Taft Municipal Code Ch. 20 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 therefor in providing the regulation, products or services hereinafter enumerated in this chapter. (Ord. 790-11, 12-6-2011)

The city manager is hereby delegated the authority and directed to set and adjust fees and charges to recover the percentage of costs reasonably borne 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.

"Costs reasonably borne" shall be as defined in section 1-20-3 of this chapter. 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. 790-11, 12-6-2011)

"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, communications expenses, computer costs, printing and reproduction, vehicle expenses, insurance 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, city manager, finance department, city clerk, city treasurer, city attorney's office, community development, public works, police department, and all other staff and support services 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/or 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 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. 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. 790-11, 12-6-2011)

Finance director and each city department head, under the direction of the city manager, shall review the fees and service charges as needed, as adopted by resolution, and set and adjust the fee or charge schedule so as to recover costs reasonably borne necessary to provide the listed regulation, product or service.

All fees and charges set in a fee schedule pursuant to this chapter and section shall take effect thirty (30) days after the city manager signs an executive order stipulating that all provisions of this chapter have been complied with, and no written appeal has been filed.

The city manager may 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 requirements. (Ord. 790-11, 12-6-2011)

Pursuant to the requirements of 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.

Pursuant to section 54992 of the California Government Code, the city manager shall, at least ten (10) 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. (Ord. 790-11, 12-6-2011)

Pursuant to section 54-992 of the California Government Code, the city manager shall, at least ten (10) 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 54-990 and 54-991. (Ord. 790-11, 12-6-2011)

Any person who feels that any fee or charge determined and set by the city manager is in excess of the percentage of costs reasonably borne to be recovered as set out in section 1-20-4 of this chapter, 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 1-20-4 of this chapter, 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 after receipt of such appeal, and heard at 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. 790-11, 12-6-2011)