TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Libby Bretthauer, Acting Finance Director
Julie Bondarchuk, Financial Controller
Emy-Rose Hanna, Budget & Financial Analyst
SUBJECT:Title
Conduct a Public Hearing for Consideration of Adopting a Resolution Regarding the Citywide User Fee Schedule and Cost Allocation Plan (Unbudgeted) (Acting Finance Director Bretthauer).
(Estimated Time: 45 Min.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NO. 25-0020
Body
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RECOMMENDATION:
Staff recommends that the City Council conduct a public hearing to consider adopting resolution No. 25-0020 regarding the Comprehensive User Fee Schedule and Cost Allocation Plan.
FISCAL IMPLICATIONS:
Results of the Cost Allocation Plan ("CAP") and User Fee Study ("UFS") show the City will achieve an estimated $1,502,284 in additional revenue annually by adopting the new fees. It is important to note that the proposed fees represent the costs for services that are discretionary on the part of the user. If the City does not fully recover its costs for these services, the General Fund will subsidize the activity, which reduces the General Fund's ability to finance activities that support the entire community, such as ongoing operations and long-term capital improvements.
Furthermore, the purpose of the Cost Allocation Plan (CAP) and the User Fee Study (UFS) is to determine the true cost of providing various City services including the indirect costs attributable to enterprise and other chargeable funds. By identifying the true cost of services and adjusting user fees annually, the City will minimize General Fund subsidies.
BACKGROUND:
In February 2020, the City adopted its last comprehensive cost allocation plan and user fee study, which identified costs associated with providing each non-tax-supported service, and assigned the fully burdened rate (i.e. direct labor costs an...
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