Updating the City's Service Fees pursuant to Rocklin Municipal Code section 3.32.050

A. Adopt an Ordinance of the City Council of the City of Rocklin Repealing and Replacing section 3.32.050 of the Rocklin Municipal Code Related to the Establishment of Service Fees

B. Adopt a Resolution of the City Council of the City of Rocklin Amending the Schedule of Fees for City Services (Rocklin Municipal Code Chapter 3.32) and Repealing Resolution No. 2021-192

On September 27, 2022, the City Council introduced an ordinance to revise the Rocklin Municipal Code pertaining to the City’s service fees. The Ordinance establishes the services that the City provides for a fee. As part of the presentation package for that ordinance, the City Council received a draft of the Resolution that sets the amounts of the fees to be charged and the full cost of providing each fee service. At this time, the Ordinance and the Resolution are presented for adoption.

Generally, state law requires that fees charged by local agencies cannot exceed the reasonably estimated cost of providing the service. The methodology used to determine the fees is developed by a detailed analysis of the cost to provide each service based on the time spent by every City staffer involved in providing the service. Staff determines the “Fully Burdened Hourly Rate” of every City position. This rate includes salary, benefits and direct and indirect overhead expenses for every position in the City that performs a fee service. The inputs used in these calculations are from the Fiscal Year 2022/23 Operating Budget. Staff provided the time required by each staff member to complete their part of a fee service, as well as the cost of equipment or supplies needed specifically for that service. The fundamental purpose of service fees is to reduce subsidies from the general fund for the cost of services that do not benefit the whole city.

Changes to City service fees are driven by 3 factors: 1) changes to the fully burdened hourly rates, 2) adjustments to the staff and time required to perform a fee service, and 3) increasing the cost recovery % to approach 100% recovery where possible. Exhibit 1 of the resolution shows the fees and cost recovery.

At the September 27 meeting, the City Council discussed the proposed changes and received public comment regarding the proposed service fees. After deliberation, the City Council requested the following changes, which are reflected in Exhibit 1 of the Resolution:

1. Fireworks booth permit fee changed to $375.
2. The Community Development - Planning fees were capped at a 10% increase.

If adopted, the fees set forth by the Resolution will go into effect January 1, 2023.

Although the exact number of each fee service provided is unknown, the Fee Study is a mechanism to ensure the recovery of costs for services provided.