User Fees Update
Background
• User Fees – Personal Choice Services
– Customer is identifiable and the service is measurable – Benefits an individual or group
– Examples: Planning, facility rentals
• Cost of Services (User Fee) Study 2020
• User Fee Cost Recovery Level Policy
User Fee Update
• Annual User Fee Update Report
– Prepared by Revenue Cost Specialists (RCS)
– Basis for the update was the Cost Study Service Study from 2020 – Proposed fees include updates to cost allocation plan (CAP), salary position and budget data
User Fee Update
• Fee Categories in Report
1. New Fees – Existing User Fee Does Not Exist for the Service Provided.
2. Increase to Phase-In and Full Cost Recovery Options – Based on Updated Budget and CAP.
3. Increase to Full Cost Recovery Immediately to Fully Recover Outside Costs, or Fee is Percent of Another Fee.
4. Increase to Full Cost Recovery Immediately.
5. Unchanged – Current Fee is already at Full Cost Recovery or Limited by State Laws.
6. Unchanged – Updated Solid Waste Fees were recently adopted User Fee Update
• Developer Stakeholder Meetings
– City Council Requested Staff Meet with Developer Community – First meeting November 2021 – before fee update
– Second Meeting February 2023 – after fee update
• Concerns about some of the new fees
• Staff revisited and modified Amend General Plan/Zoning, Zoning Change, and Specific Plan Amendment fees.
User Fee Update
• Results – Full Cost and Subsidy
User Fee Update
• Results – Fiscal Impact
User Fee Update - Recommendation
• Recommend the City Council authorize user fees at Full Cost Recovery as identified in the Report (and Attachment A) and Proposed User Fee Schedule (Attachment B), effective July 1, 2023.
• No fee changes are proposed for:
– Recreation and Parks program or facility rental fees
– Library fees (except room rentals)
– Building plan check and inspection (permit) fees
User Fee Update - Questions
Questions?
User Fee Update – Comparison to Other Cities
Santa Maria Santa
Barbara
San Luis
Obispo
Tentative Tract Map $15,280 $31,350 $30,646
Conditional Use Permit/Planned Development to
Planning Commission
$17,030 $21,820 $19,823
Genearl Plan Amendment/Zone Change $18,650
plus legal ad
noticing fee
$15,000
plus fully
allocated
$20,637