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APPENDIX B Guidelines for Creation/Adoption of User Fees

  • 1.

    Identify resources used or needed and determine the actual direct costs of delivering the service.

  • 2.

    Determine the statutory requirements for adopting fees for service.

  • 3.

    Determine the beneficiary distribution of the service.

  • 4.

    Determine the goal of the fee program. Is it for cost recovery, and to what degree? Will it modify behavior, control uses and processes, or redistribute wealth?

  • 5.

    Given the information gained in steps one to four above, select an appropriate cost model and calculate proposed fees. Determine or design the information system required to collect, track, follow up, renew, etc.; include in costs as appropriate

  • 6.

    Seek approval from the Township Board.

  • 7.

    Market the proposal. A basic recommended approach is to highlight the mission, primary impact goals, and objectives, and use a primary selling line. One example is, “In order to keep tax rates as low as possible to the general public without reducing services, actual users will be charged a fee for service.”

  • 8.

    Hold public hearings, pass ordinances, and hold elections as required by law.

  • 9.

    Implement and test the information system as appropriate.

  • 10.

    Train personnel.

  • 11.

    Implement the fee(s).

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