The Town Council is looking at a new Comprehensive User Fee policy for town services provided with an expected effective date with the start of next fiscal year on July 1, 2021,

On Sept. 22, the council met in a study session to hear a report on a user fee study conducted by Willdan Financial Services and Pat Walker Consulting LLC. Kevin Burnett of Willdan was present to outline the study findings for council members.

The town engaged the consultants early in 2019 with the objective of having the study complete by the start of the current fiscal year. They were unable to compete the project on that schedule.

The goal of user fees is to recoup as much as 100 percent of the cost of providing various services ranging to plan review, permit review, permit process, facilities rentals and program services. The list also includes things mostly incidental such as making copies and notary services.

“This report and the appendices…identify 100 percent full cost recovery for town services and the proposed fees through discussion with departmental staff,” the report summary states. “The reality of the local government fee environment is that significant increases to achieve 100 percent cost recovery can often not be feasible, desirable or appropriate depending on policy direction – particularly in a single year. The proposed fees identified herein are either at or less than full cost recovery.”

Burnett noted that the fees proposed for development services and public works are much closer to 100 percent cost recovery than those for community programs, youth sports or various facilities rental.

The fee proposals for Community Services are in many cases based on resident, non-resident or non-profit or commercial uses. For instance, Community Services Director Rachael Goodwin explained that the town charges only minimal fees for local sports programs with only modest increases. Youth Little League and Youth Soccer are not charged field prep fees. However, if an outside tournament wants to use fields at Golden Eagle Park there is a proposed fee of $500 for field prep (current fee is $25.

Vice Mayor Mike Scharnow said he is glad to have the study as a tool to work with.

“We would be viewed as using this for a money grab,” Scharnow said. “This is a much-needed study with a lot of good, valuable information to make equitable adjustments with annual budget review.”

Councilman David Spelich is a strong advocate for the town not leaving any money on the table when it comes to providing services.

“I went over this line-by-line and found none of these (proposed fees) to be unreasonable,” Spelich said. “I think we give away too much and should raise fees and legitimately collect what we are owed.”

Spelich also called for a companion policy to go with the fee schedule, and staff reported that would be prepared and presented as a separate item, although Town Manager Grady Miller could give no estimate on when a policy might be ready for council consideration.

Finance Director David Pock said the fee study is available for public review on the town’s website, fh.az.gov, at the bottom of the home page. The fee proposals will be brought back to the council for consideration of adoption at the regular council session on Nov. 17. There will be a public hearing to discuss the fees at the same session.