /> <br />Item Description <br />Ordinance 25-16: Adopt 2026 Master Fee Schedule <br />Resolution 25-68: Summary Publication of <br />Ordinance <br />Reviewed by <br />Cal Portner <br />Tina Allard <br /> <br />Action Requested <br />1. Mayor Dietz to open and close the public hearing. <br />2. Adopt Ordinance 25-16 approving the 2026 Master Fee Schedule <br />3. Adopt Resolution 25-68 for summary publication of the ordinance. <br /> <br /> <br /> <br />Background/Discussion <br />The city adopts user fees to fund services provided or required due to the request or action of an individual <br />or entity. A fee-for-service ensures the individual/entity bears most, if not all, of the costs incurred by the city <br />to provide that service. These user and regulatory fees are set according to the estimated reasonable cost of <br />service, including direct and indirect costs. <br /> <br />When a fee does not fully cover the cost of service, another city revenue source subsidizes that cost, and in <br />most cases, it's the General Fund. The City Council reviews and updates user fees on an annual basis to help <br />reduce the need for a General Fund subsidy, which is paid for with taxpayer dollars. <br /> <br />Some of the fees have already been discussed as part of the budget review, and adjustments reflect the need <br />to recover things such as increased regulatory costs, staff time, indirect costs, or development-related impacts <br />on city services. Items to note: <br /> <br />Administrative <br />Temporary Cannabis Events are now allowed per state law. This fee aligns with our temporary liquor events <br />fee of $40 per day. New Manager Background Checks are required per city ordinance, but a fee has not been <br />established for them in the past, and it is recommended at $150 to cover staff time costs. <br /> <br />Building <br />The building permit fees are being increased to account for increased staffing costs since the last fee schedule <br />update. The last building permit fee update was in 2022, and before that there had been 8–10 years between <br />updates. The recommendation with the current updates seeks to minimize large increases and provide <br />Page 239 of 379