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Cupertino council adopts FY 2025-26 fee schedule after debate over full cost recovery; two members dissent
Summary
The Cupertino City Council on July 1 adopted updates to multiple city fee schedules that will raise fees for planning, building, engineering and general services and are expected to add about $650,000 in revenue for FY2025-26.
The Cupertino City Council on July 1 adopted updates to the cityfee schedules covering general fees, engineering, planning and building services, a staff presentation said, with the changes scheduled to take effect Sept. 1.
Finance staff estimated the changes would generate roughly $650,000 of additional revenue for the fiscal year, largely to the general fund. Jonathan (Finance Manager) and Christine Alfaro (Director of Administrative Services) told the council they followed a user-fee study framework that includes target recovery ranges, a multi-year implementation path for large increases and annual updates tied to inflation and labor costs.
Council discussion centered on whether the city should aim for full cost recovery on regulatory services or continue subsidizing particular fees to avoid discouraging permit compliance. Vice Mayor Moore and other supporters argued that fees should reflect the actual cost of service delivery and that many peer cities have moved toward higher recovery levels. Other council members and members of the public, including San R., said the council should protect vulnerable residents and small applicants from sharp fee hikes and consider targeted subsidies.
Public comment reflected the divide. Rhoda Frey asked the council to review the cost side of service delivery and limit fee increases where they create hardship. A caller who identified as "San" urged the council to reverse the cost-recovery policy changes, saying some permit applicants are retirees and would be burdened by the increased fees.
The council voted to adopt the recommended fee schedules as presented. The motion carried; the clerk recorded two dissenting votes (Council Member Wong and Mayor Chow). Staff said most fees are tied to documented labor and pension costs; several council members asked staff to supply more detailed comparisons and return with clarifications where large increases had happened in consecutive years.
Ending: The fee changes will be implemented Sept. 1 unless the council reconsiders; staff will continue to provide additional detail and may return with specific recommendations for selected fees if the council requests further refinement.
