Agenda Item Wording:
title
Fiscal Year 2024-25 Rates and Fees - Public Hearing and Adoption of Resolution 2024-04 to authorize proposed new fees, increases, and adjustments to the City's Rates and Fees Schedule for Fiscal Year 2024-25.
body
Deadline for Action: 6/17/2024
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Jana Ferguson 559-713-4429, jana.ferguson@visalia.city; Renee Nagel 559-713-4375, renee.nagel@visalia.city
Department Recommendation:
• The City Council conducts a Public Hearing to receive testimony on additions/changes/deletions to the City’s Rates and Fees Schedule.
• Adopt Resolution 2024-04 to amend the City’s fee document for the FY 2024-25; and
• Take action on specific fees, if the Council desires, such as:
o Fees increased by CPI
o Fees increased by ENRCCI; and/or
o Individual fees
Background Discussion:
Annually all fees are recommended for cost of living adjustments for the upcoming fiscal year. City ordinances mandate annual Impact Fees and Business Tax adjustments to specific CPI indexes. These annual inflationary adjustments help departments and capital projects cover costs.
Proposed new fees, increases exceeding the CPI, adjustments, and deletions to the fees include, but are not limited to the following services, animal services, business tax, building safety, public safety, parks and recreation, neighborhood preservation, airport, transit, and public works.
At the June 3, 2024, City Council meeting a question was raised about the Transit division’s CNG pricing. With this review, the Transit division would like to present an additional ADJUSTED FEE for consideration with the Rates & Fees for FY 24-25.
Enterprise Fees - Transit
The Transit division is proposing a new calculation for the public CNG station pricing (pg 74). This new pricing model includes the actual costs (fuel, transmission, electricity, and taxes and fees), administrative fees to cover staff time, and a small percentage markup to help offset the costs of current and future maintenance of the station. This calculation is a more stable method and is no longer reliant on a third party pricing structure. Our current price at the CNG station is $3.91 per GGE; with the proposed new pricing structure it would be $2.44 per GGE. If the Rates and Fees are approved, this new pricing structure will go into effect on July 1, 2024, and the pricing will be based on our actual costs for the prior quarter (April-June 2024) and will be adjusted every quarter thereafter.
Staff requests that after taking input at the Public Hearing, the Council adopt the adjustments with Resolution 2024-04.
The basis for most fee adjustments for the City is the California Consumer Price Index for All Urban Consumers (CCPI-U). Impact Fees are required by the City ordinance to use the building industry standard index known as the Engineering News Record Construction Cost Index (ENRCCI). Similarly, the City ordinance dictates that Business Tax be adjusted by the US City Average for All Items (USCPI-U) using the average of the most recent 3 years. Both Impact Fees and Business Tax fees are adjusted annually as directed by ordinance. The indexes and effective dates are listed in Table 1: Index Period Changes.
Fiscal Impact:
The increase of various City rates and fees will help Departments and capital projects cover costs.
Prior Council Action: The Council reviewed and discussed new fees and adjustments to the Rates and Fees on June 3, 2024.
Other: The following committees and commissions have reviewed the proposed rate and fee adjustments and recommend to the City Council the adoption of the adjustments to the City’s Rates and Fees for Fiscal Year 2024-25.
|
Committee or Commission |
Meeting Date |
Recommended Fees |
|
Planning Commission |
April 8, 2024 |
Planning Fees - recommended |
|
Parks & Recreation Commission |
April 9, 2024 |
Parks & Rec Fees - recommended |
|
|
May 14, 2024 |
Parks & Rec Fees - recommended |
|
Transit Advisory Committee |
April 17, 2024 |
Transit Fees - recommended |
|
CAC Subcommittee |
May 23, 2024 |
All Fees - recommended |
|
Citizens Advisory Committee |
June 5, 2024 |
All Fees - recommended |
Alternatives: Partially amend or do not amend the proposed fees.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to adopt Resolution 2024-04 to amend the City’s Fee document for Fiscal Year 2024-25 as presented.
Or
I move to adopt Resolution 2024-04 to amend the City’s Fee document for Fiscal Year 2024-25; with, as needed, changes to reflect specific Council desires that may vary from, or not be included in, the staff recommendation.
end
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: A - Resolution No. 2024-04; B - FY 2024-25 Rates & Fees Document; C - June 3, 2024 Agenda Item; D - Proposed Rates & Fees FY 2024-25.