Item 18: Community Enhancement Fee

[COSM_Admin]

Receive a Staff presentation and hold a Public Hearing to receive comments for or against Ordinance 2023-XX, amending the rates for the Clean Community Fee, known as the Community Enhancement Fee, in accordance with Section 66.002 of the San Marcos Code of Ordinances; including procedural provisions; and providing an effective date; consider approval of Ordinance 2023-XX on the first of two readings.

 

[JHughson]

How much does the increased fee generate - residential?
Commercial?
Total?

Aug 15 work session PPT shows need is $380,000 but the increases proposed generated $408,058. Page 42 of the packet.
"• Options to address the $380K shortfall:
• Increase monthly fee by $1 for residential and commercial accounts
– Residential increase from $1.50 to $2.50 = $386,538 more revenue
– Commercial increase from $5.50 to $6.50 = $21,520 more revenue
– Total additional revenue from $1 increase = $408,058"

I'm hoping the new increases generate the $380,000 for the stated need.

 

[COSM_Admin]

Response provided by Chase Stapp, Assistant City Manager:
During the August 15 work session, staff was provided direction to balance the increases between residential and commercial so that the percentage increase between the two was as close to the same as possible while keeping the residential increase below a full dollar. 95 cents was specifically mentioned, so staff reworked the recommended increases to achieve these goals. The end result accomplishes those goals but does generate a little more than $20,000 annually in revenue over and above the $380,000 shortfall. The intent with this is to begin to establish a fund balance in this fund much like the others. If Council wishes to limit the increase to cover only the projected shortfall, staff can provide alternate recommendations.

The proposed increase will generate around $24K more than the estimated shortfall. That money was put in an account to address emergent needs during the fiscal year as requested by Council. The fund has around a 35% fund balance, so the fund balance would be within policy with or without the additional funds.