sou rce
AL CONSUL T I N G
MEETING AGENDA
CLEARSOURCE PRESENTATION TO THE CITY OF PLACENTIA
ATTACHMENT 4
clear
source
The City maintains a Master Fee Schedule identifying
applicable fees for various City services
Cities collect fees and charges for government
services performed at the request of, or specifically
for, a particular individual, business, or group... as
opposed to services performed for the community as
a whole
This item is limited to review of fees for Building,
Current Planning, Engineering, and Non -Development
Related Fees
examine:
Assessments
Utility Rates
Development Impact Fees
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source
User fees must be linked to and not exceed
the estimated reasonable cost of service
The full cost of service sets the maximum
limit of a cost -based fee
Direct program costs for labor, services, and supplies
Facilities overhead
Departmental administration
Citywide administration and central support services
a Generally, fees from users of one program
may not be used to pay for costs incurred to
serve discounted users or users of a different
program
Ensure user and regulatory fees are set
according to the costs of service
Enable more direct recovery of costs
incurred to serve private interests/ benefit or
respond to individual actions
Provide opportunity for relief to General
Fund resources that are often viewed more
critical to services of broader public benefit,
subject to City Council policy direction
Enable continuity of service levels by
improving cost recovery levels
Fees proposed are not taxes, as defined by
Article 13C of the California State Constitution
Fees are set in accordance with parameters set
by Article 13C and by Section 66014 of the
California Government Code:
Costs allocated to the payer should bear a fair or
reasonable relationship to the payer's burdens on or
benefits received from the governmental activity
Fees should not exceed the reasonable cost of
providing the service for which the fee is charged
"Full Cost of Service"
The estimated total cost of a program,
inclusive of direct labor, services, and supplies
expenses, and associated overhead expenses
"Cost Recovery"
The amount of a program's full cost of service
that is supported by the program's own fee
revenues
"Subsidy"
The
amount of a
program's full
cost of service
that
is supported
by other City
revenue
sources
COST OF SERVICE
The cost of service sets the
maximum limit of a cost -based
fee. It includes:
Direct program costs for
labor, services, and supplies
Departmental administration
Citywide administration and
central support services
11 Hourly
Rate for
Personnel
Providing
Services
i ime
Required
to
Perform
the
Cost of
Service
CLEARSOURCE PRESENTATION TO THE CITY OF PLACENTIA
ATTACHMENT 4
COST RECOVERY POLICY FRAMEWORK
Cost recovery
policy reflects
local values
regarding the
presumed
beneficiaries for
each program
area, ranging from
community
benefit to
individual
benefit
100%
t
to
a
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0 U
Q!
w
0 U
0%
12 CLE4Rti00RCE PRESENT4TiON TO THE CI1V OF P14CENTIA
ATTACHMENT 4
Maximum Level of
Cost Recovery =
100%
City Subsidy
Current Level of
^ct Recovery =
nimum Level of
Cost Recovery =
0%
Lqq
)ISI
A L C O N
Modify fee schedule to reflect transition to in-house
Fire Department services
Building Fees are Proposed to Remain Unchanged
,, Enhance cost recovery for Planning fees
Restructure some Engineering fees to encourage
recovery of in-house and contract service costs
Recommend on-going annual adjustment for fees to
reflect inflationary changes — with periodic full cost of service studies
bps
A L C O N
* Fee Changes Should Be Considered at The Conclusion
of a Public Hearing
If Adopted, Fee Changes Are Proposed to Be Effective
July 1, 2022
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