Joint Special Council/BFPD
05/5/26 05:30 PM
Finance
Sydnie Harris
Resolution
Doc ID: 6377
COUNCIL RESOLUTION
AGENDA MATTER:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BARSTOW, CALIFORNIA, APPROVING
THE COST ALLOCATION PLAN, THE COMPREHENSIVE USER FEE STUDY, AND AMENDING THE MASTER FEE SCHEDULE AND CHARGES FOR CITY SERVICES EFFECTIVE JUNE 1, 2026.
EXECUTIVE SUMMARY:
The City of Barstow periodically evaluates its municipal user fees and internal cost allocation methodologies to ensure that charges for services reflect the reasonable cost of providing those services.
Many of the City's existing fees and internal cost distribution practices have not been comprehensively updated in several years, resulting in misalignment between actual service delivery costs and the amounts recovered through user charges or interfund reimbursements.
In FY 2025/26, the City engaged a qualified consultant to prepare two complementary analyses:
A Municipal User Fee Study, evaluating the full cost of services across all departments and recommending updated fees based on cost recovery targets. A Municipal Cost Allocation Plan, establishing a transparent, data driven methodology for allocating citywide and departmental overhead to operating programs, enterprise funds, and fee supported services.
Both documents provide the analytical foundation necessary for cost recovery, budget development, grant reimbursement, and long-term financial planning.
DISCUSSION:
Municipal User Fee Study
The User Fee Study identifies the full cost of providing services, including direct labor, departmental overhead, and citywide administrative support. The analysis also identifies current cost recovery levels and recommends updated fees to align charges with the actual cost of service. Consistent with Government Code 66014 and 66016, the proposed fee schedule and supporting documentation were made available to the public at least 10 days prior to the public hearing.
Adoption of the User Fee Study will allow the City to modernize its fee schedule, reduce General Fund subsidy for fee supported services, and ensure compliance with statutory requirements governing fee establishment.
Municipal Cost Allocation Plan
The Cost Allocation Plan establishes a consistent and auditable methodology for distributing indirect costs such as Finance, Human Resources, Information Technology, and City Administration to operating departments and programs. The plan supports:
Transparent identification of the full cost of service Accurate interfund charges and reimbursements
Joint Special Council/BFPD
05/5/26 05:30 PM
Finance
Sydnie Harris
Resolution
Doc ID: 6377
COUNCIL RESOLUTION
Compliance with federal and state grant requirements
Alignment with the User Fee Study cost basis
Improved budget development and long-term financial planning While adoption of a Cost Allocation Plan does not require a public hearing, staff recommends approval by resolution to ensure clear documentation for audit purposes and to support future fee updates, grant claims, and cost recovery analyses.
Implementation
Upon adoption, staff will incorporate the updated cost allocation methodology and fee cost basis into the FY 2026/27 budget process. Updated user fees may take effect immediately unless the City Council specifies a future effective date. Staff is coordinating with the City Attorney's Office to confirm the most appropriate implementation timeline.
FISCAL IMPACT:
Adoption of the Municipal User Fee Study is expected to increase cost recovery across multiple departments, reducing General Fund subsidy for fee supported services. Actual revenue impacts will depend on service demand. The Cost Allocation Plan will improve the accuracy of interfund reimbursements and ensure that enterprise funds and special revenue funds appropriately contribute to citywide overhead. Revenues and reimbursements will be deposited into the applicable departmental and fund accounts.
RECOMMENDED ACTION:
Staff recommends that the City Council:
1. Conduct a public hearing and receive public testimony regarding the Municipal User Fee Study.
2. Adopt the Resolution approving the Citywide Municipal User Fee Study.
3. Adopt the updated municipal user fee schedule as presented.
4. Adopt the Resolution approving the Municipal Cost Allocation Plan.
5. Direct staff to incorporate the updated cost allocation methodology and fee cost basis into the FY 2026/27 budget process.
6. Confirm the effective date for implementation of the updated user fees and cost allocation methodology.
Attachments
Resolution No. ____-2026 Adoption of the Municipal User Fee Study.
Joint Special Council/BFPD
05/5/26 05:30 PM
Finance
Sydnie Harris
Resolution
Doc ID: 6377
COUNCIL RESOLUTION
Resolution No. ____-2026 Adoption of the Municipal Cost Allocation Plan.
Municipal User Fee Study with Proposed Municipal Fee Schedule (Consultant Report).
Municipal Cost Allocation Plan (Consultant Report).