Modernization and Comprehensive Update to City Fees
September 22, 2026
Tonight's Agenda
• Purpose & Process: Why, How, and What
• Examples: Updated Methodologies, New Fees, and Cost Recovery • Next Steps: Implementation and Recommendation
Project Purpose & Process
Project Scope & Effort
57 meetings
9 months
42 staff
402
fees
Why We're Modernizing
Updated Baseline
Determine direct and
indirect costs. Ensure
fees capture current
operations and specific
positions involved.
Legal Compliance
Ensure fees are
reasonable and justified.
Policy Framework
Full-cost results provide
the Council a clear tool
to confirm cost-recovery
levels.
Fee Calculation Methodology
TIME ESTIMATE
Average staff time
spent per permit,
application, or fee
activity
×
FULLY BURDENED
HOURLY RATE
Salaries, benefits,
productive hours,
supplies, and
overhead
=
FULL COST
Maximum
justifiable fee that
may be assessed*
*Recreation & facility rental fees are the exception and may be set at market rate.
Citywide Results Summary
402
fees reviewed
including building,
planning, engineering,
parks and recreation,
and police
• Worked with City staff to modernize, applying
industry best practices
• Proposed fees target full cost recovery
• Comparative survey looked at fees from:
Key takeaway: Proposed fees are grounded in the actual cost of service and consistent with regional norms.
• Burlingame
• Foster City
• Menlo Park
• San Carlos
• San Mateo
• Redwood City
Examples
Example: Modernizing Building Permit Fees
Outdated methodology counted individual electrical, plumbing, and mechanical fixtures.
FROM
Counting
individual
fixtures
TO
A fee → per sq. ft.
Key takeaway: The proposed per-square-foot method is more modern and in line with industry standards.
Example: Right-Sizing Planning Fees
• Many Planning fees are proposed to go up to reflect level of effort and achieve cost recovery
• Staff identified areas where projects need the same type of entitlement but may be more or less complex, depending on project details • Created small and large categories
• Better target cost recovery
• Upcoming Zoning Code Amendment for single-family design review • Moves certain projects from Tier 3 to Tier 2
• Fees for these projects would go from $10,166 to $4,783 since they would not have to go to the Planning Commission
Key takeaway: The proposed changes increase fees for projects that are more complex and reduce select fees for projects that require less time.
Example: Permit Fees for Complex Projects
• Complex Projects are those with multiple entitlements; size can vary dramatically
• Updating system based on experience the last few years • Collect a deposit from the applicant
• Revised approach:
• Consultant costs – charge 15% administrative fee
• Applicant pays direct cost of consultants plus the 15% • Staff time tracked and charged against deposit
Key takeaway: The proposed changes will better account for the wide range of complex projects, increase transparency and improve consistency.
Example: Modernizing Facility Rental Fees
• Set at market rate (Prop 26 exception); voluntary use of City property • Proposed rates rise slightly, remaining mid-range vs. peer jurisdictions FROM
Deposit + processing fee +
setup fee + hourly rate
TO
→ Deposit + hourly rate*
Key takeaway: Processing and staffing costs are incorporated into the base hourly rate, easier for renters to understand and staff to administer.
New Fees
• Several new fees reflect evolving regulatory and service responsibilities • Examples:
• Affordable housing-related fees
• Transportation Demand Management (TDM) Compliance Report Reviews • Inspection no shows
• EV charging fees
Policy Consideration: Fees Below Full Cost Recovery
• Recommendations seek to balance cost recovery with consideration for market conditions and the community we serve
• Proposed fees generally target full cost recovery
• Limited exceptions support specific community services or needs • Ultimately, cost recovery levels are a policy decision of the City Council Policy Consideration: Fees Below Full Cost Recovery
Fee Name Unit Current Fee Total Cost
Proposed
Fee
Police Report
Victim Requested First Copy Each $0 $47 $0
Non-Victim Requested / Subsequent Victim
Requested Copies Each $27 $47 $47
E-Bike Storage & Release
1st Incident Each $50 $362 $150
2nd or more incidents Each $50 $362 $362
Ticket Sign‐off (outside agency) Per Vehicle $27 $70 $20 False Alarm Fees (per calendar year)
1st and 2nd incident Each $0 $315 $0
3rd incident Each $125 $315 $150
4th incident Each $225 $315 $275
5th or more incident Each $525 $315 $315
Policy Consideration: Fees Below Full Cost Recovery
Fee Name Unit Current Fee Total Cost
Proposed
Fee
Planning Appeals
Appeal of Planning Action to City Council Each $1,683 $9,484 $5,000 Appeal of Administrative Action to Planning
Commission Each $259 $9,484 $3,000
Appeal of tree permit Each $523 $3,622 $2,000
Master Sign Program Each $2,382 $8,113 $4,000
Temporary Street Closure Permit
Community Events (30 days min notice) Each $414 $771 $150 Community Events (less than 30 days notice) Each $414 $996 $200 Banner Permit (Ralston Ave) Each $456 $534 $100
Tree Removal Permit Associated with General
Property Maintenance Per Permit $92 $372 $139
Next Steps
Implementation & Monitoring
Update staff processes, such as time-tracking
Update permit/reservation systems to reflect new fees
Update fees annually: economic indicator, time and effort updates Target comprehensive fee study analysis every 5–7 years Monitor financial impact and major operational changes
(e.g., HIA annexation)
1 2
3 4
5 1
2 3
4 5
Results Summary
• Modernizing and streamlining fees in alignment with industry standards • Capturing current operations and staff time and effort • Ensuring legal compliance: fees are reasonable and justified • Generally targeting full cost recovery
• Limited exceptions support specific community services or needs Recommendation
Adopt a resolution approving proposed fee revisions to various types of City fees, directing the City Manager to compile the revisions into the Master Revenue Schedule.
Thank you!
belmont.gov
New: EV Charging Fee
• First chargers being installed at 3 City sites
• Fee accounts for cost recovery for:
• Preventive and on-call maintenance
• Installation and replacement costs
• Electricity costs, based on estimated usage
• Proposed fee is in the same range as neighboring jurisdictions $0.45
Per kWH