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Stevens County HRA seeks rental-license fee hikes to keep program solvent
Summary
Kayla Blair of the Stevens County HRA told Morris council the agency proposes fee increases that would take effect with 2025 billing to bring the rental-license program to cash-flow neutrality; council asked for more outreach materials and agreed staff would bring a resolution if the council wishes to adopt the increases.
Kayla Blair, finance manager at the Stevens County HRA, presented proposed increases to Morris’s rental-license fees and said the changes are intended to restore the program to cash-flow neutrality beginning with 2025 billing.
Blair told council the program operates on a four-year inspection cycle and that the number of inspections — and therefore staff time — varies by year. “Payroll is the biggest driver of a budget,” Blair said, describing a June analysis she performs each year to allocate staff hours across HRA programs and to set fees that keep the program solvent.
Council members asked whether the increases were set by a uniform formula or calculated case by case. Blair said the HRA used historical trends in hours and inspections to estimate costs and then adjusted fees to meet projected cash-flow needs. Council members also clarified the program covers about 916 rental units and that the annual renewal fee is billed every year while inspections occur on a four-year cycle.
Blair and council discussed enforcement and the inspection process: a typical failed inspection receives a 30-day cure period and then a reinspection; Blair said most properties pass on the second inspection. The council also identified a limitation in the city’s ordinance: staff said the HRA cannot initiate action when complaints come from neighbors rather than landlords or tenants, and Becca (city manager) said she and staff are reviewing ordinance language to see whether additional enforcement options are appropriate.
Council members recommended that the HRA include a tenant/landlord checklist or handout with annual renewal billing to help property owners and tenants address common problems in advance of inspections.
No resolution to adopt the fee increases was presented at the Sept. 10 meeting. A council member noted that, if council chooses to proceed, staff will bring a resolution to a future meeting for formal adoption.
