Logo courtesy of the City of Gridley

GRIDLEY, CA (MPG) – The cost of providing city services could mean higher fees for Gridley residents and builders, but city officials worry that passing along those costs could make new homes more expensive and change residents’ behavior.

Those concerns shaped the council’s first review of a proposed master fee schedule at a special workshop Sept. 15. The city took no action to increase fees. Instead, they directed city officials to return only after a closer review by each department before any changes are considered.

“We have to remain competitive in today’s world with other cities,” Vice Mayor Bruce Johnson said.

Johnson focused on proposed engineering and planning charges. He said higher development costs would ultimately be passed on to homebuyers and questioned whether builders might choose nearby cities instead.

“Those fees need to be fair for the community and for a developer to come in and build out houses,” Johnson said.

The city hired Matrix Consulting Group in January to conduct the comprehensive fee study. The study calculated the cost of each service by estimating the time needed to perform it and applying an hourly rate that includes employee salaries, benefits and overhead. Gridley also uses contracted engineering services. The resulting figures show what services actually cost the city to provide, but council members can choose fees below those amounts.

For example, the study calculated a $569 cost for a minor encroachment permit, such as one for a residential driveway. Its comparison of other cities found an average fee of $138. Some engineering fees are currently charged according to the work involved rather than at a flat rate.

Johnson said some of the engineering charges he reviewed were closer to Roseville’s than to those of smaller cities competing with Gridley for development.

“We’re not Roseville,” Johnson said.

Officials said they must also consider how fees affect residents’ choices. The proposed schedule lists a $40 charge for a one-year dog license, compared with the current $26 for an unaltered dog and $13 for an altered dog. Johnson warned that a higher charge could just keep some owners from licensing their pets.

Council members also raised questions about utility service charges, including fees related to disconnection and reconnection. They called for a closer look at what residents could reasonably pay.

The study covers about 240 fee items across departments including engineering, planning, utility billing, police, animal control and recreation. Council members said they need to examine individual charges and decide where the city should absorb part of a service’s cost.

City officials will arrange further workshops by department. Some fees could be set aside for later consideration, officials said. No fee changes were approved at the first workshop.