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Council adopts broad user‑fee package with carve‑outs for San Diego nonprofits
Summary
After a lengthy presentation and public comment from nonprofits and industry groups, the council approved a comprehensive user‑fee package that raises many municipal fees but sets a reduced special‑event cost recovery level for local nonprofits and removes a proposed library rental fee for nonprofits.
San Diego — The City Council voted 8–1 on March 3 to adopt a sweeping comprehensive user‑fee review for FY2026, but made targeted changes to protect many local nonprofits from the full cost increases proposed by staff.
The Department of Finance told the council that the comprehensive analysis covered about 681 fees across city departments and, as proposed, would generate about $21.2 million in additional city revenue including $18.5 million for the general fund. The package included fee increases, eliminations of obsolete fees and new fees, and a staff request to authorize an annual inflation adjustment.
During public comment dozens of nonprofits and event organizers argued the proposed jump to 75 percent cost recovery for nonprofit special‑event public safety costs would threaten culturally significant free events and local arts festivals. Representatives of the San Diego Municipal Employees Association and event organizers also urged council to protect smaller nonprofits.
Council President LaCava offered a motion to advance the package with targeted modifications: set police and fire special‑event fees for City‑based nonprofits at 50 percent cost recovery (instead of 75 percent), and remove the proposed branch library room rental fee for nonprofits. Councilmember Elo Rivera asked staff to distinguish City‑based nonprofit organizations from out‑of‑city nonprofits; council accepted a modification to extend the preference to County‑of‑San‑Diego‑based nonprofits for implementation feasibility.
The amended motion passed 8–1, with Councilmember Moreno casting the lone no vote. The council instructed staff to return with a pilot program and a timeline for implementing residency‑based nonresident fees and to work with labor and stakeholder offices on operational details.
Why it matters: Council members said the package helps close gaps without relying solely on service cuts. Nonprofit groups and cultural organizers won concessions intended to reduce the immediate financial shock for local community events; staff will report back on technical implementation and potential pilot nonresident fees.
Council action: Motion by Council President LaCava (as amended), seconded by Councilmember Elo Rivera; vote 8–1 (Moreno no).
