HomeMy WebLinkAboutItem 8 - Comprehensive Fee Schedule City of T
Comprehensive eeSchedule
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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.
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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.
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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
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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
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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
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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
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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).
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Comprehensive Fee Schedule
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• 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 )
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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.
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