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MeetingtheChallengeTaskForce <br />ReviewofGeneralFundRevenueAlternatives <br />January22,2010 <br />Expanded/IncreasedChargesforServiceʹNotRecommendedasMajorRevenueSource <br />DescriptionThesearechargestocustomerswhopurchase,useordirectlybenefit <br />fromaspecificgoodorserviceprovidedbytheCity.Thechargeis <br />usuallyimposedasafeeatthetimeandlocationagoodorserviceis <br />delivered.Somechargesforservicearecontractual.Revenue <br />reimbursestheCityforpartorallcostsforprovisionofthegoodor <br />service.Businessprivilegelicenses,finesandusepermitsarenot <br />consideredchargesforserviceandarenotincludedinthisdiscussion. <br />MeetingtheChallengeActionTheTaskForcerecommendedreviewingexistingfeesforservices <br />regularlyandmakingpredictable,periodicadjustmentstoreflectthe <br />increasedcostofdoingbusiness. <br />LegalAuthority&RestrictionsUnderKƌĞŐŽŶ͛ƐHomeRuleprincipal,amunicipalitymaychargeforthe <br />provisionofgoodsandservices.Revenuesarenotrestricted. <br />PrecedenceMostcitiesimposeawiderangeofcharges.TheCityofEugene <br />currentlyimposeschargesformorethan120specificGeneralfunded <br />goodsandservices,providingestimatedrevenueofabout$10.4million <br />fortheGeneralFundinFY10.Itispossibletoestablishnewchargesfor <br />goodsandservicesnotcurrentlychargedfor. <br />RevenueYield&StabilityChargesmayprovideallbutmoretypicallyyieldonlypartofthedirect <br />costofprovidingtheservices.Overheadcostsmayalsobeincludedin <br />thecostrecoverycalculationforservicecharges. <br />Feesareusuallysetwithconsiderationoftheimpactonthecustomer <br />aswellastherevenueyield.Someconsiderationsthatmightinfluence <br />governmentalpricingpracticesaretheneedtoregulatedemand,the <br />desiretosubsidizeacertainproduct,administrativeconcernssuchas <br />thecostofcollection,andthepromotionofothergoals. <br />ConsumptionofsomeCitygoodsandservicesiselasticandifcharges <br />aresettoohigh,customervolumeandeventuallyrevenuemaydecline. <br />SomefeerevenueswillvarywitheconomicconditionsasŝŶĚŝǀŝĚƵĂů͛Ɛ <br />incomeincreasesordecreases.Changesinbuildingactivitywillimpact <br />revenuefromchargesforplanningservices.Theseconcernsaretaken <br />intoaccountbydepartmentswhenfeesaresetorcontractsare <br />negotiated. <br />SummaryofFY10budgetedrevenuesforchargesforservice: <br />RentalRevenue:$90,000 <br />CentralBusinessFunctions:$20,500 <br />Cultural/LeisureServiceRevenues:$5.1million <br />InfrastructureandPlanningServicesRevenue:$1.1million <br />PublicSafetyServiceRevenues:$4.1million <br />Largestindividualchargesforserviceinclude: <br /> <br />