HomeMy WebLinkAbout22 - Approval of the Fiscal Year 2022-23 Fee Study Update, and Approval of Amending Paramedic Subscription Program Fees - PowerPointJun 13, 2023
Item No. 22
City Council
Meeting
June 13, 2023
Types of Fees and Fines
Cost Recovery -Based User Fees
Fees limited to recovering the cost of
providing the service
Market Rate User Fees
The city can charge whatever price
the market will pay (must be
competitive)
Fees Set by Law
Some fees are set by Federal or State
law
Taxes under Propositions 2A and 26
Certain fees constitute taxes and may
not be increased without a vote of the
people
Fines
Fines are not subject to cost recovery
rules and may be set by the Council
Degree of General vs. Private Benefit
Police Services
Street
Maintenan
Park Maintenance
ecreation Classes
ertain Appeals
Non -Profit
Facility Rental
Zoning and
lanning Approvals
Fire Prevention
Inspections
Commercial
cility Rentals
City Council Policy F-4 — Revenue Measures
The City will establish appropriate cost -recovery targets for its fee structure
and will annually adjust its fee structure to ensure that the fees continue to
meet cost recovery targets.
Newport Beach Municipal Code Section 3.36.030 mandates Z00% cost recovery
(except for subsidized services identified in the
municipal code)
City of Newport Beach — Finance Department
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Fees Last Updated: [Fee Changes:
2020
Sample Services:
Entitlement review
and review of
development
applications for
zoning code
compliance.
Construction plan
review, permitting,
and inspection
New Fees:
1)
2)
General Plan Fee
Litigation
Defense Fee
Net Revenue
Impact: $500,000
• Building Fees:
• No new fees are proposed
• Continue to follow the City's adopted cost recovery policy
• Proposed fee adjustments of approximately 3%
• Planning Fees:
• Implement a General Plan Maintenance Fee
• Purpose of Fee: Offset a portion of the costs of General Plan
Maintenance.
• Fee Amount: 5% of building permit fee.
• Fee Precedent: Similar fee is collected by other agencies
throughout the region/State. Fee aligns well to the region.
• Litigation Defense Fee
• Formally document in the fee schedule that the City will pass -
through to the applicant, the full costs of project -related legal
review fees.
• Stakeholder Review:
• Staff reviewed proposed fee adjustments with the regional
Building Industry Association (BIA).
City of Newport Beach — Finance Department
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Fees Last Updated:
2022
Sample Services:
Inspections, plan
reviews, operational
permits, EMS fees
and paramedic
subscription fees,
Junior Lifeguard
Program Fees
New Fees:
1) Alarm Rvw > 2
stories
2) Sprinkler Rvw >
2 stories
Net Revenue
Impact:
$90,000
Fee Changes:
• Fire Prevention Fees:
• Fire Prevention fees were most recently examined in 2022.
Only minor changes are proposed.
• Fees are primarily being recalibrated to reflect the cost of
service.
• Two new fees proposed to enhance correlation between
service provided and fee collected. Fee restructuring
enables scaling of fees for fire alarm system review and fire
sprinkler system review for buildings in excess of two
stories.
• EMS Fees:
• Emergency Transport Fees to Increase by 2%.
• Paramedic Subscription Fee to Increase by $2 per month
effective January 2024
• Current Fee = s6o per year
• Proposed Fee = s84 per year
City of Newport Beach — Finance Department
I �e
Fees Last Updated: Fee Changes:
2020 , • Police Administrative Fees:
Sample Services:
Specialized permit
review, vehicle
release,
Animal regulation
fees
L
rNew Fees:
Animal related fees
L
FNet Revenue
Impact:
L $30, 000
• No new fees are proposed
• Continue to follow the City's adopted cost recovery policy
• Majority of Proposed fee adjustments are approximately
5%
• Animal Regulation Fees:
• Establish a reduced adoption fee for animals over 8 years
old, to encourage adoption of aged animals. Reduced fee
aligns to the region.
• Establish fee administering court ordered inspections
(recover City costs).
• Establish fee for voluntary turn -in of unaltered animals. The
City incurs more costs when unaltered animals are turned -in
due to additional veterinary costs associated with
spaying/neutering animal.
• Establish additional fee for licensing animals that have been
declared dangerous due to increased cost of regulation
(recover City costs).
uty or ivewpori beacn - rinance Department
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• Document pass -through fee of vendor payment processing
costs for payments made via cell phone applications (e.g.,
payment of parking meter fees via cell phone app).
• Fee is charged by the vendor and passed directly back to
the vendor.
• Net so revenue to City.
City of Newport Beach — Finance Department
DepartmentRevenue
FY • Proposed
Impact
Community Development Department
$500,000
Fire Department
$90,000
Police Department
$30,000
Total
s620,000
• Proposed fee updates will result in approximately s620,000 of
additional revenue next fiscal year
• Additional revenues expected from proposed changes to fees
and charges are intended to offset the cost of providing existing
services associated with those fee -related regulatory functions.
City of Newport Beach — Finance Department
9
,-Annual subsidy is proposed for General Plan Maintenance costs. Majority of General Plan
Maintenance costs will continue to be tax -funded.
2City recovery of EMS costs is limited. Only portion of cost of service is recoverable.
3Annual subsidy is proposed for animal regulation costs. Majority of costs of animal regulation will
continue to be tax -funded.
City of Newport Beach — Finance Department
10
Business Finance Council Council
Improvement Committee Review and Second
Association, Reviewed First Ordinance
Planning Ordinance Reading/Adop
Commission Reading of tion of
Proposed Proposed
NBMC NBMC
Changes Changes
Additional •
IL It
Reviews 2023 2023•
Earliest
effective date
for fee
updates
Conduct a public hearing, Approve the
FY 2022-23 Fee Study Update, and
Introduce the Ordinance
City of Newport Beach — Finance Department
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Questions?
City of Newport Beach — Finance Department
12