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Home My WebLink AboutITEM 10WrWILLDAN Agenda • Summary results of recommended city-wide fees • Recap of background/process — User Fee Study and Cost Allocation Plan • Comparison with other Orange County cities • Recommendations 2 Summary Results for Recommended Fees City of Tustin - User Fee Department Revenue Analysis Total $10,789,233 $6,188,162 $6,558,297 $370,135 'Estimated annual costs include direct department budgeted costs, and no 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) 3 Fee Counts and Revenue Increase by Department Department/Division Increasing Decreasing 0 Not Phano*j Total Average Revenue Increase % City Clerk 0 16 1 17 0% CommDev- Planning * 6 4 59 1 70 17% Co m m Dev - Building 73 70 33 0 176 2% Finance - Permits 14 11 13 3 41 3% Finance - Water Billing Admin (non water rates) ** 10 3 9 2 24 17% Housing Authority 0 0 2 0 2 0% Public Works - Engineering 37 2 16 8 63 13% Police 8 0 19 0 27 16% Parks and Recreation 151 6 77 1 235 3% Total 299 96 244 16 655 *Most Plan ningfees are deposits and final charges are based on actual staff hours/services rendered. **Water billing administration fee increases are mostly for one-time charges (i.e. new account set-up, expediting, and after hour services) 4 What are User Fees • Provide private benefit with limited community benefit • State law requires that individual use of the service must be voluntary fees must be at or below full cost Fee are adopted by City Council in Public Hearing by resolution Does NOT include development impact fees, utility rates, taxes, etc. W W I LLDAN 5 Summary Steps of the Study Data collection Build fee model Overhead and FBHR* Calculation Staff meetings Update fee schedules Staffing and time data Full cost for services Current cost recovery Target cost recovery Create draft report Staff report review Finalize report Public Bearing * FBHR - fully burdened hourly rates 6 Cost of Service Calculation • Primary types of data used: o Salary & benefits o Services and supply costs o Indirect support costs (from a cost allocation plan) o System and maintenance costs • Hourly rates structured to account for direct work hours Productive Salary & Hours Benefit Rate 7 Tustin Comprehensive User Fee Study and Cost Allocation Plan • Consultants - Willdan Financial Services • Study includes a review and calculation of the cost of providing services and related fees charged by the following departments: • The Scope of the Study did NOT include taxes, development impact fees, utility rates, etc. W W I LLDAN 8 Policy Considerations • General standard: o Those who receive private benefit from service pay 100% of cost • In certain situations, subsidization is an effective public policy tool: o Encourage participation o Ensure compliance when cost is prohibitive to residents o Promote access to services • Recommend that City continue to utilize CPI factor to annually adjust fees. • Full study recommended every five years G Comparison with Orange County Cities Building Permit Fees (Valuation Based) 14,0% 12, DW 10,000 o> m LL 8.0 D0 E - 6.0 D0 a m 4,000 2,000 Tustin County at Orange Costa Mesa Westminater Garden Crave Fount vn Valley Futtenon S25k 597 812 667 607 579 462 356 S50k 981 1,344 1,098 998 833 765 394 S look 1,514 2,130 1,695 1,540 1,239 1,212 603 S500k 4.828 7,844 5,648 5.012 4,081 4.464 1.995 Slm 8,378 12,325 90% 8.694 6,291 7,014 3.735 ■ S25k ■ S50k W S100k ■ S500k a Slm 10 Comparison with Orange County Cities (Continued) 0 U m u. 300 200 100 Tustin Fountain Valley EEncroachment Permit (Flat) 305 168 Public Works Engineering- Encroachment Permit Fee Garden Grove Irvine 150 161 ■ Encroachment Permit (MV) He%port Beach Grange Santa Ana 541 327 652 Yorbe Linda 139 11 Comparison with Orange County Cities (Continued) 300 250 m LL LL E `0 200 a LL 150 F- a 100 50 Tustin ■ Permit Fee 10 ■ 2nd False Alarm - ■ 3rd False Alarm - ■ 4th False Alarm 50 51h False Alarm 75 ■ 6th False Alarm 100 ■ 71h False Alarm 250 OC I eriff 50 50 50 100 Residential Alarm Permit/False Alarm Penalty (with Permit) 1 1 1 Irvine Newport Beach Costa Mesa Westminister Garden Grove Fountain Valley 60 - 35 30 26 - - 75 - 110 50 210 100 50 110 50 100 210 150 100 110 75 125 210 200 150 110 100 150 210 250 200 110 200 175 210 300 250 110 ■ Permit Fee ■ 2nd False Alarm ■ 3rd False Alarm ■ 4th False Alarm 51h False Alarm ■ 6th False Alarm ■ 7th False Alarm ILlFullerton 44 55 155 231 231 231 Orange 150 200 200 200 200 12 Recommendations • Conduct a public hearing to consider adoption of the proposed 2026 Comprehensive User Fee Schedule and Cost Allocation Plan; and • Adopt Resolution No. 26-05 for new development processing fees and other City rates, charges, and user fees. • Effective date if approved —April 1, 2026 13 DuP_Stl[7 I.-. i, �Y ti -, a �� JEW WrWILLDAN Disclosure Willdan Financial Services ("Willdan") is registered as a "municipal advisor" pursuant to Section 15B of the Securities Exchange Act and rules and regulations adopted by the United States Securities and Exchange Commission ("SEC") and the Municipal Securities Rulemaking Board ("MSRB"). The MSRB has made available on its website (www.msrb.org) a municipal advisory client brochure that describes the protections that may be provided by MSRB rules and how to file a complaint with the appropriate regulatory authority. As part of its SEC registration Willdan is required to disclose to the SEC information regarding criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation involving Willdan. Pursuant to MSRB Rule G-42, Willdan is required to disclose any legal or disciplinary event that is material to Client's evaluation of Willdan or the integrity of its management or advisory personnel. Willdan has determined that no such event exists. Copies of Willdan's filings with the United States Securities and Exchange Commission can currently be found by accessing the SEC's EDGAR system Company Search Page which is currently available at: https://www.sec.gov/edgar/searchedgar/companysearch.htmI and searching for either Willdan Financial Services or for our CIK number which is 0001782739. For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash -flow analyses, feasibility studies and/or other analyses Willdan may provide the municipality with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the municipality, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the municipality, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, unless formally engaged to provide such information.