AgdaPkt 2017-06-26 Closed and Joint SA PFA

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Phase 2 of the Comprehensive Fee Study focuses on fees for the City Clerk, Finance, Library, Parks, Recreation and Community Services (PRCS), and Public Works Services. Over the past several years, the cost of providing services has increased significantly due to increases in employee salaries and benefits and other operating costs; however, most fees have not been updated to match these rising costs. The City’s user fees were last updated in 1990 for the City Clerk, 2012 for Library, 2004 for PRCS, and 1998 for Public Works Services. ANALYSIS Between March and May 2017, Matrix held numerous meetings with staff and conducted interviews to confirm the actual amount of staff time expended to provide each specific service. Once time spent for a fee activity was determined, all applicable City costs were then considered in the calculation of the “full” cost of providing services including: 1) direct staff time and materials, 2) department and citywide overhead (based on the City’s Cost Allocation Plan), and 3) direct and indirect costs from other divisions to provide the service. The study also assisted in creating well-documented and defensible fees to meet cost recovery policy goals and objectives. The Fee Study completed by Matrix has been included as Attachment 1. This information provides staff with a baseline for recommended revisions to the current Fee Schedule. Current Cost Recovery When comparing fee-related annual costs in FY 2016-17 with fee-related revenue generated in FY 2015-16, the City is under-recovering revenue related to services provided by approximately $176,000 per year. This is illustrated in the below chart. Department/ Division Current Revenue Full Cost of Services Surplus/ (Deficit) Current Cost Recovery City Clerk & Finance $4,451 $6,567 $(2,116) 68% Library $33,457 $243,028 $(209,571) 14% PRCS $288,467 $252,143 $36,324 114% Public Works Services $185,344 $186,344 $(1,000) 99% TOTAL $511,719 $688,081 $(176,362) 74% 7.A. - Page 2