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HomeMy WebLinkAboutFin Proposed Update to Master Fee Schedule PPTMaster Fee Schedule Update City Council Presentation –September 16, 2024 Background –Master Fee Schedule Update •Fee schedule updates are intended to ensure that the City operates sustainably and recovers costs for programs and services, including plan review, building and fire inspections, and use of the public right-of-way. •State law, including Propositions 26 and 218, provide explicit guidance and restrictions on allowable rates, which are capped at 100% cost-recovery for most fees. •Some fees included in the Fee Schedule are set below the level required for full cost-recovery, typically in cases when the program or services is deemed a public benefit. Background -Master Fee Schedule •City Council approved comprehensive Master Fee Schedule update December 2022, establishing: •Updated Fees •Target Cost-Recovery Levels for most fees •Provision for AUTOMATIC annual adjustments, based on CPI Index •Implementation schedule for new rates and initial rate increases •The Council-authorized fee adjustment, effective 7/1/24, based on Feb-to- Feb All Urban Consumer Index (CPI-U) for San Francisco/ Oakland / Hayward = 2.37% Current Master Fee Schedule https://www.cityofsanrafael.org/master-fee-schedule/ FY 2024-25 Master Fee Schedule Update Revisions to the City of San Rafael’s Master Fee Schedule fall within two specific categories summarized in the section below: 1) Master Fee Schedule revisions that do not require City Council action: •Fees where no change is proposed •Fees being increased consistent with the pre-approved CPI-based adjustment (2.37%, rounded to the nearest dollar) •Fees being eliminated (where City no longer provides a specific service) 2) Master Fee Schedule revisions requiring formal City Council action: •Proposed fee increases that exceed the authorized CPI-based adjustment •New fees recommended to be added to the Master Fee Schedule Note – City Council has previously taken action (July 15, 2024) approving fee increase related to the City’s Childcare Program, effective for the 2024-25 school year. FY 2024/25 Master Fee Schedule Update •Categories where no fee adjustments are proposed: •Library Services •Administrative Citations •Sewer and Drainage •Categories where only CPI-Based Fee Increases are Proposed •Mechanical Permits •Electrical Permits •Plumbing Permits Police Services Fees See Attachment 3 – page 3 Police Services Fees See Attachment 3 – page 4 Fire Services Fees See Attachment 3 – page 8 Planning Services Fees See Attachment 3 – page 9 Public Works Fees See Attachment 3 – page 20 Note – staff is currently assessing how fees will be applied/discounted for City-sponsored events. Recreation Fees See Attachment 4 •Master Fee Schedule updates related to recreation fees are proposed to be increased: 1)based on a review of program costs in relation to cost-recovery targets, 2)Based on analysis of comparable rates charged within the market. •In general, staff are recommending a 5% increase based on an analysis of comparable market fees and current cost recovery levels. •However, for the Falkirk Cultural Center and aquatics fees, staff are recommending a higher increase. In those areas, current fees are much farther behind the market when we compare our rates to neighboring jurisdictions. •Additionally, staff’s cost recovery analysis for these fees showed that a CPI level adjustment would be insufficient to achieve cost recovery. •The proposed fall/winter aquatics fee increase is based on cost recovery assessment of program model during past “pilot” program offerings. Recreation Fees •A comparison of recommended recreation program fee adjustments is included as Attachment 4 to this report. In general, the proposed fee adjustments are summarized as follows: •Deposit-based Fees No Change •Facility Rentals 5% increase •Park & Field Fees 5% increase •Falkirk Cultural Center Fees 15% increase •Regular Season Aquatics Fees 15% increase •Fall/Winter Aquatics Fees 22% increase (Effective October 1, 2024) •Consistent with past direction from the City Council, selected fees for programs and facilities provided for at Pickleweed Park and Boro Community Center are set at 50% of the rates of other facilities. Implementation Schedule •The effective date for the fee adjustments reflected in this Master Fee Schedule update would be as follows: •Rate increases in excess of automatic CPI adjustment - January 1, 2025, •Winter/Fall Aquatics Program fee increases – October 1, 2024, for implementation with the 2024 Fall/Winter swim season and to avoid mid-season fee changes Fiscal Impact •The proposed changes to the Master Fee Schedule will result in increased revenue to the City, estimated at $750,000 which was included in the revenue estimates used to develop the FY 2024-25 budget. •The proposed fee increased for the City’s Emergency Medical Services, which includes increasing the overall cost-recovery level for this program, would result in an estimated $400,000 in additional revenues, on an annualized basis. FY 2024/25 Master Fee Schedule Update Staff Recommendation: •Adopt Resolution Authorizing an Update to the City’s Master Fee Schedule (as reflected in Exhibit A).