User Fees Policy

Related procedures

F-FPC-001-001 User Fees Procedure

Policy statement

The Corporation of the Town of Oakville will collect user fees to recover the costs of services where it is determined that a service provides direct benefits to individuals, groups, and businesses, unless otherwise directed by Council.

Purpose

The purpose of this policy is to provide a framework to ensure a consistent approach for establishing user fees across town programs. This policy is designed to improve consistency, transparency, efficiency and accountability in establishing and managing user fees. This policy promotes recovery of the full cost of services for which user fees are charged.  Notwithstanding that a service qualifies for user fee, the service may be subsidized by other sources of revenue either entirely or partially if it is determined that full cost recovery would not be cost effective or would be inconsistent with achieving the town’s policy objectives or legislative requirements.  Furthermore, the policy requires ongoing review of user fees to ensure that they are adjusted to reflect changes in the cost of delivering services, changes in service levels, as well as the continued relevance of policy objectives and actual outcomes.

Scope

This policy applies to all town programs and services.

Definitions

Full Cost of Services - includes direct and indirect costs, including the costs of operations and maintenance, overhead, and charges for the use of capital assets used to provide the service.

Subsidy - is the amount of the full cost of providing a service that is not recovered from user fees but is paid for by the town, principally from property tax revenues.

User Fee - means a fee or charge to individuals or groups and/or businesses for the provision of a service, activity or product, or for conferring certain rights and privileges, which grant authorization or special permission to a person, or group of persons to access town-owned resources (including property) or areas of activity.

Policy details

Policy Number: F-FPC-001
Section: Finance
Sub-Section: Financial Planning Controls
Author: Financial Planning Department
Authority: Council
Effective Date: 2012 Oct 29
Review by Date: 2017