Title
Resolution to Approve Fiscal Year 2027 Fee Adjustments for the Public Services Area
Memorandum
Mayor and Council, for your consideration and approval are fee adjustments for the Public Services Areas - Engineering, Systems Planning, Public Works, Solid Waste, Transportation, and Water Treatment Units for the 2027 fiscal year. Each year, in conjunction with the preparation of the budget, Service Areas/Service Units review license and fee revenues to determine if the cost of services rendered are covered by the changes. When determining the costs, Service Units consider increases or decreases in expenses such as labor, materials, equipment, contracted services, and overhead costs. The increases vary for the purposes of full cost recovery. Decreases vary more widely due to efficiency improvements, equipment pricing fluctuations, and lower wages in a new workforce. As listed by services unit and sub activity, the basis of fee adjustments is as follows.
1.) Engineering
a. License Agreements
i. Fee revisions are adjusted based on current hourly wages, current overhead rates, and to accurately reflect staff time.
b. Private Development Civil Plan Review
i. Fee revisions are adjusted based on current hourly wages, current overhead rates, and to accurately reflect staff time.
c. Private Development Construction Engineering
i. Fee revisions are adjusted based on current hourly wages, current overhead rates, and to accurately reflect staff time.
d. Right-of Way
i. Fee revisions are adjusted based on current hourly wages, current overhead rates, and to accurately reflect staff time.
2.) Systems Planning Service Unit
a. Soil Erosion & Sedimentation Control
i. Fee revisions are adjusted based on current hourly wages, current overhead rates, and to accurately reflect staff time.
b. Systems Planning Staff Review of Planning Petitions
i. Fee revisions are adjusted based on current hourly wages, current overheard rates, and to accurately reflect staff time.
3.) Public Works
a. Customer Service - Meters
i. Fee revisions are adjusted based on current hourly wages and to accurately reflect staff time. Fees also reflect changing material costs (both increases and decreases).
ii. Increases are associated with full cost recovery for services rendered and will be gradually increased until achieved.
iii. Decreases are associated with fluctuating material costs.
b. Customer Services - Residential Parking
i. Fee revisions are adjusted using an escalation factor and will be gradually increased until full cost recovery is achieved.
c. Forestry
i. Fee revisions are adjusted based on current hourly wages, current overhead rates, and to accurately reflect staff time.
d. Storm Sewer
i. Fee revisions are adjusted based on current hourly wages, current overhead rates, and to accurately reflect staff time.
e. Water
i. Fee revisions are adjusted for current hourly wages, current overhead rates, and to accurately reflect staff time.
ii. Increases are associated with full cost recovery for services rendered and will be gradually increased until achieved.
4.) Solid Waste
a. Solid Waste
i. Fee revisions are adjusted for current hourly wages, current overhead rates, and to accurately reflect staff time.
ii. Increases are associated with full cost recovery for services rendered and will be gradually increased until achieved.
iii. Decreases are associated with staff turnover.
b. Solid Waste - Franchise
i. Fee revisions are adjusted to reflect current contracted rates.
5.) Transportation
a. Signs and Signals
i. Fee revisions are adjusted for current hourly wages, current overhead rates, and to accurately reflect staff time.
ii. Increases are associated with full cost recovery for services rendered and will be gradually increased until achieved.
b. Traffic Engineering Review of Planning Petitions
i. Fee revisions are adjusted for current hourly wages, current overhead rates, and to accurately reflect staff time.
6.) Water Treatment
a. Bacti Testing
i. Fee revisions are adjusted for current hourly wages, current overhead rates, and to accurately reflect staff time.
Budget/Fiscal Impact: The net impact of the fee revisions is estimated to be an increase of $137,531.00. This impact was calculated by using the estimated annual instances of each fee. The Public Services Area is recommending approval of increases for the Engineering, Systems Planning, Public Works, Solid Waste, Transportation, and Water Treatment Units. These fully burdened costs were based upon estimated time spent providing the service, vehicle expenses, IT costs, materials & supplies, and the municipal service charge.
Staff
Prepared by: Ed Ader, Financial Manager
Reviewed by: Marti Praschan, Chief Financial Officer
Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Public Services Area Service Units have reviewed their fees as part of the FY 2027 budget process;
Whereas, Fees in Engineering, Systems Planning, Public Works, Solid Waste, Transportation, and Water Treatment were found to not recover accurate, fully burdened costs to provide services; and
Whereas, Some fees were reduced to reflect actual costs;
RESOLVED, That the fees in the Public Services Area Engineering, Systems Planning, Public Works, Solid Waste, Transportation, and Water Treatment Units be adjusted according to the attached schedule;
RESOLVED, That the attached fee adjustments become effective July 1, 2026; and
RESOLVED, That City Council authorizes the City Administrator to take necessary administrative actions to implement this resolution.