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Enterprise Fund <br /> In order to better monitor the cost of development related services and the recovery of <br /> these costs through user fees, Staff is recommending that the City utilize an enterprise <br /> fund for accounting for development services starting in 2015/16FY. Traditionally these <br /> types of services are accounted for in the General Fund. However, cities that have a <br /> goal of 100% full cost recovery of these expenses, have moved these operations into a <br /> separate enterprise fund to better account for these costs and the recovery of these <br /> costs. <br /> Conclusion <br /> Based upon 2014/15FY data for over 200 development related user fees, the City is <br /> expending $8,840,088 and is estimated to recover only $4,254,015 in revenue. The <br /> result is an annual General Fund subsidy of $4,586,073 of development related <br /> services. The recommended fee increases would reduce this subsidy by approximately <br /> $2.738 million to a new subsidy level of approximately $1,847,492. Staff recommends <br /> the City Council adopt by resolution the increase in development related user fees in <br /> order to reduce the subsidy by the General Fund. Staff also recommends an annual <br /> increase in these fees and construction valuation tables effective January 1 each year <br /> starting January 1, 2017 based on the annual increase in the ENR CCI. Staff <br /> recommends that the City review these fees once every two years as part of the Two <br /> Year budget process in addition to the annual ENR CCI increase, with the goal of <br /> moving towards 100% cost recovery. <br /> Submitted Jointly by: <br /> Emily Wagner Brian Dolan <br /> Special Projects Assistant City Manager <br /> City Manager's Office <br /> Fiscal Review Approved by: <br /> Tina Olsen Nelson Fialho <br /> Director of Finance City Manager <br /> Attachments: <br /> 1. Master Fee Schedule <br /> Page 9 of 9 <br />