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CITY OF REDWOOD CITY, CALIFORNIA <br />Cost of Services (User Fee) Study <br />Matrix Consulting Group Page 40 <br /> <br />9. CONCLUSION <br /> <br />The City of Redwood City engaged the Matrix Consulting Group to determine the <br />total cost of services provided to its citizens and businesses for fee related services. To <br />calculate the total cost of each department / division’s services, the Matrix Consulting <br />Group employed both a widely accepted and defensible methodology, as well as the <br />experience and input of City staff to complete the necessary data collection and <br />discussion to complete the analysis. City leaders can now use this information to make <br />informed decisions and set its fees to meet the fiscal and policy goal objectives of the <br />City. <br />Overall, this Cost of Services Study concluded that the City under-recovers its <br />costs by approximately $176,000 year for its fee and rental-related services. While the <br />detailed documentation of the Study will show an over-collection in some departments / <br />divisions and / or certain fees (on a per unit basis), and an undercharge for others, <br />overall, the City is providing an annual subsidy to fee payers for all services included in <br />the analysis. <br />The project team recommends the City lower fees that show an over-recovery in <br />order to comply with state laws. For fees that show an under-recovery, the City should <br />review all circumstances and policy factors and raise fees where feasible. For fees that <br />the City chooses to subsidize, policies should be established to outline target recovery <br />percentages. <br />7.A. - Page 52