The council came to a consensus to add the study to the budget during an Aug. 31 budget workshop, though it should be noted that no expenditures will be made until Bellaire City Council specifically approves the fee during FY 2020-21, which should occur sometime in October, according to an agenda report presented to the council.
The $35,000 study, should the council approve it as proposed in October, would include two components: a user fee study, which calculates the full cost of current and potential fee-for-services for certain departments, divisions and services; and a cost allocation plan, which identifies overhead cost categories and appropriates amounts to be transferred from the enterprise fund to the general fund, according to the report.
As the plan for the study stands, $31,000 would come from the city’s general fund, which is expected to hold just above $21.33 million in FY 2020-21, and $4,000 would come from the city’s enterprise fund.
According to interim City Manager Brant Gary, it would take approximately four months for a consultant to conduct fieldwork and provide the city with deliverables, including a comprehensive report on fees, recommendations on fees and a comprehensive report on cost allocation.
However, Council Member Nathan Wesely said he disagreed at least partly about fully utilizing an outside consultant to perform the work.
“I will definitely be opposed to doing this out of the gate,” Wesley said. “I think we’re totally underestimating the ability of our staff to put together information, and the reality is they’re going to have to put together a whole lot of information for any consultant.”
When asked by Council Member Catherine Lewis if the city would be able to recoup the costs for the study within two years, Gary responded that it would likely be possible, depending on which service fees were adjusted.
“This is intended to be a policy tool," Gary said. “This is intended to give the council the information it needs to make these policy decisions.”
