CITY OF POMONA
COUNCIL REPORT
May 8, 2023
To: Honorable Mayor and Members of the City Council
From: James Makshanoff, City Manager
Submitted By: Andrew Mowbray, Finance Director / City Treasurer SUBJECT: APPROVAL OF PROPOSED FY 2023-24 ANNUAL UPDATES TO THE CURRENT MASTER FEE SCHEDULE RECOMMENDATION:
It is recommended that the City Council adopt the following resolution (Attachment No. 1):
RESOLUTION NO. 2023-70– A Resolution OF THE CITY COUNCIL OF THE CITY OF POMONA, california, ADOPTING PROPOSED FY 2023-24 ANNUAL UPDATES TO THE CURRENT master fee schedule FOR SERVICES PROVIDED BY THE CITY EXECUTIVE SUMMARY:
Throughout the Fiscal Year (FY) 2023-24 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. There are also some new fees that require approval for implementation. Those fees are outlined in the department summaries below. The existing fee increases are 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 4.9%.
FISCAL IMPACT:
Implementing the proposed FY 2023-24 annual updates, as outlined in Exhibit A (Attachment No. 2), to the current FY 2022-23 Master Fee Schedule (Attachment No. 3), will result in an estimated $300k increase in citywide fee revenues. The proposed updates have already been considered by departments when creating the FY 2023-24 Preliminary Budget. Several Departments had no adjustments while others had various increases. The proposed FY 2023-24 annual updates outline 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 21, 2023 and April 28, 2023 (Attachment No. 4). Three agencies were also notified individually per written request to the City Clerk’s office. The FY 2023-24 proposed updates to the current Master Fee Schedule were made available for the public to view on April 24, 2023.
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. On May 9, 2022, The City Council adopted Resolution No. 2022-75, approving the FY 2022-23 CPI increase to the Master Fee Schedule.
DISCUSSION:
Throughout the FY 2023-24 Preliminary Budget Process, departments have been conducting an inflationary review exercise of the current FY 2022-23 Master Fee Schedule and have identified fees that either required an increase; were not added to the original Master Fee Schedule; or are duplicated or require deletion. There are also some new fees that require approval for implementation. The increase is based on a percentage amount equal to the change in the 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 4.9%. The calculated fee was rounded down to the nearest nickel.
The City Clerk Department has reviewed the listing of fees and it has been determined that the proposed CPI increase falls within the cost for services provided for most of their listed fees. Eleven fees are not being increased.
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. A cost of study exercise was conducted and one fee related to short term rental permit processing is being added.
The Library Department fees are not being adjusted at this time.
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. The Public Works Department has conducted a cost of study exercise on eight fees and those new fee amounts are included in the proposed Master Fee Schedule updates. The proposed amounts cover all costs associated with each fee.
The Water Resources Department has reviewed the listing of fees and it has been determined that the proposed CPI increase falls within the cost for services provided. Three fees are being added and duplicated on the Water Resources Department list of fees for reference, as they are shared fees between Public Works and Water Resources.
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. Three cannabis related fees that were inadvertently left off the fee listing previously have been included to the Planning Section. A cost of study exercise was conducted and one inspection fee and one violation late fee related to short term rental permit processing is being added to the Code Enforcement Section. Pursuant to Government Code Section 36900(d)(1), three Short Term Rental Ordinance Violation Fees are being added to the Code Enforcement Section.
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. There are nine fees being deleted and six revised fees. The revision to the six fees included some notation changes and one cost change to ensure the fee for meals was comparable to our neighboring cities. The Community Services Division is also adding seven new fees to ensure full cost recovery is achieved in all services being offered.
The next annual Public Hearing to increase or change any of the user fees would come before the City Council in May 2024 to incorporate in the FY 2024-25 Preliminary Operating Budget. The fee increases in the action herein will go into effect 60 days after adoption pursuant to Government Code Section 66017.
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. 2023-70
Attachment No. 2 – Exhibit A - Proposed FY 2023-24 Master Fee Schedule updates Attachment No. 3 – FY 2022-23 Master Fee Schedule
Attachment No. 4 – Public Hearing Notice
ANNUAL UPDATE TO THE MASTER FEE SCHEDULE