Chapter 3.50
FEE AND SERVICE CHARGE REVENUE/COST COMPARISON SYSTEM
Sections:
3.50.020 Direction to recover costs.
3.50.030 Costs reasonably borne defined.
3.50.040 Schedule of fees and service charges.
3.50.050 Statutory public meeting.
3.50.010 Intent.
Pursuant to Article XIIIB of the California Constitution, it is the intent of the city council to require the ascertainment and recovery of costs reasonably borne from fees and charges levied therefor in providing the regulation, products or services hereinafter enumerated in this chapter. It is the further intent of the city council that the fees and charges provided for in this chapter shall not be deemed special taxes under Article XIIIA of the California Constitution, nor levied for general revenue purposes. (Ord. 609 § 1, 1988)
3.50.020 Direction to recover costs.
The amount of fees and charges established under this chapter shall be sufficient to recover a percentage of the costs reasonably borne in providing the services for which the fees and charges are imposed. Costs reasonably borne shall be as defined in Section 3.50.030. The percentage of the cost to be recovered by the fee shall be at the sole discretion of the council but shall not exceed one hundred percent, as set forth by Section 3.50.040. (Ord. 1344 § 2, 2024; Ord. 609 § 1, 1988)
3.50.030 Costs reasonably borne defined.
Costs reasonably borne, as used and ordered to be applied in this chapter are to consist of the following elements:
A. All applicable direct costs including, but not limited to salaries, wages, overtime, employee fringe benefits, services and supplies, maintenance and operation expenses, contracted services, special supplies, and any other direct expense incurred.
B. All applicable indirect costs including, but not restricted to, building maintenance and operations, equipment maintenance and operations, communication expenses, computer costs, printing and reproduction, and like expenses when distributed on an accounted and documented rational proration system.
C. Fixed assets recovery expenses, consisting of depreciation of fixed assets, and additional fixed asset expense recovery charges, calculated on the current estimated cost of replacement, divided by the approximate life expectancy of the fixed asset. A further additional charge to make up the difference between book value depreciation not previously recovered and reserved in cash and the full cost of replacement, shall also be calculated and considered a cost so as to recover such unrecovered costs between book value and cost of replacement over the remaining life of the asset.
D. General overhead, expressed as a percentage, distributing and charging the expenses of the city council, city manager, city clerk, elections, city treasurer, finance department, city attorney, unallocated nondepartmental expenses, and all other staff and support service provided to the entire city organization as now organized and as it may be reorganized at any time in the future.
Overhead shall be prorated between tax-financed services and fee-financed services on the basis of said percentage so that each of taxes and fees and charges shall proportionately defray such overhead costs.
E. Departmental overhead, expressed as a percentage, distributing and charging the cost of each department head and his or her supporting expenses as enumerated in subsections A, B, and C of this section.
F. Debt services costs, consisting of repayment of principal, payment of interest, and trustee fees and administrative expenses for all applicable bond, certificate, or securities issues or loans. Any required coverage factors of added reserves beyond basic debt service costs also shall be considered a cost, if required by covenant within any securities ordinance, resolution, indenture or general law applicable to the city. (Ord. 609 § 1, 1988)
3.50.040 Schedule of fees and service charges.
The city council shall periodically review and make adjustments to all services provided by the various city departments to all users and the fees and charges associated with those services. The city council shall generally seek one hundred percent cost recovery for these services but may, at its sole discretion, adjust fees and charges to a level below full cost recovery for reasons of economic development, community benefit, or for any other lawful purpose.
All new or increased fees and charges set pursuant to this section shall take effect ten days after adoption by the city council, except that new or increased development impact fee or charge for processing applications for development projects shall take effect sixty days after adoption. (Ord. 1344 § 3, 2024; Ord. 627 § 2, 1988; Ord. 609 § 1, 1988)
3.50.050 Statutory public meeting.
Pursuant to California Government Code Sections 66016 et seq., the city clerk shall cause notice to be provided as set out in said California Government Code Sections 66016 and 6062a concerning the fees and charges proposed to be increased or added. Such public meeting notice shall be provided prior to city council taking any action on any new or increased fees or charges. (Ord. 1344 § 4, 2024; Ord. 609 § 1, 1988)