HomeMy WebLinkAbout1997-06-03 City Council (11)BUDGET 1997-98
City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
ATTENTION: FINANCE COMMITTEE
FROM:CITY MANAGER
AGENDA DATE: JUNE 3, 1997
DEPARTMENT: ADMINISTRATIVE
SERVICES
CMR:264:97
SUBJECT:MUNICIPAL FEE SCHEDULE WITH 1997-98 PROPOSED
AMENDMENTS
REQUEST
This report transmits the Municipal Fee Schedule with proposed amendments for the 1997-98
fiscal year.
_RECOMMENDATION
Staff recommends that the City Council approve the proposed changes to the Municipal Fee
Schedule.
POLICY IMPLICATIONS
These recommendations are consistent with existing policies.
EXECUTIVE SUMMARY
This report transmits the Municipal Fee Schedule for the 1997-98 fiscal year. Changes or
additions to the Municipal Fee Schedule are highlighted for easy reference and would
increase revenue in 1997-98 by an estimated $349,000, when compared to the 1997-98
budget adopted in concept. The majority of the revenue increase is due to programs in the
Planning and Police Departments which have been added since the adoption of the 1996-97
budget. Other revenue changes, such as revenue adjustments due to changed program
activity, are described in each department’s Resource Level Changes in the City Manager’s
Proposed 1997-98 Budget.
CMR:264:97 Page 1 of 3
There are a number of proposed changes to the Municipal Fee Schedule when compared to
the 1996-97 adopted schedule. They are discussed in more detail below.
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Some current (1996-97) fees have been consolidated because they are fees for the
same services from the Public Works and Utilities Departments. They are now listed
under the Citywide Fees category.
In addition to the above consolidation of fees, new fees are being proposed for the
Utilities Department as part of formalizing procedures related to deregulation.
The Community Services Department has added fees to encourage ongoing or longer-
term use of its Arts and Culture and Cubberley Community Center facilities. It is
proposed that the high-volume use fee at Cubberley be removed for 1997-98, which
is projected to reduce Cubberley revenue by $3,500. As part of the next two-year
budget, staff will return with a proposal for a fee to be charged to for-profit
organizations using Cubberley, which would replace the high-volume fee.
Parking permit fees are proposed to be increased in order to fully cover operating
costs. If approved, the new parking fees will not take effect until September 1, 1997,
which allows the City time to notify current permit holders of the increase. Parking
permit fees are discussed in a separate staff report. Other fees proposed for increase
include those in the Fire and Planning Departments, also to ensure cost recovery.
In response to increased requests for work on Mills Acts and Williamson Act
Contracts, the Planning Department is proposing to add fees to the Fee Schedule for
such work. Both relate to property tax relief, and are often quite complicated and
time-consuming. Mills Act agreements provides tax relief for properties found to
have historic merit if the property owners agree not to modify the aspects of the
property which confer historic status. Williamson Act agreements provide tax relief
for agricultural lands if the owners agree to keep it in agricultural use for the next ten
years.
Fees which were added by ordinance during the 1996-97 fiscal year are not
highlighted in gray since they have already been adopted by Cotmcil previously. This
includes Planning fees for permit streamlining and historic interim regulations, and
Police fees for flea products.
Finally, the Golf Course fees have not been changed to reflect the interim
improvements or proposed capital work. Those proposed fees will accompany the
staff report on the proposed Golf Course capital project when it goes to Council this
summer.
CMR:264:97 Page 2 of 3
FISCAL IMPACT
Approval of the Municipal Fee Schedule with proposed amendments will result in a revenue
increase of approximately $349,000 compared to the 1997-98 budget adopted in concept.
This increase is somewhat offset by decreased revenue, due to lower activity levels in the
Golf Course and Recreation areas, and changed methods for accounting for bad debt in
paramedic fees. These changes are discussed in greater detail in each department’s Resource
Level Changes in the proposed budget.
ENVIRONMENTAL ASSESSMENT
Adjustment to the Municipal Fee Schedule does not constitute a project for the purposes of
the California Environmental Quality Act.
PREPARED BY: Shannon Gaffney, Senior Financial Analyst
DEPARTMENT HEAD APPROVAL:
Emily
Assistant City Manager,
Acting Director,
CITY MANAGER APPROVAL:
CC: n/a
Fleming
Manager
CMR:264:97 Page 3 of 3