Title
Resolution Approving Amendments to City Fees and Service Charges for 2022-2023
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends the City Council approve the resolution establishing amendments to City fees and service charges and approving the Master Fee Schedule for 2022-2023.
BACKGROUND
The Master Fee Schedule compiles City Council-approved fees for specific City services provided to individuals in the community. Limited tax revenues support these services given the unique benefit to individual members of the public. Fees cover costs for special services. For example, the City charges fees for use of athletic fields and other indoor and outdoor facilities, programs such as sports leagues and camps, and permits for building, encroachments, grading, and tree removal.
Agencies are allowed to set fees at rates providing fair and reasonable recovery of costs incurred in providing the services, minimizing, or eliminating use of general tax revenues. City user fees and service charges are based on a variety of criteria including the change in the Consumer Price Index (CPI), comparable fee in comparable cities, fee studies, and the direct cost for providing the service. This ensures the fee levels are at or below the costs for providing the services.
When approved and adopted by the City Council, the proposed adjustments to the City’s user fees and service charges will be effective July 1, 2022 (certain noted Community Development fees become effective on August 5, 2022, 60-days following City Council approval in accordance with California law).
BACKGROUND
The Master Fee Schedule is a compilation of City Council approved fees for services provided to residents and businesses in the community. Historically, the City strives to balance maximizing cost recovery, with reasonable fees encouraging growth and stability in the local residential and commercial economy. The City accomplishes these goals by setting fees at reasonable and appropriate levels given increasing costs of doing business and market comparisons.
Full cost recovery for certain services is a policy direction by the City Council. A fee schedule maximizing cost recovery opportunities through appropriate fee revenues is a critical component of the City’s on-going financial stability. In the 2022-2023 General Fund Budget, projected departmental revenues total $5,700,000, 4% of the total General Fund operating revenues.
Attached is the City of San Leandro 2022-2023 Proposed Master Fee Schedule providing details of current fees, proposed fees, and with explanations. The following summarizes key departmental changes to the Master Fee Schedule:
CITY-WIDE
• Filming Project fees and Residential Parking Permit program fees increased by change in CPI, 4.2%.
CITY CLERK
• Fire and Closing Sales Applications fees, and Appeals fees increased by change in CPI, 4.2%.
COMMUNITY DEVELOPMENT
• Building Permit fees, Plan Checking fees, Administrative Citation charges, Zoning changes, Sign fees, and other Planning Division fees increased by change in CPI, 4.2%. Community Development services fees established by the California Government Code become effective August 5, 2022, 60-days following City Council approval (noted by asterisk in Master Fee Schedule). The expenditure budget for Building Regulations amounts to $3,200,000. Projected Building, Mechanical, and Electrical Permit revenue amounts to $3,000,000, a cost recovery rate of 94%.
ENGINEERING & TRANSPORTATION
• Development Fee Street Improvement (DFSI) and Traffic Impact fees increased by change in SF Bay Area and Engineering Industry Index, 1.09%.
FINANCE
• Permit fees, Parking Space Rental fees, Dog License fees, Taxicab License fees, and Miscellaneous fees increased by change in CPI, 4.2%.
FIRE
• Fire Prevention fees, Permit fees, Sprinkler fees, Fixed Fire Protection System fees increased by change in CPI, 4.2%.
LIBRARY
• Library Card fees and Fines and Penalties eliminated by City Council
resolution.
POLICE
• Parking Citation fines and Police Service fees increased by change in CPI, 4.2%.
PUBLIC WORKS
• New equipment rental rate for Trailer-End Dump and other Equipment Rental rate increased by 2021-2022 replacement costs.
• Environmental Services Section Hazardous Material Handling Annual fee, Wastewater Pretreatment Service charge, and Sampling Charge and Analysis fee increased by change in CPI, 4.2% and Accidental Release program, Underground Hazardous Material Storage, Hazardous Waste fees increase by Fee Study approved by City Council Resolution No. 2021-0081.
• Marina Security Live Aboard Permit and Berth Rental rates increased by change in CPI, 4.2%.
• Wastewater Monthly User Charges increase based on 2020 Proposition 218 Fee Study, 8% and Connection fees increased based on Engineering News Record 20-City Construction Cost Index, 8%.
RECREATION AND HUMAN SERVICES
• Facility/Park/Pools/Fields Rental fees increased by change in CPI, 4.2%. The expenditure budget for the Recreation Division for recreation programs amounts to $5,900,000. Projected Recreation Charges for Services and Rental Income revenue amounts to $1,400,000, a cost recovery rate of 24%. General Fund subsidies for recreation programs promote accessibility of services throughout the community.
Fiscal Impacts
Additional funds from proposed changes to the Master Fee Schedule impact License and Permit revenue (building permits), Interest & Property Income (Senior Center and Marina Community Center Rental income), and Charges for Current Services. Estimating the fiscal impact from the changes in the Master Fee Schedule relies on assumptions related to the demand for fee-based services. The proposed changes for 2022-2023 will increase General Fund revenues by approximately $220,000.
The City Council appropriated funds for a comprehensive, City-wide fee study in 2021-2022. Work is proceeding on developing the request for proposals soliciting firms experienced in conducting fee and service charge studies.
ATTACHMENT
• A, Resolution Proposing New Amendments to City Fees and Charges for Services for 2022-23
• B, City of San Leandro 2022-23 Proposed Master Fee Schedule
• C Presentation
PREPARED BY
Karen Chang
Assistant Finance Director