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RiversideCA.govFY 2024/25Fees and Charges Update
City Council April 22, 2025Finance Department
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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: Fee study refreshed with updated data. Excluding most developer fees, the City Council adopted recommended fee increases. 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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What are User Fees?•Recover costsof programs that provide directbenefit to an individual or businessrequesting aspecific service.•Reduce subsidiesfrom general purpose revenues,primarily taxpayer dollars•May not exceed theestimated “reasonable” costof providing service activity RiversideCA.gov4
What is a Fee Study?Purpose & 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 4/9/2025
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Fee AdjustmentsKey Factors Behind Fee Adjustments Identified in the Study•Cost IncreasesoRising operating and personnel costs since the 2015 fee study, driven byinflation.oIncluding direct costs for materials and equipment previously excluded.•Fee Recovery PolicyoShift toward higher cost recovery to reduce reliance on general revenuesubsidies.•Staffing ChangesoAdjustments in staffing levels, time estimates, or positions required to deliverservices.•Service Delivery ChangesoStreamlined methods reducing staff time for some services, resulting inlower fees.
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Fee Study•Developer Fees included in FY 2024/25 Master Fees and Charges Schedule adopted byCity Council on June 27, 2024:oFire Department FeesoRiverside Public Utilities Fees•Developer fees deferred for further review and Community Engagement and to developa plan to enhance service delivery:oPublic Works – Engineering FeesoCEDD – Building and Safety FeesoCEDD – Planning Fees•Other Fees Reviewed Include:oPublic Works – Refuse FeesoParks and Recreation – Administration/Plan Check Fees 5 6
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•Limiting fee increases to recover no more than 80%, with the following exceptions:•Fees already recovering above 80% cost recovery (maintained at the current rate), •Fees currently recovering above 100% (reduced to 100% recovery) •Fee adjustments that would result in a lower equivalent fee to applicants if reduced to 80%.Fee Adjustment Methodology RiversideCA.gov8
Study Finding by Department/Division/Fund(A) Full CostUser Fee DepartmentUser FeeServicesCommunity DevelopmentBuilding and Safety4,659,728$ 3,713,600$ 80% 946,128$ 20% 4,192,290$ 90% 478,690$ Planning1,929,291$ 1,202,682$ 62% 726,609$ 38% 1,492,953$ 77% 290,271$ Public WorksEngineering and Maintenance4,479,117$ 2,860,909$ 64% 1,618,208$ 36% 3,701,894$ 83% 840,985$ Parks, Recreation, & Comm SvcsPlan Check Fees31,298$ -$ 0% 31,298$ 100% 25,038$ 80% 25,038$ Totals: 11,099,434$ 7,777,191$ 70% 3,322,243$ 30% 9,412,175$ 85% 1,634,984$ (C) Current Subsidy(B) Current RevenueCurrentRecommended (D) Cost Recovery Policy(E) Increased Revenue7 8 4/9/2025
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Changes in User FeesUser Fee DepartmentCommunity DevelopmentBuilding and Safety79 6 29 53 2Planning54 5 11 6 7Public WorksEngineering and Maintenance217 5 39 20 1Refuse0 0 0 31 0Parks, Recreation, & Comm SvcsPlan Check0 0 0 13 0Totals: 350 16 79 123 10No. of Fees IncreasedNo. of Fees DecreasedNo. of Fees with No ChangeNo. of Fees AddedNo. of Fees Removed RiversideCA.gov10
•The City has not conducted a comprehensive update to the bail schedule for parking violations since 2010. •Staff recommend increasing all violations in the parking bail schedule by $5. •For the most common citation type (accounts for 55% of citations issued in 2023/24), this increase will adjust the violation from $41 per citation to $46 per citation.•Recommended increases would place Riverside at a reasonable level when compared to other local agencies.Parking Bail Schedule9 10 4/9/2025
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•Police Department–Staff recommend removal of towing fees for low value vehicles, which are currently set at $69.75.–Staff recommend lowering of regulatory license fee for renewals of License to Sell Weapons from $561 to $280. •Transportation Uniform Mitigation Fee Program–Update master fees and charges schedule to adjust fees as modified by the Western Riverside County Regional Conservation Authority.Other Proposed Fee Adjustments RiversideCA.gov12
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. Conduct a public hearing on the City of Riverside’s Proposed Fiscal Year 2024/25Master Fees and Charges Schedule; and2. Introduce and subsequently adopt an ordinance amending the Riverside MunicipalCode (RMC) Chapter 3.30 Section 3.30.030 – Schedule of Regulation, Products andServices, subsection IV – Community and Economic Development, to delete onecategory titled Day Care Permit Review, and subsection XIV – Utilities and Enterprises –Refuse to add two additional categories titled Supplemental Residential WasteServices and Supplemental Commercial Waste Services, and add subsection XX -Administration and Community Development Support – Parks and Recreation, to addthree categories titled Planning Case Review, Public Works Permit Plan Check andInspection, and Building Permit Plan Check and Inspection.RECOMMENDATIONS13