User Fee Policies
When establishing charges and user fees, the primary policy issue to consider is the desired level of cost recovery for the services being provided. Some rates are established to recover 100 percent of the costs, whereas other rates may recover less than the full cost of providing the services. As stated in the Government Finance Officers Association recommended practice, factors to consider include “the need to regulate demand, the desire to subsidize a certain product, administrative concerns such as the cost of collection, and the promotion of other goals.”
Policies should address:
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Example policies: (Word format) |
Please note: All example policies are for illustrative purposes only. None of these example policies have been reviewed by LGC legal staff for enforceability or compliance with applicable laws. LGC makes no express or implied endorsement or recommendation of any example policy, nor does it make any express or implied guarantee of the legal enforceability, legal compliance, or quality of any particular policy. Likewise, we do not represent that any particular policy or portion of a policy is appropriate for any particular municipality. Legal counsel should review any proposed financial policy before a municipality adopts it.