Master Fee Schedule
Update
April 15, 2025
City of Placentia
Background
Fees
Paid by individual, business or
group for government services
that directly benefits
themselves such as permits for
private swimming pools, facility
rentals and business licenses.
Taxes
Paid by everyone for
government services that
benefit the entire community
such as public safety.
•The City maintains a Master Fee Schedule identifying applicable fees for various City Services.
•Fees differ from taxes in that cities collect fees and charges for government services performed at the request of, or specifically for, a particular individual, business or group…as opposed to services performed for the community as a whole.
Why Should Fees be Reviewed Frequently?
•Recovering the costs of providing fee -related services directly influences the City’s fiscal health and increases the City’s ability to meet the service level expectations of the fee payers . •A fee for service ensures that the individual bears most, if not all, of the cost incurred by the City to provide that service. •Frequent reviews of fees and charges for service ensures rates are adjusted for inflation and reduces the likelihood for significant increases in any one given year.
Background
•The Master Fee Schedule outlines permit fees and charges for services citywide but does not include general taxes such as property or sales tax, or Development Impact Fees (DIFs).
•These fees are on a different schedule and presented to City Council separately. •User Fees must be linked to and not exceed the estimated reasonable cost of providing the service.
•The full cost of service sets the maximum limit of a cost-based fee. •Cost of service includes direct program costs for labor, services, and supplies •Facilities overhead
•Departmental Administration
•Citywide administration and central support services
Background
•The City engaged Clear Source Financial Consulting in 2022 to conduct a Comprehensive User Fee Study which was presented to and adopted by City Council on April 5, 2022.
•Clear Source recommended an annual review of all fees and adjustment for inflationary factors in subsequent fiscal years, with comprehensive fee studies recommended every 3-5 years.
•The February 2025 CPI data for the Los Angeles-Long Beach-Anaheim, CA region was 3.1%.
Proposed Changes/ Additions
Development Services
•Appeal of Short -Te r m Rental (STR) Permit Revocation •Municipal Code Section §6 .45.160 describes appeal process if short-term rental permit is revoked •Only fee on existing schedule applies to any appeal to Planning Commission and City Council and are $3 ,374 & $5 ,735 respectively •Staff is recommending a smaller fee due to much less staff time involved in STR permit revocation appeal •Appeal to Planning Commission - $473
•Appeal to City Council- $603
•Misc . Building Fees
•Staff reviewed services being provided, specifically those that require inspections and are recommending several additions to recover costs spent to inspect work being performed
Proposed Changes/ Additions
Development Services
•Technology Fee expansion
•Resolution 2009-105 established a technology fee to support implementation and maintenance of technology in Development Services and Public Works -Engineering . Projects identified included building permit database and digitization of records .
•Citywide technology needs, and information technology support have increased significantly including the need for storage of digitized documents .
•Staff is recommending the use of funds generated by the technology fee to be available for use by all city departments .
Proposed Changes/ Additions
Finance
•Credit Card Processing Fee
•The City pays approximately $71,000 annually in credit card processing fees from the General Fund, subsidizing convenience for payor. •To recover these fees, staff is recommending implementing a 2 .5 % credit card processing fee on all transactions paid by credit card . •Many agencies charge credit card processing fees including : Garden Grove (2 .2 %), Tu s t in (1 .67%), Cypress (2 .9 %), Newport Beach (2 .85%), Huntington Beach (3 %) and Stanton (2 .6 %).
•Payor could pay by check, or electronic payment (ACH) without incurring this fee .
Proposed Changes/ Additions
Public Works
•Address Issuance Fee - Requests for addresses vary in nature from simple requests like utility pedestals to complex such as large multi-family developments and involve staff from Public Works, Development Services & Geographic Information Services (GIS) •Staff recommending two new fees to recover staff time •Simple address request- $168
•Complex address request- $504
Proposed Changes/ Additions
Fire & Life Safety
•Occupancy Before Ap prova l and Work Without a Permit fees are proposed to recover costs associated with the Fire Marshal’s time to inspect the site and ensure safety compliance for work commenced with the requisite approval
Proposed Changes/ Additions
Police
•The City anticipates opening the Public Safety Building (PSB) in FY25/26, which includes a new gun range
•The City anticipates renting use of the range to other law enforcement agencies once complete, as well as possibly renting the Emergency Operations Center (EOC) as a possible training room .
•Staff is proposing fees for both of these uses based on market rates at similar agencies.
Recommendation
1.Open the Public Hearing to consider amending the Placentia Comprehensive Fee Schedule for certain fees, rates, and charges for various City user services; and
2.Receive the Staff report, consider all public testimony, and discuss the proposed fees; and
3.Close the public hearing; and
4.Adopt Resolution No. R-2025-13, a Resolution of the City Council of the City of Placentia, California, establishing and adopting certain City fees, rates, and charges for various City services with an effective date of July 1, 2025, for Fiscal Year 2025-26.
Questions & Comments