HomeMy WebLinkAbout1990-05-15 - AGENDA REPORTS - FEE STUDY MSI (2)AGENDA REPORT
UNFINISHED BUSINESS
DATE: May 15, 1990
SUBJECT: Management Services Institute
Cost -to -Provide -Service Study
DEPARTMENT: Finance IA
-/V-LV
BACKGROUND
City Manager Approval
Item to be presented by:
Andrea Daroca
As a result of the Management Services Institute study, the City now possesses
the basis for making necessary adjustments to its method of financing services
and capital needs.
The basic issue involved in viewing the results of this report is to what level
fees should be expected to support the costs of the services provided or to what
extent general taxes should be used to subsidize the difference between the cost
of each service and the revenues produced from fees paid by the user of that -
service. It is quite evident that, at this point, we are placing undue pressure
on the use of our public tax monies. Ultimate decisions the City Council must
make regarding the study are:
Is the full cost of each service recognized? If not, what level
of subsidy or recovery is desired?
This report has been a massive undertaking by all departments in the City. In
order to realize the full benefit of the data provided in this report, MSI has
recommended the position of financial analyst be added to update all fees and
implement the fee ordinance.
RECOMMENDATION
That the City Council discuss report and continue to the study session of June 6
for further discussion.
Agenda Item: