TO: ADAM PIRRIE, CITY MANAGER
FROM: JEREMY STARKEY, FINANCE DIRECTOR
DATE: JUNE 24, 2025
Reviewed by:
City Manager: AP
SUBJECT:
Title
USER FEE RATE INCREASE OF 3.0 PERCENT BASED UPON THE CONSUMER PRICE INDEX (CPI) FROM APRIL 2024 TO APRIL 2025 AND ADOPTION OF A RESOLUTION APPROVING NEW FEES FOR VARIOUS CITY PROGRAMS AND SERVICES AND AUTOMATIC ANNUAL COST OF LIVING INCREASES, EFFECTIVE JULY 1, 2025 (FUNDING SOURCES: VARIOUS FUNDS)
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SUMMARY
The City of Claremont charges fees for a large variety of services provided by all operating departments. These fees range from permit review fees charged by the Community Development Department and facility rental fees charged by the Recreation and Human Services Department to fingerprinting fees charged by the Police Department.
State law requires that fees charged by local governments for the services they provide cannot recover more than the total cost of rendering those services. As a result, periodic user fee studies are required. In 2023, the City contracted with Willdan Financial Services (Willdan) to prepare a Cost Allocation Plan and a Citywide User Fee Study. The purpose of the study was to develop an updated fee schedule to reduce the General Fund subsidy of fees and verify that the City is not charging more than the actual cost of providing services.
In June 2023, the City Council adopted a Comprehensive User Fee Schedule that allows for automatic annual cost of living increases. Resolution 2023-44 provides a mechanism to increase rates annually based upon the Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim region for April to April Consumer Price Index (CPI).
Additionally, to continue to meet the goal of recovering the cost of providing services, the City proposes to establish new fees for programs and services as specified in the Resolution (Attachment C). The proposed Resolution also provides a mechanism to increase these new fees annually based upon the CPI for the Los Angeles-Long Beach-Anaheim region for April to April. Fee increases pursuant to the CPI will be administratively approved by the City Manager and presented to the City Council as an informational item.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Receive and file the 2025 Citywide User Fee Schedule, effective July 1, 2025; and
B. Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLAREMONT, CALIFORNIA, ADOPTING A SCHEDULE OF NEW FEES FOR VARIOUS CITY PROGRAMS AND SERVICES AND AUTOMATIC ANNUAL COST OF LIVING INCREASES.
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ALTERNATIVES TO RECOMMENDATION
In addition to the recommendation, there are the following alternatives:
A. Request additional information from staff.
B. Reject the proposed fee changes.
C. Request changes to the proposed fee schedule.
FINANCIAL REVIEW
The proposed increases in user fees are projected to recover the updated cost of providing City services. Additional revenues that may result from the increase in user fees are difficult to predict since the demand for City services is variable.
The staff cost related to this project is estimated at $2,860 and is included in the operating budgets of each City department.
ANALYSIS
The City of Claremont charges fees for a large variety of services provided by all the City’s operating departments. The appropriateness of these fees with regard to cost recovery needs to be reviewed periodically. City staff undertakes a new Cost Allocation Plan and Citywide User Fee Study every five years. The latest study conducted in 2023 ensures that fees charged by the City are appropriate in terms of cost recovery and with respect to any new regulations or requirements since the last fee study. While the goal of adjusting fees is 100 percent cost recovery, some fees are recommended at less than 100 percent due to the desire to make the services more accessible to the community, and to avoid substantial increases in the costs of those services.
Staff believes it is important to adjust fees on a regular basis to keep pace with inflation, and to avoid a situation where fees remain unchanged for several years, with large, growing General Fund subsidies for services provided. As such, on June 27, 2023 the City Council adopted a Comprehensive User Fee Schedule and allowed for automatic annual cost of living increases. Resolution 2023-44 provided a mechanism to increase rates annually based upon the Los Angeles-Long Beach-Anaheim region for April to April Consumer Price Index (CPI). Using the April CPI figure will allow staff the necessary time to implement fee adjustments effective July 1st of each year.
The 3.0 percent CPI increase was applied to a majority of fees with the exceptions noted below. However, certain fees were rounded down to streamline the dollar amounts.
