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Council questions large fee increases; staff to return with phased options and capped increases
Summary
City staff presented a full‑cost recovery fee study that proposed large increases to some permit and special‑event fees. Councilors expressed concern about sticker shock and requested staff return with split reports: items below 130% to move forward and the roughly 10–12 higher increases to be reviewed in a phased approach.
Finance staff presented a full‑cost recovery update to the FY2026 fee schedule at the Oct. 21 meeting, describing methods for calculating per‑transaction costs from departmental inputs (time and materials) and providing a recommended schedule that would implement full cost recovery for most transactions.
Council members acknowledged the methodology but raised concerns about dramatic percentage increases on some items — one example flagged during discussion showed increases in the thousands of percent for certain temporary‑use permits — and emphasized political and economic tolerances. Staff estimated the package would generate about $45,000 in additional annual revenue against a cited total city annual revenue figure mentioned in the presentation.
Councilmembers proposed options: (1) adopt fee changes that are below a 130% increase now and bring forward a separate package or workshop for the ~10–12 fees that exceed 130%, (2) phase higher increases over multiple years, or (3) accept staff recommendations but use council discretion to reduce specific rates for tolerance reasons. Staff agreed to provide two reports: one listing items under 130% and another listing the ten transactions above the 130% threshold and to invite department directors to meetings for the high‑impact items.
No ordinance or fee resolution was adopted at the meeting; council directed staff to return with the segmented reports and to prepare the documentation needed to make informed decisions at future meetings.
