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Comprehensive User Fee Schedule
Definition
User fees are charges made to an individual for a service provided by a local government that primarily benefits that individual.Background
As part of a general cost recovery strategy, local governments adopt user fees to fund programs and services that provide limited or no direct benefit to the community as a whole. As cities struggle to maintain levels of service and variability of demand, they have become increasingly aware of subsidies provided by the General Fund and have implemented cost‐recovery targets. To the extent that governments use general tax monies to provide individuals with private benefits, and not require them to pay the full cost of the service (and, therefore, receive a subsidy), the government is limiting funds that may be available to provide other community‐wide benefits. In effect, the government is using community funds to pay for private benefit. Unlike most revenue sources, cities have more control over the level of user fees they charge to recover costs, or the subsidies they can institute.History
It is a recommended best practice that a comprehensive review of cost of services and fees be performed every three to five years. As part of a general cost recovery strategy, local governments adopt user fees to fund programs and services that provide limited or no direct benefit to the community as a whole. User fees recover costs associated with providing specific services benefitting the user, thereby reducing the use of General Fund monies for such purposes. In order to update user fees, a CAP is needed to ensure costs associated with City central service departments are appropriately allocated to respective City operating functions. The City contracted with Willdan to assist with preparing an updated CAP and User Fee Study.
The primary objective of this Fee Study was to determine the full costs incurred by the City for providing services. City staff in conjunction with Willdan Financial Services evaluated all costs of services and examined whether a reasonable relationship existed between the costs of providing services and current service fees, while ensuring compliance with Proposition 26, Proposition 218, and other applicable statutory requirements. The City undertook a comprehensive citywide review and evaluation of its user fee and rate charges resulting in a cost-based user fee study. The Study has calculated the full 100% cost of providing certain City services and provides a suggested fee to be charged as determined through discussion with City staff. Additionally, the study includes Building and Safety Fees that were not part of the previous user fee study.
Development Impact Fee Study
Comprehensive User Fees
Effective July 1, 2024
- Adopted April 16, 2024 (Council Agenda Report)
FY 24/25 Fees
- Comprehensive Fee Schedule 24/25
- Development Impact Fee (DIF) Schedule
- Affordable Housing In-Lieu Fee Schedule
Effective February 3, 2024
- Adopted December 05, 2023 (Council Agenda Report)
FY 23/24 Fees
- Comprehensive Fee Schedule 23/24
- Development Impact Fee (DIF) Schedule
- Affordable Housing In-Lieu Fee Schedule
- Adopted April 19, 2022 (Council Agenda Report)
FY 22/23 Fees
- Adopted April 20, 2021 (Council Agenda Report)
- Amended August 17, 2021 (Council Agenda Report)
FY 21/22 Fees
- Comprehensive Fee Schedule 21/22
- Development Impact Fee (DIF) Schedule (Amended October 05, 2021 to include Affordable Housing DIF)