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Faribault Council advances changes to late-fee policy and new short-term rental rules
Summary
Council approved first readings and votes to move late-fee penalties into a fee schedule (10% standard) and advanced short-term rental regulations requiring lodging-tax payment, life-safety inspections and $1 million insurance.
The Faribault City Council on Feb. 24 approved changes to how late fees will be applied across city code and advanced a new short-term rental ordinance that requires lodging-tax payment, life-safety inspections and a $1,000,000 insurance requirement.
City Administrator Jessica described the Chapter 17 amendments as an effort to "remove all reference to any type of penalty in the code and moving it to the fee schedule," standardizing late fees and enabling finance staff to apply penalties consistently. She said the proposed fee schedule would set late fees at 10%, matching the city's current practice for utility bills and outstanding receivables.
Jessica also summarized a short-term rental ordinance developed with the city attorney that aims to ensure lodging tax collection and basic safety standards. "The ordinance does not set a fee," she said, noting that inspection and registration fees would be discussed at a March work session and added to the fee schedule. Per the ordinance language reported to council, a $1,000,000 insurance requirement was added on recommendation of the city attorney.
Council members voted to approve the first readings and advance the ordinances to follow-up meetings; the council recorded ayes for the motion to advance both ordinances. Staff will return with a revised fee schedule if the ordinances continue to move forward.
