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Agenda Item 25.

City Council Meeting

Meeting Date:	06/19/2018
FROM:	Bill Gallardo

Subject:

Public Hearing to Consider Resolution Increasing Existing Fees for Special City Services

RECOMMENDATION

Adopt resolution increasing existing fees for special City services.

BACKGROUND/DISCUSSION

The City of Brea provides a wide range of services which are of general benefit to the public. Examples of these are the maintenance of streets and parks, and police, fire and paramedic response. The City also provides a number of services that benefit a specific user or users of those services.

When a service that is provided benefits a particular user of that service, it is appropriate to charge a fee to recover all or a portion of the cost of providing that service. When the full cost of providing that service is not recovered from the user, it is necessary to subsidize the cost of that service by using general tax dollars that would otherwise be available to support fundamental City-wide services. The application of user fees is not only an issue of equity in terms of who bears the financial burden for program and service costs, but is also good budget practice in that it better addresses the cost of conducting business in a changing environment.

During preparation of the FY 2018-19 Budget, all City user fees were evaluated based upon an analysis of the cost of providing the service, date of last review and/or update, and demand for the program or service relative to resources necessary to provide said program or service. Staff is recommending increasing certain existing user fees for the applicable programs and services as delineated in Exhibit A to the proposed resolution. The update of these fees was discussed with the City Council during the Budget Workshop conducted on May 15, 2018.

To maintain a sound fiscal plan, it is important that fees be reviewed and/or updated on a regular basis. The regular review process is currently applied for all City fees during each budget process to ensure that no fee goes unexamined for a long period of time. Doing so ensures that the City of Brea is keeping pace with internal and external changes that create a financial impact upon City programs and services.

Attached to this staff report is a description of each fee that is being proposed for adjusting. Also, included in the Resolution - Exhibit A are other water related fees listed which have no changes. This is a housekeeping item to separate miscellaneous water fees from the normal water rate resoltuion that is presented to City Council from time to time.

All fee adjustments will be effective July 1, 2018.

FISCAL IMPACT/SUMMARY

Adoption of the resolution and implementation of the associated fee schedule will result in additional cost recovery for providing the specified services. Based on a similar volume of services, this would result in an estimated $69,817 in General Fund (110), $8,494 in Urban Runoff Fund (410) and $190,748 in Water Utility Fund (420) revenues annually.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Alicia Brenner, Senior Management Analyst
Concurrence: Cindy Russell, Administrative Services Director

Attachments
Resolution
Exhibit A
Fee Descriptions