CITRUS HEIGHTS, CA (MPG) - The Citrus Heights City Council considered amendments to the user fee schedule at its Feb. 22 meeting, after a review showed that only about 54% of the actual cost of services were being recovered by the assessed fees.

Staff recommended the language for the returned check fees be changed to “returned payment,” since many payments are now made electronically. This change will allow the city to recover that fee ($29 for the first returned payment and $39 for each subsequent returned payment) even if the payment is not made by check.

The city of Citrus Heights also collects annual fees for each rental unit in the city to cover the costs of Code Enforcement officers conducting inspections to ensure that all required health and safety standards are met. Staff recommended additional fees be added to this Annual Rental Housing Stock Fee Schedule to include a $25 fee for late payments and $11 for rescheduled inspections, to cover the associated staff time.

Another new recommendation was a $5,000 State Housing Incentive Project Deposit. Because the state of California has implemented various new housing incentives in recent years to address the lack of affordable housing, city staff might have to navigate various new guidelines and procedures on affordable housing proposals. The actual cost of staff time is unknown at this time, so the $5,000 will cover those initial costs. Actual costs will be pulled from that deposit and any unused portion will be returned to the applicant after the application process is complete. Additional fees might also be requested if staff time exceeds the initial $5,000 deposit.

And finally, in response to a public comment in October 2023 that garnered City Council support, staff recommended an update to the pet licensing fees to allow for a lifetime license cost for dogs and cats. A review of the service showed that staff time was the same for both cats and dogs, so the fee for altered and microchipped pets will be $69, with senior citizens receiving a discounted rate of $57.

Citrus Heights Mayor Bret Daniels said he “didn’t understand” why the rental housing payments and inspections require any staff time, since it seems like something that should be overseen by an automated service.

City Manager Ashley Feeney said that “we don’t have those capabilities right now.”

Daniels also said he wanted to see a further reduction in the pet licensing cost for senior citizens. Many seniors are on fixed incomes, Daniels said, and the “cost of living is just killing them already. And if they’re trying to decide between food and licensing their dog, they’re not going to license their dog.”

Citrus Heights Vice-Mayor Jayna Karpinski-Costa and Councilmember Porsche Middleton said they would support a reduction in that fee for seniors, possibly as low as $21.

Feeney reminded councilmembers that the fees are set in order to cover the costs of that service.

“So, if we’re taking revenue away from the program, are we going to revisit how we administer services?” Feeney asked.

Citrus Heights Police Department Chief Alex Turcotte pointed out that seniors would see an overall reduction in cost for pet licensing. Since they previously paid an annual license fee of $11and with the updated fees, Turcotte said, they would pay a one-time cost.

Councilmember Tim Schaefer suggested they pass the amended fee schedule as recommended and bring the rate for senior discount back to City Council in the future to look at possible reductions. Council members agreed and voted unanimously to approve the amended user fee schedule.

City Council members also considered a mid-year budget adjustment for fiscal year 2023-2024. Due to the timing when the city receives major revenue sources, such as property taxes and sales taxes, the General Fund operates in a cash-flow deficit in the fiscal year’s first half while expenditures exceed actual revenue. But the city has cash reserves to bridge the gap until revenues are received. Now that the initial fiscal projections can be compared to actual revenues and expenditures, staff requested approval for some budget adjustments.

Staff is now projecting increased revenue from property taxes, motor vehicle-in-lieu fees and investments. However, sales tax revenue is expected to be about half a million dollars less than initially projected. Overall, staff requested a revenue increase adjustment of $709,693.

City expenditures are projected to be $128,800 more than initially budgeted, with most of that cost coming from the Citrus Heights Police Department to train additional recruits, expand the K-9 unit, and cover increased booking fees from more arrests.

With these adjustments, the city expects to see an almost $4 million surplus by the end of the fiscal year.

Councilmember MariJane Lopez-Taff said she doesn’t understand why adjustments are needed in the middle of the budget as long as the projections are still basically on track with an expected surplus. Staff explained that the budget reviews and requested adjustments are to maintain transparency and ensure that City Council is apprised of the city’s current financial forecast. 

Mayor Daniels was happy with the update: “This is wonderful to see.” City Council members voted unanimously to accept the adjusted budget.

The next meeting of the Citrus Heights City Council is scheduled for 6 p.m. March 14 at City Hall, 6360 Fountain Square Drive.