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AI- 2941   12. B. 3.    
BOC Regular
Meeting Date: 08/01/2019  
MGT User Fee Study
FROM: Megan Banning, Finance
Department: Finance  

Resolved the Calhoun County Board of Commissioners does hereby accept the proposal by MGT of America Consulting, LLC to prepare a User Fee Study for the County as presented.
County Administration recommends that the County Board of Commissioners authorize the County Administrator/Controller to sign a contract with MGT of America Consulting, LLC on behalf of the County to prepare a County User Fee Study at a cost not to exceed $88,800.
Calhoun County has been working with MGT of American Consulting, LLC (MGT) for several years on the preparation of our annual Cost Allocation Plan used for grant reporting and recapturing of overhead costs through grants.  MGT also prepares Full Cost User Fee Studies for various government entities; the attached proposal outlines the process and scope for such a study for Calhoun County.

MGT will work closely with various County departments to review the County's existing fees/charges for services, identify the total cost of providing all County services, and determine if services should be charged for or if fees are currently being collected.  Once all of this information is collected, it will be compiled and analyzed to recommend fees and charges based on the full cost of the services being provided.  MGT will also identify the net change from current fees to proposed and present a cost recovery percentage and revenue impact.

A User Fee Study merely identifies the full cost of a service and presents how changes can impact County revenues should they be adopted at certain levels.  The study is informational in nature and can be use to make decisions in regards to fee changes.  County Administration can then use the full cost study to recommend "a cost recovery and subsidy level that is appropriate to the market, service, department, and goals of the" County Board of Commissioners.  No fees or charges for services will be changed as a direct result of the study; any changes in County fees will remain a part of the budget process and the adoption of the County Fee Schedule. 
The Board of Commissioners could choose not to approve the proposal by MGT, this would not allow the County to realize potential revenues associated with identifying the full cost of the services we provide and adjusting the subsequent associated fees.
County Administration proposes that the Board of Commissioners accept the above recommendation to authorize the County Administrator/Controller to sign a contract with MGT to move forward with the User Fee Study as presented.

Fiscal Impact
The total cost to the County for the User Fee Study as proposed is $88,800
User Fee Study Proposal

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