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there is a fee cap or statutorily set fee. Consult your city attorney to ensure your fees are appro- priate and legal. Drop some services if possible As you review fees, always ask this question: should the city be providing this service? Cities provide many discretionary services that aren't fully paid by the fee charged. Sometimes the best way to improve your bottom line is by eliminating the service. For instance, one service some cities have discontinued is providing police staff to unlock vehicles for citizens who have locked their keys inside.This service was once viewed as a valu- able public relations tool, but in tight budget times, it is not a high enough public safety priority to continue. Cutting these types of services allows your city to focus its limited funds on higher priorities. Reduce the need for service Although you may consider eliminating some discretionary programs, some services are required and can't be eliminated. In those cases, see if you can find a way to reduce the demand for the service. One such example is false alarms that require police and fire response. Most cities charge a fee for responding to a certain number of false alarms, but the fee doesn't always cover the full cost. Elk River recently put in place a new ordi- nance to help reduce the number of false alarms that require city staff to respond. Basically, it requires the security company to call the prop- erty owner before calling the police or fire department.This has drastically reduced the number of false alarms for the city and resulted in savings. Another example is reinspections for building permits. Some cities charge reinspection fees for building permit inspections that fail because the work wasn't complete, the contractor failed to cancel a scheduled inspection, or correction orders haven't been completed.The intent is to cover costs and, more importantly, to encourage contractors to complete their work according to standards before they request an inspection. The charge is a way to reduce the demand for the service. Other revenue sources There are numerous types of city fees, both new and old, that are getting attention lately. For Before you decide to propose a new fee, it's important to review the legal issues. Make sure the fee is allowed by law and determine whether there is a fee cap or statutorily set fee. Although you may consider eliminating some discretionary programs, some services are required and can't be eliminated. In those cases, seerf you can find a way to reduce the demand for the service. example, the Legislature is considering allowing cities to implement street improvement districts. There are too many other possibilities to list, but here are a few that seem to be gaining in popu- larity lately: non-resident fees for programs and services; special assessments for seal coating or other improvements that were previously funded by taxes; franchise fees for private cable or utility companies operating in the city; street light util- ity fees; and prosecution training programs that bring traffic offense funds to the city. As you begin the 2010 budget process, it is a good time to start reviewing all of your city's revenues. With a little detective work to uncover new revenue sources, the willingness to propose new fees, and adjustment of current fees to reflect real costs, you should be able to generate addi- tional revenue. Continue the conversation at the LMC Annual Conference One benefit of working for a city is that we are willing and strongly encouraged to share experiences and ideas. Whenever possible, be sure to share an idea that worked and spread the news about innovative revenue sources you have discovered. Cities will have a great opportunity for sharing ideas at the League of Minnesota Cities (LMC) 2009 Annual Confer- ence and Marketplace June 24-26 in St. Paul. You can learn more about revenue ideas as well as a variety of other important topics. For more information and to register for the conference, visit wwwlmc.org/page/1/ annual-conference09 ;jsp. ~ Lori Johnson, city administrator of Elk River, unll be presenting the LMC Annual Conference session, "Alternative Revenue Sources."Phone: (763) 635-1000. E-mail: johnson@ci.elk-river.mn.us. MAY Z ~ 0 9 MINNESOTA C I T I E S