City of Sacramento
Budget and Audit Committee Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00774 3/25/2025 Discussion Item 7.
Proposed Fire Prevention Fee Adjustments
File ID: 2025-00774
Location: Citywide
Recommendation: 1) Review the proposed Fire Prevention Fee adjustments; and 2) pass a Motion forwarding to the City Council for consideration.
Contact: Tilden Billiter, Deputy Chief, (916) 808-1603; Jason Lee, Fire Marshal, (916) 808-1620, Fire Department.
Presenter: Tilden Billiter, Deputy Chief, (916) 808-1603; Jason Lee, Fire Marshal, (916) 808-1620, Fire Department
Attachments:
1-Description/Analysis
2-Resolution
3-Exhibit A (Current & Proposed SFD Fire Prevention Fees) 4-Exhibit B (Regional Fee Comparisons)
Description/Analysis
Issue Detail: On February 7, 2006, the City Council formally adopted a Citywide Fees and Charges Policy (Resolution No. 2006-106) to ensure that City fees and charges reflect the Council’s direction regarding recovery of costs related to providing programs and services. The last fee increase for the Fire Prevention program was included in the February 6, 2018 Citywide Fees and Charges (Resolution No. 2018-0059). In July 2024, the Fire Department contracted with a third-party consultant, MGT of America Consulting, LLC dba MGT Consulting, to conduct a user fee study, which was completed in March 2025. Based on the consultant’s findings, staff are recommending fee adjustments to the Fire Prevention program to recover costs associated with providing these services.
In addition to the proposed fee adjustments, staff recommend the adoption of a new development inspection and plan check fees to recover the cost of the required services to process plan checks and inspect new developments. Other agencies in the region charge these fees to offset the cost of the services for planning review and inspections.
File ID: 2025-00774 3/25/2025 Discussion Item 7.
The changes to the City’s Fire Prevention program fees are summarized in Exhibit A.
Policy Considerations: The changes are consistent with Council’s adopted Fees and Charges Policy and support the City’s budget sustainability and fiscal responsibility goals.
Proposition 26 was passed by the voters on November 2, 2010, amending Article XIII C of the State constitution. According to the ballot measure, the intent of the measure is to ensure the effectiveness of Propositions 13 and 218 by providing a definition of a “tax” for state and local purposes “so that neither the Legislature nor local governments can circumvent these restrictions on increasing taxes by simply defining new or expanded taxes as ‘fees’.” Thus, under Proposition 26, a tax has been defined broadly to include any levy, charge or exaction of any kind imposed by a local government, except for seven specified categories of charges. Moreover, the City bears the burden of proving that a fee or charge is not a tax. The proposed fees are not a tax under Proposition 26 because of exception 3 (licenses and permits).
Economic Impacts: Not applicable.
Environmental Considerations: This report concerns administrative activities that will not have a significant effect on the environment and does not constitute a “project” as defined by the California Environmental Quality Act (CEQA) [CEQA Guidelines Section 15061 (b) (3); 15378 (b) (2)].
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The Fire Prevention Service fees were last increased in 2018.
The Department hired a consultant to determine the costs of providing fire prevention services and the resulting fees that would recover these costs. The proposed fees are based on recovering the direct staff costs for providing services. Department and citywide overhead costs known as indirect costs have not been included. In addition, the proposed fees are similar to those charged in the Sacramento region and some of the initial fees were further refined to be more in line with other comparable agencies in the region.
Financial Considerations: The Fire Department proposes adjustments to the current rate structure which will reflect the cost of providing fire prevention services and bring the City’s fees more in line with the fees charged within the region as shown in Exhibit B. Staff is also recommending an annual inflation adjustment, based on the Consumer Price Index, so that fees keep up with service provision costs and to prevent sharp fee increases every few years when a fee study is conducted. Other jurisdictions in the region, such as Sacramento Metropolitan Fire District, use this methodology.
Revenue estimates for this increase total approximately $3.2 million annually. The City is currently in a structural budget deficit, with a $62.2 million deficit projected for Fiscal Year (FY) 2025/26 and deficits growing in future fiscal years as cost growth outpaces revenues. On February 25, 2025,
File ID: 2025-00774 3/25/2025 Discussion Item 7.
deficits growing in future fiscal years as cost growth outpaces revenues. On February 25, 2025, Council approved the one-time use of prior year savings to address the FY2025/26 budget gap resulting in the City now needing $44.1 million in budget balancing solutions. On March 7, 2025, the City published budget balancing options that have been identified by City departments. This fee increase is option R9 and approval of this fee increase will help balance the FY2025/26 budget and as it is an ongoing balancing strategy, it will lower forecasted deficits in future fiscal years.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO
Adopted by the Sacramento City Council
PROPOSED FIRE PREVENTION FEE ADJUSTMENTS
BACKGROUND
A. The Fire Department Fire Prevention Services is responsible for providing inspections, permits and oversee new construction in the City of Sacramento. These services are General Fund activities supported by fees charged for services.
