Commission prefers two-year phase-in for user-fee increases after cost-of-service study

Finance staff presented a master user-fees and charges policy designed to standardize cost-recovery targets across services and provide transparency for applicants and residents.

Nick explained the policy framework and five guiding factors (distinguishing communitywide versus special-benefit services, equity for social services, enterprise services, transparency and recoverable direct costs). He described that staff will recommend specific dollar amounts and recovery targets to City Council but are not changing fees at tonight's meeting.

Staff presented three phase-in options for higher-impact increases: immediate implementation (Option 1), a two-year phase-in (Option 2), and a three-year phase-in (Option 3). Commissioners voiced concern about "sticker shock" for residents and small organizations and widely favored Option 2 (two-year phase-in) as a reasonable balance between cost recovery and affordability. Several commissioners suggested targeted longer phase-ins for social-service fees or thresholds (for example, exemptions or waivers for certain programs) and recommended grandfathering for projects already in process.

Commissioners asked staff to provide: (1) the proposed dollar schedule tied to recovery percentages; (2) sample impacts on common permits and recreation fees; and (3) proposed criteria for fee waivers. Staff said they will present comparative data, estimated revenue impacts and recommended phase-in schedules to City Council for final decisions.