Background
As directed by the Council adopted Financial Management Policy Statements (FMPS), the Budget Office annually reviews the City's fees for various services to ensure they accurately reflect market conditions and makes recommendations of new fees that may be needed. The primary objective of reviewing existing fees and proposing new fees is to recover all or a portion of the cost of providing services. The new fees being recommended and changes to existing fees have been set at a level to recover cost or based on market conditions. The projected FY19 fee schedule is being adjusted based on the consumer price index (CPI) adjustment percentages in combination with departmental input to better recover City costs.
Existing Fee Changes
CPI Adjustment
Fees for various services were adjusted utilizing the CPI for the Houston-Sugar Land- Baytown MSA percentage change from February 2017 to February 2018. The fees were adjusted by 2.6% based on the CPI, or as allowed by Local Government Code, and rounded to the nearest quarter-dollar in accordance with FMPS direction. All fees to be adjusted were evaluated by each responsible department to determine if market conditions warranted a CPI adjustment. The total fees to be adjusted in FY19 are 487 out of approximately 600 fees.
Some departments do not recommend changing current fee amounts due to the following factors:
- New fee amount would put the City out of market, or
- The current fee is sufficient.
New Fees and Other Adjustments
Parks Fees: Cost Recovery for City Services
The Parks Department has been evaluating cost recovery for non-resident fees associated with memberships. As a result, the Department is recommending moving forward with increases to support the direct costs associated with providing those services.
- Non-resident memberships for IPRC and TE Harman Center from $58 to $155
This fee change is effective January 1, 2019.
City Secretary: Public Information Act Fees
The City of Sugar Land, in accordance with State Law, adopted Resolution No. 10-20, which provides for the implementation of a policy regarding costs associated with the Public Information Act and Open Records Requests that require significant staff time to prepare. The ability to charge the allowable state charges, as per the Government Code Section 552.275, must be established in the fee Ordinance. The current fee Ordinance does not have this provision, and is being recommended as a new few by the City Secretary’s office. This will ensure the City is able to recover costs for staff time to satisfy extensive requests.
Fees under this section will be effective October 1, 2018.
Environmental & Neighborhood Services: Food Trucks
The Environmental & Neighborhood Services department has proposed adding the following fees as described below in addition to annual CPI adjustments to existing fees. These fees are being brought forward in Ordinance No. 2136 amending the food code, but are included in this ordinance to ensure consistency in the code.
These new fees are effective immediately upon approval of second reading of Ordinance No. 2136.
- Temporary food establishment permit Type 2…$475.00
- Temporary Food Establishment Type 2 permits will be issued for events that are temporary or seasonal but do not exceed 110 days in a permit year. Type 2 permits are a flat fee as listed in chapter 2 in the Food Establishments code.
- Temporary vendor fee...$20.00
- Event Producers that utilize Temporary Food Establishments that do not have a current Food Establishment permit or medallion issued by the City will be charged a temporary vendor fee per vendor.
- Fire Mobile Food Unit inspection fee…$40.00
- A fire inspection fee will be charged on an annual basis in conjunction with the Mobile Food Unit medallion fee. Mobile Food Units operating under a current permit or medallion issued by another jurisdiction located in Fort Bend County with comparable regulations (as determined by the Sugar Land Fire Department) will be exempted from the annual fire inspection.
- Dog variance fee…$200.00
- A Fixed Food Establishment may obtain a dog variance from the City to allow domesticated dogs at an outside patio. A dog variance will not be granted for any other type of domesticated animal. A dog variance is not required for service animals or police K-9s.
Residential Solid Waste
Each year, the contractual rate with Republic Services is subject to adjustment by the CPI or 2.5%, whichever is greater. The contract with Best Trash (service to Greatwood) is increasing by 2.6%. The monthly service charge to residents is adjusted by 2.5%, as this cost is a pass through to residents by the City. The rate will increase from $18.45 to $18.91 per month effective for services billed on or after January 1, 2019.
Financial Impact
With the implementation of modified fees, the CPI adjustments to existing fees and residential solid waste collection fee increase to offset Solid Waste contractual increase, the City will generate additional revenues to cover the increased cost of providing services.
The total estimated financial impact of the fee adjustments is $224,876. The revenues have been included in the FY2019 budget.
General Fund: $79,601
- Community Development Fees: $34,611
- Fire-EMS Fees: $44,990
Solid Waste Fund
Recommendation
Staff recommends approval of first reading of Ordinance No. 2139. Second reading will be placed on the September 18, 2018 agenda for consideration. Fee changes are effective January 1, 2019, except for section 7(d) Public Information Act fees- which are effective October 1, 2018.