STAFF REPORT
Meeting Date:
April 14, 2026
STUDY SESSION
1 SUBJECT: PRESENTATION ON PROPOSED COMMUNITY DEVELOPMENT FEE SCHEDULE FOR FISCAL YEAR 2026/27
RECOMMENDATIONS: It is recommended that the City Council:
1. Receive a presentation from staff and provide input and direction on the proposed Community Development Department Fees effective July 1, 2026; and
2. Find the action is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378.
SUMMARY OF THE MATTER
During the City Council Annual Strategic Planning Workshop on January 30, 2026, the City Council discussed whether the Community Development Department’s fees (specifically for planning and zoning fees) should be set at 100% full cost recovery in Fiscal Year 2026/27. Staff has recomputed the full cost of each fee after applying an annual increase using the Consumer Price Index for All Urban Consumers (CPIU) for Los Angeles-Long Beach-Anaheim published by the U.S. Bureau of Labor Statistics. The results of the updated costs for each fee is included in Attachment 1. The purpose of the study session is to receive input and direction from the City Council regarding the appropriate cost recovery percentage (ranging from 0% to 100% for the City’s fees). Staff plans to incorporate the feedback obtained from this study session and bring back the full proposed Master Fee Schedule to the City Council for review and adoption at a public hearing planned for April 28, 2026, with an effective date of July 1, 2026.
DISCUSSION
Staff utilized the Cost of Services Study dated October 2021, prepared by a third-party consultant, Revenue & Cost Specialists LLC (Attachment 2). The 2021 Cost of Services Study was prepared using the City’s Fiscal Year 2021/22 budget information. Staff computed the full cost of each service using the full cost provided in the study and applying an annual increase for 2023, 2024, and 2025, utilizing the annual Consumer Price Index for All Urban Consumers (CPI-U) for Los Angeles-Long Beach-Anaheim published by the U.S. Bureau of Labor Statistics in December for each year. There are 87 planning and zoning fees that were reviewed in the 2021 fee study. If the City Council decides to charge all costs at 100% cost recovery (0% subsidized by the City), then the impact to the fee structure would be as follows, effective July 1, 2026:
# of
Fees
Average $
increase
No Change 17 $ -
1%-12% Increase 30 $ 208
30%-50% Increase 26 $ 2,202
31%-100% Increase 6 $ 5,642
More than 100% Increase 8 $ 1,872
PRESENTATION ON PROPOSED MASTER FEE SCHEDULE EFFECTIVE JULY 1, 2026 April 14, 2026
FINANCIAL ANALYSIS
If the City Council ultimately approves the proposed fee schedule in Attachment 1 at a future meeting, the estimated additional General Fund revenue would be approximately $400,000.
ENVIRONMENTAL ANALYSIS
The requirements of the California Environmental Quality Act ("CEQA") do not apply to the proposed action as it is not a "project" because there is no substantial evidence to show that the proposed action has the potential to result in a direct or reasonably foreseeable indirect physical change to the environment. (State CEQA Guidelines, section 15378(a). Further, this Ordinance does not qualify as a project pursuant to State CEQA Guidelines, section 15378 (b)(4) and (b)(5) as an amendment to the City’s Financia Guidelines and Budgeting Procedures is a government fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment.
ATTACHMENTS
1. Proposed Fees for Community Development (Pgs. 3-6)
2. 2021 User Fee Study (Pgs. 7-336)
Submitted By: Michelle Bannigan Approved: .David A Kiff Michelle Bannigan, Director of
Administrative Services
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Michelle Bannigan, Director of Administrative
Services
Patrick Donegan, Assistant City Attorney
Matthew Schneider, Director of Community
Development