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City of San Leandro <br />Meeting Date: May 6, 2019 <br />Staff Report <br />Agenda Section:File Number:19-078 PUBLIC HEARINGS <br />Agenda Number:5.A. <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:David Baum <br />Finance Director <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:Staff Report for City of San Leandro City Council Resolution Approving <br />Adjustments to City Fees and Service Charges for 2019-20 <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 2019-20. This resolution is presented to the City <br />Council for approval as part of the Fiscal Year (FY) 2019-20 budget 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 Index <br />(CPI), fee studies, 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, 2019. <br />The Master Fee Schedule is a compilation of City Council approved fees for services provided to <br />residents and businesses in the community. Local agencies are allowed to set fees at rates that <br />obtain fair and reasonable recovery of the costs incurred by the General Fund in providing a <br />special service, thereby minimizing or eliminating the use of limited General Fund revenues. <br />Historically, the City has strived to maximize cost recovery through setting fees at levels <br />appropriate given escalating costs of doing business and market comparisons. <br />Full cost recovery for certain services is a policy direction by the City Council and a fee schedule <br />that maximizes cost recovery opportunities through appropriate fee revenues is a critical <br />component of the City’s on-going financial stability. In the FY 2019-20 General Fund Budget, the <br />proposed estimated departmental revenues total $9,949,000, or approximately 8.4% of the <br />General Fund operating revenues. Modifications to the City’s fee schedule to remain up-to-date <br />with escalating operating costs are generally completed on an annual basis. <br />Page 1 City of San Leandro Printed on 4/30/2019