Notable exceptions by department are as follows:
Community Development
Many of the services performed by the Planning Division are charged at the actual cost, with project applicants providing a deposit against which the actual costs are charged. The costs charged against these deposits include staff time, at the fully burdened hourly rates included in Attachment B, as well as consultant time charged at actual cost. The deposits for these services remained the same in the Citywide User Fee Schedule in Attachment A, however the fully burdened hourly rates were increased by the 3.0 percent CPI rate in Attachment B.
Community Services
Sanitation and Sewer Fees reflected in the Citywide User Fee Schedule were taken separately to the City Council. The 2025 Sanitation and Sewer Fee Summary that will go into effect on July 1, 2025 was received and filed by the City Council on May 13, 2025. These fees reflect the percentage increase in the CPI from March 2024 to March 2025 of 3.0 percent.
The Proposed Citywide User Fee Schedule, incorporating the CPI increase effective July 1, 2025, is included as Attachment A to this report. Further, the Fully Burdened Hourly Rates for staff who provide services that are charged on an hourly basis are included as Attachment B.
Proposed New Fees
Staff has proposed the new fees outlined below. If approved, the new fees will become effective July 1, 2025, and will be incorporated into the Comprehensive User Fee Schedule.
The proposed new fees are as follows:
Community Development
Certificates of Appropriateness and Certificates of Economic Hardship
On April 9, 2024, the City Council adopted the Cultural Resources and Preservation Ordinance, which introduced two new application types: Certificates of Appropriateness (CMC 16.302.120) and Certificates of Economic Hardship (CMC 16.302.210). In response, Planning staff recommends establishing corresponding fees to support the review of these applications.
A proposed deposit-based fee of $2,000 for Certificates of Appropriateness reflects the complexity of reviewing projects involving historic properties, including the potential for escalation to the Architectural and Preservation Commission. This is consistent with other similar design review fees and reflects the added staff time and potential for Commission-level review when historic resources are involved.
A proposed deposit-based fee of $1,000 for Certificates of Economic Hardship, balancing the need for a thorough review process requiring Commission-level review with sensitivity for possible financial challenges applicants may be facing.
These fees help ensure that the City can provide the necessary level of review while maintaining a fair and efficient process for all applicants.
Solar Panel System Fee
A fee of $235.85 is proposed for the cost recovery of processing each solar energy system permit. This fee is applied to all residential and commercial solar energy system permits and covers the cost of the solar energy system inspections.
Recreation and Human Services
Late Application Fee
Rental of Recreation and Human Services facilities typically requires an application 30 days in advance for indoor facilities or 14 days in advance for outdoor facilities to allow adequate time to review and process necessary documents, such as proof of insurance. A late application fee of $35.00 is proposed for each application received after the aforementioned requirements. This fee would be applied to any rental requested after the application deadline has passed and will be used to offset increased staff time required to process the expedited request.
Youth Activity Center (YAC) Rental Fees
Various fees ranging from $20.00 to $40.00 per hour are proposed for the hourly rental of dedicated space within the YAC along with a refundable security deposit of $500 per event. In addition, a fee of $54.00 per hour is proposed for the use of facility attendants during non-operating hours at the YAC. These new fees will allow the Recreation and Human Services Department to rent the YAC to non-profit organizations outside of normal operating hours. Several local, youth-serving non-profits have requested to do so previously due to its proximity to Claremont High School and its familiar setting for students.
Camp Claremont Additional T-Shirt
A fee of $15.00 is being proposed as an optional fee for parents who wish to purchase additional Camp Claremont t-shirts for their child. One t-shirt is included with registration.
Senior Program Fees
A fee of up to $25.00 is proposed for each senior workshop or class and for senior dances and special events. In addition, Recreation and Human Services is proposing a fee equal to the actual cost for each senior trip. This will formalize fees currently in use by the Senior Programs division for workshops, trips, and events offered by the Department.
It is important to adjust fees on a regular basis to keep pace with inflation and avoid the growth of General Fund subsidies for services provided. Accordingly, the proposed Resolution allows for fees to increase annually based upon the April-to-April CPI for the Los Angeles-Long Beach-Anaheim region.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, General Plan, and the 2024-26 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
This item has been noticed in accordance with all applicable State and local laws, including but not limited to Government Code Sections 6062a, 66016, 66017, and 66018. The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by:
Jeremy Starkey
Finance Director
Attachments:
A - Proposed Citywide User Fee Schedule
B - Fully Burdened Hourly Rates
C - Resolution to Adopt Schedule of New Fees