B. On February 7, 2006, the City Council adopted the Citywide Fees and Charges policy (Resolution No. 2006-106).
C. The last increase of Fire Prevention fees occurred with the revision of the Citywide Fees and Charges policy (Resolution No. 2018-0059) on 2/6/2018.
D. The costs to provide Fire Prevention Services have increased significantly over the past seven years.
E. The most recent revision of the Citywide Free and Charges policy (Resolution No. 24-153) occurred in May 2024 without an increase in Fire Prevention fees.
F. The existing Fire Prevention fees do not include a provision to adjust fees based on annual inflation. The ability to adjust fees annually will allow for recovery of increasing labor and service and supply costs.
G. Proposed new Fire Prevention fees and fee adjustments are set forth in Exhibit A.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The existing Fire Prevention fees and fee adjustments in the Citywide Fees and Charges policy are amended as shown in Exhibit A.
Section 2. Exhibit A is part of this resolution.
Section 3. The Citywide Fees and Charges policy for the Fire Prevention Program is amended to include an annual fee increase beginning July 1, 2025, and each July 1st thereafter, by the percentage change in the Consumer Price Index (CPI) Series Title: Urban Wage Earners and Clerical Workers the U.S. City Average, All Urban Consumers —not seasonally adjusted, for San Francisco-Oakland- San Jose, CA as published by the U.S.
Department of Labor, Bureau of Labor Statistics for the twelve (12) month period ending
annually, and CPI increases will be implemented, provided that the increase doesn’t exceed the cost of providing services.
Section 4. The Fire Prevention fee changes will be effective July 1, 2025.
Exhibit A
CITY OF SACRAMENTO
Current and Proposed SFD Fire Prevention Fees
Fire Prevention Fees: Effective July 1, 2025
Permit Fee Description SFD Current
Fee
Proposed
Fee 1 % Variance
Aerosol Products (>500 LBS) $343 $601 55%
Amusement Buildings $851 $1,465 53%
Apartment 3-15 Units - Self C ertification $51 $108 72% Apartment 16-30 Units $274 $481 55%
Apartment 31-60 Units $357 $625 55%
Apartment 61-100 Units $442 $769 54%
Apartment 101-150 Units $524 $908 54%
Apartment151-200 Units $611 $1,057 53%
Apartment 201-250 Units $696 $1,201 53%
Apartment 251-300 Units $781 $1,345 53%
Apartment 301-350 Units $781 $1,345 53%
Apartment 351-400 Units $865 $1,489 53%
Apartment 401-450 Units $950 $1,633 53%
Apartment 451-500 Units $1,036 $1,777 53%
Apartment 501+ Units $1,036 $1,921 60%
Arson - Background C heck $33 $48 37%
Arson - Report C opies $56 $119 72%
Artists Live and Work $343 $601 55%
Aviation Facilities $851 $1,465 53%
C andles/open flames $259 $457 55%
C annabis Grow Facility or Dispensary $470 $817 54%
C arnivals/Fairs $386 $673 54%
C ellulose Nitrate Film $343 $601 55%
C ombustible Storage $513 $889 54%
C ompressed Gases $343 $601 55%
C onsultation Fee $169 $288 52%
C opy of Reports (Each Document) $6 $108 179%
C ryogens $343 $601 55%
Daycare (9-14) Occupants $343 $268 25%
Daycare (15-49) Occupants $428 $745 54%
Daycare (50-99) Occupants $428 $745 54%
Daycare (C ommercial 100+) Occupants $428 $745 54%
Dry C leaning Plant $428 $745 54%
Dust Producing Oper/storage $428 $745 54%
Exhibit/Trade Shows $682 $1,177 53%
