CITY OF
PLACENTIA
Master Fee Schedule
Update
•
• The City maintains a Master Fee Schedule identifying applicable fees for various City Services.
• Fees differ from taxes in that cities collect fees and charges for government services performed at the request of, or specifically for, aparticular individual, business or group...as opposed to services for the communityas a whole. pp
performed
Taxes
Paid by everyone for
government services that
benefit the entire community
such as public safety.
Fees
Paid by individual, business or
group for government services
that directly benefits
thems: Ives such as permits for
prix ate swimming pools,
facility rentals and business
licens �s.
Why Should Fees be Reviewed Frequently?
• Recovering the costs of providing fee -related services directly influences the City's fiscal health and increases the City's ability to meet the service level expectations of the fee payers. • A fee for service ensures that the individual bears most, if not all, of the cost incurred by the City to provide that service. • Frequent reviews of fees and charges for sery ce ensures rates are adjusted for inflation and reduces th 2 like ihood for significant increases in any one given year.
• The Master Fee Schedule outlines permit fees and charges for services citywide but does not include general taxes such as property or sales tax, or Development Impact Fees (DIFs).
• These fees are on a different schedule and presented to City Council separately. • User Fees must be linked to and not exceed the estimated reasonable cost of providing the service.
• The full cost of service sets the maximum limit of a cost -based fee. • Cost of service includes direct program costs for I3bor, services, and supplies • Facilities overhead
• Departmental Administration
• Citywide administration and central support services
• The City engaged Clear Source Financial Consulting in 2022 to conduct a Comprehensive User Fee Study which was presented to and adopted by City Council on April 5, 2022.
• Clear Source recommended an annual review of all fees and adjustment for inflationary factors in subsequent fiscal years, with comprehensive fee studies recommended every 3-5 years.
• The most recent CPI data for the Los Angeles -Long Beach -Anaheim, CA region was 3.4%.
• However, the City provided cost -of -living (COLA) increases & greater than the CPI over past two fis:al years and staff is proposing increases above the CPI for FY2024/25.
• Greater cost recovery as services provided by staff z re direk tly related to hourly rate of employees.
• Services reflected in the City's fee schedule are provided by employees represented by PCEA, POA and PFA depending on the type of service.
• Cost of Living adjustments for the three groups are as follows:
FY23/24 COLA
FY24/25 COLA
PCEA 5%
POA 8%
PFA 6%
5%
6%
4%
■
• Fees were adjusted for FY23/24 by CPI of 5.1%. To account for larger than CPI cost of living adjustments, staff is recommending adjusting fees for FY24/25 by COLAs, less last year's CPI increase.
PCEA 5%
POA 8%
PFA 6% 4%
FY24/25
COLA
5%
6%
Compounded COLA
increase over 2 Yrs.
10.25%
14.48%
10.24%
CPI Included
in FY23/24
Fees
Difference
5.15%
9.38%
5.14%
1. Open the Public Hearing to consider amending the Placentia Comprehensive Fee Schedule for certain fees, rates, and charges for various City user services; and
2. Receive the Staff report, consider all public testimony, and discuss the proposed fees; and
3. Close the public hearing; and
4. Adopt Resolution No. R -2024 -XX, a Resolution of the City Council of the City of Placentia, California, establishing and adopting certain City fees, rates, and charges for various City services with an effective date of July 1, 2024, for Fiscal Year 2024-25.