65B - SERVICE FINANCIAL REPORT - Laserfiche WebLink

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APPENDIX C: CRITERIA FOR ESTABLISHING FEES HIGH OR FULL TAX INVESTMENT/LOW OR NO COST RECOVERY: These criteria apply to the Mostly Community Benefit Tier (1) of the pyramid. The following criteria are used to determine if a service should be included in the tier, keeping in mind that a service does not have to meet every criterion: • The service is equally available to everyone in the community and should benefit everyone • Because the service is basic, it is difficult to determine benefits received by one user • The level of service attributable to a user is not known • Administrative costs of imposing and collecting a fee exceed revenue expected from the fee • Imposing the fee would place the agency at a serious competitive disadvantage • The service is primarily provided by the public sector PARTIAL TAX INVESTMENT/PARTIAL COST RECOVERY: These criteria apply to the Considerable Community (2) and Balanced Community/Individual Benefits (3) tiers of the pyramid. Users fees may recover only partial cost for those services for which the agency desires to manage demand. • User fees may recover only partial cost from those individuals who cannot pay full cost due to economic hardship • User fees may recover only partial cost if competitive market conditions make a full cost fee undesirable • The following criteria are used to determine if a service should be included in these tiers, keeping in mind that a service does not have to meet every criterion: ✓ Services benefit those who participate but the community at large also benefits ✓ The level of service use attributed to a user is known ✓ Administrative costs of imposing and collecting the fee are not excessive ✓ Imposing a full cost fee would place the agency at a competitive disadvantage ✓ The service may be provided by the public sector but may also be provided by the private sector LOW SUBSIDY/SUBSTANTIAL COST RECOVERY: These criteria apply to the Considerable Individual Benefit tier (4) of the pyramid. • User fees should recover the substantial cost of services benefiting specific groups or individuals • User fees should recover the substantial cost for those services provided to persons who generate the need for those services • The following criteria are used to determine if a service should be included in this tier, keeping in mind that a service does not have to meet every criterion: ✓ The individual or group using the service is the primary beneficiary ✓ The level of service use attributed to a user is known ✓ Administrative costs of imposing and collecting the fee are not excessive ✓ Imposing a substantial cost fee would not place the agency at a competitive disadvantage ✓ The service is usually provided by the private sector but may also be provided by the public sector NO TAX INVESTMENT/FULL COST RECOVERY: These criteria apply to the Mostly Individual Benefit tier (5) of the pyramid. • User fees should recover the full cost or more for a service in order to subsidize other services provided to the community • The following criteria are used to determine if a service should be included, keeping in mind that a service does not have to meet every criterion: 53 65B-57