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CC - PUBLIC HEARING: Adoption of a Resolution Approving and Adopting an Updated Comprehensive Fee Schedule for Fiscal Year 2026-2027.
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Meeting Date: May 26, 2026
Contact Person/Dept: Michael Towler, Finance Manager
Phone Number: (310) 253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [X] No []
Public Notification: City Website Posting of Public Hearing for Proposed Updates to the Comprehensive Fee Schedule (04/08/2026); Culver City News Public Notification (05/14/2026); (E-Mail) Meetings and Agendas - City Council (05/21/2026)
Department Approval: Stephen Agostini, Chief Financial Officer (05/20/2026)
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RECOMMENDATION
Staff recommends that the City Council adopt a resolution approving and adopting an updated Comprehensive Fee Schedule for Fiscal Year 2026-2027.
PROCEDURE
1. Mayor seeks motion to receive and file the Affidavit of Publication;
2. Mayor seeks a Motion to open the Public Hearing;
3. Mayor requests a staff report, if desired;
4. Mayor calls for, and the City Council receive, public testimony;
5. Mayor seeks a Motion to close the Public Hearing;
6. City Council adopts resolution approving and adopting the Comprehensive Fee Schedule for Fiscal Year 2026-2027
BACKGROUND
Adoption of the updated schedule is essential to maintaining the City’s long‑term fiscal sustainability by ensuring that user fees remain aligned with actual cost of service delivery, comply with legal requirements, and reflect Council-approved policy direction. The proposed adjustments incorporate the annual CPI update, reflect operational changes that reduce costs, implement subsidies where appropriate, and correct prior omissions. Collectively, these adjustments advance Council’s strategic goals by improving cost recovery, strengthening long-term fiscal stability, and maintaining equitable access to essential public services.
On January 13, 2025, the City Council adopted Resolution No. 2025‑R008 approving the Comprehensive Fee Schedule for Fiscal Year 2024-2025, based on a User Fee Study conducted by NBS Government Finance Group in collaboration with City staff. The study evaluated the full cost of providing each fee‑supported service, incorporated updated methodologies, reviewed compliance with current regulations, and identified opportunities to realign fees with the City’s cost‑recovery policies. The adopted changes are on track to generate approximately $5.0 million in additional ongoing General Fund revenues. The study did not include adjustments to Parks, Recreation, and Community Services (PRCS) fees to allow additional time for PRCS to review its cost‑recovery and subsidy policies and conduct community engagement.
On April 28, 2025, the City Council adopted Resolution No. 2025‑R040 approving a 3.1% Consumer Price Index (CPI) adjustment to applicable fees for Fiscal Year 2025-2026, based on the Bureau of Labor Statistics CPI for All Urban Consumers in the Los Angeles area for the 12‑month period ending February 2025. Minor corrections and clarifications were also incorporated.
On June 23, 2025, the City Council adopted Resolution No. 2025‑R058 approving additional revenue measures to address the City’s ongoing budget deficit, including a reduction in fee subsidies within the Mobility and Traffic Engineering Division, generating an estimated $62,000 in additional General Fund revenue.
On November 10, 2025, the City Council approved a temporary reduction in film permit fees to incentivize local film production. Based on FilmLA activity, staff estimated that the temporary reduction would result in a subsidy of approximately $250,000 at current permit levels. Council approved a subsidy cap of $500,000 to support increased production activity. Council also extended the suspension of business tax collection for itinerant motion picture and television producers for an additional ten years. Staff committed to monitoring filming activity and returning to Council within one year with an evaluation and recommendations for a phased fee adjustment strategy.
Best practices recommend conducting a comprehensive user fee study every five to seven years to ensure that fees reflect current methodologies, operational changes, and regulatory requirements. In intervening years, annual CPI adjustments help maintain alignment with cost‑of‑service increases. At the January 13, 2025 meeting, staff committed to returning annually with an updated Comprehensive Fee Schedule to ensure timely implementation of fee adjustments each fiscal year.
DISCUSSION
California municipalities are authorized to impose user and regulatory fees under Article XIII C, Section 1(e) of the California Constitution. Under this framework, fees may not exceed the reasonable cost of providing the service for which the fee is charged. Culver City Council Policy No. 5002 further requires periodic review of user fees to ensure that cost‑recovery targets are met and that fees remain aligned with service delivery costs.
For Fiscal Year 2026-2027, staff recommends applying a 2.9% CPI adjustment to applicable fees, based on the Bureau of Labor Statistics CPI for All Urban Consumers in the Los Angeles area for the 12‑month period ending February 2026. Additional updates include:
• Block Party Permits - Public Works Department - staff recommends eliminating the current $265.99 fee and providing 100% subsidy to promote neighborhood engagement and improve equitable access. Residents will continue to complete the formal application process to ensure compliance with City regulations. Estimated fiscal impact - approximately $8,000 in unrealized revenue (30 permits x $265.99).
• Commercial Business Fire Inspection Fees - Fire Department - fees are currently based on an industry standard tiered, square-footage model. Staff recommends reducing the fees to reflect anticipated cost savings from operational efficiencies that are expected to reduce staff time by approximately 40%. Estimated fiscal impact - approximately $600,000 reduced revenues, increased financial relief for businesses.
• Film Production Fees - Police and Fire Departments - staff recommends maintaining the temporary subsidies approved on November 10, 2025 to allow a full year of data collection before returning with recommendations. Estimated fiscal impact - approximately a $250,000 subsidy based on current film permit activity, capped at $500,000 annually to account for potential increase in film activity.
• Current Planning Division Fees - Planning and Development Department - consistent with the phased cost recovery strategy approved on January 13, 2025, staff recommends increasing cost recovery for selected subsidized fees by 5-10% to continue progress toward the long-term goal of achieving up to 100% cost recovery by 2030, while maintaining manageable subsidies for residential property owners and developers. Estimated fiscal impact - approximately $50,000 in additional cost recovery.
• Administrative Corrections - minor technical adjustments, including the addition of previously omitted fees, removal of duplicative entries, and clarification of footnotes within the proposed schedule. Estimated fiscal impact - none.
PRCS fee changes are not included in this update. PRCS completed a comprehensive fee study specific to PRCS fees and will present recommendations at a separate public hearing on May 26, 2026.
FISCAL ANALYSIS
The anticipated revenue impacts associated with the proposed fee adjustments are incorporated into the Fiscal Year 2026-2027 Proposed Budget. If approved, user fees will become effective July 1, 2026.
These adjustments reflect the City’s commitment to fiscal stewardship, ensuring that fees remain aligned with service delivery costs, that subsidies are applied intentionally and transparently, and that the City continues to balance fiscal sustainability with equitable access to public services.
ATTACHMENTS
1. 2026-05-26_ATT1_Resolution Approving and Adopting Comprehensive Fee Schedule for FY 26-27 (including Exhibits)
2. 2026-05-26_ATT2_ Citywide User Fee Study dated November 5, 2024
3. 2026-05-26_ATT3_ Affidavit of Publication
recommended action
MOTION
That the City Council:
Adopt a resolution approving and adopting an updated Comprehensive Fee Schedule for Fiscal Year 2026-2027.