HomeMy WebLinkAbout02 - Fee Schedule Update for Fiscal Year 2020-21 - PowerPointMay 26, 2020
Special Meeting
FEE STUDY UPDATE
City Council Joint Meeting
Finance Committee
COST RECOVERY & ANNUAL
UPDATE REQUIREMENTS
Council Policv F-4 (Revenue Measures
The City will establish appropriate cost -recovery targets for
its fee structure and will annually adjust its fee structure to
ensure that the fees continue to meet cost recovery targets.
Fiscal Sustainability Plan (Resolution 2015-47)
Establish appropriate cost -recovery targets and annually
adjust fee structure to ensure that the fees continue to meet
cost recovery targets.
NBMC CHAPTER 3.36
COST RECOVERY FOR USER SERVICES
6101.1i191i;
Mandates 100% cost recovery (except for subsidies identified
in the code)
NBMC § 3.36.0 10
"... cost studies should be conducted at least every five years"
Community Development Department (20 15)
Fire (2018)
Police (20 15)
TIMELINE
■ September 2019 - Fee Study Kick-off with Departments
■ October — December 2019 - Conducted Fee Studies
■ January — February 2020 - Finalize Fee Studies /Approval from Departments
■ February 13, 2020 - Finance Committee — Present Fee Study Updates as Receive and File
■ February 14,2020 - Building Related Changes Provided to Building Industry Association
(BIA) — OC Chapter
■ March 10, 2020 - Mailed Interested Party Notification Letters to:
• AT&T
• BIA
• So Cal Gas
• Southern California Edison
■ March 14, 2020 and March 21, 2020 - Notice of Public Hearing Posted in the Daily Pilot
■ March 24, 2020 - Fee Study Update Continued to May 12, 2020
■ April 28, 2020 - Mailed Interested Party Notification Letters to:
• AT&T
• BIA
• So Cal Gas
• Southern California Edison
■ May 2, 2020 - Notice of Public Hearing Posted in the Daily Pilot
■ May 12, 2020 - Fee Study Update Continued
FEE STUDY CHANGES
Impact: $840,000 annual revenue, adjusted for phased -in Planning fees
(does not account for fees where volume statistics were unavailable or where
demand may decrease due to COVID-19)
Fees
Fees
No
New
Department
Increasing
Decreasing
Change
Fees
Deleted
Totals
CDD
112
II
7
2
0
136
Fire
59
44
13
0
0
116
Police
19
15
18
0
6
58
TOTAL
190
70
38
2
6
306
of TOTAL
62%
23%
12%
1 %
2%
100%
Impact: $840,000 annual revenue, adjusted for phased -in Planning fees
(does not account for fees where volume statistics were unavailable or where
demand may decrease due to COVID-19)
OPTIONS
Fee Study Updates to Council June 9, 2020 for Public Hearing
and Potential Adoption (Staff Recommendation)
2. Postpone Fee Study Updates (TBD)
Adjustments effective 7/1/2020 per
(0.6% Increase)
and Allow CPI
Resolution 2018-55
3. Do Not Approve Fee Study Updates, Rescind Resolution
2018-55 Authorizing Annual CPI Increases, and Waive Council
Policy F-4
1. FEE STUDY UPDATES TO COUNCIL JUNE 9, 2020
(STAFF RECOMMENDATION)
Impact: $885,000 potential revenue from fee study adjustments
and 7/1/2020 Consumer Price Index (CPI) increases
CDD included fee study updates in their FY21 budget projections, $432,000
of the total above
Estimate doesn't account for unavailable volume or potential drop in demand
due to COVID-19)
PROS
Follow policy
Remain on schedule with annual updates
Charge full cost of service
Potential to generate additional revenue
Update non -studied fees by CPI 7/l/2020
CONS
COVID-19 financial impact to residents
and businesses
2. POSTPONE FEE STUDY UPDATES
ALLOW CPI ADJUSTMENTS EFFECTIVE 7/1/2020
Impact: ($765,000) potential unrealized revenue, includes:
($540,000) CDD revenue, 80% included in FY 2020-21 budget
($300,000) Fire and PD net revenue from fee study
$75,000 Approximate annual revenue from CPI Increase
PROS
Remain on schedule with annual updates
Temporary
CONS
Negative impact to revenues
Not able to recover cost of service for
studied departments
3. DO NOT APPROVE FEE STUDY UPDATES, RESCIND
RESOLUTION 2018-55 AUTHORIZING ANNUAL CPI
INCREASES,AND WAIVE COUNCIL POLICY F-4
Impact: ($885,000) potential unrealized revenue, includes:
($540,000) CDD revenue, 80% included in FY 2020-21 budget
($300,000) Fire and PD net revenue from fee study
($45,000) Estimated CPI Increases to non -studied departments
PROS
Relief from fee increases to those
residents and businesses impacted by
COVID-19
CONS
Negative impact to revenues
Not true cost of service for studied
departments
Off schedule for annual updates
Long term impact
THANK YOU
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Fee Study Update
City Council Joint Meeting
with the Finance Committee
May 26, 2020