TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:April 25, 2023
SUBJECT: Proposed 2023 Citywide User Fees
RECOMMENDATION:
1. Adopt resolution approving the 2023 Citywide User Fees, Fines, Penalties, Rates, and Assessments (User Fees) including Non-Compliance Fees.
2. Adopt resolution approving Traffic Development Impact Fees.
3. Adopt resolution approving Police Facilities Development Fee.
4. Find that this action is not a project as defined under the California Environmental Quality Act (CEQA).
FINANCIAL IMPACT:
Financial Impact to be Determined. The current financial impact of the proposed fee adjustments outlined in the Proposed 2023 User Fee Manual (provided under separate cover and available on the City’s website at www.toaks.org/userfees will be incorporated into the FYs 2023-25 Operating Budget.
BACKGROUND:
During the biennial budget process, staff reviews citywide user fees, traffic development impact fees, and the police facilities development fee to ensure fees are set appropriately to recover revenue related to the cost of City staff providing services.
The Proposed Citywide User Fees were presented to the Finance Audit Committee on March 9, 2023. On March 14, 2023, the City held a Study Session to discuss the Proposed Citywide User Fees and set the User Fees Public Hearing date for April 25, 2023.
The Study Session staff report is provided as Attachment #1. The report discussed City Council’s Full-Cost Recovery Policy, compliance with state law, City Council
Proposed 2023 Citywide User Fees
April 25, 2023
exceptions to full-cost recovery, user fees by department, traffic development impact fees, and police facilities development fee information.
DISCUSSION/ANALYSIS:
Public Hearing: The Proposed Citywide User Fees were publicly noticed twice (seven and 14 days prior to the date of the Public Hearing) and, if adopted, will take effect on July 1, 2023. These fees will be in effect until they are reviewed and adjusted by City Council during the next budget cycle, and would take effect on July 1, 2025, if adopted.
User Fee Manual: The Proposed Citywide User Fee Manual is comprised of the following six sections:
1. The first section contains the detail sheet for each fee.
2. The second section is a comparison of the 2023 User Fees provided to City Council at the Study Session on March 14, 2023, listed as “Proposed Fee” along with the Approved 2023 User Fees, listed as “Approved Fee.”
3. The third section is the list of City Council Exceptions. In prior reviews of the City's User Fees, City Council determined certain fees would be priced below "Full- Cost Recovery." These fees are primarily paid by existing homeowners.
4. The fourth section contains a list of selected Engineering, Planning, and Building Fees that will be charged when an applicant engages in work without City-required permits or approvals.
5. The fifth section contains the Proposed Traffic Development Impact Fees.
6. The sixth section contains the applicable User Fee Resolutions referenced within the User Fee Manual, including the Police Facilities Development Fee.
Revised Fees since Study Session: The following fees have been revised since the Proposed User Fees were presented at the March 14, 2023, Study Session:
CDD – Building Division Fee B-11:
Residential Resale Code Compliance (B-11) has been eliminated since City Council repealed Chapter 12 of Title 8 of the Municipal Code requiring residential sellers to provide the buyer with a report of residential building records for the property. As the City transitions to reliance on its new Land Management System, this information can be obtained online by the parties, which will eliminate the process of staff generating the report and passing on the cost.
Proposed 2023 Citywide User Fees
April 25, 2023
Cultural Affairs Fee CA-22:
Labor Technical Services (CA-22, pg. 155) has three sub-fees that were increased after staff review while obtaining comparable fees from other theatres. The user fee was increased as follows: Stage Supervisor, from $72 to $73; Head Carpenter, Head Electrician, and Head Audio, from $68 to $69; and COVID-19 Compliance Officer, from $72 to $73.
Law Enforcement Fee LE-05:
Administrative Fee for Towing of Certain Vehicles (LE-05, pg. 202) has been revised due to Ventura County’s increase in tow fees from $200 to $210. The City was notified of the increase in March 2023.
Public Works Fee PW-25:
Appeal of Administrative or Traffic and Transportation Commission Decision (PW- 25, pg. 240) has one sub-fee that was reduced per the Finance/Audit Committee recommendation on March 9, 2023, and City Council recommended motion approved 4-1 at the March 14, 2023, Study Session. The Appeal of Administrative Decision to the City Council was reduced from $400 to $250.
Adoption and Implementation: Presented to City Council are the following resolutions:
1. Resolution to adopt the User Fees as contained in the FY 2023 User Fee Manual, which includes Non-Compliance Fees (Attachment #2).
2. Resolution to adopt the adjustment to current rates for Traffic Development Impact Fees (Attachment #3).
3. Resolution to adopt the adjustment to current rates on the Police Facilities Development Fee (Attachment #4).
In summary, City Council’s policy is to adjust fees biennially with the goal of achieving “Full-Cost Recovery.” The cost of providing these services includes the cost of personnel, materials, and overhead. If a fee does not cover the cost of providing the service, it is subsidized by tax revenues, which reduces revenues available for other City provided services, such as public safety and street maintenance.
The City has a long-standing commitment to fiscal sustainability. A core tenet of long-term fiscal sustainability is ensuring fee revenue covers the cost of City- provided services to a private individual, business, or group. Those user fees that are below full-cost recovery will continue to be reviewed and adjusted through the biennial budget process, with staff’s goal to increase fees towards full cost recovery, where applicable.
Proposed 2023 Citywide User Fees
April 25, 2023
With City Council adoption of the recommended resolutions, the fees will be effective July 1, 2023.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Brent Sakaida, Budget Officer
Ryan Roman, Sr. Financial Analyst
Attachments:
Attachment #1 – March 14, 2023, User Fee Study Session Staff Report Attachment #2 – Resolution 2023 User Fees w/ Non-Compliance Fees Attachment #3 – Resolution 2023 Traffic Development Impact Fees Attachment #4 – Resolution 2023 Police Facilities Development Fee FIN:390-10\bs\H:\COMMON\Council\2023\Administration\042523 User Fees Staff Report.docx