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

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O different than the benefit and value of a program or service, and therefore, should be dealt with during the implementation phase of pricing and community outreach.) • Do community values support taxpayer investment for the cost of service for individuals with special needs (for example, people with disabilities or low-income)? • Will the level of the fee affect the demand for the service? • Is it possible and desirable to manage demand for a service by changing the level of thefee? • Are there competing providers of the service in the public or private sector? The application of the model is broken down into the following steps: Phase 1: (see Appendix: Cost Recovery Plan— Phase Appendix: Cost Recovery Plan — Phase l) 1. Assign all programs and services to a benefit level (1— 5) within the Cost Recovery Pyramid 2. Reach out to stakeholder groups for feedback Phase II: 3. Establish cost recovery goals for each program and service 4. Gather cost and participant data Phase III: 5. Calculate initial fees 6. Adjust fees based on special circumstances 7. Present plan to boards or stakeholder groups 8. Present plan to City Council for Adoption Step 1: Understanding the Pyramid Methodology and Who Benefits The creation of a cost recovery allocation philosophy and policy is a key component to maintaining financial control, equitably pricing offerings, and helping to identify core services and programs. The principal foundation of the pyramid is determining who received the benefit. Each level of the pyramid from the bottom to the top is described below (see Appendix: Cost Recovery Pyramid). Each user fee is assigned to one of 5 levels within the pyramid based upon an assessment of its service and cost recovery values, Group 1 being composed of the programs/services that tend more strongly toward community service values being of primary consideration, and Group 5 being composed of the programs/services that tend most strongly toward cost recovery values being of primary consideration. Services/programs are assessed for placement within the pyramid using the following criteria: Group 1: Community Programs/Services - Represents those programs and services that benefit the community as a whole. These programs and services increase property values, provide safety, address social needs, and enhance quality of life forthe residents. The community generally expects the City to offer these services and supports paying for these basic services through taxes. These services are offered to residents at minimal or no fee. Group 2: Community/Individual Programs/Services - Represents those programs and services that promote individual physical and mental well-being, and provide recreational skill development. They are generally the more traditionally expected services and beginner instructional levels. G Group 3:Individual/Community Programs/Services- Represents services that promote individual physical and mental well-being, and provide an intermediate level of recreational skill development. 15