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City of Orlando. FY 2010/2011 Budget Development Worksession Revenue Enhancement – User Fees July 12, 2010. Agenda. Definition and Purpose of User Fees Select User Fees for FY 2010/2011 Planning and Transportation Development Services Fees Families, Parks and Recreation Fees
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City of Orlando FY 2010/2011 Budget Development Worksession Revenue Enhancement – User Fees July 12, 2010
Agenda • Definition and Purpose of User Fees • Select User Fees for FY 2010/2011 • Planning and Transportation Development Services Fees • Families, Parks and Recreation Fees • Fire False Alarm and Inspection Fees • Police Administrative Services, Vehicle-for-Hire and Towing Fees • Next Steps
Revenues Typically Available to Local Government • Ad Valorem Taxes • Intergovernmental • Licenses • Franchise, Utility, and Communication Services Taxes • Restricted/Special Revenues • Fines and Forfeitures • Miscellaneous • Charges for Services (User Fees)
Definition of User Fee • Charge for recovering the cost of providing a service • Direct relationship between the cost of the benefit provided and the value of the benefit received • Distinct cost to provide the service can be determined • Person receiving the service is clearly identifiable
Definition of User Fee • Fee is paid by those using service • Fee can serve as a method to manage demand or expand service • Diversifies revenue by expanding sources (versus total reliance on property taxes) • May discount fee to provide access (e.g. Youth Sports) • Some set to regulate an activity
Selected Fees Considered for FY 2010/2011 • Identified by Departments • Market Comparison or Cost Study Performed • Objective: Keep the fee current with cost • Is it equitable for General Fund (city-wide tax payers) to subsidize?
Selected Fees Considered for FY 2010/2011 • Planning and Transportation Development Services • Families, Parks and Recreation • Fire False Alarm and Inspections • Police • Administrative • Vehicle-for-Hire • Towing
Planning and Transportation Planning Fees • New Permitting Fee (Non-General Fund) • Non-refundable deposit on commercial permit applications (25% of estimated cost)
Families, Parks and Recreation (FPR) FeesProposed Rate Changes FY 2010/2011
FPR Proposed Rate Changes • Fees have not been increased in approximately 8 years (most not adjusted in 10 to 15 years) • Market comparison conducted: • 11 surrounding local governments in the survey • 7 recreation leagues and YMCA • Rates remain lowest in area for most services after adjusted
Fire False Alarm and Inspection Fees Proposed Rate Changes FY 2010/2011
Orlando Police Department • Recruit Application Fee - $25 • Help recover actual cost of processing applications • 10,000 applications received in FY 2008/09 • Adopted in several jurisdictions • Online Crash Reports • Majority of the request are from insurance companies • Internet web-based program managed by iyeTek • Crash reports available within 72-hours of the incident • Accessible 24/7 • OPD will receive $3 for each report provided (out of vendor $10 fee) • Customer may request copies in person for normal public records fee ($0.15/page) • Fingerprinting Services • Increase to $10/fingerprint card (currently $8) • Expand to the Northwest Community Substation
TAXI CAB TypeCurrent Fee Proposed Fee Application $300 $500 Renewal 200 300 Transfer 25 50 Taxi Permit 200 300 Late Fee (30 days)100 150 Late Fee (31 days ) 200 300 • The last taxi cab permit increase was 1988. • There are 570 taxi cabs servicing the city and airport.
