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CC - ACTION ITEM: (1) Consideration of Temporary Subsidies on Film Permit Fees to Incentivize Film Production in Culver City; (2) Adoption of Resolution Extending Suspension of the Collection of Business Tax for Itinerant Motion Picture/Television Producers for an Additional 10 Years; and (3) Direction to the City Manager as Deemed Appropriate.
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Meeting Date: November 10, 2025
Contact Person/Dept: Elaine Warner/ Economic Development Director
Lisa Soghor/Chief Financial Officer
Phone Number: (310) 253-5777
(310) 253-6016
Fiscal Impact: Yes [X] No [X] General Fund: Yes [X] No []
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (11/06/2025)
Department Approval: Jesse Mays, Assistant City Manager (11/03/2025)
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RECOMMENDATION
Staff recommends the City Council (1) consider temporary subsidies on film permit fees to incentivize film production in Culver City; (2) adopt a resolution to extend the suspension of business tax collection for itinerant motion picture/television producers for an additional 10 years; and (2) provide direction to the City Manager as deemed appropriate.
BACKGROUND
On August 11, 2025, the City created an Ad Hoc Film and Media Policy Subcommittee (“Subcommittee”), consisting of Mayor O’Brien and Vice Mayor Puza, to review current challenges facing productions and provide potential recommendations to encourage increased filming and employment opportunities in Culver City.
Since 2022, the film industry has faced several challenges related to shifting production formats, increased financial incentives for out of state/county filming, increased labor costs, and recent writers and actors strikes. According to FilmLA <https://filmla.com/wp-content/uploads/2025/10/Q3-2025-production-report-FilmLA-News-Release-101425.pdf>, the City’s film office and permitting liaison, on-location filming for television, commercial and streaming projects in Los Angeles has dropped by 13% in Quarter 3 (Attachment 1) which has impacted not just individuals within the industry, but also the numerous small business and suppliers that support film and television projects.
In July 2025, the State increased the annual funding for California’s Film and Television Tax Credit Program film incentives to $750 million (from $350 million) until 2030 to address the decline in state-wide production and meet the industry’s evolving needs. To date, more than 22 television and 52 film projects have been awarded funding to retain production and jobs in in the State with a projected impact of $1.4 billion to the economy. Regionally, both the County and the City of Los Angeles have also created streamlined programs to enhance the film process and position Los Angeles as a competitive filming destination.
DISCUSSION
On January 13, 2025, City Council adopted a comprehensive update to user fees in the City for the first time in over 10 years to ensure that fees were reflective of fully burdened staffing costs in order to reduce ongoing City subsidies. On April 28, 2025, Council approved a subsequent update to the fee schedule to increase them according to the Consumer Price Index. These fee increases also included staffing and permit fees related to film/television production (Attachment 2). FilmLA, has reported that the increase in fees has created a disincentive for productions to film in Culver City. Stay in LA, a coalition of various entertainment industry employees with a shared mission to keep film, television, commercials in Los Angeles, has also requested that fees be reconsidered to support small scale productions, employees and local businesses.
In October 2025, the Subcommittee reviewed other local jurisdictions’ filming fee structures and discussed potential temporary subsidies for film permit fees to support the film industry given Culver City’s desire to remain competitive in the region. Given the City’s roots in the film industry and consideration as the “Heart of Screenland” the Subcommittee proposes the following immediate actions for a pilot period of one year:
1. Roll back fee increases and stabilize staffing/permit fees at December 2024 levels.
2. Place a cap of $500,000 for total subsidies for a period of 12-months;
3. Provide free parking at Veteran’s Park, Senior Center and Downtown Parking structures for filming productions and related activity as available;
4. Develop a location “fan” tour in conjunction with FilmLA to showcase Culver City locations and assets;
5. Develop a film-specific business directory outlining resources and services to encourage use of Culver City based businesses;
6. Create an awareness campaign for highlighting Culver City’s film-friendly program.
The Subcommittee noted that filming has historically been part of Culver City’s identity and would like to encourage stabilization of the industry on a temporary basis with the potential to increase fees slowly after the first year “pilot” program. Additionally, the Subcommittee aims to continue review and potential development of an enhanced film permit program in Culver City based on current trends and to support student/small scale productions.
The Subcommittee also recommends adopting a Resolution extending the current suspension of business tax collection for itinerant motion picture/television producers for an additional 10 years (Attachment 4). Originally enacted in February 2011, and extended in February 2016, the current suspension ends in February 2026. The purpose of the suspension was to establish the importance of the film and production industry in Culver City’s local economy and to allow the City Council to develop a business tax structure that would encourage local film production and stimulate economic activity.
FISCAL ANALYSIS
There were 126 FilmLA permits issued in Fiscal Year 2023-2024 resulting in $174,800 in revenues collected. There were 108 FilmLA permits issued in Fiscal Year 2024-2025 resulting in $147,900 in revenues collected. Most of the revenues collected were related to the reimbursement of Police and Fire Department staff time for public safety efforts, traffic management, and compliance with local regulations and permit conditions. Historically, the fees associated with Police and Fire Department staff time were not recovering the full cost of services provided. These fees were heavily subsidized to encourage compliance with regulations and make filming more affordable while still maintaining necessary safety measures.
On January 13, 2025, City Council approved a fee study that established new cost recovery targets across City Departments. This fee established the total cost of providing each service for which the City charges a fee and ensure that the amounts charged to the public do not exceed the costs. The cost of Police and Fire staff have grown significantly over the years as a result of the impacts related to the Salary Initiative Ordinance (“SIO”) and locally negotiated Memorandum of Understanding (“MOU”) agreements. As a result of the fee study, fees for Police and Fire were increased to 100% cost recovery.
To understand the potential revenue impact of rolling back the fees to December 2024 levels, staff analyzed the FilmLA activity for Fiscal Year’s 2023-2024 and 2024-2025 (Attachment 3). Based on the analysis, assuming the same filming activity occurs in future years, the City would forego between $236,400 and $243,900 in potential revenues. This effectively represents between a 57% to 62% subsidy of actual costs.
To continue to encourage filming in Culver City, the Subcommittee recommends that the fees for filming be subsidized to reflect the fees as of December 2024. The Subcommittee further recommends that these film permit subsidies by capped at $500,000 for a period of 12 months. Based on staff analysis of the prior two years, the subsidy would have been just under $250,000 annually. The level of filming was depressed during this period due to the writers and actors strikes. A $500,000 cap would allow for increased production in the City.
If approved by Council, staff will actively monitor filming activity and reflect reduced revenues in the Midyear Fiscal Year 2025-2026 financial status update. Staff will also return to Council within 12 months to provide an update as well as an opportunity for Council to consider a phased incremental increase of fees to reduce the impact to the film industry and achieve the City’s long-term cost-recovery targets.
The Subcommittee also recommends the extension of the suspension of business tax for itinerant motion picture/television producers. The extension would result in loss of business taxes, though not significant. These revenues have not been collected for the past 15 years. There would be no reduction to current revenue assumptions based on the extension.
ATTACHMENTS
1. FilmLA Quarterly Report
2. Summary of Culver City Film Permit Fee Increases
3. Culver City Film Activity Summary and Cost Recovery
4. Resolution to Extend Business Tax Suspension for Itinerant Productions
MOTION
That the City Council:
1. Consider temporary subsidies on film permit fees to incentivize film production in Culver City;
2. Adopt a Resolution to extend the current suspension of business taxes for itinerant productions until February 2036; and,
3. Provide direction to the City Manager as deemed appropriate.