Chapter 3.30 — FEE AND SERVICE CHARGE REVENUE/COST COMPARISON SYSTEM

A.

Pursuant to Article XIII(B) of the California Constitution, it is the intent of the town 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.

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 town for services rendered do not exceed the reasonable estimated cost of 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 2100, et seq.), because it approves and sets forth a procedure for determining fees for the purpose of meeting the operating expenses of town departments, as set forth in Public Resources Code Section 21080(b) (8) (1).

(Ord. 312 §2 (part), 1998)

The town manager is directed to provide documents to the town council to implement fee and charge adjustments as set forth in this chapter.

(Ord. 312 §2 (part), 1998)

"Costs reasonably borne" as used and ordered to be applied in this chapter are to consist of the following:

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 expenses, insurance, debt services, 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 costs 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 town council, town attorney, town manager, town clerk, financial services division, business and housing services division, and town promotion, and all other staff and support service provided to the entire town 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, note 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 town.

(Ord. 312 §2 (part), 1998)

A.

The town manager and each town department head, under the direction of the town manager, shall review annually the fees and service charges, and provide an adjusted fee schedule to the town council for its consideration so as to recover the costs reasonably borne necessary to provide the services.

B.

The town manager may review the fees and service charges and provided an adjusted fee schedule to the town council for its consideration at any time, if, in the judgment of the town manager and a directly affected and requesting department head, a gross inequity would be perpetrated by not revising the fee schedule.

(Ord. 312 §2 (part), 1998)

The town clerk shall cause notice to be provided as set out in Government Code Sections 66016, 66018 or 6062(a) as required, and the town council shall periodically, at least annually, receive at a regularly scheduled meeting oral and written presentations concerning fees and charges proposed to be increased or added. Such notice, oral and written presentation, and public meeting shall be provided prior to the town council taking any action on any new or increased fees or charges. At least one such public hearing shall be held annually, in conjunction with the town annual budget process and hearing.

(Ord. 312 §2 (part), 1998)

Pursuant to California Government Code 66016, at least ten days prior to the required public hearing set out herein, the town manager shall make available to the public appropriate data indicating the cost, or estimated cost required to support the fees and charges for which changes are proposed to be made or fees or charges imposed. The town manager also shall provide a summary of the present fee and charge schedules and those proposed at such annual public hearing. A general explanation of such changes also shall be published in accordance with the requirements of Government Code Section 6062(a).

(Ord. 312 §2 (part), 1998)