CITY OF MENIFEE
SUBJECT: 2024 Comprehensive Cost of Services/User Fee Schedule Update
MEETING DATE: May 15, 2024
TO: Mayor and City Council
PREPARED BY: Margarita Cornejo, Deputy Finance Director REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION
1. Adopt a resolution approving the addition and modification of fees to the 2022 User Fee Schedule and authorizing an effective date of July 15, 2024; and
2. Authorize the City Manager to implement an annual Consumer Price Index (CPI) adjustment, based on January-to-January index (increase or decrease) not-to-exceed four percent, with the first adjustment effective July 15, 2024 and annual adjustments thereafter on July 1 each fiscal year.
DISCUSSION
On October 5, 2022 the City Council adopted the 2022 Comprehensive Cost of Services/User Fee Study and accompanying fee schedule with an effective date of January 1, 2023. The new fee schedule reflected a comprehensive review and analysis to determine the full cost of providing services accurately, fairly, and reasonably to the individuals, residents, and businesses within the community. Ultimately, the amount of revenue generated (fee amount) may not exceed the estimated reasonable cost of providing the services, and with the goal of making the City “whole” as to costs.
In addition to the new fee schedule, effective January 1, 2023, the approval of the Fee Study included authorization for the City Manager to implement an annual Consumer Price Index (CPI) adjustment (increase or decrease) not-to-exceed 4%, effective July 1 each fiscal year, based on December to December of the previous year, with the first adjustment effective July 1, 2024.
As the City prepares for Fiscal Year 2024/2025, several necessary fees have been identified for addition to the existing fee schedule based on services provided by the City. For example, with the launch of the Aquatics program, corresponding program fees are recommended. Consistent
City of Menifee Staff Report
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with the adopted fee schedule methodology and approach, recommended fees were based on current fees, industry norms, economic development strategy, and parity with surrounding cities.
Table 1 below identifies the new fees and/or fee adjustments recommended for adoption beginning July 15, 2024.
TABLE 1: PROPOSED NEW FEES AND/OR FEE ADJUSTMENTS (EFFECTIVE JULY 15, 2024) Fee Name Proposed Fee Amount ($) Department
Cost Recovery
Description/
Determination Description
Aquatics: Learn-to-
Swim
(New Fee)
$75 Resident
$125 Non-Resident
For future year rates this fee will fall within
Programmatic / Sport / Afterschool Fees -
See Activity Guide for most up to dates
rates.
Community
Services
Proposed
based on
market rates
and survey with
surrounding
entities.
Group swim
lessons per 2
week session.
Aquatics: Recreation
Swim
(New Fee)
$2 Resident
$10 Non-Resident
For future year rates this fee will fall within
Programmatic / Sport / Afterschool Fees -
See Activity Guide for most up to dates
rates.
Community
Services
Proposed
based on
market rates
and survey with
surrounding
entities.
Open
recreation swim
daily fee
Aquatics: Lap Swim
(New Fee)
$2 Resident
$10 Non-Resident
For future year rates this fee will fall within
Programmatic / Sport / Afterschool Fees -
See Activity Guide for most up to dates
rates.
Community
Services
Proposed
based on
market rates
and survey with
surrounding
entities.
Lap swim daily
fee per 30
minute session
Sports Field Striping
(New Fee)
$15 per field (Resident)
$20 per field (Non-Resident)
Community
Services
Proposed
based on
market rates
and survey with
surrounding
entities.
Striping of
ballfield
diamonds or
multipurpose
fields per field
Palm Room Lighting
(New Fee)
$25 per event (Resident)
$50 per event (Non-Resident)
Community
Services
Proposed
based on
market rates
and survey with
surrounding
entities.
Facility rental
use of stage
lights in the
Palm Room per
event
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Fee Name Proposed Fee Amount ($) Department
Cost Recovery
Description/
Determination Description
Tenant Improvement
(TI) Fees
(Commercial/Multi-
Family/Industrial)
(New Fee)
Project Valuation/Valuation Multiplier
($0-$5,900)/$199 Flat Fee
$5,701-$25,000/.033 Valuation Multiplier
$25,001-$50,000/.020 Valuation Multiplier
$50,001-$250,000/.010 Valuation Multiplier
$250,001-$500,000/.009 Valuation Multiplier
$500,001-$1,000,000/.006 Valuation Multiplier
Over $1,000,000/.007 Valuation Multiplier
Building &
Safety
Full Cost
Recovery
Expanded/
Tiered TI Fee
based on
Valuation &
Valuation
Multiplier.
