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8.3.A.. PRSR 11-09-2005Item # 8.3.A. ver MEMORANDUM TO: Parks and Recreation Commission FROM: Bill Maertz, Parks and Recreation Director DATE: October 31, 2005 SUBJECT: Recommendation for Park Dedication Fees ACTION FOR CONSIDERATION Recommendation on park dedication fees BACKGROUND Elk River current park dedication fees: Residential $2,800/dwelling unit Commercial $6,000/acre Industrial $2,000/acre 2005 neighboring communities park dedication fees: Subject to increase for 2006. Otsego Residential $2932/dwelling unit Commercial $7,000/acre Industrial $3,500/acre Ramsey Residential $ 2,200/dwelling unit Commercial $ 4,356/acre Industrial $ 4,356/acre Big Lake Residential $3,500/dwelling unit (scheduled for increase to $4,000 in 2006 Commercial NA Industrial NA Rogers Residential $2,000/dwelling unit Commercial $6,000/acre Industrial $4,000/acre A substantial portion of the park improvement budget consists of products or services that are rising in price faster than the cost of living. • The cost of paving trails, spores courts, and parking areas is closely related to the cost of fuel. • Playgrounds, benches, and fencing for backstops are subject to rising steel costs. • Prices for land acquisition are increasing rapidly. In order to maintain purchasing power at 20051evels, staff recommends an increase of 5% on park dedication fees for 2006. ACTION REQUESTED Make recommendation to the City Council that park dedication fees increase by 5%. Residential $2,940/acre Commercial $6,300 Industrial $2,100