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Report regarding a resolution accepting the Comprehensive Citywide Fee Study and adopting the proposed changes to and fees in the Master Fee Schedule for Fiscal Year 2023-24 (Karen Chang, Director of Finance and Jason Wong, Deputy Finance Director)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council (1) hold a public hearing to receive input regarding the adoption of proposed updates to the City of South San Francisco Master Fee Schedule for the Fiscal Year 2023-24; and (2) at the conclusion of the public hearing, consider adopting a resolution approving updates to the City of South San Francisco Master Fee Schedule for the Fiscal Year 2023-24.
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BACKGROUND/DISCUSSION
Tax revenues support City services such as public safety, streets, and other infrastructures. Discretionary services that benefit a specific user group (rather than the entire community) are funded in whole, or part, by user fees. Under state law, public agencies, like the City of South San Francisco, are permitted to recover the costs associated with providing certain services considered to be a "personal choice" or "user fees." Any amount not covered by user fees is then subsidized by General Fund tax dollars or other available sources. Such services are provided to a specific customer for their singular benefit. Some examples of those services are building permits or commercial film permit fees, which benefit the individual and not the community.
By law, most user fees may not exceed the reasonable cost of the service. Propositions 218 and 26 amended Article XIIIC of the California Constitution to require that user fees be limited to the City's reasonable cost of providing the service or benefit. Council can set fees by a simple majority vote. Subject to other exceptions in Article XIIIC and XIIID, a fee for service that exceeds the reasonable cost of providing the service or benefit becomes a tax, which requires a vote of the electorate. Cities perform p...
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