HomeMy WebLinkAboutItem 8 - Comprehensive Fee Schedule City of T Comprehensive eeSchedule VIA f dip Background • User fees and charges are intended to recover all or a portion of the City's costs for providing a service or access to public property. Examples of city fees include, building permits, recreation classes, facility rentals, etc. • State law requires that the fee not exceed the estimated cost of providing the service. • It is recommended that a comprehensive review of the cost of services and fees be performed every three to five years. The City's user fees and charges have not been updated since 2008. Vy WILLDAN Comprehenseive User Fee Study • The City contracted with Willdan Financial Services to assist with performing a Comprehensive User Fee Study, which included a review and calculation of the cost of providing services and related fees charged by the following departments : 'WCity ClTrk"'----- ..'conomic Development - Services Public Works -..L Parks Community Development • The Scope of the Study did NOT include taxes, development impact fees, utility rates, etc. • On May 24, 2021, a Study Session was held with the City Council to review the User Fee Study and to provide an opportunity for public input on the recommended fees. W W I LLDAN Key Issues Framing The Study Defensible methodology 2 Compliant fee-for-service 3 Reasonable cost offviding services 4 Cost recovery BuildingSummary Steps of the Study Data Analysis Cost LayersSet Fees I L I I A , Department Interviews Direct Servic"M W Define the Full Cost of Services Time Estimates Indirect Services Set Cost Recovery Policy' Labor Costs Department Overhead Cost Allocation Plan City-Wide Overhead W"W I LLDAN 5 Cost of SCalculat 'ion Salary & Direct and Fully Salary & Productive Burdened Benefits Hours Benefit Indirect Hourly Rate Overhead Rate Fully Reasonable Full Cost of Burdened Time Service Hourly Rate Estimate WD. P01 *icy Cons *iderateions • General standard : individuals or groups who receive private benefit from service should pay 100% of cost • In certain situations, subsidization is an effective public policy tool : • Encourage participation • Ensure compliance when cost is prohibitive to residents • Allow access to services • Recommended that City include an annual inflation factor which will allow City Council by resolution to annually adjust fees based on CPI or other factor Vy WILLDAN Summary Results for Recommended Fees Estimated Annual Estimated Annual Estimated Current Cost Recommended Fee Revenue per Costs Eligible for Annual Current Recovery Cost Recovery Recommended .Department M660 Recovery.. Fee Revenue Percentage Percentage Recovery LeveL2 City Clerk $2,501 $902 36.1% 47.50/ $1,189 Economic Development $10,292 $4,200 40.8% 65.1% $6,700 Finance $34,119 $10,227 30.0% 98.9% $33,747 Parks & Recreation' $2,423,447 $1,249,000 51.5% 51.8% $1,254,441 Community Development - PlanningZ $203,930 $187,448 91.9% 100.0% $203,930 Community Development - Building $1,946,018 $1,2201582 62.7% 100.0% $1,946,018 Public Works - Engineering $502,336 $166,097 33.1% 97.1% $487,962 Police $51,680 $30,536 59.1% 79.3% $40,975 Water - Billing Division $130,951 $51,290 39.2% 94.7% $124,038 Total $5,305,274 $2,920,282 $4,099,000 1 Estimated annual costs include divisions that directly provide fee services (Sports, Classes/Cultural Arts, and Support Services), as well as 10% for indirect support. 2 Many Planning fees utilize deposits and therefore would be 100% cost recovered through time accounting by project. 3 Water Billing Fees have been set at 100% cost recovery except for those that are limited by California State Law (Senate Bill No. 998). VV W I LLDAN Comprehensive Fee Schedule .M • The recommended fees and charges have been incorporated into the proposed Comprehensive Fee Schedule. • The proposed resolution directs the City Manager to submit an updated user fee study to the City Council at least every five years, which is consistent with best practices. • October 15t — Tentative Effective Date for New Fees ( if approved by City Council ) Vy WILLDAN Recommendation It is recommended that the City Council : 1 . Conduct a public hearing on the proposed adoption of an update to the City's Comprehensive Fee Schedule; and, 2 . Adopt Resolution No . 21-54, Establishing and Adopting Updated Development Processing Fees and Other City Rates, Charges, and User Fees for Various Government Services. Vy WILLDAN