REPORT TO COUNCIL
SUBJECT
Title
Annual Review of Proposed Fees and Charges for Fiscal Year 2024/25
Report
REPORT IN BRIEF
The fees and charges of the City are reviewed and adjusted each year in accordance with Council Policy 7.1.1 (Fiscal-Long Range Goals and Financial Policies). This annual evaluation ensures that all fees and charges of the City are aligned with the cost to provide fee-related services, except for those fees that are legally limited, market based, or subsidized per Council direction.
After a detailed staff review of fees, necessary adjustments have been made to the proposed Fee Schedule. Fees that are legally limited remain unchanged. Periodically, staff reviews various fees in detail and adjusts them for cost of service, usually once every three to five years. In the intervening periods, fees are adjusted by a general inflation factor. Those fees that did not receive a detailed cost of service review are proposed to increase 4% based on changes in the City's personnel costs. Fees related to construction price changes are proposed to increase 9.42% in accordance with the Construction Cost Index (CCI) year-over-year change for the period of December 2022 to December 2023, as reported by Engineering News-Record. Another benchmark used to assess the change in certain impact fees for commercial or residential real estate development is the Consumer Price Index for Urban Consumers for the San Francisco-Oakland-Hayward Area (CPI-U SF), which increased by the annual average of 3.7% from 2022 to 2023.
The Recommended FY 2024/25 Fee Schedule (Attachment 1) details all proposed fees. Most fees become effective at the start of the new fiscal year, with the exception of development impact fees which are required to become effective 60 days after adoption pursuant to Government Code Section 66017. These fees will become effective on August 16, 2024.
Each year, the City Council reviews recommended changes to the City's fees and charges. The June 4, 20...
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