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CC - Item 3A - Fee Schedule Update PowerPoint1 2022 Fee Schedule Update 2 What is a user fee? Objective of User Fee Study Determining Cost Recovery Historical Cost Recovery Proposed fee changes User fee is a payment for a requested service provided by a local government that primarily benefits an individual or group. Local governments adopt user fees to fund programs and services Fees in California are required to conform to the statutory requirements of the California Constitution, Proposition 218, and the California Code of Regulations. 3 4 User Fee Study is a very cost-effective way to understand the total cost of services and identify potential fee deficiencies. Develop a rational basis for setting fees Identify subsidy amount, if applicable Ensuring compliance with State law 5 6 25% 29% 15% 6% 19% 0% 5% 10% 15% 20% 25% 30% 35% - 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 2017-18 2018-19 2019-20 2020-21 2021-22 Parks & Recreation -5 Years Expense Revenue Cost Recovery 7 37% 37% 34% 39%39% 30% 31% 32% 33% 34% 35% 36% 37% 38% 39% 40% - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2017-18 2018-19 2019-20 2020-21 2021-22 PW Engineering -5 Years Expense Revenue Cost Recovery 8 13% 11% 15% 11% 16% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2017-18 2018-19 2019-20 2020-21 2021-22 Planning Division -5 Years Expense Revenue Cost Recovery 9 Fee increase –most of the fee increases were limited to 25% over the current fee amounts New Fees ◦Credit card transaction fee 3% FY 2021-22 -Over 4,800 credit card transactions processed FY 2021-22 -Credit card fees amounted to $35,600 ◦4 New Public Works Fees Adjust fees annually on July 1st by the percentage change in Consumer Price Index 10