Chris Fisher - Revenue Opportunities Through User Fees

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Chris Fisher - Revenue Opportunities Through User Fees

  1. 1. Revenue Opportunities Through <br />User Fees<br />Thursday, June 23, 2011<br />
  2. 2. Introduction<br />Chris Fisher – Willdan Financial Services:<br />User Fee Studies, Cost Allocation Plans<br />Special District Formations<br />CFDs, Assessments, Fire, BIDs<br />Utility Rate Studies<br />Water, Wastewater<br />Economic and Fiscal Analysis<br />Impact Fees<br />
  3. 3. Case 1: Comprehensive User Fee Study<br />Undertaken as part of annual budget process<br />First comprehensive review of citywide fee programs in many years<br />Review and analysis of fee-based services<br />Coordinated with cooperation of Finance Department staff<br />City goal: find $1.5MM to $2MM revenue<br />
  4. 4. Study Objectives<br />Identify true cost of providing user fee services<br />Survey of services for which fees are in place<br />Understand the service delivery processes<br />Analysis of staff involved, time survey, and cost<br />Determine level of subsidy and revenue impacts<br />Identify new fees, cost recovery strategies<br />Appropriately distribute overhead costs<br />Develop defensible fee schedule<br />
  5. 5. Findings<br />Developed revenue projections based upon estimated activity levels, new fees<br />City addressed more formal fee policies during budget workshops<br />Identified approximately $1.2MM in additional revenue through fee increases<br />Recommended implementation of two new fee programs<br />
  6. 6. Case 2: Market Study Approach<br />Programmatic cost review<br />Market analysis - comparison of city programs to neighboring or similar profile cities<br />Ten benchmark cities<br />Close proximity, similar program offerings, profiles<br />Targeted recreation programs, sports, leagues, classes, arts programs, etc<br />Graphic presentation of results, cost per hour of programs calculated for comparison purposes<br />
  7. 7. Approach and Considerations<br />Highlight where fees are too low<br />Identify potential program reductions<br />Low participation<br />Similar offerings from other cities, lower cost<br />Alternatives for participants<br />Selected comparison city subsidy policies or true costs are not known<br />
  8. 8. Findings<br />Some program offerings were reduced or eliminated<br />Lower cost alternatives, participation<br />Market saturated for some programs<br />City policy to continue subsidizing indirect costs of running programs<br />Only target direct costs for full recovery<br />Netted approximately $200K per year based upon reductions, fee adjustments<br />
  9. 9. Case 3: Global Review<br />Review of revenue generating programs<br />Taxes, assessments<br />User Fees, impact fees<br />Parking fees, franchise fees<br />Rentals, facility use fees<br />Comparison of target city to benchmark cities<br />Important to select appropriate benchmarks<br />Collaborative selection, vetting process<br /><ul><li>Identified and quantified opportunities, steps</li></li></ul><li>Questions<br />

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