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<br />. <br /> <br />e <br /> <br />User fees <br /> <br />The City shall maximize the utilization of user charges in lieu of general revenue <br />sources for services that can be individually identified and where costs are <br />directly related to the level of service. <br /> <br />Cost of service - The City shall establish user charges and fees at a level <br />which reflects the costs of providihg the service, to the extent legally <br />allowable. Operating, direct, indirect and capital costs shall be considered in <br />the charges. Full cost charges shall be imposed unless it is determined that <br />policy and market factors require lower fees. An example of this type of an <br />exception is the residential solidwaste service, which will be funded equally <br />with user fees and property tax revenues. <br /> <br />Policy and market considerations - The City shall also consider policy <br />objectives and market rates and charges levied by other public and private <br />organizations for similar services when fees and charges are established. <br /> <br />Bi-annual review - The City Manager shall direct a bi-annual review of fees <br />and charges for services and will make appropriate modifications to ensure <br />that charges grow at a rate which keeps pace with the cost of efficiently <br />providing the service and to assure that one group of users are not <br />subsidized by the general populace. <br /> <br />Non-resident charges - Where practical, user fees and other appropriate <br />charges shall be levied for activities or facilities in which non-residents <br />participate in order to relieve the burden on City residents. Non-resident <br />fees shall be structured at market levels so that resident users are <br />subsidized to the greatest extent possible. <br /> <br />Water and sewer rates - User charge fees for water and sewer shall be <br />sufficient to finance all operating, capital and debt service costs for these <br />utilities. Rates will be set such that these enterprise funds are never in a <br />cash deficit position during the year. Additionally, where feasible, rates will <br />be established where each portion of the service will cover the cost of the <br />service provided. <br /> <br />Internal service fees - When interdepartmental charges are used to finance <br />internal enterprise functions, charges shall reflect full costs, including all <br />indirect expenses. <br /> <br />Donated revenues - All private money donated or contributed to the City for <br />operations, maintenance, purchase of equipment, supplies, land or capital <br />facilities shall be subject to current budget policies. The donated or <br />contributed funds shall be deposited a~ miscellaneous revenues into the <br />appropriate fund and the expenditure (expense) shall be budgeted (through <br />a formal budget amendment, if required). <br /> <br />3 <br />