title
CC - PUBLIC HEARING: Adoption of a Resolution Approving and Adopting Updates to the Comprehensive Fee Schedule for Fiscal Year 2025-2026.
body
Meeting Date: June 23, 2025
Contact Person/Dept: Michael Towler/Finance Department
Phone Number: (310) 253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (06/19/2025)
Department Approval: Lisa Soghor, Chief Financial Officer (06/19/2025)
______________________________________________________________________
RECOMMENDATION
Staff recommends the City Council adopt a resolution approving and adopting updates to the Comprehensive Fee Schedule for Fiscal Year 2025-2026.
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 updates to the Comprehensive Fee Schedule for Fiscal Year 2025-2026
BACKGROUND
On January 13, 2025, the City Council adopted Resolution No. 2025-R008 approving and adopting the Comprehensive Fee Schedule for Fiscal Year 2024-2025 based on a User Fee Study completed by NBS Government Finance Group. The purpose of the User Fee Study was to calculate the full (direct and indirect) cost of providing each fee activity, ensure that the City was using the most up to date methodologies, incorporate program process improvements, confirm compliance with new regulations, and to provide Council with the data that supports a realignment of fee amounts with localized cost recovery policy recommendations.
On April 28, 2025, the City Council adopted Resolution No. 2025-R040 approving and adopting the 3.1% Consumer Price Index (CPI) increase (where applicable) to the Comprehensive Fee Schedule for Fiscal Year 2025-2026 to ensure that the cost of service increases were incorporated into the City’s fee schedule. The 3.1% CPI increase was based on the Bureau of Labor Statistics Consumer Price Index for all Urban Consumers for the Los Angeles area for the prior 12-month period ending February 2025. The update also included some minor adjustments and corrections which were shown as footnotes to the fee schedules attached to the resolution.
Finance and Information Technology staff have worked closely with each Department to update the City’s various subsidiary systems and payment platforms to ensure timely implementation and collection of the new fees. During the system update process, staff discovered the need for a few minor, administrative corrections and clean up items to reduce confusion for staff and the public.
Additionally, as part of the budget process for Fiscal Year 2025-2026, Departments were charged with identifying expenditure reductions and revenue enhancements to support the Citywide effort to address the ongoing budget deficit. During this process, Public Works identified additional revenue that could be generated by reducing fee subsidies to increase cost recovery in the Mobility and Traffic Engineering Division that, if approved, would result in an additional $62,000 in General Fund revenues.
DISCUSSION
California municipalities may impose user and regulatory fees for services through provisions set forth in the State or California Constitution, Article XIII C 1(e). Under this legal framework, a fee may not exceed the reasonable cost of providing the service or performing the activity. In addition, Culver City Council Policy No. 5002 calls for a comprehensive user fee and cost of services study to ensure that fees continue to meet cost recovery targets. This Policy allows Council to adopt fees up to 100% cost recovery and allows for the subsidizing of fees to promote local policy goals and other community considerations.
The recommendations included in this report include actions necessary to increase cost recovery in the Public Works Department, correction to the Fire Department Ambulance Fees in accordance with Fiscal Year 2025-2026 Los Angeles County Emergency Services Agency (LACEMSA) fees, as well as minor administrative changes to address operational needs and add language to better describe the fees, improve administration of fees and reduce confusion. The remainder of the Comprehensive Fee Schedule (Attachment 1) remains unchanged from the Council approved April 28, 2025 fee levels.
The recommendations included in this report do not include any adjustments to the Parks, Recreation, and Community Services (PRCS) Department fees. PRCS is currently evaluating its cost recovery and subsidy policies, and has engaged the PRCS Commission, the Finance Audit and Budget Subcommittee, and the Finance Advisory Committee to ensure that the needs of the community are considered. PRCS staff anticipates returning to Council with recommendations on PRCS cost recovery rates and policy recommendations by the Fall.
Public Works - Mobility and Traffic Engineering Fees
Under the current fee structure, staff anticipates that the City will recover approximately 85% of eligible Public Works Mobility and Traffic Engineering costs for recovery through user fees. As part of the Fiscal Year 2025-2026 budget process, Departments were asked to develop potential cost savings and/or new revenue strategies that could be implemented to contribute to reducing the structural deficit. Public Works identified $450,000 in ongoing operating cost savings and recommended adjusting its fee structure to eliminate remaining subsidies associated with various fees such as residential parking permits, valet parking program, temporary no parking signs, encroachment into the public right of way, traffic control plans, and block party street closure permits pending further Council action. Staff anticipates that eliminating existing subsidies and bringing all Public Works Mobility and Traffic Engineering fees to 100% cost recovery will result in an increase of approximately $62,000 in annual General Fund revenue.
Fire Department - Ambulance Fees
The Fire Department provides in-house services for Basic Life Support Services (BLS) and Advance Life Support (ALS) emergency transportation. The Fire Department has historically charged the maximum allowable fees to the public for ambulance transportation adopted by the County of Los Angeles under Los Angeles County Ordinance Chapter 7.16. Those amounts are published by the Los Angeles County Emergency Services Agency (LACEMSA) annually. These fees have historically been included in the Citywide Comprehensive User Fee Schedules with a footnote indicating that the fees are subject to change per Los Angeles County Ordinance Section 7.16.340. The recommended update will reflect the most recent Fiscal Year 2025-2026 LACEMSA fee amounts included in Attachment 2.
Fire Department staff reevaluated the program and confirmed that the fees collected do not exceed the reasonable cost of providing the services, therefore maintaining compliance with local and state regulations (City Council Policy #5002 and State of California Constitution Article XIII C Section 1, respectively). Additionally, staff surveyed neighboring municipalities including but not limited to Santa Monica, El Segundo, Manhattan Beach, and Hermosa Beach and confirmed that each of the cities align its ALS and BLS fee programs with the LACEMSA fees. Therefore, staff recommends correcting the fees to align with the Fiscal Year 2025-2026 LACEMSA fees.
Police Fees - Animal Control Fees
Staff recommends a minor change to address operational needs and add administrative language to better describe the fees and reduce confusion for staff and the public. This includes a recommendation to eliminate the $6.57 annual fee for dog license fee. This fee is duplicative as the cost of services were already included in the separate annual dog tag and license fees ($25 for spay and neuter certificates and $50 for unaltered animals).
Public Works - Engineering Fees
Staff recommends a minor name change to address operational needs and add administrative language to the Utility Permit for Excavation fee to better describe the fee and reduce confusion for staff and the public. There are no recommended changes to the fee amount.
FISCAL ANALYSIS
Staff anticipates that the recommended changes to the Public Works Mobility and Traffic Engineering user fees and charges will result in an additional $62,000 in annual General Fund revenue. All other recommended changes are administrative in nature and will not result in additional revenue.
ATTACHMENTS
1. 2025-06-23_ATT_1 Resolution Approving and Adopting Updates to the Comprehensive Fee Schedule (including Exhibit)
2. 2025-06-23_ATT_2 Los Angeles County Emergency Medical Services Agency Fee Schedule for Fiscal Year 2025-2026
MOTION
That the City Council:
Adopt a resolution approving and adopting updates to the Comprehensive Fee Schedule for Fiscal Year 2025-2026.