Business Item 6a
STAFF REPORT
City Council Business Item
DATE: July 1, 2024
TO: Honorable Mayor and Council Members
FROM: Aaron Felmlee, Finance Director
THRU: Merritt Perry, City Manager
SUBJECT: Consider Adopting Schedule of Fees and Charges for Water Service; Resolution 2024-23
STAFF RECOMMENDATION:
Review and adopt schedule of fees and charges for water service; Resolution 2024-23 EXECUTIVE SUMMARY:
At the April 15th 2024 regular City Council meeting, City and Jacobs staff presented the draft proposed rate adjustments that are required to cover anticipated expenses over the next five years. At that meeting the Council directed staff to revise the proposed adjustment strategy to lower the initial year increase as much as feasible, and spread the adjustments out more evenly over the five-year period.
At the May 6th 2024 regular City Council meeting a revised rate adjustment approach was presented to the Council and Council provided direction to staff to begin the Proposition 218 (Prop 218) noticing process with the revised rate adjustment approach.
At the July 1st 2024 regular City Council meeting the Prop 218 hearing will be completed. Based on the outcome of the hearing, so long as the hearing does not result in enough protests, rates can formally be adopted into the City’s fee schedule.
For transparency and clarity, the adopted fees from FY 23-24, the proposed changes to the adopted FY 23- 24 fees and the proposed FY 24-25 fees are all presented in the attached proposed fee schedule.
FISCAL IMPACT:
The various rates and fees for services have a direct financial impact on City revenues. The changes included in the adopted Fee Schedule will be incorporated into the FY 24-25 Budget.
RECOMMENDED COUNCIL ACTION:
1. Receive staff report and review questions with staff
2. Open Public Comment
3. Close Public Comment
4. Motion to Adopt Resolution 2024-23; and read by title only. Roll Call Vote ATTACHMENTS:
FY 24-25 Proposed Water Fee Schedule
Draft Resolution 2024-23; A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FORTUNA ADOPTING A SCHEDULE OF FEES AND CHARGES FOR WATER SERVICE AND
FINDING THE ACTION EXEMPT FROM CEQA