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City of San Leandro <br />Meeting Date: May 4, 2015 <br />Staff Report <br />Agenda Section:File Number:15-243 PUBLIC HEARINGS <br />Agenda Number:4.A. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:David Baum <br />Finance Director <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:Staff Report for Resolution Approving Adjustments to City Fees and Service <br />Charges for 2015-16 <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends the City Council approve the proposed adjustments to City user fees and <br />service charges in the Master Fee Schedule for 2015-16. This resolution is being presented <br />to the City Council for approval as part of the 2015-16 budget update approval process. <br />BACKGROUND <br />The City conducts a review of all user fees and service charges as part of its annual budget <br />preparation process. City user fees and service charges are based on a variety of criteria <br />including comparable fee levels in surrounding cities; changes in the local Consumer Price <br />Index (CPI); and the cost to provide the associated service. If approved and adopted by the <br />City Council, the following proposed adjustments to the City’s user fees and service charges <br />would be effective July 1, 2015. <br />The Master Fee Schedule is a compilation of City Council approved fees for special services <br />requested by some residents in the community. Local agencies are allowed to set fees at <br />rates that obtain fair and reasonable recovery of the costs incurred by the General Fund in <br />providing a special service, thereby minimizing or eliminating the use of limited General Fund <br />revenues. Historically, the City has strived to maximize cost recovery through setting fees at <br />levels appropriate given escalating costs of doing business and market comparisons. <br />Full cost recovery is a policy direction by the City Council and the fee schedule that maximizes <br />cost recovery opportunities through appropriate fee revenues is a critical component of the <br />City’s on-going financial stability. In the 2015-16 General Fund Budget, the proposed <br />estimated department revenues total $6,655,000 or approximately 7% of the General Fund <br />operating revenues. Modifications to the City’s fee schedule to remain up-to-date with <br />escalating operating costs are generally completed on an annual basis. <br />Page 1 City of San Leandro Printed on 4/28/2015