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1 DATE: March 23, 2026
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
DEPARTMENT: Finance
SUBJECT: UPDATES TO MASTER FEES AND SERVICE CHARGES
SCHEDULE FOR FY 2026-2027 AND FY 2027-2028
RECOMMENDATION
It is recommended that the City Council/EMID Board of Directors, by Minute Order, provide policy direction regarding changes to the Master Fees and Service Charges Schedule as part of the FY 2026-27 and FY 2027-28 budget.
EXECUTIVE SUMMARY
City/District staff is recommending minor changes to the FY 2026-27 and FY 2027-28 Master Fees and Service Charges Schedule (“Schedule”). The Police and Community Development Departments are recommending various new fees and clarifications, while the remainder of the City’s fee schedule is generally being increased to reflect inflation. Notably, the Parks and Recreation Department fee changes will be presented in April to allow sufficient time to develop and review fees associated with the new Community Center.
In order to calculate the inflation adjustments for the FY 2027-28 Schedule, staff will automatically increase the rates based upon the inflation index specified by the 2023 User Fee Study. Automatic updates based on inflation indices do not require Council action.
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1 BACKGROUND
As part of the annual budget process, the City Council/EMID Board reviews the Master Fees and Service Charges Schedule. The Schedule includes all services and charges that are charged by the City/District in providing services to the community. Fees such as building permit fees, encroachment permits, inspections, fingerprinting, water meters, copying and duplication charges are examples of the type of fees charged to residents and businesses. The Schedule is subject to a public hearing prior to adoption.
The City Council/EMID Board has historically reviewed the Schedule as part of its Annual Budget Study Session.
Based on City Council/EMID Board direction, City/District staff will prepare the necessary staff report regarding changes to the Master Fees and Service Charges Schedule and publish the proper notices for a public hearing to be held at the April 20, 2026 regular meeting. At the conclusion of the public hearing, the City Council/EMID Board then adopts the Master Fees and Service Charges Schedule, which goes into effect on July 1, 2026 (providing for the 60 day waiting period required for the development impact fees included on this portion of the Schedule).
In order to provide sufficient time to establish appropriate rates for the new Community Center, the portion of the Master Fee Schedule for the Parks and Recreation Department will trail the rest of the schedule by approximately one month, starting with a work session discussion on April 20 followed by a public hearing on May 18. After that public hearing, the City Council/EMID Board then adopts the Master Fees and Service Charges Schedule for the Parks and Recreation Department, which goes into effect on July 1, 2026.
In accordance with State law, all service-related fees are to be based upon the cost of providing such services. The basis for many of the fees in the Schedule is from the cost allocation plan and User Fee Study that was performed in 2023 and adjusted annually for normal cost escalation and inflation incurred by the City/District.
ANALYSIS
The proposed Master Fees and Service Charges Schedule for FY 2026-27 is provided in Attachment 1, including proposed staff billing rates for fees that are calculated on a time and materials basis. The inflation adjustment was generally 3.0% (from the Consumer Price Index for the San Francisco Bay Area as of December 2025); however, some CDD fees are adjusted by the Building Cost Index or Engineering News-Record Construction Cost Index as specified by the 2023 User Fee Study.
In order to calculate the inflation adjustments for the FY 2027-28 Schedule, staff will automatically increase the rates based upon the inflation index specified by the 2023 User Fee Study. Automatic updates based on inflation indices do not require Council action.
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1 Utility Rates – Water and Wastewater Services
In June of 2025, the EMID Board approved five years of rates, including any adjustments needed to allow for pass-through costs associated with wholesale water prices from the San Francisco Public Utilities Commission. No change in the approved rates are needed at this time, and staff will inform the Board of the pass-through costs on April 20, 2026.
Community Development Department Fees
In addition to inflationary adjustments, the Community Development Department is proposing a number of revisions and clarifications to the Schedule, including (but not limited to) a fee for deferred submittal of a plan check fee, a flat fee for battery backup systems, and adding residential garage door permit to the Schedule. See Attachment 2 for details.
Police Department Fees
In addition to inflationary adjustment, the Police Department is eliminating outdated charges that no longer apply and creating a new fine for no parking unless charging.
See Attachment 3 for details.
Parks and Recreation Department Fees
Due to additional analysis and review time needed to establish fees for the new Community Center, the Parks and Recreation Department fees will be presented to Council on April 20 with a public hearing tentatively scheduled for May 18.
California Environmental Quality Act
Not Applicable
FISCAL IMPACT
If the revised Master Fees and Service Charges Schedule is adopted, there will be a slight positive fiscal impact in permit/fee revenues from the proposed changes.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Staff Empowerment and Operational Excellence.
ATTACHMENTS
Attachment 1 – Proposed Master Fees and Service Charges Schedule for FY 2026- 2027
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1 Attachment 2 – Community Development Recommended Fee Changes Attachment 2a- Community Development Revised Fee Schedule Attachment 3 – Police Department Recommended Fee Changes