AGENDA ITEM
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: CARLO TOMAINO
CITY MANAGER
BY: SIAMLU COX
ADMINISTRATIVE SERVICES OFFICER/FINANCE DIRECTOR
SUBJECT:
title
PUBLIC HEARING - A RESOLUTION APPROVING AND ADOPTING THE UNIFORM SCHEDULE OF SERVICE FEES AND CHARGES
summary
Summary:
The City completed a comprehensive study in April 2024 to identify the cost of providing various user and regulatory fee-related services and prepared a consolidated schedule of fees. The resolution adopting the current fee schedule directed that fees may increase annually, each July 1, based on the January-to-January Consumer Price Index (“CPI”), for all items in the U.S. city average, all urban consumers, as reported by the U.S. Department of Labor Bureau of Labor Statistics. If the CPI does not change or decreases in a given year, no change shall be made to the fee schedule unless an adjustment is made to cost recovery levels or fee study findings indicate an adjustment is appropriate. The fee schedule proposed for adoption for the period July 1, 2026, reflects the 2.39% annual change in CPI.
Prior to adopting new or increased fees, the City Council is required to conduct a public hearing. At the conclusion of the public hearing, the City Council shall determine whether to adopt the updated Fee Schedule. Staff published the legal notice for this public hearing in the Signal Tribune newspaper pursuant to Government Code Section 65091(a)(4). The legal notice appeared in the newspaper on June 12 and June 19, 2026. Staff also posted the notice in accordance with Signal Hill Municipal Code Section 1.08.010 on June 12, 2026.
Strategic Plan Goal(s):
Goal No. 1 Financial Stability: Ensure the City’s long-term financial stability and resilience.
Goal No. 3 Economic & Downtown Development: Improve the local economy, support local businesses, and create a vibrant downtown core.
Goal No. 4 Infrastructure: Maintain and improve the City’s physical infrastructure, water system, and recreational spaces.
recommendation
Recommendation:
1. Staff recommends the City Council open a public hearing, consider public testimony, and approve and adopt the proposed service fees and charges.
2. Adopt a resolution, entitled: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, RESCINDING RESOLUTION NO. 2025-05-6878, AMENDING THE UNIFORM SCHEDULE OF SERVICE FEES AND CHARGES
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Fiscal Impact:
The proposed fees represent the cost for services that are discretionary, meaning that one or more individuals obtain a direct benefit from the service provided. As such, the City’s fiscal impact will be based on activity levels after the new fees are adopted and implemented, effective July 1, 2026. The intent of these adjustments is to reflect the gradual increase in costs due to inflationary pressures. Recalibration of these fees provides an offset of existing expenditures/needs rather than a source of funding for expanded service levels.
Background:
Throughout its history, the City has applied a fiscally conservative approach to its budget and operations. Over the years, this fiscal philosophy has greatly aided the City through economic cycles and preserved its ability to deliver high-quality public services. Recovering the costs of providing fee-related services directly influences the City’s fiscal health and increases its ability to meet the service level expectations of fee payers. Therefore, one of the ways in which the City continues to preserve its financial ability to deliver public services to residents and businesses is to conduct studies to ensure fees remain consistent with the cost of delivering services.
The services for which the City applies to a user or regulatory fee typically derive from an individual person or entity’s request for services. For example, development related costs to process entitlements are borne entirely by the applicant. Therefore, except in limited cases where there is a demonstrated public benefit, a fee for service ensures the individual user bears the cost incurred by the City to provide that service. When a fee targets full cost recovery, the individual bears the entirety of the cost. Conversely, when a fee targets a less than full cost recovery, another City revenue source, typically the General Fund, subsidizes the individualized activity.
As provided under State law, cities have the authority to levy user fees to recover costs associated with providing a specific discretionary service. State law, including Propositions 26 and 218, sets parameters under which user fees may be established and administered by public agencies. The user fees may not exceed the estimated reasonable cost of providing the service for which the fee is charged. As such, fees are set based upon an analysis of the cost of providing specific discretionary services, including direct support costs. Pursuant to Government Code Section 660016, et seq., the specific fees to be charged for services must be adopted by the City Council by resolution, and upon approval would need to be incorporated into the Schedule of Fees and Charges (Attachment B).
Analysis:
As part of ongoing operations, staff reviews and periodically recommends revising certain existing fees and establishing various new fees for services provided by the City. Modifications that are part of this proposed fee schedule are summarized below and reflected in Attachment C.
Inflationary Adjustments:
The proposed fee schedule adjusts most fees by 2.39% to reflect the January-to-January Consumer Price Index (“CPI”), for all items in the U.S. city average, all urban consumers, as reported by the U.S. Department of Labor Bureau of Labor Statistics.
Adjusted fees include:
• Building Fees
• Grading Fees
• Planning Fees
• Public Works Fees
• Parks and Recreation Fees
• Community Garden Fees
• Police Fees
Proposed New Fees:
Staff is proposing new fees to the fee schedule including:
• Finance (one-day event vendor business license)
• Public Works (fee for annual backflow inspection and fees for transportation permits for oversized vehicles, set by Caltrans)
• Film and Photography Permit Fees (fees for student permit application processing for small and large productions)
• Special Event Permit Fees (fees proposed to recover City costs associated with special events application processing and security deposits for specific special events criteria)
Staff has included the cost-of-service calculations for the proposed new fees for the City Council’s information as Attachment D.
Next Steps:
Staff recommends the City Council hold a public hearing to consider adopting the proposed Resolution establishing and updating user and regulatory fees for Fiscal Year 2026-2027. If adopted, all fees would become effective July 1, 2026. The proposed adjustments balance the need to regularly adjust fees based on escalating costs with staff’s desire to deliver high quality services to our residents and the business community.
Reviewed for Fiscal Impact:
_________________________
Siamlu Cox
Attachment(s):
A. Resolution 2026-06-6944
B. Exhibit A - Schedule of Fees and Charges
C. Illustration of Current and Proposed Fees
D. Cost of Service Analysis for New Fees