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CITY OF REDWOOD CITY, CALIFORNIA <br />Cost of Services (User Fee) Study <br />Matrix Consulting Group Page 6 <br />established in the Study on an annual basis. The City could also consider the use of its <br />own anticipated labor cost increases such as step increases, benefit enhancements, or <br />cost of living raises. Alternatively, the project team will provide the City with user fee <br />models, which can be utilized to update time estimates and costs on an annual basis. <br />Utilizing an annual increase mechanism would ensure that the City receives fees and <br />revenues that include increases, which best approximate growth in costs. <br /> <br />7.A. - Page 18