To the mem•ers of th~:
CITY COUNCIL
Date2.h2l2kcA ~cc v
CM~~ .,LDCM (3)✓
Council Memorandum
February 12, 2026
To:
From:
Via:
Re:
Honorable Mayor Blackburn and Members of the City Council Jeff Murphy, Deputy City Manager, Community Services
Kyle Lancaster, Parks & Recreation Director
Sheila Cobian, Assistant City Manager ~
Parks & Recreation Fee Schedule Update (Districts -All) {city of
Carlsbad
Memo ID# 2026004
This memorandum provides information related to a fee schedule adjustment for the Parks & Recreation Department's indoor and outdoor facility rentals, and gymnasium rentals, over the next three calendar years, 2026-28.
Background
The 2023-30 Carlsbad Parks & Recreation Department Master Plan includes a short-term (up to 3 year} strategic goal to ensure its fees are competitive to those fees of surrounding cities for like offerings. Parks & Recreation Department staff recently conducted a comprehensive Fee Study comparing Carlsbad's current fees to the average fees of benchmark cities identified in the Parks & Recreation Department Master Plan: Encinitas, Escondido, Oceanside, San Marcos, and Vista. The Fee Study's findings showed that Carlsbad's current fees for indoor and outdoor facility rentals, and gymnasium rentals, are on average 30% below the benchmark cities. This gap represents a shortfall in revenue generation and cost recovery which, if left unaddressed, may have an impact on long-term fiscal sustainability efforts.
Discussion
To address the aforementioned gap in fees for indoor and outdoor facility rentals and gymnasium rentals, staff are preparing to make fee adjustments, ranging from 4% to 21%, depending on the particular facility or gymnasium, over each of the next three calendar years.
These adjustments are being proposed over a three-year period to allow for a gradual transition for community users while progressing toward consistency with the fees of benchmarked cities.
Carlsbad Master Fee Schedule
City Council Resolution Nos. 2008-192 and 2015-173 authorize the City Manager or a designee to set all fees for Parks & Recreation and Library & Cultural Arts program, rental, and class fees included in the Community Services Guide provided that fees both do not exceed the cost of providing the program and that these fees are no lower than the lowest fee charged for similar programs in the cities of Oceanside, Vista, San Marcos, Escondido, or Encinitas. City Council Resolution Nos. 2015-173 and 2025-139 further affirm the City Council has determined it is necessary for the City Manager to have the authority to adjust the Parks & Recreation and Community Services Branch
Parks & Recreation Department
799 Pine Avenue, Suite 200 I Carlsbad, CA 92009 I 442-339-2826 t Council Memo -Parks & Recreation Fee Schedule Update (Districts -All) February 12, 2026
Library & Cultural Arts program, rental, and class fees from time to time to remain competitive and within the market pricing for like programs and classes.
Carlsbad Cost Recovery -City Council Policy No. 95
Fees established for the rental of city facilities are not subject to City Council Policy No. 95 -Cost Recovery (Attachment C). Nonetheless, staff's plan for adjusting these fees is consistent with the policy's prescribed procedures and is expected to routinely achieve the policy's mid-level (i.e., 31% -80%) cost recovery by the end of the three-year implementation period.
Conclusion
The proposed fee adjustments seek to:
• Better reflect market conditions during the phased-in implementation period • Provide enhanced consistency with benchmark cities at end of the implementation period • Solidify a mid-level cost recovery achievement at end of the implementation period • Support long-term fiscal sustainability of the above described facilities and gymnasiums These fee adjustments are not intended to exceed market averages but rather to responsibly move Carlsbad's fees toward consistency with like fees of the benchmark cities (Attachment A).
These fee adjustments are projected to generate over $110,000 in additional revenue over the full three-year implementation period, and an estimated minimum of $38,000 in additional revenue annually thereafter (Attachment B).
Next Steps
The first fee adjustment of the three-year plan is scheduled to begin on May 4, 2026.
