The Montebello City Council meeting on August 27, 2025, focused on a significant update to the city's user fee schedule, which has not been revised since July 2018. The proposed changes aim to ensure that fees charged for specific services reflect the actual costs of providing those services, thereby reducing the burden on the general fund, which has been subsidizing many of these costs.

City officials explained that user fees are charges for services that provide a private benefit, such as electrical permits or fire inspections. The goal of the updated fee schedule is to recover costs associated with these services, which currently contribute approximately 25% of the city's general fund revenue, totaling around $18 million. The council emphasized that state law requires fees to be voluntary and reasonably related to the services provided.

The proposed fee adjustments include the introduction of 12 new fees, changes to 2 existing fees, and the maintenance of 4 others. The council aims to gradually increase cost recovery rates across various departments, with the fire department projected to increase from 56% to a higher recovery rate, while the police department's recovery is expected to rise from nearly 50%. The planning and code enforcement department is also set to see increases, with a focus on ensuring that fees align with the costs of service delivery.

Public comments during the meeting highlighted concerns about the potential impact of fee increases on residents, particularly those with low incomes. Suggestions included implementing incremental fee increases to avoid sudden financial burdens and exploring options for fee waivers for low-income residents. The council acknowledged these concerns and reiterated that the fee increases would be phased in over three years, with built-in updates to account for inflation.

In response to public inquiries, city staff clarified that not all services would be brought back in-house, and the ambulance fee would remain unchanged, with existing hardship waivers still available for eligible residents. The council also discussed the possibility of exploring alternative fee structures, such as membership programs that could alleviate costs for residents needing emergency services.

Overall, the meeting underscored the city's commitment to transparency and fiscal responsibility while addressing the need for fair compensation for services rendered. The updated fee schedule is set to take effect 60 days after approval, with ongoing reviews planned to ensure alignment with community needs and economic conditions.