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Council approves 3.1% CPI increase to planning and engineering development fees; new fee study planned
Summary
Council adopted annual indexed adjustments to development planning and engineering fees (3.1% CPI for 2024), citing prior consultant recommendations and scheduling a new fee study this fall.
The Encinitas City Council adopted a 3.1% cost-of-service adjustment to planning and engineering development fees based on the Consumer Price Index for the San Diego region for calendar year 2024.
Finance staff explained the city used a Willdan Financial Services user-fee study from 2021 as the baseline. That study recommended an initial phased increase (10% then 15%) and an ongoing inflation indexing mechanism to smooth increases over time, with a suggested cost-recovery cap of 80 percent for many development fees. Staff applied the CPI adjustment (3.1%) to the current fee schedules and estimated the fiscal impact at roughly $90,000 in additional revenue.
Council also directed staff to issue a request for proposals for a new, comprehensive fee study to be completed this fall. The study will re-examine fees, cost-recovery targets and whether any policy should formalize the citywide target recovery percentage.
Action: Council adopted the two resolutions to amend planning and engineering fee schedules (resolution identifiers provided in the staff report). The motion passed unanimously. Councilmembers asked staff to return with a resolution or policy that records any citywide fee-recovery targets so future councils and staff can reference a clear policy.
Ending: Staff will publish the updated fee schedules (effective July 1) and release an RFP this summer for the new fee study.
