HomeMy WebLinkAbout14 - Revising Certain Fees Within the Schedule of Rents, Fines and Fees, Authorizing the Waiver of Vehicle Tow Fees, Adopting a Credit Card Convenience Fee, and Updating the Methodology - PowerPoint (Staff)April 23, 2024
Item No. 14
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FEE STUDY UPDATE
City Council Meeting —April 23, 2024
City of Newport Beach — Finance Department
BACKGROUND
User fees and charges are reviewed on a rotating basis such that each
department's fees are reviewed every 3-5 years to ensure the proper recovery of
cost of services.
During Fiscal Year 2023-24, the city engaged a consultant (ClearSource) to assist
with performing a study of user fees and charges, which included a review and
calculation of the cost of providing services and related fees charged by the
following departments:
Finance Public Works
Harbor
Utilities
The scope of the study also included other fees including, but not limited to, tow
fees, a credit card convenience fee, A/V technical support, etc.
However, the scope of the study did NOT include taxes, development impact fees,
or utility rates.
On March 14, 2024, the fee study was reviewed by the Finance Committee, who
recommended that the proposed fees move forward for City Council consideration.
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AUTHORITY FOR COST -RECOVERY BASED USER FEES
Fiscal Sustainability Plan
Establish appropriate cost -recovery targets and adjust fee structure to
ensure that the fees continue to meet cost recovery targets.
City Council Policy F-4 — Revenues 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.
Newport Beach Municipal Code Section 3.36.030 mandates 100% cost
recovery (except for subsidized services identified in the municipal code)
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DEGREE OF GENERAL VS. PRIVATE BENEFIT
General Benefit Private Benefit
Tax -Funded Fee -Funded
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1 City of Newport Beach — Finance Department
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NEW FEES
Finance — 2 new fees
Business License Initial Application (online)
Taxicab Operator License Fee
Harbor — 12 new fees, such as a deposit for use of human lift
Utilities — 2 new fees
Meters, Boxes, Lids, Etc. — Base Fee
Water & Sewer Services Establishment Fee - Remote Activation
Other
Credit Card Convenience Fee
Hourly Rate for A/V/ Technical Support Associated with Fee and
Charge Related Activities
SUMMARY OF RESULTS FOR RECOMMENDED FEES
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Finance Department'
Harbor Department
Public Works Department
Utilities Department 2
Credit Card Convenience Fee
Total
$ 154,000
$ 325,000
$171,000
68%
$ 33,000
$ 53,000
$ 20,000
100%
$1,293,000
$1,359,000
$ 66,000
100%
$ 491,000
$ 376,000
($115,000)
97%
$ 0
$ 439,000
$439,000
100%
$1,971,000
$2,552,000
$581,000
Finance Department fees are set at 100% cost recovery except for those that are limited by State
Law and short-term lodging permits, which are proposed to be phased in over a two-year period.
2 Utilities Department fees are set at 100% cost recovery except for those that are limited by State Law.
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TIMELINE & RECOMMENDATION
Finance
Committee
Reviewed
Council Review &
First Ordinance
Reading of
Proposed NBMC
Changes
Council Second
Ordinance
Reading/Adoption
of Proposed
NBMC Changes
Effective date for
proposed fee updates'
Conduct a public hearing, Approve the FY 2023-24
Fee Study Update, Adopt Resolution 2024-29, and
Introduce Ordinances
City of Newport Beach — Finance Department
1 — CPI adjustments effective July 1st
QUESTIONS?
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