DATE: February 4, 2025
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director Lisa Flores, Deputy Development Services Director
By: Alejandra Smith, Business License Officer
John Wade, Administrative Assistant
SUBJECT: RESOLUTION NO. 7 613 UPDATING THE CITY’S BUSINESS LICENSE
FEES TO REFLECT THE CHANGES IN THE CONSUMER PRICE INDEX (“CPI”) FROM OCTOBER 2024
CEQA: Not a Project
Recommendation: Adopt
SUMMARY
The City’s Municipal Code allows for an annual increase in b usiness license fees to accommodate cost of living increases. Due to recent cost-of-living adjustments, the applicable business license fees should be increased by 2.7% to reflect the change in the Consumer Price Index (“CPI”) and to recover the costs to process applications.
It is recommended that the City Council adopt Resolution No. 7613 updat ing the City’s business license fees to reflect the changes in the Consumer Price Index (“CPI”) from October 2024.
BACKGROUND
Pursuant to Government Code Section 53750, the City Council has the authority to increase taxes and fees and make changes pursuant to a CPI adjustment formula.
Arcadia Municipal Code Section 6220.1 allows for the adjustment of business license fees on January 1 of each year to reflect changes in the Consumer Price Index ( “CPI”) from the previous October. The business license fees that the City maintains cannot exceed the actual cost to process the applications, nor can they be adjusted without consideration of economic conditions such as recessions and other pressures on local businesses.
The fees are reviewed on an annual basis to assess cost recovery and keep pace with inflation. Incorporating an annual review and potential changes will help avoid any drastic and unplanned circumstances for Arcadia businesses.
Resolution No. 7613 – Business License Fees Update
February 4, 2025
DISCUSSION
The Arcadia Municipal Code requires that the City compute the changes to the CPI for All Urban Consumer s for the Los Angeles -Anaheim-Riverside metropolitan areas . This provision of the Municipal Code allows the business license fees to keep pace with increased costs for services in the region, without having to conduct an entire study each year. Based on the CPI reflected from October 2024, the year-over-year increase is 2.7%.
Thus, all relevant fees will be adjusted using this figure.
Resolution No. 7613 (attached), includes an exhibit that provides the current business license fees as well as the new fees with the proposed increase of 2.7%. These increases are fair and reflect the current cost of doing business. It is not anticipated that these increases will be detrimental to new business start-ups, renewals of existing licenses, or the number of applications received. As recommended by the Citizen’s Financial Advisory Committee, it was established that the City would like to recoup all relevant costs for the provision of City services. As such, the Development Services Department will review the CPI each year and apply adjustments as they are war ranted, and as the Code allows. It should also be noted that some of the fees in the current Business License fee schedule are outdated. The Business License Division is currently in the process of a significant update to the Business License Code, which will lead to the removal of many outdated fees in the near future.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), per Section 15061(b)(3), as it can be seen with certainty it will have no impact on the environment.
PUBLIC COMMENTS/NOTICE
A public hearing notice was published in the Arcadia Weekly newspaper on January 23, 2025, and it was posted on the City’s website , the City Clerk ’s Office and at the City Council Chambers. As of January 31, 2025, no public comments have been received on this proposal.
FISCAL IMPACT
By recovering more of the costs to provide Business License services, the net impact to the General Fund is expected to be positive and a slight increase in revenue will be generated. The annual revenue anticipated from Business License Fees for the current Fiscal Year is $ 1,372,600. Given this estimate, it can reasonably be projected that the proposed fee increase of 2.7% would add approximately $37,060 in annual revenue.
Resolution No. 7613 – Business License Fees Update
February 4, 2025
RECOMMENDATION
It is recommended that the City Council determine this action does not constitute a project under the California Envir onmental Quality Act (“CEQA”); and adopt Resolution No. 7613 updating the City’s business license fees to reflect the changes in the Consumer Price Index (“CPI”) from October 2024.
A
ttachment: Resolution No. 7613 with Business Fee Schedule – Existing and Proposed Fees
RESOLUTION NO. 7613
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, UPDATING THE CITY'S BUSINESS LICENSE FEES TO
REFLECT THE CHANGES IN THE CONSUMER PRICE INDEX
("CPI") FROM OCTOBER 2024
WHEREAS, California State law authorizes the City of Arcadia to collect fees and charges for services, provided such fees and charges do not exceed the reasonable cost of providing the service; and
WHEREAS, the City Council of the City of Arcadia has established certain fees and charges for services provided by the City of Arcadia; and WHEREAS, the City Council desires to adjust certain fees and charges based upon review of said fees and charges; and
WHEREAS, the City Council has determined that such fees and charges shall be based on reasonable costs to the City for providing said services and updated annually by a CPI factor; and
WHEREAS, the City of Arcadia held a duly noticed Public Hearing to provide public input and review concerning adjustments in rates for said services.
NOW, THEREFORE, the City Council of the City of Arcadia does hereby resolve as follows:
SECTION 1. The establishment and/or adjustment of fees does not constitute a project under the California Environmental Quality Act ("CEQA") Section 15061 (b)(3) because it can be seen with certainty it will have no impact on the environment.
