Report to Mayor and City Council
Tuesday, March 15, 2022
Discussion
SUBJECT:
Title
CITY COUNCIL WORKSHOP NO. 2; CITYWIDE COMPREHENSIVE USER FEE STUDY - METHODOLOGY, PURPOSE OF THE STUDY AND REVIEW OF FEE RECOMMENDATIONS
Body
I. SUMMARY
The City of Carson charges user fees for a variety of specific services provided to citizens or groups. The purpose for a user fee is the cost of a service benefiting an individual, rather than the entire community, should be borne by the individual receiving the service. Therefore, the receiver of the service should pay a fee that bears a relationship to the cost of the service. Unlike private organizations, making a profit in providing services to the public is not a legally allowable objective for local governments. The City may only set fees at a level to recover the full cost of providing the service. However, in certain circumstances it is reasonable for City Council to set policies in establishing fees for specific services at a level that does not recover the full costs, resulting in a General Fund subsidy.
At the direction of the City Council, staff initiated a proposal to have a consultant perform a fee study and conduct a comprehensive cost analysis for the City's numerous fees and charges for services across various departments. On February 4, 2020, the City Council approved a professional services agreement with Revenue & Cost Specialists, LLC ("RCS") an independent financial consulting firm that specializes in government cost allocation, cost recovery, user fee study and overhead cost analysis. In addition, RCS worked with City staff to identify services offered by each department, calculating the full cost of service including labor, benefits, materials, supplies, overhead expenditures and calculating subvention levels for each service. The comprehensive fee study for each department reports:
* The current fees compared to a proposed fee based on the actual cost of service; and,
* Recommendations for...
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