Parks & Recreation Department staff will work with Communications & Engagement Department staff to distribute community outreach materials to inform the public of upcoming adjustments and to update all public-facing materials, reservation systems, and departmental communications. Parks & Recreation staff will continue monitoring the market conditions for these facilities and gymnasiums over the three-year implementation period to maintain adherence with this plan.
Attachment: A. Three-Year Fee Adjustment Schedule
B. Three-Year Fee Adjustment Revenue Projection
C. City Council Policy No. 95
cc: Geoff Patnoe, City Manager
Cindie McMahon, City Attorney
Laura Rocha, Deputy City Manager, Administrative Services Zach Korach, Finance Director
Amy Ventetuolo, Community & Engagement Director
Anayeli Zavala, Deputy City Attorney
Ashlee Williams, Recreation Services Manager
Natalie Reed, Community Relations Manager
Attachment A
Facility Type I Group Size/ category carlsbad Current Rate Rate Unit Loca I City Avg Rate Difference to Avg($) Difference to Avg {%)1 2026 Rate 2026 lncr. (%1 2026 Revenue 2027 Rate 2027 Iner . (%) 2027 Revenue 2028 Rate I 2028 lncr . (%) 2028 Revenu e Indoor Rental !Small (1-50) $30 Hour S24 S6 25.00% I S30 0% s 37,227 S30 0% IS 37,227 S30 I 0% s 37,227 !Medium (50-100 ) S48 Hour S50 (S21 -4.00% S50 4% s 47,863 S50 0% I S 47,863 S50 I 0% s 47,863 !Large (lOD+) $66 Hour S98 (S32I -32.65% I S76 15% s 126,289 $87 14% s 144,568 S98 I 13% $ 162,846 Outdoor Rental !Small (1-50) S23 Hour $22 Sl 4.55% l" $23 0% s 72,173 S23 0% IS 72,173 S23 I 0% s 72,173 !Medium (50-100) S57 Hour S66 (S91 -13.64% I S60 5% s 122,480 S63 5% IS 128,604 S66 I 5% s 134,728 llarge (loo+) S70 Hour S79 IS91 -11.39" l" S73 4% s 49,891 S76 4% s 51,942 S79 I 4% s 53,992 City of Vista outdoor spaces are charged by day not hour so rate not included in the averages Gyms - (Stagecoach/calavera) Non-Profit {Full) $54 Hour S84 (S30I -35.71% S63 17% s 9,765 $72 14% s 11,160 S84 17% s 13,020 Non-Profit(Ha lf) S27 Hour S42 (S15J -35.71% $31 15% s 3,523 S36 16% s 4,091 $42 17% s 4,772 Individual (Full) S72 Hour $115 (S43I -37. 39% S84 17% s 11,886 S98 17% s 13,867 $115 17% s 16,273 Individual (Half) S36 Hour S58 (S221 -37.93% S42 17% s 5,292 $49 17% s 6,174 $58 18% s 7,308 Commercial (Full) $108 Hour S174 (S66I -37.93 % $127 18% s 2,455 $148 17% s 2,861 $174 18% s 3,364 Commercial (Half) S54 Hour $87 ($331 -37.9 3% S63 17% s $74 17% s S87 18% s Gyms - (Pine Community Center) I Non-Profit S54 Hour S84 (S30J -35.71% I S63 17% s 16,223 $72 14% s 21,630 I S84 I 17% s 21,630 I Individual S76 Hour $115 (S391 -33 .91% I S87 14% s 10,745 $100 15% s 14,203 I $115 I 15% s 14,203 [Commercial $100 Hour $174 IS74J -42.53% I $120 20% s 2,940 $145 21% s 4,263 I $174 I 20% $ 4,263 Attachmen t B
Parks & Rec Fees for Indoor/Ou tdoor Facility Rentals - lnaea sed Revenue Estimates Row labels 2025 Total lime 2025 Base Fee Tot 2026 Estimate 2 027 Estimate 2028 Estimate Indoor Small 6416.42 $ 37,227 .17 $ 37,227.17 $ 37,227.17 $ 37,227.17 Indoor Medium 5850 .12 $ 45,948.67 $ 47,863.20 $ 47,863.20 $ 47,863 .20 Indoor Large 5633.80 $ 109,672.00 $ 126,288.97 $ 144,567 .64 $ 162,846.30 Outdoo r Small 2765.57 $ 72,173.00 $ 72, 173.00 $ 72,173.00 $ 72,173.00 Outdoor Mediu m 5531.55 $ 116,3 55.69 $ 122,479.67 $ 128,603.66 $ 134,727 .64 Outdoor