TO: HONORABLE MAYOR
AND CITY COUNCIL
FROM: Councilmember George Casey
C
ouncilmember Pamela Campos
Councilmember Peter Ortiz
Councilmember Bien Doan
Councilmember Domingo Candelas
SUBJECT: SEE BELOW DATE: June 5, 2026
Approved:
Date: 6/5/26
SUBJECT: A
pproval of the 2026-2027 Operating and Capital Budgets for the City of San José and Schedule of Fees and Charges
RECOMM
ENDATION
Di
rect the City Manager to return to the City Council in fall 2026 with recommendations for potential adjustments to the City's cardroom regulatory fee structure that:
1. Maintain the City's commitment to strong public safety;
2. Evaluate opportunities to reduce or restructure cardroom regulatory fees where operational efficiencies or alternative cost allocations exist;
3. Include implementation timing, noticing requirements, and any related budget actions.
BACKGR
OUND
The Ci
ty annually adopts the Proposed Fees and Charges Report as part of the budget process. Included within that report are regulatory fees associated with the City's oversight of cardroom operations. These fees support Police Department regulatory activities and reimburse portions of administrative and indirect overhead costs associated with compliance and oversight responsibilities.
Ov
er the past year, stakeholders raised concerns regarding the scale and structure of the current regulatory fees and their impact on local cardroom operations. In response, the City previously evaluated targeted adjustments to the fee structure. Last year's Council action reduced regulatory fees paid by cardroom operators by $441,000.
Rest
ructuring the regulatory program would be best approached early in the budget development process. Thus, a future Council discussion would provide the most COUNCIL AGENDA: 6/9/2026
FILE: 26-683
ITEM: 3.4
HONORABLE MAYOR AND CITY COUNCIL
June 5, 2026
Subject: Approval of the 2026-2027 Operating and Capital Budgets for the City of San José and Schedule of Fees and Charges
appropriate forum to evaluate targeted adjustments to the City's cardroom regulatory fee structure to improve proportionality and predictability while preserving public safety oversight and fiscal accountability.
COORDINATION
For questions, please contact David Gomez, Chief of Staff, Council District 10, at [email protected] or (408) 535-4910.
The signers of this memorandum have not had, and will not have, any private conversation with any other member of the City Council, or that member’s staff, concerning any action discussed in the memorandum, and that each signer’s staff members have not had, and have been instructed not to have, any such conversation with any other member of the City Council or that member's staff.