Planning Application
Refund Processing
Fee
(New Fee)
Fee will be based per MMC 9.30.050
policy established by CD Director
Community
Development
: Planning
Full Cost
Recovery
Associated
costs for
processing
refund request.
Refund Policy
by CD Director
established per
M.M.C Chapter
9.30.050.
Building Permit
Refund Processing
Fee
(New Fee)
Fee will be based per policy established
by Building Code 109.6
Community
Development
: Building &
Safety
Full Cost
Recovery
Associated
costs for
processing
refund request.
Refund Policy
by Building
Official
established per
Building Code,
109.6.
Clearance Letter
(Fee Adjustment)(Fee
5.03)
$25 (increase by $5) Menifee PD 83.29% Cost
Recovery
Increase to
existing fee for
higher cost
recovery.
Citation Sign Off
(Fee Adjustment)(Fee
5.04 and 5.05)
$20 (increase by $20 for Menifee PD
Citation and $5 for Outside Agency
Citation)
Menifee PD 52.63% Cost
Recovery
Increase to
existing fee for
higher cost
recovery.
Vin Verification
(Fee Adjustment)(Fee
5.14)
$30 (increase by $5) Menifee PD 88.24% Cost
Recovery
Increase to
existing fee for
higher cost
recovery.
City of Menifee Staff Report
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Fee Name Proposed Fee Amount ($) Department
Cost Recovery
Description/
Determination Description
Vehicle Release
Abandoned or Stored
(Fee Adjustment)(Fee
5.15 and 5.17)
$150 (increase by $50) Menifee PD 74.63% Cost
Recovery
Increase to
existing fee for
higher cost
recovery.
Vehicle Release
Impounded or Stored
for DUI
(Fee Adjustment)(Fee
5.16)
$200 (increase by $50) Menifee PD 99.50% Cost
Recovery
Increase to
existing fee for
higher cost
recovery.
Business License
Reinstatement Fee (1)
(New Fee)(Fee 2.08)
Applicable Annual Renewal Fee(s) +
Late Payment(s) Fee for all outstanding
years
Finance Penalty
(Renewal Fee
+ Late
Payment Fee)
for all
outstanding
years
Cost of
expired/lapsed
business
license
requiring
reinstatement.
(1) The purpose of the fine and/or penalty is to ensure compliance, therefore, the amount is meant to be punitive in nature, so as to incentivize compliance. The fine / penalty amount is meant to be set at a rate that ensures there is enough of a financial impact of non- compliance to discourage that non-compliance.
Automatic Annual Fee Adjustments
As previously noted, the 2022 User Fee schedule included authorization for the City Manager to implement an annual CPI adjustment (increase or decrease) not-to-exceed 4%, effective July 1 each fiscal year, based on December-to-December of the previous year, with the first adjustment effective July 1, 2024. The complete CPI for All Urban Consumers – Riverside- San Bernardino- Ontario, CA information is available on a January-to-January basis, with only a partial index available for December-to-December. Therefore, beginning with the first adjustment in July 2024, staff is recommending updating the automatic annual fee adjustment be updated to be a January- to-January CPI index (increase or decrease), not-to-exceed 4%. Federal and State set fees such as passport and document reproduction fees, would not be included in the annual adjustment.
For 2024 the January-to-January CPI and recommended fee adjustment is 2.878%.
As some of the fees are development related and pursuant to Government Code section 66017, the recommended effective date for the new and/or fee adjustment as well as implementation of the annual fee adjustment for all existing fees is July 15, 2024, to conform with the 60-day implementation period requirement. In future years the annual automatic adjustment would be effective on July 1st.
STRATEGIC PLAN OBJECTIVE
Thriving Economy
City of Menifee Staff Report
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FISCAL IMPACT
Adoption of the proposed new fees and/or fee adjustments would result in higher cost recovery for services provided by the City and help reduce any General Fund subsidy. Additionally, the implementation of the annual CPI adjustment would ensure costs for delivery of services remain current and reflect any significant increases and/or decreases caused by inflation or deflation.
ATTACHMENTS
1. Resolution
2. Exhibit A: 2024 New Fees and Fee Adjustments
3. Exhibit B: Existing Fee Schedule with 2024 Fee Adjustment