l arge 1728.80 $ 47,841.00 $ 49,891.33 $ 51,941.66 $ 53,99 1.99 Grand Total 27926.25 $ 429,217.53 $ 455,923 .34 $ 482,376 .32 $ 508,829 .30 Yearly Increase Total $ 26,70 5.81 $ 26,452 .98 $ 25,4 52_9a I s 79,611.77 )subtotal revenue increase over 3 years Parks & Rec Fees for Gym Rentals - lnaeased Revenue Estimates category Gym User category 2025 Total lime 2025 Base Fee Tot 2026 Estimate 2027 Estimate 2028 Estimate Gyms - (Stagecoach/Calavera) Full Non-Profit 146.50 $ 8,370 .00 $ 9,765 .00 $ 11,160 .00 $ 13,020 .00 Individual 143.50 $ 10,188.00 $ 11,886. 00 $ 13,867 .00 $ 16,272.50 Commercial 22.00 $ 2,088.00 $ 2,455 .33 $ 2,861.33 $ 3,364 .00 Gyms - (Stagec oach/C alavera) Half Non-Profit 108.00 $ 3,068 .00 $ 3,522.52 $ 4,090.67 $ 4,772.44 Individual 126.00 $ 4,536.00 $ 5,292.00 $ 6,174 .00 $ 7,308 .00 Gyms - (Pine Community Center) Non-Profit 257.50 $ 13,905 .00 $ 16,222.50 $ 18,540.00 $ 21,630 .00 Individual 123.50 $ 9,386.00 $ 10,744 .50 $ 12,350.00 $ 14,202.50 Commercial 24.50 $ 2,450 .00 $ 2,940.00 $ 3,552.50 $ 4,26 3.00 Grand Total 951.50 $ 53,991.00 $ 62,827.85 $ 72,595.50 $ 84,832.44 1 Yearly Increase Total $ 8,836.8 5 $ 9,767.65 $ 12,236 .94 [ $ 30,841.44 ]subtotal revenue increase over 3 years .J. 110,453.21 ]Grand total revenue increase over 3 years $ 38,68 9.92 Grand total ongoing revenue increase per year1 as of year 3 City Council
POLICY STATEMENT
Policy No.
Date Issued
Attachment C
95 June 18, 2024
Resolution No. 2024-146
Subject: Cost Recovery Policy for Fees and Charges for Services Purpose
It is important for the city to have a sound and consistent cost recovery policy that will serve as a management tool for establishing, implementing, and evaluating fees and charges.1 This policy ensures that the city's fees and charges are managed in a manner that will:
• Provide for the delivery of quality services
• Maintain and enhance service delivery
• Support a balanced budget through evaluation and review of the city's total estimated and reasonable cost of providing services
• Set fee amounts in accordance with local goals as pertains to code compliance, cost recovery, economic development, and community values
• Ensure that any action to establish, increase, or impose a fee is conducted in a manner that satisfies the requirements of state law
The City of Carlsbad is authorized to adopt and implement fees and charges for certain municipal services, provided the fees and charges do not exceed the reasonable cost of providing such services. This policy sets forth cost recovery targets, timelines for fee increases, annual cost inflation adjustments, and frequency of comprehensive review for all city fees and charges.
Background
The city's fees for services, products, and regulatory activities are not taxes requiring voter approval under California State Constitution, Article XIII C, Section 1 (a voter initiative added by Proposition 218 and amended by Proposition 26) if the fees do not exceed the reasonable cost of the services, products or regulatory activities. In addition to the Constitution, state and local laws also provide authorization to charge fees for services. For example, Government Code 66014 governs many fees as it pertains to development approvals. The language of Government Code 66014 mirrors the reasonable cost limitation expressed by the Constitution.
