Audit of the City’s Process for Evaluating and Setting User Fees
Summary
The City of Chicago Office of Inspector General has completed an audit of the City’s process for evaluating and setting user fees. User fees, which are a significant source of City revenue, include charges for water usage, inspections, permits, and licenses.
Executive Summary
OIG found that the City does not regularly review all fees to determine whether they are set at levels designed to recover the cost of providing the services related to the fees, or to achieve other policy goals. In fact, the City is unable to state with certainty how many fees exist because it lacks a comprehensive list. As a result of this audit, OBM created a list of 301 fees, and OIG identified an additional 20 fees referenced in fee proposals submitted to OBM by other City departments, for a sum of 321 identified fees.
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