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Staff Report Background Doc

Norwalk City Council
May 5, 2026

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Staff Report Background Doc
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May 5, 2026
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Norwalk City Council
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City Council Agenda Report
May 5, 2026
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Jana Stuard, Director of Finance/City Treasurer
Jennifer Hernandez, Administrative Services Supervisor
SUBJECT: RESOLUTION NO. 26-20 - UPDATING USER AND REGULATORY FEES FOR FISCAL YEAR 2026-2027
Background:

In March 2025, the City completed an updated User and Regulatory Fee Study (“Study”), which was presented to the City Council for review for the first time since 2007. The updated Study established a revised schedule of user and regulatory fees that more accurately reflects the cost of services provided at the request of, or on behalf of, an individual party, rather than the public at large.

Following a public hearing, City Council adopted the updated fee schedule on April 1, 2025, through Resolution No. 25-13, making the adopted fees effective on July 1, 2025. In addition to adopting the updated fees, Resolution No. 25-13 established a policy for the annual review and adjustment of the fee schedule based on the percentage change in the Consumer Price Index (“CPI”) for All Urban Consumers for the Los Angeles-Long Beach-Riverside area, as published by the U.S. Department of Labor. The CPI adjustment is calculated based on the change from March of the prior year to March of the current year and is intended to ensure that fees continue to reasonably recover the cost of providing services in the upcoming fiscal year. This annual update is intended to maintain the fee schedule in between major studies, which are recommended to occur every five to seven years.

Pursuant to Resolution No. 25-13 and in compliance with Norwalk Municipal Code Section

3.40.010, the City is presenting a proposed updated fee schedule to take effect on July 6, 2026.

The proposed update reflects a 3.4% increase to applicable user fees based on the CPI adjustment. Certain fees are not subject to CPI adjustments and will remain unchanged, such as:
Select building and plan check fees
Fines and penalties

City Council May 5, 2026
Resolution No. 26-20 – Adoption of Fees Page No. 2
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Pet license fees
Fees established by the State
Pass-through fees
Social Services fees
Fiscal Impact:

The proposed update to the City’s User and Regulatory Fee Schedule maintains cost recovery for services, reflecting a 3.4% CPI-based increase per City Council Resolution No. 25-13.

Effective July 6, 2026, the changes are expected to modestly increase General Fund revenue, helping offset rising service delivery costs such as personnel, materials, and administration. The adjustments are not intended to generate revenue beyond full cost recovery. Fees not tied to CPI will remain unchanged.

Citizens Advised:

Notice of Public Hearing regarding the adjustment of fees and service charges was published in the Norwalk Patriot on April 24, 2026. Additionally, notice was posted at City Hall.

Strategic Plan 2023 Implementation:

The recommended actions will further the City’s 2023 Strategic Plan Goal 3, Create and Sustain a Resilient and Economically Prosperous City.

Recommended Action:

Staff recommend City Council adopt Resolution No. 26-20, A RESOLUTION OF THE CITY

COUNCIL OF THE CITY OF NORWALK UPDATING USER AND REGULATORY FEES FOR FISCAL YEAR 2026-2027.

Attachments:

1. Resolution No. 26-20

2. Comparison of current and proposed fees

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