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1 RiversideCA.gov1
RiversideCA.govFY 2024/25 Proposed Fees and Charges
City CouncilJune 11, 2024Finance Department
RiversideCA.gov2
Background•2015: Last citywide fees and charges study•2021: Fees and charges study initiated •2022: Study placed on hold pending new City Manager•2023:7.5% CPI increase adopted pending completion of the study•2023-2024: Study refreshed with updated data.Rate IncreaseEffective Date0%7/1/20160%7/1/20170%7/1/20180%7/1/20190%7/1/20200%7/1/20210%7/1/20227.5%7/1/2023No Fee Increases from FY 2016 - 2023 1 2
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2 RiversideCA.gov3
What are User Fees?•Recover costs of programs that provide direct benefit to an individual or business requesting a specific service.•Reduce subsidies from general purpose revenues, primarily taxpayer dollars•May not exceed the estimated “reasonable” cost of providing service activity RiversideCA.gov4
Fee StudyPurpose & Methodology•Performed every 3 - 5 years •Determine the “reasonable” full cost of providing services–Up to 100% of the full cost may be recovered•Comparison Studies•Community Engagement•Facilitates informed decision making based on the City’s goals and values Central Service Overhead- Human Resources- FinanceDepartment Overhead- Operational Costs- Administrative functions- FinanceDirect Costs- Direct Labor- 3rdParty Costs- Material CostsTypical Fee Composition3 4 5/30/2024
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Scope of StudyAnalyzed the cost of fee-related services provided bythe following department/divisions:* The cost analysis for Development Service department fees for Community Development Building& Safety, and Planning, as well as Public Works Engineering will be presented at a later date.FinanceCEDD - Code EnforcementFireCEDD - Arts & Cultural AffairsLibraryPW – Public ParkingRPU ElectricPW – Animal ServicesRPU WaterPolicePark, Recreation, & Community ServicesCity Clerk RiversideCA.gov6
Recommended Fee Recovery Policy100 % Cost RecoveryPartial Cost Recovery•Code Enforcement•Public Parking•Police•Fire•Recreation Facilities•City Clerk•Credit Card Processing•Finance Miscellaneous•RPU Electric•RPU Water•Arts & Cultural Affairs – 7%•Animal Services – 49%•Recreation Programs – 33%•Finance Non-sufficient funds & Tax-Free Certificate Processing – 60%•Library – 15%5 6 5/30/2024
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Study Findings by Department/Division(A) Full CostUser Fee DepartmentUser FeeServicesCommunity DevelopmentCode Enforcement1,447,978$ 181,011$ 13% 1,266,967$ 87% 1,447,978$ 100% 1,266,967$ Arts & Cultural Affairs467,497$ 19,104$ 4% 448,393$ 96% 33,525$ 7% 14,421$ Public WorksPublic Parking29,297$ 18,584$ 63% 10,713$ 37% 29,297$ 100% 10,713$ Animal Services2,048,540$ 775,823$ 38% 1,272,717$ 62% 1,013,760$ 49% 237,937$ Police1,081,158$ 478,866$ 44% 602,292$ 56% 913,344$ 84% 434,478$ Parks, Recreation, & Comm Svcs7,268,654$ 2,898,945$ 40% 4,369,709$ 60% 3,367,500$ 46% 468,555$ City Clerk35,355$ 48,000$ 136% (12,645)$ -36% 35,355$ 100% (12,645)$ Finance42,112$ 19,557$ 46% 22,555$ 54% 26,702$ 63% 7,145$ Fire2,305,836$ 1,751,248$ 76% 554,588$ 24% 2,305,836$ 100% 554,588$ Library41,345$ 5,792$ 14% 35,553$ 86% 6,184$ 15% 392$ RPU Electric7,343,651$ 3,883,940$ 53% 3,459,711$ 47% 7,343,651$ 100% 3,459,711$ RPU Water2,462,656$ 906,791$ 37% 1,555,866$ 63% 2,462,656$ 100% 1,555,866$ Totals: 24,574,079$ 10,987,660$ 45% 13,586,418$ 55% 18,985,788$ 77% 7,998,127$ (B) Current Revenue(C) Current SubsidyCurrent Recommended(D) Cost Recovery Policy(E) Increased Revenue RiversideCA.gov8
Study Findings by Fund(A) Full CostUser Fee FundUser FeeServices101 - General Fund12,689,935$ 5,402,523$ 43% 7,287,412$ 57% 8,136,424$ 64% 2,733,901$ 510 - Electric Fund7,343,651$ 3,883,940$ 53% 3,459,711$ 47% 7,343,651$ 100% 3,459,711$ 520 - Water2,462,656$ 906,791$ 37% 1,555,866$ 63% 2,462,656$ 100% 1,555,866$ 570 - Public Parking2,077,837$ 794,407$ 38% 1,283,430$ 62% 1,043,057$ 50% 248,650$ Totals: 24,574,079$ 10,987,660$ 45% 13,586,418$ 55% 18,985,788$ 77% 7,998,127$ Current Recommended(D) Cost Recovery Policy(E) Increased Revenue(B) Current Revenue(C) Current Subsidy7 8 5/30/2024
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Changes in User FeesUser Fee DepartmentCommunity DevelopmentCode Enforcement18 2 4 0 0Arts & Cultural Affairs7 0 5 3 0Public WorksPublic Parking4 0 0 0 0Animal Services14 2 3 1 0Police30 14 57 0 2Parks, Recreation, & Comm Svcs75 0 3 12 0City Clerk4 1 4 0 0Finance3 7 7 0 0Fire71 27 57 21 9Library3 0 48 0 0RPU Electric28 5 0 7 3RPU Water47 7 19 5 7Totals: 304 65 207 49 21* Excludes depositsNo. of Fees DecreasedNo. of Fees with No ChangeNo. of Fees AddedNo. of Fees RemovedNo. of Fees Increased RiversideCA.gov10
•CEDD Arts & Cultural Affairs–Film Permit–Cancellation Penalties•PW Animal Services –Kennel/Cattery License•PRCS – Recreational classes•Fire – Plan Check & Inspection Fees•Credit Card FeeNew Fees•RPU Electric–Plan Check fees–New Construction/ Improvements–Customer Utility Services•RPU Water–Plan Check Fees–New Construction–Water Permits/Tests9 10 5/30/2024
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•Massage Therapist – handled by State•Fire Inspection fees – remove redundancies•Electric fees – Services no longer provided•Water fees – Services no longer providedDeleted Fees RiversideCA.gov12
CEDD - Building & SafetyNext Steps – Developer FeesCEDD - Planning PW – Engineering Fee Adoption
Fee adjustment proposal to Council in late summer
Community engagement
Define opportunities for enhanced customer service11
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STRATEGIC PLAN ALIGNMENT
HIGH PERFORMING GOVERNMENTCROSS-CUTTING THREADS
Equity
Innovation
Community Trust
Fiscal Responsibility
Sustainability and Resiliency
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That the City Council:1. Receive and provide input on Fees and Charges Studyfindings report from MGT of America Consulting, LLC; and2. Receive and provide input on the proposed Fiscal Year2024/25 Citywide User Fees and Charges adjustments.RECOMMENDATIONS13 14