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Council adopts updated user‑fee schedule; study shows city recovers about 38% of fee costs
Summary
After a public hearing, the council adopted Resolution No. 6702 updating the city’s user‑fee schedule. A consultant’s cost‑of‑service study found the city currently recovers roughly 38% of fee costs and recommended phased adjustments; staff estimated about $400,000 in additional general‑fund revenue if implemented.
The Gardena City Council on May 20 adopted Resolution No. 6702 after a public hearing to update the city’s user‑fee schedule and facility rental fees.
Revenue and cost consultant Eric Johnson presented a cost‑of‑service study to the council, saying the analysis recast budget items “with a business orientation” to measure the full cost of fee‑supported services. Johnson told the council the city currently recovers about 38% of the cost of fee services and that total current fee revenue is roughly $4.7 million compared with about $12 million in related costs; the difference represents an estimated subsidy of about $7.7 million. If the study recommendations are adopted, Johnson said the city could recover approximately $460,000 more in annual revenue; staff estimated the general fund impact at roughly $400,000 per year.
Nut graf: The council adopted a new fee schedule backed by a consultant study that updates definitions, recalculates the fully allocated cost of many services and sets a path for annually indexing certain fees by CPI. The changes aim to reduce the subsidy borne by general revenues for services that primarily benefit identifiable users.
Staff explained the study covered planning, building, public works, recreation and other fee services and will be implemented in stages. The study recommended some fees be set to recover full cost (typical in development services) while other services — such as many recreation programs and certain public‑safety responses — are typically subsidized and were not proposed to move to full cost recovery. The new schedule applies CPI indexing for specified fees and preserves subsidies for nonprofit and resident facility rentals.
The council voted to adopt the resolution (roll call: Tanaka yes; Serta yes; Henderson yes; Francis yes; Love yes). The development‑related fee changes take effect Aug. 1, 2025; other fees take effect July 1, 2025.
Ending: The consultant and staff will provide implementation details and fee tables as the city posts the new schedule; departments will apply the revised fees according to the adopted timetable.
