COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Jill Olsen, Administrative Services Director
Sandy McCormack, Senior Accountant
SUBJECT:Title
Introduce Ordinance No. 18-1204 Amending Lake Havasu City Code Chapter 3.20, Fee and Service Charge Revenue/Cost Comparison and Charging System and to Update Costs Recovered (Jill Olsen)
Body
FUNDING SOURCE:
N/A
PURPOSE:
To introduce an ordinance amending City Code Chapter 3.20 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.
In 2016 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 minimized large changes in fees and charges. Last year was the second year using this method. A more detailed cost of service review was planned to be completed every several years and was completed in Fiscal Year 2018-19.
All departments provided detailed information associated with staff times and expenses associated with each of the services provided to the citizens. The data was compiled and new fees calculated using updated information. Departments then had an opportunity to review the proposed fee changes, make needed adjustments and approved the Master Fee Summary that is included with this council communication.
A few important fee changes to note are:
• In the Facility Use Fee Schedule, the Government and Not For Profit Classifications have been combined into one classification. Originally the governmental rental rates were higher than Not For Profit organizations.
• An additional surcharge is proposed for fee based services that are provided after normal hours (excluding public safety services).
• A penalty fee may be imposed on accounts that become delinquent.
• If a fee is included in a contract, the contract terms prevail.
• Fee changes would be effective January 1, 2019.
COMMUNITY IMPACT:
N/A
FISCAL IMPACT:
Adjustments to fees based on detailed time and material analysis. Increases and decreases in fees to match current costs or market rates.
ATTACHMENTS:
Ordinance No. 18-1204
Proposed Fees & Charges for 2019
2018 Facility Use Fees-Current
2019 Facility Use Fees-Proposed
SUGGESTED MOTION:Recommended Action
I move to introduce Ordinance No. 18-1204 amending Lake Havasu City Code Chapter 3.20 and update costs recovered.