Shafter Municipal Code Ch. 2.60 Fee and Service Charge Revenue/Cost Comparison System

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 therefore in providing the regulation, products or services hereafter enumerated in this section.

(Ord. 566 § 1 (part), 2005)

The city manager is hereby delegated the authority and directed to adjust fees and charges to recover the percentage of costs reasonably borne in providing the regulation products or services enumerated in this section in the percentage of costs. "Costs reasonable borne" shall be as defined in Section 2.60.030. In adjusting fees and charges the city manager shall act in an administrative and ministerial capacity and shall consider only the standards and criteria established by this chapter.

(Ord. 566 § 1 (part), 2005)

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, 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 which 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, planning commission, city manager, city clerk, city attorney's office and all other staff and support service provided to the entire organization as now organized. Overhead shall be prorated between tax-financed services and fee-financed services on the basis of said percentage so that each of the taxes and fees charged 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 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. 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 federal law applicable to the city.

(Ord. 566 § 1 (part), 2005)

The city manager, and each city department head, under the direction of the city manager, shall review the fees and service charges listed following, on the schedule of frequency listed in this Section, and set and adjust the fees or charge schedule so as to recover the listed percentage of costs reasonably borne necessary to provide the listed regulation, products or services.

A minimum fee of ten dollars shall be charged in all instances except in the cases of service numbers S-40, S-41, S-48, S-57, S-60, S-64, S-80. The hereinabove services as listed in this section shall be defined in that certain document entitled "Cost Control System" prepared for the city of Shafter dated May, 1992, as produced by Management Services Institute, and as updated by city staff.

All fees and charges set pursuant to this section shall take effect ten days after the city council approves a resolution so adopting those fees. The schedule of frequency of rate adjustments may be varied by the city council to adjust revenues sufficient to meet debt service coverage requirements of any bond, certificate or ordinance, resolution, indenture, contract, or action under which securities have been issued by the city which contain any coverage factor requirement.

The schedule of frequency of rate adjustments may be varied by the city council if, in their judgement a gross inequity would be perpetrated by the existing rate schedule on a new, and unanticipated event.

(Ord. 566 § 1 (part), 2005)

Pursuant to the requirements of the California Government Code Section 54992, the city clerk shall cause notice to be provided as set out in said Government Code Section 54992, and the city council shall receive at a public meeting oral and written presentations concerning the fees and charges proposed for those categories of fees and charges set out in Government Code Sections 54990 and 54991. Such notice, oral and written presentation receipt, and public meeting shall be provided by the city council prior to the city manager taking any action on any new or increased fees or charges for those categories set out in said Government Code Sections 54990 and 54991 and Section 2.60.040.

(Ord. 566 § 1 (part), 2005)

Pursuant to Section 54992 of the California Government Code, the City Manager shall, at least ten days prior to the required public meeting set out in said Government Code Section, make available to the public data indicating the cost, or estimated cost required to provide the services set out in Government Code Section 54990 and 54991. Any appeal pursuant to Section 2.60.070 shall be filled in writing with the city clerk within ten days after the public meeting provided for in Section 2.60.050.

(Ord. 566 § 1 (part), 2005)

Any person who feels that any fee or charge determined and set is in excess of the percentage of costs reasonably borne to be recovered as set out in Section 2.60.040 or that such fee or charge has been reviewed prior to or has not been reviewed within the review schedule as set out in Section 2.60.040, may appeal in writing to the city council.

No fee for which an appeal has been filed shall take effect until heard by the city council. Such appeal shall be placed on the agenda of the next ensuing council meeting. Such appealed fee or charge shall take effect immediately upon hearing by the city council unless ordered otherwise by ordinance amending this chapter.

(Ord. 566 § 1 (part), 2005)

If any portion of this chapter is found to be unconstitutional or invalid, the city council hereby declares that it would have enacted the remainder of this chapter regardless of the absence of any such invalid part.

(Ord. 566 § 1 (part), 2005)

All ordinances, municipal code sections, resolutions, city council motions, and all actions of all city boards and commissions in conflict herewith are hereby repealed. The fees and charges established by this Section shall supersede all previously established fees or charges for the same regulation, product or service, and all such previous fees and charges are hereby repealed on the effective date of the resolution as provided in Section 2.60.040.

(Ord. 566 § 1 (part), 2005)

The ordinance codified herein shall take effect and be in force thirty days after its passage, within fifteen days after such adoption shall be published once in the Shafter Press, a newspaper of general circulation published and circulated in the city of Shafter together with the names of members of the city council voting for and against the same.

(Ord. 566 § 1 (part), 2005)