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HomeMy WebLinkAboutFin Proposed Update to Master Fee Schedule for Fiscal Year 2025-26 PPTMaster Fee Schedule Update City Council Presentation –June 2, 2025 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 •Master Fee Schedule was last updated in September 2024, to provide for adjustments required to maintain and/or increase cost-recovery levels. •The City Council has previously authorized automatic annual fee adjustments, based on Feb-to-Feb All Urban Consumer Index (CPI-U) for San Francisco/ Oakland / Hayward •FY20025-26 CPI Adjustment Factor = 2.70% Current Master Fee Schedule -(Approved 9/16/24) https://www.cityofsanrafael.org/master-fee-schedule/ FY 2025-26 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 •Includes adjustments to fee structure for existing programs/services. FY 2025/26 Master Fee Schedule Update •Categories where no fee adjustments are proposed: •General Services Fees (selected) •Library Services •Public Works Fees (selected) •Sewer and Drainage •Categories where only CPI-Based (2.7%) Fee Increases are proposed: •General Services Fees (selected) •Public Works Fees (selected) Police Services Fees See Attachment 2 – page 2 Fire Services Fees See Attachment 2 – page 6 Building and Safety Service Fees See Attachment 2 – pages 9-10 Master Fee Schedule revisions within this category include: 1)Fees where no change is proposed, 2)Proposed increases are consistent with CPI-based adjustments, 3)Modifications to fee descriptions •Increases above 2.70% CPI increase, as follows: •Valuation-Based Fees 3% increase •Software Integration & Support Fee 3% increase •Massage Establishment (Sole Proprietor) 3% increase •Hourly Inspection Fees 3.5% increase •Residential Building Reports 7% increase •Massage Establishment (4+ Employees) Up To 237% increase Building and Safety Service Fees See Attachment 2 – pages 9-10 Massage Permits: Planning Services Fees See Attachment 2 – pages 7-8 Staff is recommending 5.00% across-the-board increases to most fee categories based on: •Review of program costs in relation to cost recovery targets and •Analysis of comparable rates charged within the market. Fee Update includes clarification of how fees are assessed for services involving cost-recovery of staff time (billed on an hourly basis) as well recovery of third-party consultant costs: •Fully-Burdened Hourly Rate (FBHR = Avg. Salary + Benefit Rate + Overhead Rate (10%) •Actual Consultant Costs + 10% Overhead Master Fee Schedule revisions within the category of Planning Services also include: 1)Selected fees where no change is proposed, 2)Modifications to fee descriptions Mechanical, Electrical and Plumbing Permit (MEP) Fees See Attachment 2 – pages 11-17 •In prior years, the Master Fee Schedule separated the Mechanical, Electrical, and Plumbing permit fee categories. •The proposed revisions include combining these categories into one exhibit and consolidating individual permit fees (e.g., cost per electrical outlet) with the established minimum permit fee. •Proposed Master Fee Schedule revisions within this revised category include modifications to fee descriptions and the elimination of fees where the specific service is no longer provided. Recreation Program Fees See Attachment 2 – page 20-22 •Recreation program fee increases are based on a review of 1) Program costs in relation to cost-recovery targets, and 2) Comparable rates charged within the market. •After reviewing market rates and desired cost recovery targets, staff recommend: •A 5% increase effective January 1, 2026. • •Consistent with past direction from the City Council, selected fees for programs and facilities provided for at Pickleweed Park and Boro Community Center remain set at 50% of the rates of other facilities. Childcare Program Fees See Attachment 2– page 22 Program Area Proposed Change Effective Date Childcare - Afterschool Programs 5% increase August 1, 2025 Childcare - Preschool Tuition and Summer Kids Camp 10% increase August 1, 2025 •Childcare Program Fees at Pickleweed Preschool to remain unchanged. •An additional change reflected in the Fee Schedule is the consolidation of Afterschool Program Fees to a standard fee schedule. •Historically, the City maintained slightly different fees due to significant differences in the daily, weekly, and annual number of program hours offered at each school district. Differences no longer exist due to changes to school site hours of operation. Childcare Program Fees See Attachment 2 – page 22 Administrative Citation Fees See Attachment 2 – page 23-25 Implementation Schedule •Effective date for the fee adjustments reflected in this Master Fee Schedule update are as follows: •General FY 2025-26 Rate Adjustments: July 1, 2025 •Childcare Program Fees: August 1, 2025 •Recreation Program Fees: January 1, 2026 Fiscal Impact •The proposed changes to the Master Fee Schedule will result in increased revenues which has been included in the revenue estimates used to develop the FY 2025-26 budget. •The proposed fee increase for the City’s Emergency Medical Services, which includes increasing the overall cost-recovery level for this program, would result in an estimated $450,000 in additional revenues, on an annualized basis. FY 2025-26 Master Fee Schedule Update Staff Recommendation: •Adopt Resolution Authorizing an Update to the City’s Master Fee Schedule (as reflected in Exhibit A).