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Traditional Diversity Tools

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Proposition 218 made sweeping changes in the way that cities manage and ... And maybe adds a few bucks to provide services, too. 11. Timing Is Everything ... – PowerPoint PPT presentation

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Title: Traditional Diversity Tools


1
Traditional Diversity Tools
League of California Cities Annual
Conference October 2002
  • Presented By
  • Bill Statler, Director of Finance/City Treasurer
  • City of San Luis Obispo
  • Mike Dennis, Director of Finance
  • City of Santa Monica

2
Overview
  • Proposition 218 made sweeping changes in the way
    that cities manage and control their revenues.
  • New standards for voter or property owner
    approval of
  • Assessments
  • Taxes
  • And many (but not all) fees

3
But Still Discretion in Fees Fines
  • User Charges and Fees
  • General Fund
  • Enterprise Funds
  • Includes development review and impact fees under
    AB 1600
  • Municipal Code Fines

4
Staying in Touch with These Tools
  • Many cities in the wake of State budget grabs and
    recession of the mid-1990s took a close look at
    these
  • But with the passage of time, are they still in
    place and make sense?

5
3 Reasons for a Re-Look
  • Have they been updated on an ongoing basis and
    are the policy basis and analytics underlying
    them still valid?
  • One of the few remaining areas for local elected
    official judgment.
  • And if there are areas where user fees should
    appropriately fund service costs but they
    arent then general-purpose revenues are being
    used instead.
  • And lastly, they help achieve better revenue
    diversity a worthy goal on its own merits.

6
User Fees
  • Five Key Policy Questions
  • What does it cost the City to provide various
    services?
  • Are these costs reasonable?
  • What are current cost recovery levels?
  • What should the cost recovery level be?
  • What fee changes are necessary to implement the
    Citys cost recovery policies?

7
Related Issues
  • Ongoing Updates Whats Your Strategy?
  • Indirect Cost Allocation Plan

8
Impact Fees
  • Do you have clear policies regarding new
    developments responsibility to cover the
    facility costs necessary to serve it?
  • When general-purpose revenues will be used for
    this?
  • And when wont they?

9
Fines and Meters
  • Generally, Two Types of Vehicle-Related Fines and
    Fees
  • Fines issued for violations under the California
    Vehicle Code (CVC).
  • And those issued under local law through the
    municipal code.
  • Parking meter violations
  • Street cleaning
  • Preferential parking
  • Disobeying signs.
  • Parking in a red zone

10
Why Take A Close Look At These?
  • Good Policy
  • Discourages Bad Behavior
  • Parking in a red zone.
  • Encourages Good Behavior
  • Moving cars on street cleaning days.
  • Turnover for business customers.
  • Reducing vehicle trips and encouraging
    alternative transportation.
  • And maybe adds a few bucks to provide services,
    too.

11
Timing Is Everything
  • So, when do you do these re-looks at your
    diversity management tools?
  • Outside of the budget process, where they can be
    dispassionately viewed on their own
    philosophical merits?
  • Integral part of the budget process, so that the
    resource trade-offs between setting user fees at
    an appropriate level versus the ability to fund
    high-priority initiatives are clear?
  • This message may be easier to communicate when
    the real-world benefits are clear and compelling.
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