With $35, a member is paying 100%. Since the reduction is 5%, that means his is paying now 95% of $35, that means $35 x 0.95 = $33.25, So the decrease in fees is 35-33.25 = $1.75
Another method: the reduction was 5% on the $35 or 5% x 35 = 0.05x35=$1.75