Clackamas County Library Advisory Board

Meeting materials

• agenda

Free language assistance services are available for this meeting.

Agenda

Location: Gladstone Library, 525 Portland Avenue, Gladstone, OR 97027

Clackamas County Policy

I. PURPOSE AND SCOPE

The purpose of this policy is to set forth long-term financially sustainable practices for cost recovery and preservation of the County's discretionary funds.

This policy applies to all County departments, Districts, and Elected Officials.

II. AUTHORITY

ORS 203.035 authorizes the Board of County Commissioners to promulgate policies for the management and operation of Clackamas County Government.

III. GENERAL POLICY

It is the general policy of Clackamas County to recover costs to the extent legally possible for all services or programs provided. Recovery may come from fees, fines, revenue agreements, or other revenue generating arrangements for which fees may be charged.

IV. DEFINITIONS

1. Cost recovery - Refers to the requirement for the organization to ensure that regular resources are not used to subsidize programs.
2. CPI - Consumer Price Index West Region Size A.
3. Direct costs - Costs that are directly attributed to the delivery of a program or service.
4. GFOA - Government Finance Officers Association of the United States and Canada.
5. Indirect costs - Costs (such as administration and overhead) that are indirectly linked to the delivery of a program or service and should be recovered through cost recovery.
6. Methodology - A rate based on a system-wide cost per unit, where the cost associated with meeting future growth needs are divided by the projected growth in a plan area.
7. Program - A suite of services provided by county staff or contractors.
8. Public good - A service or program provided for the benefit and/or well-being of the public despite the inability to recover costs for the service provision or program.
9. Overhead - Includes costs such as payroll processing, accounting services, computer usage, and rent (of county owned properties) that are not directly attributable to a service or program.

V. POLICY GUIDELINES

a. Rate Increases

The Board of County Commissioners sets rates annually by resolution. Unless otherwise approved by the Board for specific programs or services, fees and fines will automatically increase up to 3% consistent with the current amount of the Consumer Price Index for the Western United States (CPI). If the CPI increases more than 3%, the Board of County Commissioners shall decide whether to increase fees/fines accordingly.

1. Requests to Increase Fees/Fines above the Board Authorized Percentage

Only the Board has the authority to grant an exception to increase fees/fines more than the Board's authorized increase. Instances include:

a.) Fees Outside of the County's Control: Instances where the County has no control over rate setting, such as fees/fines established by the State of Oregon or legally enforceable agreements that cannot be renegotiated.

b.) Inability to increase fees will result in significant reduction or elimination of services.

2. Requests to Increase Fees/Fines below the Board Authorized Percentage

Departments may request to keep their fees/fines flat or below the Board authorized percentage for programs or services that are provided for the Public Good.

b. New Programs/Services

When proposing new programs or services, departments must seek Board approval for all proposed services, full costs (direct and indirect), proposed rate structure, and anticipated revenues including fees. The analysis must include comparison of rates charged by neighboring jurisdictions and consideration of alternate service delivery options.

c. Rate Development

Cost recovery development should reflect the true and full cost of providing the program or service, with the intent to achieve full cost recovery. This includes direct and indirect costs, materials, labor, cost of fee collection, use of capital facilities/equipment, administration, and overhead.

Certain rates, including monthly utility charges, aim to achieve full cost recovery presently while considering future requirements and minimizing annual adjustments. Bond covenants may require collection of revenues beyond operating and debt service costs, potentially resulting in charges exceeding full cost recovery.

d. Periodic Reviews and Changes

Departments must review rates at least biannually (unless otherwise specified) considering inflation, cost increases, adequacy of cost recovery, service demand, and competition. The analysis must include comparison of neighboring jurisdictions and alternate service delivery options.

VI. PROCESS AND PROCEDURES

a. Requests to Change Fees Approved by the Board

Requests to increase fees above the Board approved percentage must be submitted to the Board for approval and include legal mandates (if applicable), three-year funding history including rate history, regional fees, and CPI.

Requests to keep fees flat or below the approved percentage must also be submitted to the Board of Commissioners for approval.

b. Requests for Approval for Fees/Fines for New Programs or Services

Requests to establish fees/fines for new programs or services must be submitted to the Board and include legal mandates (if applicable), three-year funding history (if available), and regional fees. The Board may approve such requests outside of the annual rate resolution.

VII. ACCESS TO POLICY

PowerDMS

VIII. ADDENDA

Clackamas County Code, Appendix A: Fees Clackamas County Code, Appendix B: Fines

Policy Reference Document

This policy conforms to the guidance found in the following source publication: GFOA Best Practice on Establishing Government Charges and Fees.

Agenda