Rate and Fee Updates Presentation

Rate and Fee Updates
Utility Rate Feedback and Proposed Community Service Fee Changes 
Council Conference Room | October 16, 2023 | 4 p.m.
Mayor and Council Work Session

Agenda
o Utilities Rate Feedback Overview
o City Rate Comparisons
o Community Services Fees
o Fee Policy Discussion
o Overview / Background
o Policy Updates

Utility Rate Feedback
o
The outreach achieved:
o
Met with industry partners
o
Met with Chandler Chamber
o
Presented at Chamber Policy event
o
Targeted outreach to high-volume users
o
Held public feedback meeting in-person and 
virtual
o
Robust website information
o
Social media push to drive traffic to website
o
Bill notices on every Utility bill
o
Public Notice posted on our utility fee 
changes webpage and published in 
newspaper
o
Message in the CityScope

Utility Rate Feedback
Cont.
o Responses:
o
Over 1,033 unique page views of 
our website
o
Seven webpage comments: four of 
which did not want rate increases 
(residents), one which wanted a 
breakout of what the changes 
would do on their non-residential 
account, and two in support 
(residents)
o
One public meeting comment 
from a resident in support

Average Residential Cost Comparison 
for Water, Wastewater and Solid Waste
Estimated based on Tempe Cost of Service July 2023 results at 10,000 gallons single family residential rates for FY 2022-23 
plus Chandler’s planned rate increases and any recently passed rate increases for other municipalities
100% COS 
transition for 
Water/WW

Average Multi-Family Cost Comparison 
for Water, Wastewater
Estimated based on current adopted rates by city (some cities may be increasing rates which are not included). Includes 
500Kgal of monthly usage, a 6” meter, and 150 units.
100% COS 
transition for 
Water/WW

Average Non-Residential Cost Comparison 
for Water, Wastewater
Estimated based on current adopted rates by city (some cities may be increasing rates which are not included). Includes 
200Kgal of monthly usage, and a 2” meter.
100% COS 
transition for 
Water/WW

Community Services Fee Policy 
Community Services Department

o
Proposed Park & Recreation (P&R) fee changes 
proposed during FY 2023-24 Budget process
o
Action delayed to engage user groups, Council 
Subcommittee, and P&R Board
o
Tonight:  Review of the Community Services 
P&R Fee Policy and Procedure – prior to Council 
Fee Action on November 9th 
o
Timing consideration: February 1 effective date for 
spring P&R registrations
Purpose of Discussion

Community Services Fees Change Summary
Aquatics, Park and Recreation Facilities, Recreation Fitness Passes and Tennis 
Center, and Registration Based Class, Program and Activity Fees

Proposed Fee Changes FY 2023-24
Why Fee Changes?
oAverage 34% increase in staff costs (ex. lifeguards $12.60 to $16.93/hr)
oAverage 8+% increase in supply costs (ex. supplies/equipment/materials)

Stakeholder Notice & Feedback 
•
Swim & Dive Clubs  - Intro meetings held with each
•
Chandler Youth Sports Association (CYSA) –
     WebEx Meetings  2/24
•
Tennis Center -  2/28, 3/2 in person  (no participation)
•
Athletic Field Tournament Users – WebEx 3/8 
•
Proposed fees posted on city website 8/18/23
•
Social Media posts directing to webpage
•
Feedback webpage hits-count

Why Assess Fees Citywide?
o Fees assessed for use of facilities or services 
benefiting specific groups
o Ensures taxes charged to support general services 
benefit all
o Fees reflect recovery of cost to provide service, 
unless market demands lower rate
o Authority to charge must exist in City Code (fee 
amounts and specifics set by resolution)

Why Fees for Parks & Recreation 
Services/Facilities? 
o
Program sustainability
o
Program popularity
o
Personal benefits derived
o
Fees support ongoing facility repair and replacement 
and enhancement of programs

Fee Policy & Procedure
Establish fees for offering a wide range of services and activities 
while maintaining principles of equity and efficiency
Quality of Life  
      Neighborhoods          Sustainability/Technology

Fee Policy & Procedure
2008 -  Fee Policy & Procedure Adopted by Resolution 4145
2013 -  Philosophy expanded and incorporated into 
 
Citywide Fee Schedule with Ordinance 4470
FY 2022-23 P&R Divisions Revenues: $ 3,186,574 
 