SECTION 2. The fees set forth in this Resolution are necessary as the said business fees do not exceed the estimated costs for providing the applicable service or licenses; and the fees are not being imposed for general revenue purposes, but instead 1 for full or partial recovery of the costs of providing said services and licenses. Said fees are to cover the costs of various services and programs set forth in the Fee Schedule, attached hereto as Attachment "A".
SECTION 3. The City Council hereby adopts the Fee Schedule, attached hereto as Attachment "A".
SECTION 4. Any fees adopted prior to the adoption of this Resolution which are inconsistent herewith are hereby repealed, effective upon the date the fees set forth in Attachment "A" take effect.
SECTION 5. This Resolution shall become effective February 4, 2025.
SECTION 6. The City Clerk shall certify the adoption of this Resolution. [SIGNATURES ON NEXT PAGE]
2 Passed, approved and adopted this 4th of February 2025.
ATTEST:
City Clerk
APPROVED AS TO FORM:
Michael J. Maurer
City Attorney
Mayor of the City of Arcadia
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4 RATE TYPE
Advertising Distribution
Advertising Solicitation
In the City
Advertising Solicitation
Out of City
Apartments
Auction or Temporary Retail
Sale Per day
Bankrupt, Assigned or
Damaged Goods
30 Days
60 Days
90 Davs
Bingo
Boutiques or Craft Shows
Per day
Bowling Alleys or Billiards
Carnival
Christmas Tree or Pumpkin
Lots
Circus
Commercial Building Rental
Contractor General
Contractor Specialty
Attachment "A"
EXISTING BASE
FEE 2024
$217.00
$90.80
$180.60
$70.90
First 4 units
$90.80
$90.80
$180.60
$271.10
$63.90
$12.40
$180.60
$217.00
$108.30
$180.60
$90.80
$271.10
$217.00
EXISTING UNIT
FEE 2024
$18.30
per employee
$18.30
Each additional
unit over 4
$18.30
per alley or
billiard
$36.20
each additional
day after the 1st
day
$18.30
Each additional
unit over 2
$11.00
per vehicle
$11.00
per vehicle
5 PROPOSED PROPOSED
BASE FEE UNIT FEE
WITH WITH
2.7% 2.7%
INCREASE INCREASE
$222.90
$18.80
$93.30 per employee
$185.50
$72.80 $18.80
First 4 units Each additional
unit over 4
$93.30
$93.30
$185.50
$278.40
$65.60
$12.70
$185.50 $18.80
Per alley or
billiard
$222.90 $37.20
each additional
day after the
1st day
$111.20
$185.50
$93.30 $18.80
Each additional
unit over 2
$278.40 $11.30
per vehicle
$222.90 $11.30
per vehicle
Daily Sales/Organization $12.40 $12.70
per day
Dance Hall Public $180.60 $185.50
Delivery and Service Vehicles $103.60 $106.40
(Each vehicle)
Entertainment Permit $150.00 $154.00
Exhibitions $18.30 $18.80
per day
Farmer's Market Sponsor $320.20 $328.80
Farmer's Market Vendor $23.50 $24.10
Family Care $90.80 $93.30
Filming $320.20 $96.10 $328.80 $98.70
per location per location for per location for
each additional each additional
day day
Fortunetelling $903.40 $927.80
Game and Amusement $108.30 $111.20
Machines
per machine
Home Occupation $90.80 $11.00 $93.30 $11.30
per vehicle per vehicle
Laundromat $36.80 $2.20 $37.80 $2.30
per washer per washer
Laundry Collections $121.30 $124.60
per vehicle
Lodging, Hotel or Motel $70.90 $10.80 $72.80 $11.10
First 4 rooms per room after 4 First 4 rooms per room after rooms 4 rooms
Merry Go Round or Ferris $36.80 $37.80
Wheel
Mobile Food Vendor $19 3.40 $198.60
Private Property
Mobile Food Vendor $458.10 $470.50
Public Right of Way
Moving Services $217.00 $222.90
Newsrack $12.40 each $12.70
Private Patrols $361.40 $371.20
Pawnbroker $180.60 $185.50
Peddlers/Solicitors 6 months $140.00 $143.80
6 Photographer $217.00 $222.90
Professional Services $90.80 $36.20 $93.30 $37.20
Per state licensed per state licensed per state
Accountants, Attorneys, owner/partner/ employee licensed Dental, Medical, and associate employee
Veterinarian Offices $18.30
For each $18.80
Medical Clinics and Urgent additional For each
Cares employee additional
employee
Real Estate Broker $90.80 $18.30 $93.30 $18.80
per employee
Scrap Dealer or Junk Dealer $180.60 $185.50
Sidewalk Vendor $161.90 $166.30
Stationary and Roaming
Skating Rink or Shooting $361.40 $371.20
Gallery
Social Club $217.00 $222.90
Special Event $217.60 $223.50
Taxicabs per vehicle $103.60 $106.40
Driver's Permit $18.30 $18.80
Theatres and Shows $361.40 $371.20
Tent Shows per day $90.80 $93.30
Trade Services and $90.80 $18.30 $93.30 $18.80
Wholesalers per employee
Manufacturers, Retail, and
Service
Vending Machines $18.30 $18.80
Per Machine Per Machine
Processing Fee annually $11.00 $11.30
7