Cost Accounting in Local Government

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The more things change the more they stay the same

We are living in a time of change. Redevelopment Agencies in their current form have disappeared. No one knows what the State budget will look like until the voters weigh in on temporary tax increases in the fall. Everyone is still trying to figure out what their new normal is for Sales and Property taxes. [...]

It’s time to think about updating your Cost Allocation Plan

If you use a Cost Allocation Plan (CAP) to recover General Fund costs from your Enterprise Funds, then it’s time to start thinking about updating that CAP for the 2012-13 budget year.  If you do it during the relatively calm period after the auditors leave and before the budget process starts, then you will be [...]

To Outsource or not to Outsource

In these days of budget angst and woe you may be getting pressure from your elected officials or community to outsource services that are currently provided by City staff.  But will this actually save the City money while providing the same level of service to the community?

Are “Crash Taxes” for You?

As cities look farther and deeper for additional revenue, some cities have started charging for emergency response to accident scenes. Enough cities have adopted these fees that the media has gotten a hold of the story and dubbed them “Crash Taxes.” Catchy. And, of course, inaccurate, since these are fees and not taxes. But the [...]

Proposition 26 – Voter Approval Requirement for Local Regulatory Fees

On the California ballot this fall is Proposition 26, which proposes to redefine many current fees at the statewide and local level as taxes and therefore require a majority vote of the local voters to implement those local fees. While this is a continuation of the budget battles at the state level, it is the [...]

Appeals Court rules against Business License Processing Fees

Last month, the Fourth District of the State Court of Appeals ruled in Weisblat v. City of San Diego, that fees collected for the primary purpose of revenue collection are a tax and not a fee. This will have particular implications for those cities in California that are charging a Business License Processing fee. The [...]

Using a Program Budget to Restore Trust

With every passing day the State budget deficit seems to grow deeper. So what do the voters say to Sacramento? We don’t believe you. The voters think that they are sending enough revenue to the State for them to be able to provide all of the services that the State provides. Of course, the voters [...]

Should Across-the-Board Cuts affect all Departments?

In this time of financial uncertainty it has become common for cities, and even the State, to call for across-the-board reductions in expenditures. But what if a department or function is entirely fee supported? This could apply to Building & Safety, Current Planning, and Development Engineering. Should those departments have to reduce staffing even if [...]

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