Public Works Department
Park Planning and Development Division Fee Study
City of Manteca
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2 What are User Fees
• Provide private benefit with limited or no community benefit • State law requires that 1) individual use of the service must be voluntary, and 2) fees must reasonably relate to the services provided
• Fee levels & cost recovery determined through City Council fee adoption
• Does not include development impact fees, utility rates, taxes, etc.
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3 Why Update User Fees
• Subsidies in services impact the General Fund
o Private & specific benefit services are subsidized by general fund o Reduces ability to fund general benefit activities like public safety & community events/programs
• Decreased department funding can impact service quality/delivery • Cost recovery knowledge and planning
o Provides clarity of pressures on City resources
o Enables City to strategize and set fees to benefit of the City and community
o State requirements for reasonable cost-based fees
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4 User Fee Objectives & Steps
• Determine full cost of providing services or programs o Update fee schedules based on service delivery
o Using fully-burdened rates, calculate full cost recovery • Update fees for services based on cost analysis
o Based on the types of fee, industry standards, and the private benefit involved determine suggested fees and cost recovery
Development related fees are typically targeted for full cost recovery o Ensure appropriate fee levels that:
Conform to local policies and objectives
Maintain legal compliance with state law
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5 Data & City Staff Participation
• Primary types of data used:
o Expenditure data
o Staffing structures
o Central service/Indirect overhead
o Productive/billable hours
o Time estimates to complete tasks
o City/Department input, feedback and policies
• Staff support throughout process essential to ensure analysis fidelity Attachment 4
6 Summary Steps of the Study
Model
Development
Data
collection
Build fee
model
Overhead and
FBHR
Calculation
Cost Analysis
Staff meetings
Update fee
schedules
Staffing and
time data
Full cost for
services
Set Cost
Recovery
Current cost
recovery
Target cost
recovery
Fee Study
Report
Create draft
report
Staff report
review
Finalize report
Updated Fee
Adoption
Public Hearing
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7 Cost of Service Calculation
• Primary types of data used:
o Salary & Benefits
o Services and supply costs
o Indirect support costs
o 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
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8 Scope of the Study
• Review and calculate cost of providing services and related fees charged by Public Works Department – Park Planning and Development Division
o Park Planning and Development Plan Check
o Construction Inspection
o Site Plan Review
o Subdivisions
o Community Facilities Districts
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9 Public Works – Park Planning and
Development Division
• Time based analysis using fully burdened hourly rates and the time it reasonably takes to provide service
• Analysis found current fees are below cost recovery
• Suggested fee notes:
o An increase to 24 fees
o 1 fee would remain as currently set
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10 Policy Considerations and Next Steps
• General standard: individuals or groups who receive private benefit from service should pay 100% of cost
• Recommend that City utilize inflation factor to annually adjust fees based on CPI, MOU, or another factor
• Comprehensive fee study every 5 years
• If fee increases are adopted, they can become effective after 60 days.
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Questions
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12 Willdan Financial Services (“Willdan”) is registered as a "municipal advisor" pursuant to Section 15B of the Securities Exchange Act and rules and regulations adopted by the United States Securities and Exchange Commission ("SEC") and the Municipal Securities Rulemaking Board ("MSRB"). The MSRB has made available on its website (www.msrb.org) a municipal advisory client brochure that describes the protections that may be provided by MSRB rules and how to file a complaint with the appropriate regulatory authority. As part of its SEC registration Willdan is required to disclose to the SEC information regarding criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation involving Willdan.
Pursuant to MSRB Rule G-42, Willdan is required to disclose any legal or disciplinary event that is material to Client's evaluation of Willdan or the integrity of its management or advisory personnel. Willdan has determined that no such event exists. Copies of Willdan’s filings with the United States Securities and Exchange Commission can currently be found by accessing the SEC's EDGAR system Company Search Page which is currently available at:
https://www.sec.gov/edgar/searchedgar/companysearch.html and searching for either Willdan Financial Services or for our CIK number which is 0001782739.
For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash-flow analyses, feasibility studies and/or other analyses Willdan may provide the municipality with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the municipality, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the municipality, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, unless formally engaged to provide such information.
Disclosure
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