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City of San Leandro <br />Meeting Date: May 18, 2020 <br />Staff Report <br />Agenda Section:File Number:20-160 PUBLIC HEARINGS <br />Agenda Number:5.A. <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:James O'Leary <br />Finance Department <br />FINANCE REVIEW:Liz Warmerdam <br />Interim Finance Director <br />TITLE:Staff Report for a City of San Leandro City Council Resolution Approving <br />Adjustments to City Fees and Service Charges for 2020-21 <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 Fiscal Year 2020-21. This resolution is <br />presented to the City Council for approval as part of the Fiscal Year 2020-21 budget approval <br />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 proposed adjustments to the City’s user fees and service charges would be <br />effective July 1, 2020. <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 in providing a special service, thereby <br />minimizing or eliminating the use of limited General Fund revenues. Historically, the City strives to <br />strike a balance between maximizing cost recovery with reasonable fees that still encourage <br />growth and stability in the local residential and commercial economy. The City accomplishes <br />these goals by setting fees at reasonable and appropriate levels given escalating costs of doing <br />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 are a critical <br />component of the City’s on-going financial stability. In the Fiscal Year 2020-21 General Fund <br />Page 1 City of San Leandro Printed on 5/13/2020 <br />12