City Council Agenda Report
Meeting Date: April 2, 2024
From: Jessica Alcaraz, Financial Services Administrator Department: Finance
Submitted by: Jessica Alcaraz, Financial Services Administrator Subject
General Fee Schedule for Fiscal Year 2024-25
Recommendation
Adopt Resolution No. 2024-04 authorizing and adopting the General Fee Schedule for Fiscal Year 2024-25.
Background
The City provides services for a fee to individuals or businesses at an estimated reasonable cost.
The fee calculation considers the cost for efficient and effective delivery of services by City resources. Fees that do not cover the full cost of service result in a subsidy which may impact funding and the City’s ability to address various community needs. Some examples of City services for which customers incur fees include building permits, development permits, and health and environmental control services.
As part of the annual budget process, the City’s General Fee Schedule is reviewed to ensure that the fees are set in accordance with applicable federal and state laws. City departments review fees for services and make recommendations to add, change, and/or delete existing fees.
In coordination with departments, Finance reviews the changes submitted, and prepares a draft fee schedule for presentation to the Business Industry Commission (BIC), City Council, and members of the community.
In accordance with Vernon Municipal Code Section 3.32.080, on June 28, 2023, staff issued a Request for Proposals (RFP) for a Cost Allocation Plan, Fully-Burdened Staff Hourly Rate and Master Fee Schedule. Based on an internal panel’s evaluation, Willdan Financial Services (Willdan) was recommended for selection due to their expertise, experience, and proposed fees as set forth in the RFP. Willdan’s objective is to perform a study that encompasses a review and evaluation of user fees for services provided by the City, to allocate overhead and indirect costs appropriately, and to calculate the cost of providing services. Once the Willdan study is complete, staff will have a well-documented and transparent cost-of-service analysis and will prepare an updated General Fee Schedule for City services that accounts for true costs.
Since the Willdan study has not yet been finalized, staff is not recommending any changes to the Fiscal Year (FY) 2024-25 General Fee Schedule to be proposed for adoption. When available, staff will present a General Fee Schedule to the BIC, City Council, and members of the public for consideration and possible adoption for FY 2025-26 that incorporates the calculations derived from the study.
On March 14, 2024, Staff presented the proposed General Fee Schedule for FY 2024-25 to the BIC. As noted above, no fee changes are proposed for FY 2024-25. Current updates to the Schedule consist of the addition of Fire Prevention Service Fees (pages 9-16 in Attachment 2).
Service costs pertaining to fire prevention (such as certain plan checks, permitting, and inspections) are established by the Los Angeles County Fire Department (LACoFire) and performed by LACoFire personnel. Fire Prevention Service Fees have been included in the City’s proposed FY 2024-25 General Fee Schedule to provide transparency, compiling a comprehensive Schedule that details all of the fees that may apply when conducting business in the City.
Pursuant to Government Code Section 66014, on March 14, 2024 and March 21, 2024, the public hearing notice was posted at City Hall, on the City’s website, and published in the Huntington Park Bulletin (Attachment 3).
Fiscal Impact
Anticipated revenues from fees collected, which include approximately $834,500 from Charges for Services and $8,099,400 from Licenses and Permits, will be included in the City’s projected budget for FY 2024-25.
Attachments
1. Resolution No. 2024-04
2. Proposed FY 2024-25 General Fee Schedule (Redline)
3. Notice of Public Hearing