DATE: 08/05/2026
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2026-281
REQUEST FOR CITY COUNCIL AND
CORONA UTILITY AUTHORITY ACTION
SUBJECT:
PUBLIC HEARING FOR CITY COUNCIL CONSIDERATION OF RESOLUTION NO. 2026-085 REVISING THE CITYWIDE MASTER FEE RECOVERY SCHEDULE AND RECOVERY PERCENTAGES, REPEALING RESOLUTION NO. 2024-100, 2025-040, AND 2025-080
EXECUTIVE SUMMARY:
This staff report asks Council to adopt an updated fee recovery schedule based on the results of the recently completed user fee study. Approval of the Resolution will authorize the proposed revisions of the Citywide Master Fee Recovery Schedule and Recovery Percentages.
RECOMMENDED ACTION:
That the City Council:
a. Adopt Resolution No. 2026-085 revising the Citywide Master Fee Recovery Schedule and Recovery Percentages, repealing Resolution No. 2024-100, 2025-040, and 2025-080
b. Authorize the City Manager, or their designee, to approve any additional budgetary adjustments for the fee amendments, if needed.
That the Corona Utility Authority review, ratify, and, to the extent necessary, direct the City Council to take the above actions.
BACKGROUND & HISTORY:
The purpose of conducting a user fee study is to evaluate City user fees by determining the full cost of providing non-market-based services and reviewing market-based fees for competitiveness and appropriateness. The last comprehensive review and update of the City's market-based and non-market-based fees was completed in 2024. The City typically conducts these studies every two to three years to reflect inflation, changes in service-delivery costs, and other operational factors. The primary reasons for identified proposed fee changes are: (1) staffing level changes, (2) time allocation updates, (3) current costs to perform the service or program, (4) percentage of cost recovery, and (5) changes in market conditions.
Calculating the true cost of providing City services is a critical step in the process of establishing user fees and corresponding cost recovery levels. Although cost recovery is a principal factor, other factors must also be given consideration, such as the effects that service fees will have on the individuals purchasing those services and the community benefit. The following legal, economic, and policy issues help illustrate some of these considerations:
• State Law: California law generally limits user fees to the estimated reasonable cost of providing the service, consistent with Government Code section 66014(a) and other applicable statutes.
• Economic Barriers: The City may establish fees below full cost recovery to reduce financial barriers for certain services and improve accessibility. • Community Benefit: The City Council may subsidize fees when a service provides a broader public benefit, or advances community goals that outweigh full cost recovery. Some programs are provided free of charge, or for a minimal fee, regardless of cost. Youth and senior programs tend to have the lowest recovery levels. Miscellaneous classes tend to have moderate cost recovery level, and adult sports programs typically have a higher cost recovery level.
• Incentives: The City may establish fees below full cost recovery to encourage participation in programs or activities that support City policy objectives, such as youth recreation, animal licensing compliance, or other public benefit programs.
ANALYSIS:
Willdan Financial Services (Willdan) was selected as the City's primary fee consultant through the Request for Proposal (RFP) process and completed an initial comprehensive user fee study for the City in 2025. The current fee update began in late September 2025, and since then, Willdan has worked with various departments to review and update their respective user-fee activities. The goals of the project were to:
• Ensure the City accurately accounts for the total costs to provide fee-related services by conducting a citywide cost-based user fee study; • Analyze areas where the City may adjust fees based on the full cost of services and other economic or policy implications; and • Identify best practices for establishing user fees and maintenance of fees over time.
The recommended fee schedule is organized into market-based fees, non-market-based fees, and other fees. Other fees include regulatory and penalty-related schedules, including the Cost Recovery Payment Schedule for Damage to City Property, Administrative Penalties Schedule, and Parking Violation Penalty Schedule. These fees are not categorized as market-based or non-market-based fees.
Market-based fees are charged for services and programs the City provides in its private capacity, as opposed to a governing or regulatory capacity. These fees are not limited to the City's calculated costs and can be based on the market rate. Generally, market-based fees are charged for services or programs such as using or renting City fields and facilities. For this update, market-based fees were reviewed and adjusted based on the market rate.
Non-market-based fees are charged for the services and programs the City provides in its regulatory capacity, such as building permits and other development-related permits.
These fees are generally based on the reasonable cost of providing the service.