TAXI CAB RENEWALTRANSFERSTOTAL FY 2008 548 @ $200 ($109,600) 133 @ $25 ($3,325) $112,925 FY 2009 570 @ $200 ($114,000) 96 @ $25 ($2,400) $116,400 (OCT, 09 – JUN , 10) FY 2010 570 @ $300 ($171,000) 131 @$50 ($6,550) $177,550 ( PROJECTED) Potential Revenue $61,150
VEHICLE FOR HIRE (Limousines, Luxury Vehicles, Shuttle Vans) TypeCurrent FeeProposed Fee Application $300 $500 Vehicle Permit 200 300 Renewal 200 300 Transfer 25 50 Late Fee (30 days) 100 150 Late Fee (31+ days) 200 300
VEHICLE FOR HIRE (Limousines, Luxury Vehicles, Shuttle Vans) RENEWALTRANSFERSTOTAL FY 2008 1,844 @ $200 ($368,800) 270 @ $25 ($6,750) $375,550 FY 2009 706 @ $200 ($141,200) 139 @ $25 ($3,475) $144,675 (OCT 09 – APRIL 10) FY 2010 1,611 @ $300 ($483,300) 237 @ $50 ($11,850) $495,150 (PROJECTED) Potential Revenue $120,000 • There are 1,604 Vehicles For Hire servicing the City of Orlando
VEHICLE FOR HIRE (Limousines, Luxury Vehicles, Shuttle Vans) App. FeeAddLateTOTAL FY 2008 $35,100 $72,000 $13,800 $120,900 FY 2009 $15,600 $41,600 $9,700 $66,900 (Oct.’09 – Apr.’10) $62,000 $113,500 $19,500 $195,000 FY 2010 Potential revenue $74,100
TAXI CAB/FOR HIRE FEES $255,250 Potential Annual Revenue Increase for all “For Hire” Companies
TAXI CAB/FOR HIRE FEES JURISDICTION APPLICATION TAXI CAB VEHICLE FOR HIRE ORLANDO $300 $200 $200 MIAMI-DADE $350 $625 $625 HILLSBOROUGH $400 $500 1st $500 1st $250 Add Vehicle $250 Add Vehicle BROWARD $200 * $400 Lottery $300 $1000 Application Fee $200 Per Vehicle *Initial fee, additionally must pay the lottery fee
Proposed Towing Ordinance Amendments • Initiate processing fees for all tows within the city jurisdiction • Currently service provided but no City fee charged • Fee would cover the administrative costs of entering vehicles and vessels into teletype • Fee would be collected by the towing company when the vehicle is released and forwarded to the City
Proposed Towing Ordinance Amendments • Potential fees based upon past towing activity within city limits * * Data based upon AS400 entries of towing activity from 2007-2009 ** OPD/Code Enforcement tows
Fee Comparison *Data based upon 8/19/2008 data compiled by Orange County Commission
Proposed Towing Ordinance Amendments • Advantages • Offset administrative cost currently incurred • Can be implemented with minimal investment • Amount can be adjusted, as needed • Fees impact those improperly parking, not general public
Annual Inspection and Permit Fee • Initiate a yearly inspection and permit fee to ensure the tow away zone signs on private property are in compliance with city code and state statute • Fee would cover the administrative costs of inspecting properties with tow away zone signs to ensure compliance with CO 39.84-39.94 Towing Ordinance and FSS 715.07(9)(b) Vehicles or Vessels Parked on Private Property
Annual Inspection and Permit Fee • Amend CO 39.86 to include the inspection requirement • Inspection of property, and an inspection certificate will be issued for properties in compliance • Properties must register and pay yearly permit fee • Decals will be placed on the rear of tow away zone signs • Fees vary according to the size of the lot • Records would maintain database of permitted locations • Compliance would be enforced by vetting tows with permitted locations
Approximate Number of Contracts *$30 fee for P/L under 10 spaces, $50 for P/L between 10-50 spaces, $100 for over 50 spaces
Annual Inspection and Permit Fee • Advantages • Optional for Property Owner • Can be implemented with minimal investment • Amount can be adjusted, as needed • Ensures the public is properly warned about tow away zones minimizing towing complaints • Consumer Protection Provision
Revenue Enhancement OpportunitiesUser Fees • Support continuation or expansion of services • If all adopted, estimated change in annual revenue to the General Fund: • Planning and Transportation Development Fees $161,820 • Families , Parks and Recreation Fees $300,000 • Fire False Alarms and Inspections Fees $268,500 • Police Fees $1,000,000 • Next Steps • Industry Notice • Ordinances • Resolutions • Administrative • Fees not adjusted in more than 7 to 15 years
City of Orlando FY 2010/2011 Budget Development Worksession Revenue Enhancement – User Fees July 12, 2010