9/6/2019 City of Camarillo City Council Presentation for: User Fee Study Update September 5, 2019 Presentation Agenda 1 Project Background/Overview User Fee Principles and 2 Guidance 3 Key Issues Framing the Study Costing Methodology and 4 Approach 5 Policy Setting Considerations City of Camarillo – City Council User Fee Study Presentation 2 1
9/6/2019 Project Background Complete review of: Reviewed 2012 • City fees & structure official cost • Overhead & expenses recovery • Dept. workload policy (3.01) Update basic cost 2015 assumptions to FY 15/16 Complete review of: 2019 • City fees & structure • Overhead & expenses • Dept. workload City of Camarillo – City Council User Fee Study Presentation 3 Project Overview User Defines the full cost recovery potential of Fee individually-based Study services City of Camarillo – City Council User Fee Study Presentation 4 2
9/6/2019 Project Overview • Regulatory Fees Regulatory fees are charges imposed to recover costs associated with the City’s power to govern certain activities. • Proposition 26 Article XIIIC§1(e)(3) Inspections and Regulatory Permits are exempt…however are still limited to the local government’s reasonable costs. City of Camarillo – City Council User Fee Study Presentation 5 Project Overview Cost Recovery Opportunities YES Revenues Adopted Solely by City YES Council Taxes, Fines, Development Impact NO Fees, Utility Rates, etc. City of Camarillo – City Council User Fee Study Presentation 6 3
9/6/2019 Benefits of Realigning User Fees 1 Reduce General Fund subsidies More general tax revenue available for 2 general City services 3 Fund departments efficiently 4 Set realistic expectations for cost recovery City of Camarillo – City Council User Fee Study Presentation 7 Key Issues Framing the Fee Study 1 Defensible methodology 2 Compliant fees-for-service 3 Reasonable cost of providing services 4 Cost recovery policy and procedure City of Camarillo – City Council User Fee Study Presentation 8 4
9/6/2019 Budget and Fiscal Policy 3.01 User Fees and Utility Rates • Collect user fees for public services where applicable • Water and Sewer rates set to full cost recovery • Transit Enterprise rates set at partial recovery to encourage use Annual Review • Keep pace with the cost of providing services • Fees adjusted for Y-o-Y Labor Costs Development Services Fee Review Program • 100% cost recovery on majority of fees • Public Works • Community Development City of Camarillo – City Council User Fee Study Presentation 9 City Budget and Fiscal Policy The following is an excerpt from the City of Camarillo’s Budget and Fiscal Policy 3.01 regarding User Fees and Rates: Cost recovery for Community Development and Public Works services should generally be very high. In most instances, the City's cost recovery goal should be 100%. Exceptions to this standard include appeals, where the fee is set very low to provide adequate opportunity for due process. City of Camarillo – City Council User Fee Study Presentation 10 5
9/6/2019 Scope of Review Clerk/ Finance Planning Departments Included: Public Works/ Engineering Police City of Camarillo – City Council User Fee Study Presentation 11 Project Goals 1 2 Understand Set Full Cost of Municipal Providing Fees Services Accordingly City of Camarillo – City Council User Fee Study Presentation 12 6
9/6/2019 Project Approach 1. Fee Structure 3. Define Total 2. Data Collection Review Costs 6. Calculate “Per 5. FBHR (Cost per 4. Annual Cost Unit” Service Hour) Calculation Analysis Costs 7. Cost Recovery Outcomes and Fee Setting Policy City of Camarillo – City Council User Fee Study Presentation 13 Defining Total Costs Direct • Salaries and benefits • Services and supplies Indirect • Program, Division, Departmental and Agency-wide Support • Review required from internal departments for approval City of Camarillo – City Council User Fee Study Presentation 14 7
9/6/2019 Fully Burdened Hourly Rate Calculation Direct Case Work Hourly Rate Outcomes / Hours Planning $223 Indirect Services Public Works $187 = Clerk $132 Finance $137 $ per hour Police (varies) Support / Overhead City of Camarillo – City Council User Fee Study Presentation 15 Cost of Service Calculation Time to Complete Cost Calculation Fully-Burdened Hourly Rate City of Camarillo – City Council User Fee Study Presentation 16 8
9/6/2019 Cost Recovery/Fee Setting Maximum Cost Recovery 100% Funding from Increased Full Cost of Fee or Non-Fee Service ($) Revenue Sources Current Cost Recovery Level Revenue from Current Fee ($) Minimum Cost Recovery 0% City of Camarillo – City Council User Fee Study Presentation 17 Cost Recovery Policy – Decision Matrix GLOBAL BLENDED INDIVIDUAL BENEFIT BENEFIT BENEFIT • Library/ • Police citation •Police Community sign-off Emergency Services Response • Building Permit • Fire •Street • Engineering Suppression/ Maintenance Plan Review Prevention •Community Events TAX FUNDED FEE FUNDED City of Camarillo – City Council User Fee Study Presentation 18 9
9/6/2019 Fee Study Best Management Practices 1 Comprehensive fee study every 3 - 5 years More frequent study during organizational or 2 economic change 3 Annual increase mechanism 4 Combined Master Fee Schedule Established and documented Cost Recovery 5 Policy City of Camarillo – City Council User Fee Study Presentation 19 Summary of Results Estimated Estimated Estimated Annual Cost Recommended Annual Full Cost Current Cost Annual Division Annual Current Recovery Surplus Cost Recovery Recovery Fee Recovery % Recommended Fee Revenue / (Deficit) % Revenue Fee Revenue Planning $ 625,102 $ 992,685 $ (367,583) 63% $ 886,422 89% Public Works 662,242 1,469,590 (807,348) 45% 1,465,836 99.7% City Clerk 8,187 8,419 (232) 97% 7,338 87% Finance 10,578 14,589 (4,011) 73% 14,589 100% Police 97,205 98,941 (1,736) 98% 98,941 100% Total $ 1,403,314 $ 2,584,223 $ (1,180,909) 54% $ 2,473,126 96% City of Camarillo – City Council User Fee Study Presentation 20 10
9/6/2019 Questions and Comments Thank you! Questions? Nicole Kissam Project Director nkissam@nbsgov.com 800-676-7516 City of Camarillo – City Council User Fee Study Presentation 21 11
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