Novato Council Weighs Update Of Fee Schedule

NOVATO, CA — Novato is considering an update to its fee schedule.

The City Council on Tuesday will conduct a public hearing to consider adopting a resolution to update and establish user and regulatory fees for fee-related city services.

Novato charges fees for services provided such as permitting of new building constructions and modifications to existing structures, planning, and vehicle impounds, among other services.
Novato has been working with ClearSource Financial Consulting to complete a citywide user and regulatory fee study.

The fee study provides an up-to-date analysis of the city’s current costs of providing fee-related services while also ensuring that the city maintains compliance with state and local policies and continues to meet the needs of the community.

As part of a general cost recovery strategy, local governments adopt user fees to fund services provided or required due to the request or action of an individual or entity. User and regulatory fees are set according to the estimated reasonable cost of service.

A fee for service ensures that an individual or entity bears most, if not all, of the cost incurred by the city to provide that service. When a fee does not fully cover the cost for service another city revenue source subsidizes the cost – in most cases, the General fund.

The benefits of reviewing and updating user fees include reducing the need for General Fund subsidies, providing a pattern of consistency with information for forecasting and decision-making purposes, helping meet service level expectations by collecting fees to fund the existing level of services provided, keeping pace with inflation and avoiding fee spikes that are more likely to occur when municipalities leave fees unchanged for multi-year periods.

To view Novato’s proposed fee schedule visit here.

Additional information about the upcoming public hearing can be viewed here.