Council discusses fee study, consultant timeline and limits on new revenue

Council members pressed staff about a consultant recently retained to evaluate citywide fees and other revenue options during a work-session discussion that preceded the regular meeting.

Staff said the last fee study for parks and recreation was in 2011 and the city completed a core-fee review around 2017. Internal-control work after an EFT fraud incident was done in 2020'1 and that consultant recommended moving away from cash handling for certain functions. The recently retained revenue consultant will assemble legally permissible revenue options and is expected to provide community-engagement results in time for the council's retreat and the budget process.

Council and staff discussed a proposed approach to capital replacement funding: creating separate replacement funds for public-safety equipment and for small equipment (trailers, mowers) with an annual set-aside (roughly one-fifth over a five-year life). Initial funding would come from the city's Strategic Reserve and council would review full funding in the budget process.

On revenue options, staff reiterated the common-law cost-recovery test: fees must be tied to recovery of actual cost; otherwise the charge is treated as a tax and may be impermissible without statutory authority. Council and staff cited practical constraints on relying on fees in place of property tax and said a consultant will provide a menu of legal, reasonable options for Coppell.