Explosive Blasting Agent Storage $513 $889 54%
Failure to Prepare/C ancel $343 $601 55%
Flammable/C ombustible Liquids $343 $601 55%
Floor Finish $343 $601 55%
Fruit Ripening $343 $601 55%
Garage Repairs/Motor Vehicle Fuel $428 $745 54%
Hazardous Materials $513 $889 54%
Hazardous Production Facilities $809 $1,393 53%
Heliport/Helistop $259 $457 55%
Helistop (Special Event) $343 $601 55%
High Piled Storage $428 $745 54%
Hood System $386 $673 54%
Hot Food Vendor - Annual $301 $529 55%
Hot Works/ C utting and Welding $343 $601 55%
Hotel/Motel (3-8 Rooms) $343 $601 55%
Hotel/Motel (9-16 Rooms) $428 $745 54%
Hotel/Motel (17-30 Rooms) $513 $889 54%
Hotel/Motel (31-60 Rooms) $597 $1,033 53%
Hotel/Motel (61-90 Rooms) $724 $1,249 53%
Hotel/Motel (91-120 Rooms) $809 $1,393 53%
Hotel/Motel (120+ Rooms) $894 $1,537 53%
Hourly Inspection Fee $169 $288 52%
Inspection - After Hours (Special Event Inspections) $254 $432 52% Institution (14 or Less) Occupants $528 $922 54%
Institution (15 -49) Occupants $909 $1,570 53%
Institution (50 -199) Occupants $1,291 $2,218 53%
Institution (200+) Occupants $1,630 $2,794 53%
Knox Box Servicing $84 $144 53%
Late Payment Fee $107 $107 0%
Liquid Petroleum Gas (LPG) $343 $601 55%
Lumber Yard/Woodwork $640 $1,105 53%
Magnesium $343 $601 55%
Malls $1,234 $2,113 53%
Marinas $428 $745 54%
Multi Story Bldg (75 FT +) $0.0038 $0.004 5%
Notice and Order to Abate $2,737 $4,691 53%
Notice and Order to Abate - Appeal $1,666 $2,884 54%
Open Burning $216 $385 56%
Organic C oating Application $343 $601 55%
Ovens (Industrial Baking/Drying) $343 $601 55%
Places of Assembly (A -1) $540 $1,465 92%
Places of Assembly (A -2 & A-3) 100+ $327 $1,177 113%
Places of Assembly (A -2 & A-3) 50-99 $450 $889 66%
Places of Assembly (A -4 & A-5) $654 $7,045 166%
Pyrotechnics and Special Effects $301 $529 55%
Pyrotechnics Public Display $301 $529 55%
Radioactive Materials $470 $809 53%
Refrigeration Equipment $343 $601 55%
Re-Issuance of Annual Permit $30 $65 74%
Residential C are Facility (<25) Occupants $169 $288 52% Residential C are Facility (25+) Occupants $169 $288 52% Special Event Planning NA $600 200%
Schools $169 $288 52%
Spraying or Dipping $343 $601 55%
Technology Fee $0.10 $0.11 10%
Temporary Membrane Structures $216 $385 56%
Tire Storage (> 1000 C ubic FT) $470 $817 54%
Wood Products $470 $817 54%
Development Fee Changes: Effective July 1, 2025
Development Fee: Administrative Fee $82 $173 71%
Development Fee: Fire Plan Review Fee $149 $255 52%
Development Fee: Fire Inspection Fee - New Building 2 $0.11 $0.093 17% Development Fee: Fire Inspection Fee -Tenant Improvement $0.08 $0.059 30% Development Fee: Plan Review- Schools Per Hour $108 $473 126% Development Fee: Minimum Permit Fee $169 $288 52%
Development Fee: Overtime / Expedite Plan C heck $253 $432 52% Development Fee: Regular Time $169 $288 52%
* New fees are listed as N/A in the current fee column 1 Fees will be adjusted annually, beginning July 1, 2025, and each July 1st thereafter, by the percentage change in the Consumer Price Index (CPI)
Series Title: Urban Wage Earners and Clerical Workers, not seasonally adjusted, as published by the U.S. Department of Labor, Bureau of Labor
Statistics for the twelve (12) month period ending December 31 of the preceding year.
