COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Tabatha Miller, Administrative Services Director
Sandy McCormack, Senior Accountant
SUBJECT:Title
Introduce Ordinance No. 17-1187 Amending Lake Havasu City Code Chapter 3.20, Fee and Service Charge Revenue/Cost Comparison and Charging System, to Revise Process and Update Costs Recovered
Body
FUNDING SOURCE:
N/A
PURPOSE:
To introduce an ordinance amending City Code Chapter 3.20 to revise the current process and update City costs recovered.
BACKGROUND:
Annually, the City undergoes a review of fees and charges as required by Chapter 3.20 of the City Code. During the process, departments review their fee schedules and make recommendations to either increase, decrease, or maintain the fees. They evaluate the need for new services as the citizens’ needs and desires change. New fees are added as services are identified.
Last year the City established a method to adjust fees by using the Consumer Price Index (CPI) when calculating recommended fee changes. This method allowed for reasonable costs to be covered and minimize large changes in fees and charges. This is the second year using this method. The CPI, for the 12-month period ending in June, was 2.4%. The more detailed cost of service review will be completed every several years and is planned for FY 2018-19.
In most cases, fees were rounded to the nearest whole dollar. As a result, many small dollar fees will not be changed this year. All departments reviewed the proposed fee changes and approved the list that is included with this council communication.
A few important fee changes to note are:
• There is a 50% discount for Not for Profit Organizations requesting a Temporary Use Permit. Previously, Not for Profit Organizations paid the same fee as commercial use.
• Language was added to allow for special equipment charges to be added to certain services that typically do not require equipment usage.
• If a fee is included in a contract, the contract terms prevail.
• Fee changes would be effective January 1, 2018.
COMMUNITY IMPACT:
N/A
FISCAL IMPACT:
Small incremental increases in fees in order to keep pace with inflation
ATTACHMENTS:
Ordinance No. 17-1187
Proposed Fees & Charges for 2018
2017 Facility Use Fees-Current
2018 Facility Use Fees-Proposed
SUGGESTED MOTION:Recommended Action
I move to introduce Ordinance No. 17-1187 amending Lake Havasu City Code Chapter 3.20, to revise process and update costs recovered.