User Charges and Service Fees: An Information Bulletin of the Management, Finance, and Personnel Task Force

摘要

Fiscally strapped local governments are increasingly turning towards user charges and service fees in order to generate more revenue from traditional and nontraditional sources. This bulletin discusses the application of a three - part charge that reflects the full cost of providing various municipal services to users at different locations and times. It describes a time variable / peak load quantity charge that reflects the incremental cost associated with the provision of each additional unit of service, a capacity charge that reflects the one - time capital and system costs, and a location charge that reflects the long - run cost of serving users at each location and development density. Local government applications are highlighted throughout. The bulletin also discusses such practical considerations as administrative costs, resident and employee acceptance, tax deductibility, and the incidence or equity of user charges and fees, and how they affect the design of multipart user charges; the use of charges and fees for tax - exempt property; and the relative efficiency of these charges and fees (as compared to property taxes and the usual average cost charges and fees). It concludes with a discussion of additional research needs; a listing of resource people to contact for further information, including contacts in local governments currently using user charges; and a selected bibliography of 15 references. Tables and 19 footnotes are supplied. (Author abstract modified).