       P&R Divisions Expenses:  $30,000,046

Activities
2%
Memberships/Admissions
2%
Youth Programs
1%
Rentals
1%
Aquatics
4%
Gifts
0%
General Fund
90%
Activities
Memberships/Admissions
Youth Programs
Rentals
Aquatics
Gifts
General Fund
FY 2022-23 Park & Recreation Revenues 
Sources

Admin, $966,349 
Parks Ops, $20,001,663 
Aquatics, $4,801,652 
Sports/Fitness, $2,745,959 
Nature/Rec, $1,484,422 
Admin
Parks Ops
Aquatics
Sports/Fitness
Nature/Rec
FY 2022-23 Park & Recreation Expenditures

Two Fee Types (from City Code):
All fees charged for the use of Department Facilities, or the issuance 
of permits or licenses shall be in accordance with the approved fee 
policy and adopted by Council resolution.[Ch.§31-21.A]  
All fees for Department registration-based classes, 
programs and activities shall be established and 
approved by the Community Services Director 
using formulas in accordance with Community 
Services' approved fee policy and adopted by 
Council resolution. [Ch.§31-21.B] 
Fee Policy & Procedure

Fee Policy 
& Procedure
Five Fee Categories:

* Direct Cost Recovery -  expenses incurred to provide a specific service/program
Fee Policy & Procedure
Fee Categories
Direct Cost 
Recovery
#1
Community Programs, Services, and Facilities
0  - 49%
#2
Enhanced or Specialized Services, Programs, and Facilities
50 - 99%
#3
Exclusive Use of Programs, Services, and Facilities
100%
#4
Intergovernmental Agreements and Affiliations
Mutual agreement
#5
Enhanced Contractual Programs and Services
Negotiated

Exclusive 
Use of
Programs, Services
& Facilities
(category #3)
Enhanced Contracts
(category #5)
IGAs / Affiliations
(category #4)
  
Enhanced / Specialized
Services, Programs
& Facilities 
(category #2)
Community 
Programs, Services 
& Facilities
(category #1)





FY 2022-23 
Program Cost Recovery
Parks 
Senior Center
Nature Center
Adaptive Recreation
Free Swim Days
Special Events
Category #1
Community Benefit
Target %

Category #2
Enhanced / Specialized
Target %
FY22/23 
Program Cost Recovery
 
Interpretive Programs
Swim Lessons
Rec Swim Team
Camps/Clinics
Special Interest Classes
Field Trips

FY22/23 
Program Cost Recovery
Rentals
Fields / Facilities / Lights
Tennis Court Reservations
Classes/Leagues
Club Sports
TRC Admission Fees
 
Category #3
Exclusive Use
Target % = 100% or MARKET Adjusted

Learn to Swim Lessons
Group & Semi-Private
Category #2
Enhanced / Specialized
Current Target %
Current Cost Recovery = 46%
Future Cost Recovery = 40%
*Recommended Policy Change – Move Swim 
Lessons to CATEGORY #1 -  Community Benefit

PUBLIC REC SWIM- 
Admission Fees
Category #1
Community Benefit
Target %
Current Cost Recovery = 23%
Proposed Cost Recovery = 47%

PUBLIC REC SWIM – 
Admission Fees
Category #1
Community Benefit

Community Rec Programs
Category #2
Enhanced / Specialized
Target %
Current Cost Recovery = 87%
Proposed Cost Recovery = 93%

In Summary
 November 9th Council Agenda
 P&R Fee Policy & Procedure Update
 
 
 Community Services Fee Changes for Spring 
implementation (as noted on ‘Summary’ posted online)
 
  Aquatics
 
  Parks Facilities
 
  Recreation Facilities & Fitness Passes
 
  Tennis Center
 
  Registration-Based Class, Program & Activities

Actions
Date
Council Subcommittee
Apr 10, 2023
Park and Recreation Board
Apr 19, 2023
Post Notice of Intention and proposed 
new/modified fee summary online for at least 60 
days and distribute through social media
Aug 19, 2023
Public Comment and Outreach 
Aug. 19 – Nov 8
Council Work Session to Discuss Community 
Services Fee Policy and Proposal
Oct 16, 2023
Publish Notice of Intention to Amend the Citywide 
Fee Schedule, 15 days prior to Council action, as well 
as social media postings
Oct 25, 2023
Council Agenda to Include Policy Update and Fee 
Action Item 
Nov 9, 2023
Implementation Dates (Community Services only) 
for Breaktime distributed in January – Registration 
Feb 6th 
Feb 1,  2024
Timeline for 
Spring ‘24 
Breaktime 
(Mar-Apr-May)

Thank you!
Questions?