CC - Item 1B - Rosemead User Fee Study PresentationCity of Rosemead
User Fee Study
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Why Update User Fees
• Subsidies in services impact the General Fund
Private & specific benefit services are subsidized by
unobligated funding sources
Reduces ability to fund general & community
benefits
• Decreased department funding typically results in
understaffing and reduces service quality
Cost recovery knowledge and planning
Provides clarity of pressures on City resources
Enables City to strategize and set fees to benefit of
the City and community
State requirements for reasonable cost -based fees
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User Fee Objectives & Steps
• Determine full cost of providing services or programs
Review fee schedules based on service delivery
Identify potential new fees (not currently collected)
Reduce or remove fees
Using fully -burdened rates, calculate full cost recovery
• Update fees for services based on cost analysis
Incorporate or establish cost recovery goals
Subsidies allow access to services and facilitate compliance
Identify appropriate fee levels that:
• Enhance reasonability and applicability
• Maintain consistencywith local policies and objectives
• Maintain legal compliance with state law
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Scope of the Study
• Review and calculate cost of providing services
and related fees charged by the following
departments and divisions:
• Finance o Parking
• City Clerk 0 Animal Care and Control
• Planning o Public Safety
• Engineering o Film
• Parks and Recreation o Civil Fines
• Public Transportation
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Data & City Staff Participation
• Primary types of data used:
o Expenditure data
o Staffing structures
o Central service/Indirect overhead
o Productive/billable hours
o Time estimates to complete tasks
o City/Department input, feedback and policies
• Staff support throughout process essential to ensure
analysis fidelity
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Summary Steps of the Study
Full cost for
services
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Data
Staff
Current cost
Create drak
Council
collection
meetings
recovery
report
Approval
Build fee
Update fee
Target cost
Staff report
model
schedules
recovery
review
Overhead
Staffing and
Finalize
and FBHR
time data
report
Calculation
Full cost for
services
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Finance
• Majority of fees are set according to statutes
• Suggested fee notes:
NSF Check to remain as currently set per State Law
New Credit Card Transaction Fee added
FY 2021-22 credit card transaction cost amounted to $35,600
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City Clerk
• Time based cost analysis
• Analysis found that flat fees were mostly set below
the full cost of providing the service
• Suggested fee notes:
• An increase for 8 fees
• A decrease for 1 fee
13 fee would remain as currently set
• Average fee increase of 10%
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Planning
• Time based cost analysis
• Current fees are heavily subsidizing the cost of
providing services
• Suggested fee notes:
o An increase to 48 fees
A decrease to 6 fees
0 18 fees would remain as currently set as
Average fee increase of 2% for flat services
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Engineering
• Time based cost analysis
• Current services are being provided well below the
costs of providing them
• Suggested fee notes:
o An increase to 38 fees
o A decrease to 4 fees
0 4 new fees would be added
0 1 fee would change from variable to a flat fee
0 10 fees would remain as currently set as
o Average fee increase of 9% for flat services
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Parks and Recreation
• Most fees are use of government property
and should be set based on policy, usage, &
market factors
• Suggested fee notes:
o An increase to 32 fees;
o All other fees would remain as currently set.
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Public Transportation
• Public Transportation services and fee levels
remain unchanged
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Parking
• A mixture of citations and one administrative fine
• Citations set to deter the activity
• For the administrative fine, a time -based analysis
using fully burdened hourly rates and reasonable time
estimates for service were utilized
• Suggested fee notes:
An increase to the Impounded Vehicle Admin Fee
All citations are recommended to remain at their current
amounts
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Animal Care and Control
• Time based cost analysis
• Suggested fee notes:
0 An increase to 5 fees
0 6 fees would remain as currently set
0 5 fees would be reinstated
0 The average fee increase based on the suggested
fee would be 12%
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Public Safety
• Time based cost analysis
• Suggested fee notes:
o An increase to the Administrative Fee
O Live Scan are recommended to remain at their
current amounts as they are set by federal
agencies
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Film
• Time based cost analysis
• Analysis found that flat fees were mostly set
below the full cost of providing the service
• Suggested fee notes:
The actual cost of staff fees would remain at full
cost recovery
3 flat fees would be increased by 25%
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Civil Fines
• A mixture of citations and user fees
• Citations set to deter the activity
• For user fees, a time -based analysis using
fully burdened hourly rates and reasonable
time estimates for service were utilized
• Suggested fee notes:
An increase to the Administrative Fee
All citations are recommended to remain at their
current amounts
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Policy Considerations
• 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:
o Encourage participation
o Ensure compliance when cost is prohibitive to residents
o Promote access to services
• Recommend that City utilize inflation factor to annually
adjust fees based on CPI, MOU, or another factor
• Comprehensive analysis every 3-5 years
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Questions
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