HomeMy WebLinkAboutItem 02 FIN AIS Master Fees & Charges CPIAGENDA ITEM SUMMARY Meeting Date:
3/7/2022
Meeting Type:
Work Session
Staff Contact/Dept.:
Sam Kelly-
STATEMENT:
Quattrocchi/CMO
Nathan Bell/Finance
Staff Phone No:
541-737-3716
Estimated Time:
20 Minutes
SPRINGFIELD Council Goals:
Provide Financially
CITY COUNCIL
Responsible and
FINANCIAL
Innovative Government
IMPACT:
Services
ITEM TITLE: MASTER FEES & CHARGES CPI
understood by the development community. Another benefit was keeping the fee
ACTION
Provide guidance to staff on the percentage increase to the Master Fees & Charges
REQUESTED:
Schedule for Fiscal Year 2023 (FY23).
ISSUE
Each year, the City updates the Master Fees and Charges (MF&C) Schedule. In
STATEMENT:
recent years, staff has been increasing fees by the West Region City Size B/C CPI.
The CPI is currently listed as 8.1%. Staff is looking for guidance from Council on
whether they would like to continue using this CPI index or do something different
this year.
ATTACHMENTS:
None
DISCUSSION/
In recent years, staff has been increasing MF&C Schedule by the West Region City
FINANCIAL
Size B/C CPI. The reason for using this index was the majority of the fees in the
IMPACT:
schedule were related to development and it was an inflation index familiar to and
understood by the development community. Another benefit was keeping the fee
schedule in alignment with inflation with smaller annual increase rather than the
City's past practice of holding the fees flat over multiple years with occasional
large increases.
As of February 18, 2022, the CPI for our region, according to the US Bureau of
Labor Statistics, is 8.1%. This is a significant increase over what we have
experienced for decades and it is unknown whether it is transitory or will continue
into the foreseeable future. Staff recognize that this is a difficult rate to pass onto
the community and that Council may want to implement a lower rate with a wait
and see approach. As many of these fees have the intention of cost recovery behind
them, this approach could result in the City falling further behind in cost recovery if
inflation remains. It is with that in mind, if Council was to choose to not implement
the full 8.1 %, that staff recommends a rate on the higher side of historical inflation,
in the neighborhood of 4-6%, to mitigate that risk.
One additional consideration worth noting, Council did not implement an increase
to the MF&C Schedule for FY20 due to the COVID pandemic and the impact it
was having economically on the community. The West Region City Size B/C CPI
that year was 2.8%