CITY OF POMONA
COUNCIL REPORT
May 9, 2022
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Andrew Mowbray, Finance Director / City Treasurer SUBJECT: ANNUAL UPDATE TO THE FISCAL YEAR 2022-23 MASTER FEE SCHEDULE RECOMMENDATION:
It is recommended that the City Council adopt the following resolution (Attachment No. 1):
RESOLUTION NO. 2022-75– A Resolution OF THE CITY COUNCIL OF THE CITY OF POMONA, california, ADOPTING AN ANNUAL UPDATE TO THE FY 2022-23 master fee schedule FOR SERVICES PROVIDED BY THE CITY EXECUTIVE SUMMARY:
Throughout the Fiscal Year (FY) 2022-23 Preliminary Budget Process, Departments have been conducting an inflationary review exercise of the Master Fee Schedule and have identified fees that require an increase, were inadvertently excluded from the Master Fee Schedule, or are duplicated or require deletion. The increase is based on a percentage amount equal to the change in the Consumer Price Index (CPI) or to meet the cost for services if the cost is higher than the CPI calculation. In accordance with the CPI during the 12-month period (prior calendar year) for the Los Angeles-Riverside-Orange County Consolidated Metropolitan Statistical Area (CMSA) as published by the United States Bureau of Labor Statistics, the CPI adjustment is 6.6%.
FISCAL IMPACT:
Implementing the proposed increases to the Master Fee Schedule, outlined in Exhibit A (attached), as proposed will result in an estimated $398,000 increase in citywide fee revenues. The proposed increases have already been considered by Departments when creating the FY 2022-23 Proposed budget. Several Departments had no adjustments while others had various increases. The Master Fee Schedule outlines all adjustments, additions, and deletions to the fees that will go into effect 60 days after adoption. Future increases in revenue estimates should be assumed when the Citywide Master Fee Schedule is brought forward annually as part of the budget process.
PUBLIC NOTICING REQUIREMENTS:
Public Notices informing the public of this Public Hearing were posted in the Daily Bulletin on April 22, 2022 and April 29, 2022 (Attachment No. 2). Public Notices were also mailed to three agencies that have requested public notices to be mailed to them when any fees are adjusted on April 21, 2022. The FY 2022-23 Master Fee Schedule Proposed Updates report (Attachment No. 3) was made available for the public to view on April 25, 2022.
PREVIOUS RELATED ACTION:
As part of the FY 2021-22 budget preparation process, all Departments citywide conducted a fee analysis resulting in the establishment of the Citywide Master Fee Schedule. On March 15, 2021, the Pomona City Council introduced for first reading Ordinance No. 4301, which amends Chapter 2 of the City Code establishing a Master Fee Schedule. On April 5, 2021, the Pomona City Council conducted a second reading and adoption of Ordinance No. 4301.
DISCUSSION:
Throughout the FY 2022-23 Preliminary Budget Process, Departments have been conducting an inflationary review exercise of the FY 2021-22 approved Master Fee Schedule and have identified fees that require an increase, were not added to the Master Fee Schedule in error, or are duplicated or require deletion. The increase is based on a percentage amount equal to the change in the Consumer Price Index (CPI). In accordance with the CPI during the 12-month period (prior calendar year) for the Los Angeles-Riverside-Orange County Consolidated Metropolitan Statistical Area (CMSA) as published by the United States Bureau of Labor Statistics, the CPI adjustment is 6.6%. The calculated fee was rounded down to the nearest nickel.
The City Clerk Department has determined that the fees for their Department are mandated by another agency and are not able to be increased. The passport fees were removed from the City Clerks listing of fees and added to the Library’s listing of fees as the Library going forward will handle this service.
The Revenue Division of the Finance Department has reviewed the listing of fees and it has been determined that the proposed CPI increase falls within the cost for services provided. Four fees have been added to the Departments listing that were omitted originally in error. Staff confirmed that the four fees being added are part of the City Code and the corresponding code sections have been notated on the Master Fee Schedule.
The Library Department has reviewed the listing of fees and it has been determined that one fee will be increased this fiscal year. The passport fees have been added to the Library’s listing of fees in preparation for the activation of these services at the library.
The Police Department has reviewed the listing of fees and it has been determined that the proposed CPI increase falls within the cost for services provided.
The Animal / License and Control Fees charged through the Humane Society are not being adjusted at this time.
The Vehicle Parking District fees are not being adjusted at this time.
The Public Works Department has reviewed the listing of fees and it has been determined that the proposed CPI increase falls within the cost for services provided. Some fees are not being increased as those fees are set by outside agencies. Eight fees are being removed, as the fees are confirmed duplicates to other fees on the list.
The Water Department has reviewed the listing of fees and it has been determined that the proposed CPI increase falls within the cost for services provided. One fee, Fire Flow Test Fee, is being added to the listing as it was originally omitted in error. Staff has confirmed that this fee is notated in the City Code and the corresponding code section has been notated on the Master Fee Schedule. During the above-mentioned confirmation, staff reviewed the fee and noted that City Code Section 62-300 states that the Department should defray all costs of performing such tests, including but not limited to costs of water, labor, and such specialized equipment deemed necessary for such tests. The Department is seeking an increase to this fee that exceeds the proposed CPI increase based on a cost analysis conducted by the Senior Management Analyst, Principal Water Resources Engineer, and Associate Civil Engineer. The amount requested to cover all costs associated with this fee is $285.95.
The Development Services Department has reviewed the listing of fees for the Planning, Code Enforcement and Building and Safety Divisions and it has been determined that the proposed CPI increase falls within the cost for services provided.
The Neighborhood Services Department – Community Services Division has reviewed the listing of fees and it has been determined that the proposed CPI increase falls within the cost for services provided. Some fees are not being increased as those fees are either set by outside agencies or it has been determined the fee does not require increases. Ten fees are being deactivated but the fees will remain on the list for possible future program needs. The fee notation for the Security Guard fees (2) are being changed to reference the citywide agreement for current contract costs so that the amount on the Master Fee Schedule will not have to be updated with each contracted increase to the hourly rates. There is one new fee request by this department to recover costs associated with reviewing street/sidewalk/facility closure plans and Risk related documents associated with filming permits. Due to the varying details and documents submitted for each application the Film Permit Application Processing fee will be set at 20% of the issued permit cost.
Utility Service Rates for Water, Sewer, and Solid Waste have been removed from department specific listings and combined into one utility listing to allow a clean update in January for the annual utility rate adjustments. A footnote has been inserted on the department specific pages directing those looking for utility rates to see the Utility Service Rates page.
The next annual Public Hearing to increase or change any of the user fees would come before the City Council in May 2023 to incorporate in the FY 2023-24 Preliminary Operating Budget. The fee increases in the action herein will go into effect 60 days after adoption.
COUNCIL PRIORITIES & GOALS:
This item supports the 2021-2022 City Council Priority 1: Fiscal and Operational Responsibility – Goal C: Obtain additional grant funding and other revenues to help achieve City goals.
Prepared by:
Shar Perez
Revenue Operations Manager
ATTACHMENT(S):
Attachment No. 1 – Resolution No. 2022-75
Exhibit A - FY 2022-23 Master Fee Schedule
Attachment No. 2 – Public Hearing Notice
Attachment No. 3 – FY 2022-23 Master Fee Schedule Proposed Updates
ANNUAL UPDATE TO THE MASTER FEE SCHEDULE