Camarillo City Council
AGENDA REPORT
Date: August 13, 2025
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: Mark Uribe, Finance Director
Subject: Annual User Fee Update
BACKGROUND
It is generally accepted in California that cities are granted the authority to impose user fees and regulatory fees for services and activities they provide through provisions of the State Constitution. First, cities are granted the ability to perform broad activities related to their local policing power and other service authority under Article XI, Sections 7 and
9. Second, cities are granted the ability to establish fees for service through the framework defined in Article XIIIB, Section 8. Under this latter framework, a fee may not exceed the estimated reasonable cost of providing the service or performing the activity. For a fee to qualify as such, it must relate to a service or activity under the control of the individual/entity on which the fee is imposed.
DISCUSSION
In FY 2019/20 the City contracted with NBS Consultants to conduct a comprehensive User Fee Study. The study included a detailed review of time estimates, overhead costs, and direct labor costs. Overhead costs include support services that provide functions to the direct providers of public service, such as human resources, payroll, financial management, and other similar business functions.
The final result of the study was an Activity Service Cost Analysis which computed the Cost of Service per Activity as the Estimated Average Labor Time per Activity multiplied by the Fully Burdened Hourly Rate for the direct providers of the service.
Staff then applied the City Council Policy 3.01 objective of 100% Cost Recovery to most fees. Certain exceptions were made to the 100% Cost Recovery Goal for fees that have a maximum amount set by State Law or where City Council felt 100% Cost Recovery could compromise compliance. Following completion of the 2019 User Fee Study, the Resolution for Master Fee Schedules was adopted on December 11, 2019.
Per City Council Budget and Fiscal Policy 3.01, User Fees and Rates will be reviewed and updated annually. User Fees will be calculated annually via the Master Fee Schedule
Annual User Fee Update
August 13, 2025
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to reflect an adjustment for any year-over-year change in Labor Costs (salary and benefits) and presented to City Council.
The Master Fee Schedule Exhibits A through E have been updated to reflect a Labor Cost increase of 5.2%. Detailed fee schedules included in the Resolution reflect the proposed fees compared to the current fees.
At tonight’s public hearing, the City Council will consider whether to adopt the recommended fee adjustments. The required legal notices have been published for this hearing. Any new development-related fees or increases to current development-related fees would become effective 60 days following action, while reductions and new or increased non-development-related fees would become effective immediately.
In February 2025, the Building and Safety fees in Exhibits F and G were updated and the Technology and General Plan Maintenance Surcharges in Exhibit H were added. These fees are not being modified but are attached to this report showing the current fees that were adopted in February.
FISCAL IMPACT
City Council approval of this action would establish a revised Fee Schedule for User Fees with an annual increase to General Fund revenues of approximately $100,000 in Fiscal Year 2025/26 based on estimated levels of activity. The additional revenue would offset the corresponding increase in costs necessary to provide the services.
CEQA DETERMINATIONS
City staff has determined, in accordance with Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, that the Annual User Fee Update is not subject to CEQA review because it can be seen with certainty that there is no possibility that the Annual User Fee Update may have a significate effect on the environment.
RECOMMENDATION
Adopt a Resolution approving the Master Fee Schedule for fees and charges.
ATTACHMENTS
1. Resolution
2. Proposed Fee Schedule
Exhibit A – Community Development Fees
Exhibit B – Public Works Fees
Exhibit C – City Clerk Fees
Exhibit D – Police Fees
Exhibit E – Finance Fees
Exhibit F – Building Permit and Plan Check Fees
Exhibit G – Stand Alone Permits and Miscellaneous Fees
Exhibit H – HP Maintenance and Technology Fee
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REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None