DATE: April 20, 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: PUBLIC HEARING ON MASTER FEES AND SERVICE CHARGES FOR FY 2026-27 AND FY 2027-28 (EXCLUDING PARKS AND
RECREATION)
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 (excluding Parks and Recreation charges which are tentatively scheduled for a public hearing on May 18, 2026). 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 FY 2026-27 and FY 2027-28.
EXECUTIVE SUMMARY
At the March 23, 2026 Budget Study Session, City/District staff recommended the FY 2026-27 Master Fees and Service Charges Schedule (“Schedule”) including new fees and clarifications from the Police and Community Development Departments with the remainder of the Schedule adjusted for inflation (Attachment 3, with changes shown in red). In order to create the FY 2027-28 Schedule, staff will automatically increase the FY 2026-27 Schedule based upon the inflation index specified by the 2023 User Fee Study. Automatic updates based on inflation indices do not require Council Action.
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 2026-27 and FY 2027-28.
Notably, the Parks and Recreation fee changes will be presented and approved separately to allow sufficient time to develop and review fees associated with the new Community Center. Discussion of those fees is scheduled for a study session on April 20, 2026 with a public hearing planned on May 18, 2026.
BACKGROUND/ANALYSIS
The proposed Master Fees and Service Charges Schedule for FY 2026-27 is provided in Attachment 3, 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.
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 in a separate staff report 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.
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.
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 are scheduled for discussion during an April 20, 2026 study session then a public hearing on May 18, 2026.
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 2026-27