HomeMy WebLinkAbout2001-05-29 City CouncilTO:
.BUDGET
’01-’03 City of Palo Alto
City Manager’s Report
HONORABLE CITY COUNCIL
ATTENTION:
FROM:
FINANCE COMMITTEE
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:
SUBJECT:
MAY 29, 2001
MUNICIPAL FEE
AMENDMENTS
, CMR: 252:01
SCHEDULE WITH 2001-02 PROPOSED
RECOMMENDATION
Staff recommends that the City Council approve the proposed changes to the Municipal Fee
Schedule for fiscal year 2001-02.
DISCUSSION
This staff report transmits the Municipal Fee Schedule for fiscal year 2001-02. Changes to
the Municipal Fee Schedule are shaded and deleted text is lined through. The proposed
changes are estimated to increase 2001-02 revenues by $1.34 million, when compared to the
2000-01 Adjusted Budget. Of the estimated $1.34 million, $1.25 million will go to the
General Fund, and $.09 million will go to the External Services Enterprise Fund.
Several of the fee increases are tied to adjustments in the Consumer Price Index (CPI) which
in. February 2001 had measured increases of 6.5% in the Bay Area.
The major changes to the Municipal Fee Schedule follow:
1. ¯ The Human Resources Department has proposed a new set of fees for training classes
provided to neighboring municipalities and community organizations; for room rentals
at Cubberley; and for special events such as the Chamber of Commerce Business Success
Series. These new fees will increase revenue by approximately $85,000 (External
Services Enterprise Fund).
o Cost recovery-re!ated fee increases in the Fire Department, such as fire protection
systems, hazardous materials storage permits, inspection fees, paramedic services, and
other permits, have an approximate revenue increase of $83,000.
CMR: 252:01 Page 1 of 3
Cost recovery-related increases in Planning Department fees for development-related
permits, inspections, plan review and documents. The anticipated revenue impact is
$233,000. In accordance with state law, these fees will not go into effect until sixty (60)
days after Council adoption.
The Community Services Department is proposing various fee increases in conjunction
with adjustments in the CPI: admission fee increases in Arts and Culture Division, with
anticipated revenue impact, of $35,000; and admission fee, facility rental, and targeted
personnel increases in the Recreation, Open Space and Sciences Division, with an
estimated revenue impact of $296,000. Proposed golf fee increases are based on the plan
for repayment of the bond issuance that has financed capital work on the course. Their
revenue impact is estimated at $304,000. The approximate revenue impact of-these
combined changes is $635,000.
In the Police Department new fees are added for alarm registration, with an anticipated
revenue impact of $200,000, and the fee for police reports is increasing, with increased
revenues estimated at. $100,000.
Other proposed changes with nominal or~no fiscal impact include:
a) Increases in citywide fees for document reproduction based on the adjustment in the
CPI. ¯
b) Police Department increases in Animal Services fees, due to the adjustment in CPI
and industry standards.
c) Encroachment and service related fees in the Public Works department are increasing
in relation to CPI.
d) The parking penalty section of the Police Department fees has been removed from the
Municipal Fee Schedule, and will be placed in an amendment to the Administrative
Penalties Schedule, scheduled for Council adoption by Ju!y 1.
RESOURCE IMPACT
Approval of the Municipal Fee Schedule with proposed amendments will result in a net
revenue increase of approximately $1.34 million compared to the 2000-01 Adjusted Budget.
All fees in the 2001-02 Municipal Fee Schedule are intended to offset expenditures incurred
by City departments in providing these services. The 2001-03 Proposed Budget reflects
these changes in the respective revenue categories. ..
POLICY IMPLICATIONS
These recommendations are consistent with existing City policies.
ENVIRONMENTAL ASSESSMENT
Adjustment to the Municipal Fee Schedule does not constitute a project for the purposes of
the California Environmental Quality Act.
CMR: 252:01 Page 2 of 3
PREPARED BY:
NANCY NAGEL, Senior Financial Analyst
DEPARTMENTAL APPROVAL:
CITY MANAGER APPROVAL:
~
’~~ yE~-~~ector
Adminis~t~tive Services
Assistant City Manager
CMR: 252:01 Page 3 of 3