Res 2019-103/approving a Fee Policy that incorporates a cost recovery methodology

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of services that should be examined for cost saving or avoidance tactics. Expenses maybe minimized O through avenues such as restructuring of programs, management efficiencies, and partnering with outside agencies. Options are available for those with economic need. San Marcos provides discount opportunities that vary by department. Such opportunities may include: multi -child discounts, early bird registration, or scholarships. All fee reductions are subject to change and dependent on funding availability. Step 7: Implementation The departments have set their goals based upon core values, stakeholder input, funding availability, and other criteria. Some recommendations are scheduled to occur immediately, and others will take time to put into place, while some will be implemented incrementally. It is important that fee change tolerance levels are considered. Once a final price has been determined by department staff the complete Cost Recovery Plan will be presented to stakeholder groups for feedback. Each department will then revise any necessary changes to present final Cost Recovery Plan with all user fees to City Council during the annual budget process. Some departments will strategically set price adjustments to occur incrementally over several years to reach cost recovery targets, where other departments may choose to only modify price once every 3 —5 years with cumulative price adjustments. Step 8: Evaluation O This process has been undertaken in order to articulate a philosophy and a best practice ongoing approach to cost recovery across all departments within the City. Performance measures have been established through cost recovery targets, specific recommendations have been made for programs/services found to be out of alignment, and evaluation of goal attainment is recommended to take place annually. Current cost recovery will be refined over the first year of implementation for each department as steps are taken to more accurately account for revenues and expenditures by service area. This first-year implementation of the Cost Recovery Plan will allow communication of the methodology, policy, and adjustment of fees as indicated by the Cost Recovery Plan. It will also allow for staff to see the implications for overall cost recovery; identify any currently unknown market, historical, and political considerations; and provide staff experience in using the methodology. Conclusion The City of San Marcos strives to maintain its reputation for providing exceptional parks, places, programs and services at a good value to our taxpayers and customers and for preserving and protecting our City s natural resources. Our community size and population is expected to experience rapid growth over the next twenty years and our Departments must be prepared to grow accordingly. The formalization of our fee policy provides us with a comprehensive long-term strategy to address current and future needs of the San Marcos community and demands upon the Departments. Through the Fee Policy and Cost Recovery recommendations, the City of San Marcos is taking on a very O aggressive goal of meeting its cost recovery targets. This can be accomplished through a combination 1g