Title
A RESOLUTION UPDATING CERTAIN USER AND IMPACT FEES BASED OFF RECENT STUDIES OF THE SAME
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Summary & Background
Because the high level of growth occurring in the City (3.3% percent growth rate year-over-year) has created an immediate and future impact on community facilities and public projects, the City posted a Request for Proposals for a User Fee and Impact Fee Study to conduct a user and impact fee review and provide recommendations on new user and impacts for the City. After a competitive bidding and interview process, the City entered into an Agreement for Professional Services with Willdan Financial Services in December of 2021. The purpose of this resolution is to update the City’s user and impact fees based off the User Fees and Impact Fees Studies conducted by Willdan Financial.
At a high level, a user fee is a type of fee or charge that is levied on users of a particular service, facility, or product. User fees are typically designed to cover the costs of providing the service, facility, or product to those who use it. The rationale behind user fees is that those who use a particular service or facility should bear the costs of that service or facility, rather than the costs being spread across the broader population through general taxes.
The study results helped the City better understand its true costs of providing services and has served as a basis for making informed policy recommendations regarding the most appropriate fees to collect from individuals and organizations that require individualized services from the City. The recommended fees identified in the final report by Willdan Financial are either at or less than full cost recovery. Some fees analyzed were not recommended for change, others decreased, while several were recommended for increase. Staff recommends implemented the fees as Willdan suggests. As illustrated in the "User Fee Changes" attachment, most of the fee increases will remain heavily subsidized.
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