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Council adopts FY25–26 fee schedule updates, raising several permit fees; two members dissent
Summary
Council adopted updates to four fee schedules (A–D) that staff says will increase revenue about $650,000; the motion passed with Mayor Chow and Council Member Wong voting no after debate about cost recovery policy and fee increases.
The Cupertino City Council adopted updates to the city's user-fee schedules for fiscal year 2025–26 at its July 1 meeting, approving revised fees for general services, engineering, planning and building review (Schedules A–D) with an effective date the staff set as Sept. 1, 2025.
What staff presented: Finance staff noted the update follows the city's 2023 user-fee study and 2024 cost-recovery policy. The update applies annual adjustments tied to labor and inflation, and — in some cases — brings certain fees closer to full cost recovery. Staff said the total additional revenue from the scheduled increases is roughly $650,000, mostly to the general fund. The update excludes parks and recreation fees (Schedule E), which staff intends to present separately.
Key points of council debate: Some council members and several public commenters opposed sharp year-to-year increases that followed a larger fee study adjustment last year. Vice Mayor Moore and other council members said the increases reflect a long-delayed, consultant-driven assessment of staff time and true service cost, and argued full cost recovery reduces subsidization by the general fund. Several speakers — including seniors and frequent permit users — urged that some fees (for small, community-focused permits such as bingo or residential inspections) be kept low or phased in more gradually.
Notable staff clarifications: Staff explained that one reason for a sizable increase in Schedule B (engineering) this year was a catch-up to include an unfunded pension liability and labor-cost changes that were not fully incorporated in interim adjustments. Staff also pointed out the 2023 comprehensive study was the driver of last year’s larger increases and that routine annual adjustments would be smaller going forward.
Action and vote: Council Member Fruitn moved and Council Member Mohan seconded a resolution approving the FY25–26 fee schedule updates for Schedules A–D. The motion passed on a recorded vote with Council Members Fruin, Mohan and Vice Mayor Moore voting yes and Council Member Wong and Mayor Chow voting no.
What happens next: Fees are scheduled to take effect Sept. 1, 2025, giving a 60-day window for implementation and public notice. Council directed staff — in later discussion and public comment — to return with options if council wishes to reconsider particular high-percentage increases on a line-item basis.
Community context: Speakers urged careful consideration of equity concerns and the impacts of large fee increases on retirees and homeowners performing routine repairs. Staff said many of the city’s fees are still within the ranges used by peer cities but acknowledged the political sensitivity of multi-hundred-percent increases on a small subset of fees seen in the previous comprehensive study.
