Elgin to study service fees

Elgin City Council members will discuss funding a $70,000 analysis to determine whether fees the city charges for services are in line with the costs to deliver them. The last analysis dates to 2002, and staff members say it’s time for a new one.

RuthAnne Hall is the budget and purchasing officer for the city. She said the analysis is meant to help the council and staff develop a policy about what the costs of services should be. Sometimes that means a subsidy from the city — especially in the case of parks and recreation activities.

“It’s a good opportunity to have a conversation with a new council as to what level that subsidy should be,” Hall said.

The analysis would look at two different types of fees. The first are what Hall describes as “quality of life” fees, which include all of those associated with the parks and recreation department. The second encompasses community services like water and sewer as well as administrative fees, like those for development, business licenses and fire inspections.

Quality of life fees will be examined during 2011 with the others through 2012 and 2013.

“The world has changed,” Hall said. “The costs have probably changed dramatically with the economic challenges that we’ve had here.”

The city council will discuss a contract for $70,175 to a Maryland- and California-based consulting firm called TischlerBise at its committee of the whole meeting Wednesday. The analysis would consist of three phases: the first would examine the costs associated with city services, the second would compare Elgin to other communities based on fee charges; and the third would recommend new fees, including any subsidies where appropriate.

Mayor David Kaptain said one of the most important parts of the analysis is its plan to evaluate Elgin’s fees based on charges by other municipalities.

“It offers us a way to compare ourselves to other communities and what they’re charging for their fees,” Kaptain said. “It becomes a competitive thing.”

Colleen Lavery, Elgin’s chief financial officer, said the analysis will be extremely detailed and results will not be reflected in next year’s budget. The earliest point any changes may be incorporated will be 2013 — but that’s just if the study shows a need for change.

“This is going to give us the information to make a decision one way or the other,” Lavery said.