Exhibit B
City of Sacramento
Base Fee Comparisons of Local Fire Departments Fire Prevention Fees
Fire Prevention Fees: Effective July 1, 2025
Permit Fee Description
SFD
Current
Fee
Proposed
Fee 1
%
Varianc
e
Metro Roseville
West
Sacra
mento
Average
Comparison
s
Aerosol Products (>500 LBS) $343 $601 55% $630 $390 N/A $510 Amusement Buildings $851 $1,465 53% $947 $296 $231 $491 Apartment 3 -15 Units - Self Certification $51 $108 72% $473 $390 N/A $431 Apartment 16 -30 Units $274 $481 55% $630 $584 $346 $520 Apartment 31 -60 Units $357 $625 55% $947 $584 $346 $625 Apartment 61 -100 Units $442 $769 54% $1,262 $584 $346 $730 Apartment 101 -150 Units $524 $908 54% $1,262 $584 $346 $730 Apartment151 -200 Units $611 $1,057 53% $1,262 $584 $346 $730 Apartment 201 -250 Units $696 $1,201 53% $1,262 $584 $346 $730 Apartment 251 -300 Units $781 $1,345 53% $1,262 $584 $346 $730 Apartment 301 -350 Units $781 $1,345 53% $1,578 $584 $346 $836 Apartment 351 -400 Units $865 $1,489 53% $1,578 $584 $346 $836 Apartment 401 -450 Units $950 $1,633 53% $1,578 $584 $346 $836 Apartment 451 -500 Units $1,036 $1,777 53% $1,578 $584 $346 $836 Apartment 501+ Units $1,036 $1,921 60% $1,578 $584 $346 $836 Arson - Background Check $33 $48 37% N/A N/A N/A N/A Arson - Report Copies $56 $119 72% N/A N/A N/A N/A
Artists Live and Work $343 $601 55% N/A N/A N/A N/A
Aviation Facilities $851 $1,465 53% $1,262 N/A $231 $746 Candles/open flames $259 $457 55% N/A N/A $231 $231 Cannabis Grow Facility or Dispensary $470 $817 54% N/A $390 N/A $390 Carnivals/Fairs $386 $673 54% 947 N/A $231 $589
Cellulose Nitrate Film $343 $601 55% $630 $390 $231 $417 Combustible Storage $513 $889 54% $630 $390 $231 $417 Compressed Gases $343 $601 55% $630 N/A 231 $430
Consultation Fee $169 $288 52% N/A N/A N/A N/A
Copy of Reports (Each Document) $6 $108 179% N/A N/A N/A N/A Cryogens $343 $601 55% $630 $390 $231 $417
Daycare (9 -14) Occupants $343 $268 25% $630 $584 N/A $607 Daycare (15 -49) Occupants $428 $745 54% $630 $584 N/A $607 Daycare (50 -99) Occupants $428 $745 54% $947 $776 N/A $861 Daycare (Commercial 100+) Occupants $428 $745 54% $1,420 N/A N/A $1,420 Dry Cleaning Plant $428 $745 54% $630 N/A N/A $630
Dust Producing Oper/storage $428 $745 54% $630 $390 $231 $417 Exhibit/Trade Shows $682 $1,177 53% $630 $972 $231 $611 Explosive Blasting Agent Storage $513 $889 54% $788 N/A $231 $510 Failure to Prepare/Cancel $343 $601 55% N/A N/A N/A N/A Flammable/Combustible Liquids $343 $601 55% $630 $390 $231 $417 Floor Finish $343 $601 55% $630 $390 $231 $417
Fruit Ripening $343 $601 55% $630 $390 $231 $417
Garage Repairs/Motor Vehicle Fuel $428 $745 54% $630 $390 $231 $417 Hazardous Materials $513 $889 54% $1,292 $390 $231 $637 Hazardous Production Facilities $809 $1,393 53% $1,292 $390 $231 $637 Heliport/Helistop $259 $457 55% N/A $390 N/A $390
Helistop (Special Event) $343 $601 55% N/A $390 N/A $390 High Piled Storage $428 $745 54% $788 $1,354 $231 $791 Hood System $386 $673 54% $1,354 N/A N/A $1,354
Hot Food Vendor - Annual $301 $529 55% N/A N/A N/A N/A Hot Works/ Cutting and Welding $343 $601 55% $630 $296 $231 $385 Hotel/Motel (3 -8 Rooms) $343 $601 55% $788 $390 $246 $475 Hotel/Motel (9 -16 Rooms) $428 $745 54% $788 $390 $346 $475 Hotel/Motel (17 -30 Rooms) $513 $889 54% $947 $584 $346 $625 Hotel/Motel (31 -60 Rooms) $597 $1,033 53% $947 $584 $346 $625 Hotel/Motel (61 -90 Rooms) $724 $1,249 53% $947 $584 $346 $625 Hotel/Motel (91 -120 Rooms) $809 $1,393 53% $1,262 $584 $346 $730 Hotel/Motel (120+ Rooms) $894 $1,537 53% $1,578 $584 $346 $836 Hourly Inspection Fee $169 $288 52% $315 $390 $231 $312 Inspection - After Hours (Special Event
