HomeMy WebLinkAboutFinance Commission Request to Discuss and Review the City's 7rlul /I
2000 Main Street,
Huntington Beach.CA
City of Huntington Beach R ,,� 7 d
File #: 22-151 MEETING DATE: 3/1/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Sean Joyce, Interim City Manager
PREPARED BY: Dahle Bulosan, Chief Financial Officer
Subject:
Finance Commission Request to Discuss and Review the City's Master Fee and Charges
Schedule
Statement of Issue:
On January 26, 2022, the Finance Commission voted to request that the City Council direct the
Finance Department to review the Master Fees and Charges Schedule, and that the results be
reviewed by Finance Commission prior to any City Council decision on the matter.
Financial Impact:
None
Recommended Action:
Direct staff to review the Master Fees and Charges Schedule and review the results with Finance
Commission for input and recommendations prior to City Council consideration.
Alternative Action(s):
Do not approve the recommended action(s) and direct staff accordingly.
Analysis:
Local government operations are primarily funded from taxes, user fees and charges, fines, and
grants. The City of Huntington Beach charges fees for providing various services and programs to
residents, businesses operating in the City, and visitors. These fees include providing cultural and
recreational activities, issuing business licenses and permits, activating residential water and sewer
accounts, and many other services. In some cases, fees are charged at full-cost recovery for
providing services. In other cases, fee recovery is less than 100 percent, which can be due either to
market conditions, government mandated caps or the recognized benefit of subsidizing certain
programs to the community.
Many of the City's fees and charges have not been updated since the City completed the last
comprehensive fee study in FY 2016/17. Industry best practice is to review fees every three to five
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File #: 22-151 MEETING DATE: 3/1/2022
years to allow for up to full cost recovery. Citywide user fees and charges generate approximately
$20 million in revenue across all funds. An opportunity exists to recover additional costs of services
by updating the City Master Fee and Charges Schedule. On January 26, 2022, the Finance
Commission voted to request that the City Council direct the Finance Department to review the
Master Fees and Charges Schedule, and that the results be reviewed by the Finance Commission
prior to any City Council decision on the matter.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
None
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