Full cost recovery is a pricing approach where user fees are set to cover the complete cost of providing a service, including direct costs (staff, materials), indirect costs (administration, overhead), and capital costs (facility depreciation, equipment replacement). Under full cost recovery, users pay what the service actually costs rather than being subsidized by general tax revenue. This approach is common for services primarily benefiting specific users rather than the general public—building permits, development applications, or utilities—where it seems fair that beneficiaries pay rather than all taxpayers. However, many municipal services intentionally don't pursue full cost recovery: recreation programs may be subsidized to encourage participation, and transit fares typically cover only a portion of costs. Determining "full cost" requires careful accounting, and debates arise about what costs to include and whether full recovery is appropriate for particular services.