STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of October 13, 2026
TO: Mayor and Members of the City Council
VIA: Mike Futrell, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Approval of a Resolution to update the City’s Master Fee Schedule RECOMMENDED ACTION:
Staff recommends that the City Council adopt a resolution approving a revised Master Fee Schedule for the Fiscal Year (FY) 2026-27. This Master Fee Schedule establishes the fees associated with a wide array of services rendered by the City, including those related to development projects in accordance with Government Code section 66017. The revisions include an increase in certain existing fees; however, all fees outlined in the Master Fee Schedule are set at levels that are equal to or less than the reasonable costs incurred by the City in providing the corresponding services.
BACKGROUND AND DISCUSSION:
Municipalities have the authority to establish reasonable fees for the services they provide. The City has implemented these fees through the Municipal Code, City Ordinances, City Resolutions, development agreements, funding agreements, and relevant State and Federal statutes. The structure of these fees reflects the estimated reasonable costs associated with delivering corresponding services, ensuring that they do not exceed these amounts.
To promote transparency for citizens, staff, and stakeholders regarding the various fees imposed by the City, a Master Fee Schedule has been developed. This schedule offers a comprehensive listing of the fees established by the City. Certain fees are designed to automatically adjust each year based on changes in the Consumer Price Index (CPI) or fluctuations in the Engineering News-Record Construction Cost Index (ENR). Typically, these adjustments aim to recover the costs involved in providing these services.
City staff is proposing a resolution to revise the fees outlined in the Master Fee Schedule. This proposed revision includes an automatic increase of 2.5% for certain fees, calculated based on the Bay Area Consumer Price Index (CPI) for the period from February 2025 to February 2026. All fees specified in the Master Fee Schedule will be set at levels equal to or lower than the reasonable costs incurred by the City in delivering the corresponding services. Additionally, this CPI adjustment will not apply to certain fees where legal restrictions mandate them and in cases where market analysis suggests keeping them the same. As the fees will be rounded to the nearest dollar, there may be minor changes to the percentage of the fee imposed and/or total dollar amount but at all times the proposed fees represent the reasonable cost to deliver the services.
PUBLIC NOTIFICATION:
The public hearing was announced in the local newspaper on October 1, 2026 and October 6, 2026. This hearing provides a formal opportunity for the community to share their feedback. Once approved, the proposed FY 2026-27 Master Fee Schedule will be available online on the City’s website (https://www.herculesca.gov/government/finance).
FISCAL IMPACT:
The user fees outlined in the Master Fee Schedule will be increased by 2.5% to align with current financial conditions. All fees in the Master Fee Schedule are set at levels that do not exceed the reasonable costs incurred by the City in providing the associated services. This adjustment is expected to support the projected revenue outlined in the Adopted FY 2026-27 Budget. However, it is essential to recognize that the anticipated revenue increase will depend on the level of activity throughout the fiscal year.
ATTACHMENTS:
Resolution – Master Fee Schedule
FY 2026-27 Proposed Master Fee Schedule
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