Ceres Municipal Code Ch. 10 Fee and Service Charge Revenue/Cost Comparison System

A. 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, charges and regulatory license fees levied therefor in providing the regulation, products or services hereinafter enumerated in this chapter.

B. The fee and service charge revenue/cost comparison system set forth in this chapter provides a mechanism for ensuring that fees adopted by the City for services rendered do not exceed the reasonable estimated cost for providing the services for which the fees are charged.

C. The adoption of this chapter is exempt from the California Environmental Quality Act (Public Resources Code sections 21000 et seq.), because it approves and sets forth a procedure for determining fees for the purpose of meeting the operating expenses of City departments, as set forth in Public Resources Code section 21080 (b)(8)(1).

(Ord. No. 2020-1058, § 4, 3-23-2020)

The City Manager is hereby delegated the authority and directed to provide documents to the City Council to implement its herein enumerated policy to adjust fees and charges to recover the percentage of costs reasonably borne as established hereby, in providing the regulation, product or service enumerated in this chapter in the percentage of costs reasonably borne and on the schedule of rate review and revision as hereinafter established in this chapter.

(Ord. No. 2020-1058, § 4, 3-23-2020)

Costs reasonably borne, as used and ordered to be applied in this chapter are to consist of, but are not limited to, 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, communications expenses, computer costs, printing and reproduction, vehicle expense, insurance, debt service, and like expenses when distributed on an accounted and documented rational proration system.

C. Fixed asset 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, also shall 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 Attorney, City Manager, City Clerk, City Treasurer, Economic Development, Finance Department, Personnel Office, and City Promotion, and all other staff and support service provided to the entire City organization. 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, C, and F of this section.

F. Debt service 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 of whatever nature or kind. Any required coverage factors or required or established 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. No. 2020-1058, § 4, 3-23-2020)

A. That certain document entitled "Cost Control System for the City of Ceres," dated March 1992, as produced by Management Services Institute, Inc., of Anaheim, California, is on file in the office of the City Clerk of the City of Ceres, and all updates and revisions to said document, are incorporated herein by reference.

B. The City Council shall review on an annual basis, or more frequently should it determine that such review is necessary, the service categories listed in the "Cost Control System for the City of Ceres," dated March 1992, together with all updates and revisions to said document, for the purpose of determining, for each such service category, the percentage of costs reasonably borne to be recovered by the City for the provision of each such service, and the specific dollar amount of the fee to be charged for each such service.

C. Following such review by the City Council and the holding of a public hearing as provided by state law, the City Council shall pass its resolution determining the percentage of costs reasonably borne to be recovered by the City and the specific dollar amount of the fee to be charged for each service category.

(Ord. No. 2020-1058, § 4, 3-23-2020)