To determine the full costs of a service for non-market-based fees, it is necessary to analyze all costs, fee-related or not, to fairly distribute across all activities provided by City departments. The costs are calculated using the hourly rate of staff providing the service, and the time spent providing the service. Willdan guided the fee study process and used this calculation methodology to develop the full cost of each non-market-based user fee.
Data was collected using costs from the Fiscal Year 2026 Adopted Budget, as well as staff time estimates and service volume data.
When the final draft of the fee schedule was available, the Finance Department held an informal meeting with the local development community to discuss updates to the building-related fees. Fifty-three (53) individual invitations (Exhibit 3) were extended to representatives from various developers, utilities, and the Building Industry Association (BIA) to a meeting, which was held on June 18, 2026 at City Hall and via Microsoft Teams.
Master Fee Recovery Schedule
The attached Master Fee Recovery Schedule (Exhibit 1) includes the current fees, recommended fees, dollar changes, and percentage recovery level. The Master Fee Recovery Schedule also identifies recommended new fees, fee restructuring, fee transfers, and fee removals as proposed by City staff. A brief discussion of the recommended changes is provided below for each applicable department or service area.
Airport
The Corona Municipal Airport provides aviation services to commercial operators and recreational flyers, including aircraft tie-down rentals and airport access services. Airport operations transitioned departments, from Community Services to Economic Development, as part of the City’s organizational structure. As part of this fee update, Airport fees are presented under the Airport category to align with the nature of the services provided. The market-based AP-001-Airport Tie Down Rentals fee remains unchanged, while the non-market-based AP-002-Airport Security Card Issuance fee has decreased slightly, while continuing to reflect 100% cost recovery.
City Clerk and General Services
The City Clerk is responsible for the care and custody of the City’s official records and conducts municipal elections. Previously, General Services fees were included with City Clerk fees; however, as part of this fee study update, the two service areas have been separated, with City Clerk fees presented under the City Clerk section and General Services fees presented under a separate General Services section. City Clerk and General Services fees are non-market-based, as they are based on the cost of providing administrative and support services. Three City Clerk fees are established and capped by State law and cannot be increased. The remaining City Clerk fees have been adjusted to recommend 100% cost recovery, while General Services fees are charged based on actual costs.
City Manager’s Office
The City Manager’s Office, through the Communications Division, has one market-based fee related to the City’s online merchandise store. The fee represents an administrative charge applied to merchandise sales through the third-party online platform. No changes are recommended to this fee as part of this fee update.
Community Services
The Community Services Department includes Parks, Facility Maintenance, Trails, Library Services, and Recreation. There are minimal changes proposed to the nonmarket-based fees. The majority relate to library services, while passport processing fees are established by federal law and cannot be adjusted by the City. Staff is recommending the removal of the CS-065-Test Proctoring fee, as the service is no longer provided.
The Department reviewed the market-based fees and recommended adjustments based on market conditions, as well as comparisons with neighboring jurisdictions. In addition, market-based fees were reorganized; five-hour facility rental rates were converted to hourly rates, and new fees were added for the Innovation Center (See Exhibit 1 for the complete list of fee changes included in the Master Fee Schedule).
As previously noted in the Airport section, airport operations transitioned departments from Community Services to Economic Development, as part of the City’s organizational structure. Accordingly, Airport fees have been removed from the Community Services section and are now presented under the Airport category.
Corona Film
Corona Film fees are associated with permits for filming activities within the City, pursuant to Chapter 17.97 of the Corona Municipal Code. The fees are categorized as marketbased fees and remain in the Master Fee Schedule to support the implementation of the Municipal Code. No changes are recommended to this fee structure as part of this fee update.
Finance
The Finance Department is responsible for citywide financial administration, and the fees consist of assessment and Mello-Roos bond payoff calculations, annexation into Community Facilities Districts (CFDs), and returned check fees. All Finance Department fees are non-market-based and are based on the cost of providing the service. There are no changes in the fee structure, and all fees have been adjusted to recommend 100% cost recovery.
Fire
The Fire Department fees include Fire Prevention inspection services and the Emergency Medical Services (EMS) Response Subscription program. The Fire Department's nonmarket-based fees are based on the cost of providing the service. There are no changes in the fee structure, and all applicable fees have been adjusted to recommend 100% cost recovery, with the exception of the EMS Response Subscription program and engine company reinspection fees.
