TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Henry Mitzner, Controller
Cynthia F. Mickschl, Revenue Services Manager
SUBJECT:Title
Conduct Public Hearing to Consider Adopting a Resolution Regarding the Citywide User Fee Schedule and Cost Allocation Plan (Finance Director Charelian).
a) CONDUCT PUBLIC HEARING
b) ADOPT RESOLUTION NO. 19-0107
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council conduct a public hearing to consider adopting resolution 19-0107 regarding the Citywide User Fee Schedule and Cost Allocation Plan.
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FISCAL IMPLICATIONS:
Results of the current City User Fee Study and Cost Allocation Plan (CAP) indicate the City will receive an estimated $579,000 in additional revenue (cost recovery) annually using the new rates. It is important to note that the proposed fee rates represent the costs 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 discretionary services reduce General Fund surpluses and correspondingly the Fund's ability to support activities such as long-term capital improvements.
BACKGROUND:
In 2014, the City conducted 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 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 includes overhead costs 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 service has increased due to ...
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