August 5, 2026
Bruce Foltz, Finance Director
Tony Thrasher, Willdan Financial Services
Priti Patel, Willdan Financial Services
The Ask
That the City Council discuss and provide
direction on the Citywide Master Fee
Recovery Schedule.
Comprehensive User Fee Study
Background/Project History, Objectives, Methodology, Process, Results Tony Thrasher
Priti Patel
• A “user fee” is a charge for service provided by a
governmental agency to a public citizen or group
• California State Law, specifically Government Code
66014(a), stipulates that user fees charged by local
agencies “…may not exceed the estimated reasonable
cost of providing the service for which the fee is
charged…”
Non-Market / Time-Based Fees
• Level of staffing, staffing costs, time allocation, and operating costs
• Goal is to generally recover 100% of costs except as
limited by law or Council direction
Market Fees
• Policy and market conditions
• Primary goal of a User Fee Study is to determine the
“reasonable” full cost of providing services or programs • Comprehensive fee study every 5 years
• Willdan hired to conduct citywide time-based fee analysis update that started in mid-2025
Fees analyzed:
Analysis conducted:
• Fee-for-service activities
• Based on FY 2026 Budget
• Does not include Development Impact Fees, Utility Rates, Taxes, or Traffic Violations • Airport
• Building
• City Clerk
• Community Services
• Development Services
• Finance
• Fire
• General Services
• Human Resources
• Legal & Risk Management
• Legal & Risk Management
• Planning
• Police & Animal Services
• Public Works
• Utilities
• Determine full cost of providing services or programs • Review fee schedules based on service delivery
• Identify potential new fees (not currently collected) • Using fully-burdened rates, calculate full cost recovery • Assess levels of current cost recovery and evaluate needs for adjustments
• Provide estimated revenue projections based on proposed adjustments
• Ensure compliance with state law governing user fee cost recovery The analysis to determine the cost of providing fee-for-service activities is comprised of two basic elements:
1. Hourly rates of staff and/or contractors providing the service
2. Average time required to provide the service
The product of the fully burdened hourly rate calculation and the time spent yields the cost of providing the service
• Costs included in fully burdened hourly rates
• Salary & Benefits
• Services and supply costs
• Indirect support costs
• System and maintenance costs
• Hourly rates structured to account for direct work hours Salary &
Benefits
Productive
Hours
Salary &
Benefit
Rate
Direct and
Indirect
Overhead
Fully
Burdened
Hourly
Rate
Reasonable Cost
of Providing
Service
Fee for Service
• Individual fees determined
from 0% - 100% cost
recovery
• Subsidized fees are funded
by unobligated General Fund
revenues
• May impact fund availability
for community benefit
programs/ services
• Funded fees promote proper
staffing and quality service to
community
Tony Thrasher
Priti Patel
• Increases and decreases in fees vary by department, based on staffing changes and combination of fees
• Overall estimated annual revenue increase of $1,246,854 • Projection based on FY25 volume
• In future years, revenue will vary based on actual service demand. • Projections are based solely on the fee changes included in this update
User Fee Study Process
Our Timeline
Project Kickoff /
Staff Interviews
September 2025
Data
Collection
November 2025
Analysis / 1st Draft
Results
April 2026
Analysis / Final Draft
Results
May 2026
Development
Community Meeting
June 2026
Recommendations to
City Council
August 2026
Fees go into Effect
(if approved by Council)
October 2026
The Ask
That the City Council discuss and provide
direction on the Citywide Master Fee
Recovery Schedule.
(951) 279-3532
[email protected]
www.CoronaCA.gov