The Fire Department previously included market-based fees for facility rentals, including:(1) FR-1000-Burn Tower Rental, (2) FR-1003-Fire Training Class Rental, and (3) FR-1004-Fire Training Grounds Rental. As part of this fee study update, these marketbased fees have been removed from the fee schedule.
Human Resources
The Human Resources Department supports the City's workforce through employee recruitment, onboarding, personnel administration, and other human resources services.
The Department provides fingerprinting services for employment-related needs, as well as members of the public requiring fingerprinting services. The Human Resources Department's fingerprinting fee is a non-market-based fee and has been evaluated based on the cost of providing the service. There are no changes in the fee structure, and the fee has been adjusted to recommend 100% cost recovery.
Legal and Risk Management
The Legal and Risk Management Department provides legal counsel, risk assessment, liability management, and workers' compensation services. All Legal and Risk Management fees are non-market-based and consist primarily of Communication and Small Cell Site license agreement fees. The fees are established based on the cost of providing the service. There are no changes in the fee structure, and all fees have been adjusted to recommend 100% cost recovery, with the exception of LRM-070-City Attorney Office Review fee, which is charged based on actual cost.
Planning and Development
The Building, Development Services, and Planning Divisions fall within the Planning and Development Department, which is responsible for building construction and modification, property maintenance, land use, and property inspections.
Building Division: The Building Division ensures that all new development and existing structures meet safety standards and are maintained in safe conditions. All Building Division fees are non-market-based fees and are established based on the cost of providing the service. There are no changes in the fee structure, and all fees have been adjusted to recommend 100% cost recovery. Solar photovoltaic and thermal energy storage system permit fees are also recommended at 100% cost recovery; however, the proposed fees exceed the State-mandated fee cap. State law allows fees above the cap when supported by findings demonstrating that the fee reflects the reasonable cost of providing the service. The Building Division is recommending the adoption of the proposed resolution, which includes findings that the proposed fees reflect the reasonable cost of providing solar and thermal energy storage system permits.
Development Services Division: The Development Services Division provides review and permitting services for commercial, industrial, and residential development projects. All Development Services Division fees are non-market-based and established based on the cost of providing the service. For this update, staff recommends the addition of one new fee: DS-1050–Meter Addressing Fee. There are no other changes in the fee structure, and all fees have been adjusted to recommend 100% cost recovery, except (1) DS-330– Wide and Overload Permit (Daily) and (2) DS-340–Wide and Overload Permit (Annual), which are established by federal law and cannot be adjusted by the City.
Planning Division: The Planning Division administers City land use and development policies, and provides review services for planning applications and development projects. All Planning Division fees are non-market-based and have been evaluated based on the cost of providing the service.
For this fee update, staff recommends the addition of eight new fees related to development review and planning applications, including housing development applications, Senate Bill 330 preliminary applications, and Affordable Housing Overlay Residential Development applications (see Exhibit 1 for the complete list of new fees included in the Master Fee Schedule).
There are no other significant changes in the fee structure, and all applicable fees have been adjusted to recommend 100% cost recovery, with the exception of two fees that have historically been subsidized pursuant to City Council direction: (1) PL-MS-020 – Garage Sale Permits and (2) PL-PC-370 – Historic Resource Nomination.
Police
The Police Department provides public safety services to the community, including law enforcement, permit processing, records management, and Animal Services operations.
The Department’s non-market-based fees are evaluated based on the cost of providing the service, with certain fees recommended below 100% cost recovery due to policy considerations. The Department also has market-based fees for training facility rentals.
For this fee update, staff recommends changes to Animal Services, Police Permit, and Special Event Permit fees, including the addition of new permit-related fees, removal of select sub-fees, and revisions to existing permit fees, including nonprofit discounts, late application fees, and background check fees (See Exhibit 1 for the complete list of fee changes included in the Master Fee Schedule).
Certain Animal Services, regulatory, and permit-related fees are recommended below 100% cost recovery. Staff recommends maintaining these subsidies due to policy considerations, including promoting compliance with regulatory requirements, encouraging responsible animal ownership, reducing financial barriers for community members, supporting animal adoption and reunification efforts, and recognizing the public benefit associated with these services. All other applicable non-market-based fees have been adjusted to recommend 100% cost recovery. There are no recommended changes to the Police Department’s market-based training facility rental fees.
