TO:
Honorable Mayor and Members of the City Council
THROUGH:
Mark Danaj, City Manager
FROM:
Bruce Moe, Finance Director
Steve Charelian, Revenue Services Manager
SUBJECT:Title
Conduct Public Hearing to Consider Resolution No. 15-0014 Adopting the 2015 Cost Recovery User Fees (Finance Director Moe).
CONDUCT PUBLIC HEARING; ADOPTLine
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Recommended Action
RECOMMENDATION:
Staff recommends that City Council conduct a public hearing and adopt Resolution No. 15-0014 approving the 2015 Cost Recovery Fees. The Finance Subcommittee reviewed the proposed cost recovery fees at their March 19, 2015 meeting.
FISCAL IMPLICATIONS:
Under current City cost recovery policies, staff estimates the new rates will result in approximately $853,434 additional revenue. It is important to note that the proposed fees represent the cost for services that are discretionary on the part of the user. To the extent the City does not fully recover its costs for these services, General Fund taxes will subsidize the activity. Tax subsidies for services will reduce General Fund surpluses and correspondingly the Fund's ability to support activities such as long term capital improvements.
BACKGROUND:
The City conducted its last comprehensive cost allocation plan (CAP) and user fee study in 2010,which identified the costs associated with providing each non-tax supported service, and assigned the fully-burdened rate (i.e. direct labor costs, as well as indirect costs) of each City position involved in delivery of those services. The purpose of the cost allocation plan is to ensure that the City identifies all costs associated with activities, including overhead, to determine the true cost of providing various City services, as well as indirect costs attributable to enterprise and other chargeable funds. Over the past five years, the cost of services has increased due to salary and benefit and ...
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