DATE: April 21, 2025
TO: Mayor and Members of the City Council President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, City/District Manager
Marlene Subhashini, Assistant City/District Manager
FROM: Nate Cruz, Finance Director
Waqas Hassan, Assistant Finance Director
Mimi Lam, Financial Services Manager
DEPARTMENT: Finance
SUBJECT: PUBLIC HEARING ON MASTER FEES AND SERVICE CHARGES FOR FY 2025-26
RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors hold a public hearing on the proposed changes to the Master Fees and Service Charges Schedule. After considering the staff report and public testimony, it is further recommended that the City Council/EMID Board adopt the attached resolutions approving the Master Fees and Service Charges Schedule for Fiscal Year 2025-26, effective July 1, 2025.
EXECUTIVE SUMMARY
At the March 24, 2025 Budget Study Session, the City Council/EMID Board reviewed and provided direction for City staff to update the Master Fees and Service Charges Schedule (“Schedule”). The updated schedule (Attachment 3) has incorporated such direction and includes fees and charges adjustments from the Community Development, Parks and Recreation, and Public Works Departments. At this time, it is appropriate to hold a public hearing on these proposed changes and, subject to public testimony and other direction provided by the City Council/EMID Board, approve the Master Fees and Service Charges Schedule for FY 2025-26 with an effective date of July 1, 2025.
BACKGROUND/ANALYSIS
The last time the City/District conducted a user fee study (along with a cost allocation plan) was in 2023 (for use in the FY 2023-24 Master Fees and Service Charges Schedule). It is generally considered best practice to update user fee studies every 4 to 6 years. A user fee study provides a defensible methodology for calculating fees for service and determining the full cost recovery potential of services provided by various city departments. The City’s selected consultant, Willdan Financial Services conducted the update last year and staff from the various City departments presented their suggested fee adjustments for cost recovery purposes; the updated Schedule was approved by the City Council/EMID Board on May 1, 2023. It was subsequently updated for FY 2024-25 during the prior budget cycle.
Staff from various departments brought forward their suggested updates again this year and sought policy guidance from the City Council/EMID Board at the March 24, 2025 Budget Study Session. Based on the direction provided by Council/EMID Board, staff has prepared recommended Schedule (Attachment 3) for the City Council/EMID Board’s approval for the April 21st public hearing. There are no material changes from the March 24, 2025 hearing, but there are minor updates including:
•Clarifications on the duration of certain permits (adding the term “annually” as appropriate), and
•A minor reduction to the Below Market Rate in-lieu fee to match the change in the Engineering Construction Cost Index.
Lastly, a separate public hearing for increases in water and wastewater rates is planned for June 2, 2025, based on Proposition 218‘s 45-day noticing requirements.
CALIFORNIA ENVIRONMENTAL QUALITY ACT
Not Applicable
FISCAL IMPACT
The adoption of an updated Master Fees and Service Charges Schedule provides for the cost recovery of various city services.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence
ATTACHMENTS
Attachment 1 – City Resolution
Attachment 2 – EMID Resolution
Attachment 3 – Proposed Master Fees and Services Charges Schedule for FY 2025-26 Redlined
Attachment 4 – Proposed Master Fees and Services Charges Schedule for FY 2025-26 Clean