CITY OF POMONA
COUNCIL REPORT
May 13, 2024
To: Honorable Mayor and Members of the City Council
From: Anita Gutierrez, City Manager
Submitted By: Andrew Mowbray, Finance Director / City Treasurer SUBJECT: APPROVAL OF PROPOSED FY 2024-25 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. 2024-64– A Resolution OF THE CITY COUNCIL OF THE CITY OF POMONA, california, ADOPTING PROPOSED FY 2024-25 ANNUAL UPDATES TO THE CURRENT master fee schedule FOR SERVICES PROVIDED BY THE CITY EXECUTIVE SUMMARY:
Throughout the Fiscal Year (FY) 2024-25 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. Unless otherwise noted, 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-Long Beach- Anaheim Consolidated Metropolitan Statistical Area (CMSA) as published by the United States Bureau of Labor Statistics, the CPI adjustment is 3.5%.
FISCAL IMPACT:
Implementing the proposed FY 2024-25 annual updates, as outlined in Exhibit A (Attachment No. 2), to the current FY 2023-24 Master Fee Schedule (Attachment No. 3), will result in an estimated $250k increase in citywide fee revenues. The proposed updates have already been considered by departments when creating the FY 2024-25 Preliminary Budget. Several Departments had no adjustments while others had various increases. The proposed FY 2024-25 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 26, 2024 and May 3, 2024 (Attachment No. 4). Three agencies were also notified individually per written request to the City Clerk’s office. The FY 2024-25 proposed updates to the current Master Fee Schedule were made available for the public to view on May 3, 2024.
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 annual updates to the Master Fee Schedule. On May 8, 2023, the City Council adopted Resolution 2023-70, approving the FY 2023-24 annual updates to the Master Fee Schedule.
DISCUSSION:
Throughout the FY 2024-25 Preliminary Budget Process, departments have been conducting an inflationary review exercise of the current FY 2023-24 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-Long Beach - Anaheim Consolidated Metropolitan Statistical Area (CMSA) as published by the United States Bureau of Labor Statistics, the CPI adjustment is 3.5%. 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 two of the listed fees. Fourteen fees are not being increased. One fee is being added for reference purposes, as it is a set fee by the Government Code.
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 all but five fees will be increased.
The Library Department has reviewed the listing of fees and it has determined that two fees need to be increased to meet the cost of service and three fees need to be deleted as they are no longer used.
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 current Vehicle Parking District fees are not being adjusted at this time. The Department is asking for three new fees (deposits) to help recover actual costs after private special events that are held on City maintained lots.
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 fee names listed in the Master Fee Schedule are being adjusted to coincide with the fee names that are programmed in the permitting system.
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.
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 Building and Safety Division found some fees that were no longer used (deleted), fees that belonged to Public Works (moved to the Public Works fee schedule), and are adding new fees (roofing, swimming pools and spas, plan checks, etc.). The fee names and some of the notes listed in the Master Fee Schedule are also being adjusted to coincide with the fee information that is programmed in the permitting system.
The Neighborhood Services Department – Community Services Division has reviewed the listing of fees and it has been determined that the proposed increases fall within the cost for services provided. There are four fees being deleted. The Community Services Division is also adding three 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 2025 to incorporate in the FY 2025-26 Preliminary Operating Budget. The fee increases in the action herein will go into effect 60 days after adoption pursuant to Government Code Section 66017.
Prepared by:
Shar Perez
Revenue Operations Manager
ATTACHMENT(S):
Attachment No. 1 – Resolution No. 2024-64
Attachment No. 2 – Exhibit A - Proposed FY 2024-25 Master Fee Schedule updates Attachment No. 3 – FY 2023-24 Master Fee Schedule
Attachment No. 4 – Public Hearing Notice
ANNUAL UPDATE TO THE MASTER FEE SCHEDULE