The City Council adopted Financial Management Policy Statements (FMPS) provide guidance on creating new fees and performing consumer price index (CPI) adjustments to existing fees. Each year during the budget process, staff brings forward new proposed fees, and evaluates existing fees to determine if a CPI adjustment is needed.  The proposed FY18 budget includes new fees, adjustments, and changes to fee language in accordance with the FMPS.  Of note, there are no changes recommended to water, wastewater, aviation, or surface water fees in the FY18 budget.

New fees, changes, modifications and CPI adjustments to existing fees were reviewed with the Finance Audit Committee on July 27, 2017. The following is a summary list of the new fees, modifications, and changes to fee language:

                                            
General Fund 

Recommendations for CPI adjustments to user fees were presented to the Finance/Audit Committee, and the committee concurred with the included CPI adjustments. All fees to be adjusted were evaluated by each responsible department to determine if market conditions warranted a CPI adjustment, and where appropriate the CPI rate of 2.10% was applied. There are also four additional changes to fees in the General Fund, which includes two new Community Development fees, Parkland Fees in Lieu of Dedication, and Building Permits.

The General Fund includes two new proposed fees for late application submissions for temporary food permits and rental license renewals.  The need for these two new fees is to recover the City cost associated with processing late applications.

Additionally, the Parkland Fee in Lieu of Dedication needs to be relocated to the code of ordinance fee section under Chapter 2, Article V, Division 4 under the 2-136, 5 Planning, Development, and ROW Fees portion.  This fee is $350 per single family lot and the $240 per unit of multi-family development.

House Bill 3329 amends the Occupations Code to prohibit a municipality or region from collecting a permit fee, registration fee, administrative fee, or any other fee from a licensed electrician for work performed in the municipality or region. As a result of this House Bill, the City is proposing to clarify the Code of Ordinance section 2-136. The revised language will be as follows:

    b.  Building permits and plumbing services fee 

         1.  Building permits and plumbing services fee   

    d.  Building permits and mechanical services fee 

         1.  Building permits and mechanical services fee

     e.  Building permits and electrical services fee

          2.  Building permits and electrical services fee 

The current language regarding the valuation of a Plan Checking Fee is not equivalent to the calculation of the minimum permits fee.  The recommendation of revising the Plan Checking Fee valuation language would ensure that it is in line with the City’s minimum permit fee.  The language change will be as follows:

    5.  Plan checking fee.... One-half of building permit fee when valuation exceeds the minimum permit fee.

Fire Protection Fees

Sec 5-241 of the code of ordinances covers fire protection for districts in the city's extraterritorial jurisdiction.  The full cost of fire service has been calculated at $17.68 per fire service connection, per month for 2018, consistent with the formula used in prior years.  Since the Greatwood and New Territory districts will be dissolved in December, the full cost fee applies to MUD 128 and MUD 192.  

Festival Site

To create a more efficient and transparent cost recovery mechanism, the City is recommending revising the language by incorporating pre-established rates that would aid in transparent communication with potential event producers as well as maintain consistent charges for each event. The pre-established rates are more reflective of the actual position type that would be activated during a Special Event. The revised code of ordinance would read as follows:

Cost will be billed based on the pre-established hourly rates below:

The fee for unlisted positions will be based on a reimbursement rate calculated by the City that includes employees’ overtime rate, current TMRS rate, current Medicare tax rate, and worker’s compensation rate.

Enterprise Funds 

There are no recommended changes to GRP pumpage rates, surface water rates, and water and wastewater rates. 

Solid Waste Rates 

Residential solid waste and recycling services will increase from $18.00 per month to $18.45. Residential solid waste fees will increase by 2.5%. This is due to the annual adjustment of 2.5% or CPI (whichever is greater), which is based on a contractual agreement.  Commercial Solid Waste fees and exclusive franchise rates for collection and disposal of commercial solid waste will increase by 2.5% as provided for in the contractual agreement with Republic Services.