San Rafael updates fees, adopts FY2025–26 budget and CIP; council asks staff to review massage‑permit inspections

The San Rafael City Council on Monday approved a package of financial and administrative items: updates to the city’s master fee schedule, adoption of the fiscal year 2025–26 operating budget and capital improvement program (CIP), the Gann appropriations limit and the Measure A work plan. All votes were 5-0.

The master fee schedule updates include targeted increases above the February-to‑February CPI (2.7%) where staff recommended raising fees to maintain or move toward target cost‑recovery levels. Notable changes include a move toward full cost recovery for ambulance transport charges, restructuring of mechanical/electrical/plumbing permit schedules, modest increases to recreation program fees and a proposed standardization of childcare and summer‑camp tuition and scheduling.

Nut graf: The council adopted the budget package as staff recommended and directed follow-up work: staff will publish a three‑year capital plan, implement new fee rates (many effective July 1, with some recreation and child‑care adjustments on different effective dates), and return with annual work plans tied to the new strategic plan. Members also asked staff to review massage‑business permitting practices after public comment.

Director Nervasio (presenting the fee schedule) explained the city’s approach: fees should reflect recoverable service costs where legally allowed, but some services will intentionally remain subsidized because of broader public benefit. The packet included a clean copy of the fee schedule and a redlined version showing proposed changes. Staff recommended that most recreation fee changes (5%) take effect on Jan. 1, 2026, childcare adjustments take effect Aug. 1, 2025, and other fees take effect July 1, 2025.

Fire and emergency medical services: The proposed fee schedule moves ambulance transport fees to full cost recovery for the paramedic fund. Staff noted the paramedic fund’s constraints and said many ambulance transport charges are billed to insurers. Council members asked how the department would handle uncompensated transports and the likely revenue uplift; the finance presentation estimated the ambulance-fee change would increase revenue by roughly $450,000.

Recreation and child care: Staff recommended a 5% general increase for recreation programs with a 10% increase for preschool and summer camp tuition; Pickleweed and Alborow (sic) community center programs remain subsidized at half the standard rates per existing policy. Child-care fee realignment also standardized rates across sites and adjusted for prior-year labor-cost increases.

Public comment focused on a long-standing concern from licensed massage therapists. Several massage practitioners and advisory‑committee members urged the council to revise the city ordinance and stop requiring an annual city inspection fee for single‑practitioner, licensed massage therapists. They said the inspection regime treats health practitioners as suspects and that the state certification system (California Massage Therapy Council, CAMTC) can provide a primary credentialing check. One commenter asked the council to change the business classification used for licensed practitioners to remove “massage parlor” labeling and asked staff to review fee burdens on small, licensed practitioners.

The council approved the master fee schedule by resolution (5-0). It then adopted the FY2025–26 citywide operating and capital budget; the adopted budget lists total appropriations of $192,282,438 and identifies recommended transfers from fund balance to cover one‑time priorities and match grant opportunities. Council also approved the Gann appropriations limit resolution, the Measure A work plan and the three‑year CIP update. The roll calls for these items were unanimous.

Ending: Council members asked staff to follow up on the massage‑permit process and to return with any recommended ordinance or fee refinements; staff confirmed it would review the ordinance and meet with industry representatives. The council also directed staff to continue monitoring revenues and return as needed if adjustments to fees or budgeted assumptions become necessary.