This policy addresses all city fees and charges included in the city's Master Fee Schedule, with a few exceptions. Fees for services not subject to this policy typically require different analyses and adoption processes than the fees that are subject to this policy. 1 The policy, as it applies to Carlsbad Municipal Water District fees and housing services fees, was approved by the Board of Directors of Carlsbad Municipal Water District of the City of Carlsbad on June 18, 2024, by Resolution No. 1742 and the Community Development Commission on June 18, 2024, by Resolution No. 569.
City Council Policy Statement
June 18, 2024
r~/. /.. . ·: .... ~_:·.'.·?.\~~:.1·r~~-~·-'·.·:: ~\:_:_;T-:· __ ~:~:·.-~ ·:'" • ·:-:.:::r·::~'t! ~ ! .. ~ : ;,,. ----~\ ~· • ,._.,. i(.· .... ., __ -~ "1,~ .. "W'5,I",\! •tJ. t.,· j ...... • -i:,..,i-~ .. ~~~'l.'\o .... ,c.... !~ . ._ _ .. , .• •-<~:·~·:~ ..... 1.-,. ·J~.~-' :1. • Miscellaneous administrative
fees
• Special events fees
• Streetlight energizing fees
• City Clerk's Office fees
• Library fees
• Fire fees:
o Fire extinguishing and
alarm systems permit fees
o Annual inspections and
fire code permits
o other fire fees
• Fees for development
applications, including
entitlements, plan review, permit
issuance, inspections
• Police administrative and service
fees
• Utility account fees for
residential customers
• Fees charged on an hourly, time
and materials, or actual cost of
service basis
• Permit fees required to operate a
business
• Any fees prohibited by law from
exceeding the reasonable cost of
providing services
Statement of policy
• Deposits and securities
• Safety Training Center facility fees
• All fees for rental or use of city facilities
and/or equipment
• Administrative citation penalties
• Vehicle, traffic and parking civil penalties
• Development impact fees, utility
connection fees
• Trash collection rates
• Fees set through contracts with third
party vendors
• Water and wastewater service rates and
property related fees and taxes governed
by Proposition 218
• Utility services fees, recycled water and
wastewater fees, third party hydraulic
modelling fees, and other utility fees
• Fees set by external agencies
• other monetary exactions imposed on a
project on an ad hoc basis in connection
with the approval of a development
project
• Business license taxes
• Emergency medical services, paramedic
and ambulance fees
• Parks & Recreation and Library & Cultural
Arts program and class fees2
• All fees for services set by state or federal
statute
It is the policy of the City of Carlsbad that the following guidelines will be used in establishing and maintaining fees and charges:
1. Revenues for individual fees and in aggregate for any fee program shall not exceed the reasonable cost of providing services.
2 Resolutions No. 2008-192 and No. 2015-173 authorized the City Manager or a designee to set all fees included in the Community Services Guide provided that fees both do not exceed the cost of providing the program and that these fees are no lower than the lowest fee charged for similar programs in the cities of Oceanside, Vista, San Marcos, Escondido, or Encinitas.
City Council Policy Statement
June 18, 2024
2. Comprehensive review of all city fees and charges shall occur every five to seven years.
3. In certain circumstances where cost recovery may be unrealistic or undesirable, the City Council may subsidize a portion of or an entire fee program and/or individual fees.
4. In certain circumstances where immediate adjustments to full cost recovery may be impractical, it may be appropriate to phase in fee increases over multiple years.
5. The procedures for adopting fees for development applications or projects shall follow the procedures for adopting various fees provided by Government Code sections 66016- 66019, or other applicable law, and shall be effective no sooner than 60 days following the final action.
6. Fees and charges should be sensitive to the "market" for similar services.
7. A unified approach should be used in determining cost recovery levels for various programs and their individual fees and charges based on this policy.