Public Works
The Public Works Department provides essential infrastructure and operational services, including traffic management, capital improvement, street maintenance, fleet services, and environmental compliance. All Public Works Department fees are non-market-based and established based on the cost of providing the service.
For this fee update, staff recommends the addition of new National Pollutant Discharge Elimination System (NPDES) permit fees, including stormwater commercial facility inspections, follow-up inspections, construction site inspections, water quality management, and related stormwater compliance services (See Exhibit 1 for the complete list of fee changes included in the Master Fee Schedule). There are no other changes in the fee structure, and existing traffic-related fees have been adjusted to recommend 100% cost recovery.
Utilities
The Utilities Department provides water and electric utility services to City residents. It is important to note that most utility rates are excluded from this fee study. All Utilities Department fees are non-market-based and are established based on the cost of providing the service. For this fee update, staff recommends the removal of UD-400– Collection Fee and the addition of a new fee, UD-470–Unscheduled Service Fee. There are no other changes in the fee structure, and all applicable fees have been adjusted to recommend 100% cost recovery.
Other Fees
The Other Fees section consists of fees under the subcategories of Administrative Penalties, Legal and Risk Management, and the Police Department. As part of this fee update, the current Administrative Penalties Schedule under the subsection of the Police Department has been moved from the Police Department section into a separate Administrative Penalties section, as the Administrative Penalty Schedule applies to violations across multiple City departments, and is not limited to Police Department activities.
The Parking Violation Penalty Schedule under the Police Department subsection remains largely unchanged. The only update is the addition of Vehicle Code Section 22500(N) – Parking Within 20 Feet of the Vehicle Approach of a Crosswalk to the list of applicable parking violations.
FINANCIAL IMPACT:
All fees shall become effective 60 days after the City Council's approval. Should the City Council approve the proposed resolution this evening, the new fee schedule would become effective on October 4, 2026. Overall, the proposed fee adjustments are projected to result in an estimated annual revenue impact of approximately $1,246,854, based on FY 2025 transaction volumes and other available data, including projected activity where appropriate. The projected revenue changes include the net effects of new fees, fee eliminations, fee restructures, and changes in staffing levels, time allocation, and cost recovery percentages. Additionally, the volume of activity included in the analysis is estimated and will fluctuate annually. If needed, revenue budget amendments for FY 2027 will be incorporated through the FY 2027 mid-year revenue estimate adjustment.
Annual estimated revenue increase by departments or service area:
Department General
Fund
Airport
Fund
NPDES
Fund
Utilities
Funds
Amount
Airport
-
(36)
-
-
(36)
City Clerk
(281)
-
-
-
(281)
Community Services
17,210
-
-
-
17,210
Finance
8,836
-
-
-
8,836
Fire
163,840
-
-
-
163,840
Human Resources
672
-
-
-
672
Legal & Risk
Management
61 -
-
-
61 Department General
Fund
Airport
Fund
NPDES
Fund
Utilities
Funds
Amount
Planning & Development
-
Building
522,952
-
-
-
522,952
Planning & Development
-
Development Services
214,903
-
-
-
214,903
Planning & Development
-
Planning
(29,583)
-
-
-
(29,583)
Police / Animal Control
37,133
-
-
-
37,133
Public Works - Traffic /
NPDES
83,689
-
161,340
-
245,029
Utilities
-
-
-
66,118
66,118
Total
$1,019,432
$
(36)
$
161,340
$
66,118
$
1,246,854
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This Resolution updates the fees for services provided by the City, and there is no possibility that these actions will have a significant effect on the environment. Therefore, no environmental analysis is required.
PREPARED BY: JEE KIM, SENIOR FINANCIAL ANAYLST
REVIEWED BY: BRUCE FOLTZ, FINANCE DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – Master Fee Recovery Schedule - Redline
2. Exhibit 2 – City of Corona User Fee Study, Willdan Financial Services
3. Exhibit 3 – Development Community Meeting Invitation List
4. Exhibit 4 - Resolution No. 2026-085 with Master Fee Recovery Schedule
5. Exhibit 5 – Comprehensive User Fee Study PowerPoint Presentation