FY 27 Budget Q&A #058: What would a regular cadence for fee increases look like?
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Question: What would a regular cadence for fee increases look like?
Response:
Some City fees are currently reviewed annually through the budget process. Some are reviewed regularly on a two- or three-year cycle. Others are reviewed less frequently on an ad hoc basis. The volume of fees charged by some departments may make annual reviews of all fees impractical. A regular cadence for fee increases would likely involve smaller, incremental adjustments for fees not currently reviewed regularly on an annual basis or two- to three-year cycle as a best practice to help keep pace with rising personnel, operating, and material costs.
When larger adjustments are needed, they could be phased in over a reasonable period of time to reduce the impact on participants and families.
RPCA currently evaluates proposed fees based on the cost to provide the service and market comparisons with neighboring jurisdictions and the private sector. As part of a more consistent approach moving forward, RPCA and other departments could also consider incorporating an annual or two or three-year cycle for CPI based review as one factor in determining whether an adjustment is warranted.