Influential Factors to Cost Recovery Policy
Reasonable, routinely reviewed, and well managed fees for services are one of the many responsible financial steps needed to support the city's overall financial sustainability. When considering whether fees and charges should be adopted to recover 100% of the costs of providing services, city staff and the City Council will consider the following influential factors:
• The level of cost recovery should consider the degree to which the public benefits from the service versus the degree to which the user of the service themselves benefits. • The level of cost recovery should consider how the pricing of services can affect the demand and subsequent level of services provided.
Based on the consideration of factors that influence cost recovery policy, the degree to which pricing for services recovers the city's costs of providing the service will vary. • Low-level cost recovery services should aim to recover between 0%-30% of their costs.
These include services where there is no intended relationship between the fee and the benefit received, that are essential to community safety, or for services where collecting fees would discourage compliance.
• Mid-level cost recovery services should aim to recover between 31%-80% of their costs.
These include services where the specific user of the service receives a higher level of benefit than the general taxpayer, but where the city has an interest in encouraging compliance by subsidizing the cost of the service.
• High-level cost recovery services should recover between 81%-100% of their costs.
These include services where the individual primarily and directly benefits from the service, not the community at large. These may be services that could otherwise be provided by the private sector or use of the service is not encouraged.
City Council Policy Statement
June 18, 2024
~-:,,~·, ....... ,.·· .~ ...... •t.• -=,,-• ,;-.. \,..-.,J•,, -.. ;,-.1 ·..yt4'1",..,."' .. """''·~"~.[~· .. ,i .... , '""•-:.4,, •f"'c1'!,.•' -'t-·-•, .. >':'A,.-;~;.s.--,-~- ~)-( :,i '. •• :: .. : ~ • , •. : • : ·.-: 1: ···-~·.: ·:··.-_/· ._,-_·· ··.-\F{", ,, ---~~-.. ;/!-~· : .. 'J.~.{ :~· · · '.~ --\.:;: ::.J•·~~;~~-(~~ ~, .... .to.\ • .,.._.. . ... , .,,-x .... • .. i • .:i'~ :--,.r1 •• ~'l.,,~ ,.:t-1',..,.~-•-·-"\.~ ~ ... !i.1·.-. ......... •~...-0, ~,, .. :.~.illi.~~.1,.:, General and Administrative Fees -Finance, Clerk, City Manager Appeals to City Council MID {31%-80%} Both individual and community benefit from
the service
Business license master list of new/active HIGH {81%-100%} Individual benefit received licenses from the service
Community facilities district annexation HIGH {81%-100%} Individual benefit received services from the service
Miscellaneous services where amount of the HIGH (81%-100%} Individual benefit received fee is not set by state or federal statute from the service Special Events Fees
City-sponsored special events. Special LOW {0%-30%} Community primarily events sponsored by the city or a non-profit benefits from the service organization with a community-wide benefit
that are free and open to the public
Special events that are open to the public MID (31%-80%} Both the event sponsor where admission or fees for participation and the community benefit are not charged from the service
Special events where admission is ticketed HIGH (81%-100%} Individual benefit received or fees for participation are charged from the service
Library Fees
Library card replacement, hold requests, LOW (0%-30%) Community primarily interlibrary loans, general day-to-day service benefits from the service fees
Refund processing initiated by customer LOW (0%-30%) Community primarily benefits from the service
Fire Fees
Fire code permits, annual occupancy MID (31%-80%) Both individual and regulatory inspections (both state-community benefit from mandated and non-mandated) the service
Fire/life safety plan check and inspection MID (31%-80%) Individual benefit received fees for development services (e.g., from the service. Fees sprinkler, alarms, new construction) should generally be set at the higher end of the mid-
range
City Council Policy Statement
June 18, 2024
Police Fees
Patrol and general enforcement services
Copies of reports for victims of crimes
All fees for records management, towing, or
other items which are not limited per state
or federal statute
Utility Administrative Fees
New account set up, reinstating of service
for delinquent accounts to the extent not
limited by SB 998, 3 all other fees subject to
this policy
MID (31%-80%)
MID (31%-80%)
MID (31%-80%)
MID (31%-80%)
Land Development Permitting & Inspection Services
Discretionary Entitlement Permit (review
and processing, including but not limited to
