TOWN OF FAIRFAX
Prepared by Government Consulting Partners, Inc.
www.governmentconsultingpartners.com
User Fee Study
Initial Findings
Presentation to the Town Council
October 7, 2026
Town of Fairfax | User Fee Study: Initial Findings
What Is a User Fee?
A USER FEE IS A USER FEE IS NOT
A charge for a service you choose to request, like a
permit or a facility rental A tax on the general public Paid by the person who receives the direct benefit of
the service
Allowed to exceed the reasonable cost of the service,
unless voters approve by a two-thirds vote
Limited by law to the reasonable cost of providing the
service
A charge for services that benefit the whole
community
A way to reduce the General Fund subsidy for services
that benefit one requester A source of revenue for unrelated Town programs One exception: fees for use of Town property, such as the Pavilion and Women's Club, are exempt from the cost test (Proposition 26) and may be set at what the market will bear.
2 Town of Fairfax | User Fee Study: Initial Findings
How GCP Measured the Cost of Each Service
STEP 1 Add up the annual cost of fee-related services
Staff time spent on
fee-related services
Contract staffing used
for fee work
Fair share of Townwide
overhead
Annual cost of feerelated services
+ + =
STEPS 2 AND 3 Identify fee revenue, then compare it to cost Annual fee revenue collected Annual cost of fee-related services
÷ =
Cost recovery rate
Example, Planning and Building: $807,000 in fees ÷ $1,037,502 in cost = 78% cost recovery 3 Town of Fairfax | User Fee Study: Initial Findings
The Big Picture: Fees Cover 71% of Costs
$1,295,254
Annual cost
of fee-related services across all
four fee areas
$913,337
Annual fee revenue
collected today
71%
Cost recovery today
of costs are paid by those who
use the services
$381,917
Annual subsidy
paid by the General Fund (29%
of cost)
If the recommended fees are adopted, annual fee revenue is projected to rise by $381,917, closing the gap, assuming demand stays at historic levels.
Projections are approximations because of fee restructuring and swings in the construction cycle. GCP recommends reviewing actual revenue after the first six months. 4 Town of Fairfax | User Fee Study: Initial Findings
Where the Gaps Are: Cost Recovery by Fee Area
78%
85%
67%
24%
100% 100% 100% 100%
Planning and Building Recreation Rentals* Technology Fee General Plan Maintenance Fee
Cost recovery rate
Today With proposed fees
Largest dollar gap
Planning and Building: $230,502 a year is
subsidized by the General Fund.
Largest percentage gap
General Plan Maintenance Fee: only 24% of
the development share of cost is recovered
today.
Closest to full recovery
Recreation rentals: 85% today, with a modest
increase proposed.
*Property rental fees are exempt from the cost test (Proposition 26).
Shown for comparison.
5 Town of Fairfax | User Fee Study: Initial Findings
Planning and Building: Closing a $230,502 Gap
78%
of Planning and Building costs are
covered by fees today
$1,037,502 annual cost of fee-related
services
$807,000 fee revenue collected
today
$230,502 subsidized by the General
Fund
Most flat fees would increase about 29%. Examples:
Use Permit
TODAY
$1,474
PROPOSED
$1,901
+29%
New Home building permit
TODAY
$6,968
PROPOSED
$8,989
+29%
Single-family resale inspection
TODAY
$469
PROPOSED
$605
+29%
Appeal fee
TODAY
$625
PROPOSED
$1,000
+60%, waived if the appeal succeeds
6 Town of Fairfax | User Fee Study: Initial Findings
Planning and Building: What Else Is Changing
One simpler Use Permit
fee
Minor residential, minor commercial,
and major Use Permit fees combine
into a single $1,901 fee.
Grading fee tied to
volume
Today's flat $700 becomes $1,327 for
the first 100 cubic yards, plus $433
for each additional 100.
Plan check priced by sheet
$3,180 for up to five sheets plus $350
per added sheet, replacing a $1,000
to $3,000 deposit.
Stronger penalty for
unpermitted work
The penalty rises from 1.5 to 2 times
the permit fee, matching Larkspur,
Mill Valley, and Novato.
New fees for services not
charged today
Expedited processing, re-checks and
re-inspections ($328 per hour), a 3%
credit card charge, and public rightof-way use.
Fee Structure
Modernization
Reorganized fees to improve
transparency, consistency, and
alignment between fees charged and
services provided.
7 Town of Fairfax | User Fee Study: Initial Findings
Technology and General Plan Maintenance Fees
Technology Fee
5% 7% of all development user
fees
• Pays for the permit tracking system ($50,000) and
GIS/Marin Maps ($10,000)
• $60,000 annual cost; only 67% is recovered today
• Adds $19,650 in annual revenue
General Plan Maintenance Fee
5% 21% of all development user
fees
• Keeps the General Plan and Housing Element current:
$335,000 in annual long-range planning cost
• Only half ($167,500) is assigned to development; the
General Fund continues to carry the community-benefit
half
• Adds $127,150 in annual revenue
Today both fees apply to building permit fees only. The proposal extends them to all development user fees. 8 Town of Fairfax | User Fee Study: Initial Findings
Recreation: Facility Rental Rates
Rental rate (per hour) Today Proposed Change
Pavilion, youth $55 $65 +18%
Pavilion, youth (nonresident) $55 $80 +45%
Pavilion, nonprofit $80 $100 +25%
Pavilion, private event $190 $200 +5%
Women's Club, nonprofit $55 $70 +27%
Women's Club, nonprofit (nonresident) $80 $85 +6%
Women's Club, private event $110 $120 +9%
Resident rates unless noted. Picnic area rates, deposits, and maintenance fees are unchanged.
Market-based
Property use fees are exempt from the cost
test (Prop. 26).
Targeted
Increases focus on the youth and nonprofit
rates most renters pay.
Within the peer range
Nonprofit rates stay within the $35 to $130
per hour peer range.
Projected revenue increase: $4,615 per year (a conservative estimate) 9 Town of Fairfax | User Fee Study: Initial Findings
How Fairfax Compares to Neighboring Agencies
General Plan Maintenance Fee (percent of permit fees)
5%
21%
19%
10%
10%
35%
Fairfax (today)
Fairfax (proposed)
Mill Valley
Novato
San Anselmo
San Rafael
Peers surveyed: Larkspur, Mill Valley, Novato, San Anselmo, and San Rafael. Larkspur charges 0.25% of permit valuation instead, so it is not charted.
Use Permit
Proposed $1,901 stays below peer conditional use
permit fees of $2,460 to $9,712.
Technology Fee
Proposed 7% falls within the peer range of 3% to 10%.
Most peers charge 5%.
Use a survey with care
Peers subsidize some fees. Fees must reflect the
Town's actual costs, whatever others charge.
10 Town of Fairfax | User Fee Study: Initial Findings
Recommendations and Next Steps
1 Update fees every year
In non-study years, adjust fees with an inflation index such as CPI.
Fees capped by State or federal law are exempt.
2 Monitor the results
Review revenue from new and adjusted fees at six months and one year, and confirm recreation increases do not reduce participation.
3 Study fees on a regular cycle
Conduct a detailed analysis every three to five years, with minor updates for new legislation as needed.
Today
• Review the initial findings
• Questions and discussion
Good to know
Development-related fee increases
cannot take effect until 60 days after final
Council action (Government Code
§ 66017).
11 Questions and
Discussion
Brad Burgess
Executive Vice President
[email protected]
Jeff Wakefield
Senior Manager
[email protected]
Government Consulting Partners, Inc.
5016 Brower Court, Granite Bay, CA 95746
www.governmentconsultingpartners.com