REPORT TO COUNCIL
SUBJECT
Title
Annual Review of Proposed Fees and Charges for Fiscal Year 2016/17
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 be increased 2.7% based on the Bureau of Labor Statistics for the San Francisco Bay Area annual Consumer Price Index (CPI) for April 2016. Fees related to construction and materials prices are proposed to increase in accordance with the annual Construction Cost Index (CCI), which increased 3.4% for May 2016.
The Recommended FY 2016/17 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 processing and mitigation fees which become effective 60 days after adoption per State law. In addition, the fees for water and sewer connection fees were updated in this fee schedule to align with the recommendations from a recently completed cost of service study. These fees, in most cases, have increased significantly and are proposed to become effective on January 1, 2017 to allow for projects already in process to be completed under the current fee structure and for an extended noticing period.
Each year the City Council review...
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