general plan amendment, rezone, local HIGH (81%-100%) coastal plan amendment, conditional use permit, coastal development permit, site
development plan)
Minor Discretionary Permit (review and
processing, including but not limited to LOW (0%-30%) permits that are more administrative in nature (i.e., accessory dwelling units))
Ministerial Permit (review and processing,
including but not limited to building, HIGH (81%-100%)
grading, map, and improvement plan)
Community primarily
benefits from the service
Ensure access to valuable
service
Individual benefit received
from the service, or fee is
administrative as pertains
to a violation of code/law
Individual benefit received
from the service
Individual directly
benefiting from the
permitted action pays a
majority, if not all the
permit processing costs
Ensure compliance with
essential regulatory codes
and standards by
minimizing the permit
application costs
Individual directly
benefiting from the
permitted action pays a
majority, if not all the
permit processing costs
3 SB 998 limits the amount that qualifying low-income residential water customers must pay for service reconnections after shutoff to $50 during normal business hours and $150 after normal business hours. These figures are subject to annual inflationary adjustments for changes in the Consumer Price Index. See California Health and Safety Code 116914. Details for residential water customers are available in the Carlsbad Municipal Water District's Residential Water Service Shutoff Protection Policy for Nonpayment of Charges.
City Council Policy Statement
June 18, 2024
Minor Ministerial Permit (review and
processing, including but not limited to
minor commercial or industrial tenant
improvements, adjustment plats, right-of-
way use or encroachment agreements)
Administrative Ministerial Permit (review
and processing, including but not limited to
minor and/or routine residential repairs
Permit Inspection Services
Procedures
Ensure compliance with
essential regulatory codes
MID (31%-80%) and standards by
minimizing the permit
application costs
Ensure compliance with
essential regulatory codes
LOW (0%-30%) and standards by
minimizing the permit
application costs
Individual directly
benefiting from the
HIGH (81%-100%) permitted action pays a
majority, if not all the
permit processing costs
This Cost Recovery Policy establishes a scheduled program to comprehensively review the fee schedule to determine if the current fee amounts are reflective of the costs to provide such services and are consistent with best practices and statutory requirements. • A comprehensive analysis of city service delivery costs associated with fees and charges shall be made approximately every five to seven years.
• Off-cycle updates will occur annually, where fees will be adjusted by a percentage equal to the change in the San Diego Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics or another reasonable inflationary factor. • Individual fees may be adjusted during the interim period based on supplemental analysis whenever there have been significant changes in costs. • The City Council shall have the opportunity to review and the authority to approve any changes to the Master Fee Schedule.
• The City Council may decide to increase fees over a period not to exceed three years in certain circumstances where immediate adjustments to targeted cost recovery amounts may be unrealistic.
Comparability with Other Communities
Comparing the city's fees to other communities provides useful background information in setting fees. It allows the city to assess the market price of the service as compared to other agencies as well as to learn about alternative methods of charging fees for certain services.
However, fee surveys should never be the sole or primary criteria in setting city fees as there are many factors that affect how and why other communities have set their fees at their levels.
City Council Policy Statement
June 18, 2024
Terms and Limitations
1. All rights and obligations existing under any user fee schedule in effect prior to the effective date of a resolution approving a user fee update, shall continue in full force and effect. Updates to user fee schedules should not affect or disrupt the continuity of the city's business or administration of its law, including:
• Actions and proceedings that began before the effective date of the resolution. • Prosecution for ordinance violations committed before the effective date of the resolution.
• The amount, or collection, of license, fee, penalty debt, forfeiture, or obligations due and unpaid as of the effective date of the resolution.
2. This Cost Recovery Policy does not invalidate any action taken prior to its effective date if the action was proper under the law governing the action at the time the action was taken.