City of Camarillo City Council Presentation for: User Fee Study - - PDF document

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September 5, 2019

City Council Presentation for:

User Fee Study Update

City of Camarillo

2 City of Camarillo – City Council User Fee Study Presentation

Presentation Agenda

1

Project Background/Overview

2

User Fee Principles and Guidance

3

Key Issues Framing the Study

4

Costing Methodology and Approach

5

Policy Setting Considerations

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2012

Reviewed

• fficial cost

recovery policy (3.01)

2015

Update basic cost assumptions to FY 15/16

2019

Complete review of:

• City fees & structure
• Overhead & expenses
• Dept. workload

Complete review of:

• City fees & structure
• Overhead & expenses
• Dept. workload

Project Background

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User Fee Study

Project Overview

Defines the full cost recovery potential of individually-based services

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Project Overview

• Regulatory Fees

Regulatory fees are charges imposed to recover costs associated with the City’s power to govern certain activities.

• Proposition 26

Article XIIIC§1(e)(3) Inspections and Regulatory Permits are exempt…however are still limited to the local government’s reasonable costs.

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Cost Recovery Opportunities

YES

Revenues Adopted Solely by City Council

YES

Taxes, Fines, Development Impact Fees, Utility Rates, etc.

NO Project Overview

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3

Fund departments efficiently

1

Reduce General Fund subsidies

2

More general tax revenue available for general City services

4

Set realistic expectations for cost recovery Benefits of Realigning User Fees

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1

Defensible methodology

2

Compliant fees-for-service

3

Reasonable cost of providing services

4

Cost recovery policy and procedure

Key Issues Framing the Fee Study

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User Fees and Utility Rates

• Collect user fees for public services where applicable
• Water and Sewer rates set to full cost recovery
• Transit Enterprise rates set at partial recovery to encourage use

Annual Review

• Keep pace with the cost of providing services
• Fees adjusted for Y-o-Y Labor Costs

Development Services Fee Review Program

• 100% cost recovery on majority of fees
• Public Works
• Community Development

Budget and Fiscal Policy 3.01

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City Budget and Fiscal Policy

Cost recovery for Community Development and Public Works services should generally be very high. In most instances, the City's cost recovery goal should be 100%. Exceptions to this standard include appeals, where the fee is set very low to provide adequate opportunity for due process.

The following is an excerpt from the City of Camarillo’s Budget and Fiscal Policy 3.01 regarding User Fees and Rates:

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Scope of Review

Departments Included:

Clerk/ Finance Planning Public Works/ Engineering Police

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Understand Full Cost of Providing Services Set Municipal Fees Accordingly

2 1

Project Goals

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Project Approach

• 1. Fee Structure

Review

• 2. Data Collection
• 3. Define Total

Costs

• 4. Annual Cost

Analysis

• 5. FBHR (Cost per

Hour) Calculation

• 6. Calculate “Per

Unit” Service Costs

• 7. Cost Recovery

Outcomes and Fee Setting Policy

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• Salaries and benefits
• Services and supplies

Direct

• Program, Division, Departmental and Agency-wide

Indirect

• Review required from internal departments for

approval

Support

Defining Total Costs

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Hourly Rate Outcomes  Planning $223  Public Works $187  Clerk $132  Finance $137  Police (varies)

$ per hour Support / Overhead Indirect Services Direct Case Work = / Hours

Fully Burdened Hourly Rate Calculation

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Fully-Burdened Hourly Rate Time to Complete

Cost Calculation

Cost of Service Calculation

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Full Cost of Service ($) Revenue from Current Fee ($)

Funding from Increased Fee or Non-Fee Revenue Sources Current Cost Recovery Level Maximum Cost Recovery 100% Minimum Cost Recovery 0%

Cost Recovery/Fee Setting

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FEE FUNDED TAX FUNDED

GLOBAL BENEFIT

• Police

Emergency Response

• Street

Maintenance

• Community

Events

BLENDED BENEFIT

• Library/

Community Services

• Fire

Suppression/ Prevention

INDIVIDUAL BENEFIT

• Police citation

sign-off

• Building Permit
• Engineering

Plan Review

Cost Recovery Policy – Decision Matrix

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Fee Study Best Management Practices

3

Annual increase mechanism

4

Combined Master Fee Schedule

1

Comprehensive fee study every 3 - 5 years

2

More frequent study during organizational or economic change

5

Established and documented Cost Recovery Policy

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Summary of Results

Division Estimated Annual Current Fee Revenue Estimated Annual Full Cost Recovery Fee Revenue Annual Cost Recovery Surplus / (Deficit) Current Cost Recovery % Estimated Annual Recommended Fee Revenue Recommended Cost Recovery % Planning $ 625,102 $ 992,685 $ (367,583) 63% $ 886,422 89% Public Works 662,242 1,469,590 (807,348) 45% 1,465,836 99.7% City Clerk 8,187 8,419 (232) 97% 7,338 87% Finance 10,578 14,589 (4,011) 73% 14,589 100% Police 97,205 98,941 (1,736) 98% 98,941 100% Total $ 1,403,314 $ 2,584,223 $ (1,180,909) 54% $ 2,473,126 96%

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Thank you! Questions?

800-676-7516 nkissam@nbsgov.com

Questions and Comments

Nicole Kissam Project Director