Inspections) $254 $432 52% $472 $584 $288 $448
Institution (14 or Less) Occupants $528 $922 54% $947 $298 N/A $623 Institution (15 -49) Occupants $909 $1,570 53% $1,292 $447 N/A $870 Institution (50 -199) Occupants $1,291 $2,218 53% $1,578 $447 N/A $10,113 Institution (200+) Occupants $1,630 $2,794 53% $4,102 $596 N/A $2,349 Knox Box Servicing $84 $144 53% $339 N/A N/A $339
Late Payment Fee $107 $107 0% N/A N/A N/A N/A
Liquid Petroleum Gas (LPG) $343 $601 55% $788 $299 $231 $439 Lumber Yard/Woodwork $640 $1,105 53% $788 $299 $231 $439 Magnesium $343 $601 55% $630 N/A $231 $431
Malls $1,234 $2,113 53% $947 $299 $231 $492
Marinas $428 $745 54% N/A N/A N/A N/A
Multi Story Bldg (75 FT +) $0.0038 $0.004 5% $2,524 N/A $461 $1,492 Notice and Order to Abate $2,737 $4,691 53% N/A N/A N/A N/A Notice and Order to Abate - Appeal $1,666 $2,884 54% N/A N/A N/A N/A Open Burning $216 $385 56% $78 N/A $115 $96
Organic Coating Application $343 $601 55% $788 N/A N/A $788 Ovens (Industrial Baking/Drying) $343 $601 55% N/A $299 N/A $299 Places of Assembly (A -1) $540 $1,465 92% $947 $447 $231 $541 Places of Assembly (A -2 & A-3) 100+ $327 $1,177 113% $788 $447 $231 $488 Places of Assembly (A -2 & A-3) 50-99 $450 $889 66% $473 $299 $231 $334 Places of Assembly (A -4 & A-5) $654 $7,045 166% $947 $599 $346 $630 Pyrotechnics and Special Effects $301 $529 55% $1,893 $600 N/A $1,246 Pyrotechnics Public Display $301 $529 55% $630 $895 N/A $763 Radioactive Materials $470 $809 53% N/A N/A $231 $231 Refrigeration Equipment $343 $601 55% $630 N/A N/A $630 Re-Issuance of Annual Permit $30 $65 74% N/A N/A N/A N/A Residential Care Facility (<25) Occupants $169 $288 52% $630 $150 N/A $390 Residential Care Facility (25+) Occupants $169 $288 52% $947 $150 N/A $549 Special Event Planning NA $600 NA N/A N/A N/A N/A
Schools $169 $288 52% $1,893 $599 N/A $1,246
Spraying or Dipping $343 $601 55% $630 N/A $231 $430 Technology Fee $0.10 $0.11 10% N/A N/A N/A N/A
Temporary Membrane Structures $216 $385 56% $788 $447 $231 $488 Tire Storage (> 1000 Cubic FT) $470 $817 54% $788 N/A $231 $339 Wood Products $470 $817 54% $788 $299 $231 $439
Development Fee Changes: Effective July 1, 2025
Development Fee: Administrative Fee $82 $173 71% $117 N/A N/A $117 Development Fee: Fire Plan Review Fee $149 $255 52% $315 N/A N/A $315 Development Fee: Fire Inspection Fee - New
Building 2
$0.11 $0.093 17% N/A N/A N/A N/A
Development Fee: Fire Inspection Fee -Tenant
Improvement $0.08 $0.059 30% N/A N/A N/A N/A
Development Fee: Plan Review - Schools Per
Hour $108 $473 126% $315 N/A N/A $315
Development Fee: Minimum Permit Fee $169 $288 52% N/A $150 N/A $150 Development Fee: Overtime / Expedite Plan
Check $253 $432 52% $692 $175 N/A $175
Development Fee: Regular Time $169 $288 52% $315 $150 N/A $232
* New fees are listed as N/A in the current fee
column
1 Fees will be adjusted annually, beginning July 1, 2025, and each July 1st thereafter, by the percentage change in the Consumer Price Index (CPI)
Series Title: Urban Wage Earners and Clerical Workers, not seasonally adjusted, as published by the U.S. Department of Labor, Bureau of Labor
Statistics for the twelve (12) month period ending December 31 of the preceding year.