Town of Cobourg Comprehensive User Fee Study

Background:

Funding Sources for Municipal Services
Services Ontario municipalities provide are primarily funded through either user fees paid directly by those using the service or municipal taxes paid by all landowners. Other minor funding sources also exist such as operating grants and fundraising. Charging fees for the use of certain services helps align the costs of providing those services with those who benefit from the use of the service, while reducing the costs that would be funded through municipal taxes.

Decisions on whether the costs of service are funded fully or in part by user fees is typically driven by the following factors:

• Can access to the service be restricted (e.g. facility access)
• Does the service provide a benefit to the community or just to the individual using the service (e.g. open park space vs. planning application). Community benefits include:
  • Essential life and safety skills for all ages;
  • Basic essential introductory programming, that enhances social well being for children, youth, and seniors;
  • Developing and encouraging community involvement, leadership, and volunteerism; and
  • Economic benefits
• Would fees impact the use of the service and negatively impact the municipality’s service delivery objectives (e.g. are the fees affordable and what do other municipalities/service providers charge? Would the fee decrease compliance with the required process?)

About the Comprehensive User Fee Study:

The Town of Cobourg is currently undertaking a review of user fees across a variety of municipal services, including:

• Use of municipal facilities (e.g., Cobourg Community Centre, Victoria Hall, and Concert Hall)
• Public Works, Engineering, and Environmental Services (e.g., septic waste, permits, development engineering fees)
• Finance (e.g., tax certificates overdue tax notices)
• Fire Services (e.g., false alarm response and burn permits)
• Municipal licensing, by-law enforcement, and clerks (e.g., by-law enforcement inspections, business licenses, dog tags, marriage licences, and death certificates)
• Marina (e.g., dockage fees)
• Trailer Park/Campground (e.g., seasonal and nightly bookings)
• Parks (e.g., soccer field or ball diamond rental)
• Planning applications (e.g., zoning by-law amendment and minor variance applications)
• Special Events (e.g., special event permits and filming)

The objectives of the review are to understand the full costs of providing these services before developing policies on how these services should be funded and the fees that should be charged for the use of these services.

Study Process

1. Complete full cost assessment
2. Consult with public on approaches and polices governing the imposition of user fees
3. Prepare preliminary user fee and policy recommendations
4. Final report and Council approval

Full Cost of Service Assessment
The assessment of the full costs of service will include:

• The direct costs of providing theses services such as the resource costs of the Town staff involved, materials and supplies, and the operating costs of the equipment and facilities used in the service delivery
• Indirect costs from supporting Town departments such as Information Technology and Human Resources
• Capital costs such as the costs to rehabilitate and replace facilities that are being used to provide services equipment

How to Participate:

• Take the survey - available until September 10, 2023
• Leave a comment in the forum - available until September 10, 2023