FROM:
Management Services
SUBJECT:
Adjustment of User Fees for City Services
Title
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RECOMMENDATION:
Recommendation
Adopt Resolution No. 2025-085, a resolution of the City of Fontana updating and establishing user and regulatory fees for various regulatory activities, programs, and services set forth in a master fee schedule and identifying an inflationary factor for future adjustments.
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COUNCIL GOALS:
• To operate in a businesslike manner by becoming more service oriented.
• To practice sound fiscal management by producing timely and accurate financial information.
DISCUSSION:
The City of Fontana engaged Willdan Financial Services to perform a comprehensive fee study to analyze the costs of providing various City regulatory activities, programs, and services. Given the complexity and range of services evaluated, Willdan applied a variety of industry-standard methodologies to calculate full cost recovery for each fee or program area.
A comprehensive study and the development of a fee calculation model allows for economic stabilization to occur as well as future personnel costs to be better forecasted. The study, attached to the Resolution as Exhibit “A” presents the findings of that analysis, including full cost estimates and recommended fee levels. It also outlines the user fee background as it applies to the City of Fontana. The user fees as set forth in Exhibit "A" are designed to reasonably cover, but not exceed, the reasonable cost of providing the service for which the user fee is charged.
In preparation for the public hearing, Notices of Public Hearing were published on July 11, 2025 in the Fontana Herald newspaper noticing the July 22, 2025 public hearing and the City provided written notice to all interested parties that have requested such written notice at least 14 days prior to the date of the public hearing. Copies of the User Fee Study (Exhibit “A”) which include a Schedule of New User Fees and adjusted user fees and Summary and Supporting Detail Schedules containing a detailed cost analysis of each new fee were made available to the public at the City Clerk’s Office for review 10 days before the hearing.
Approval of this report and adoption of the attached Resolution will provide for all fees herein to be effective as of January 1, 2026, for all fee types and establish a structured method for future fee adjustments.
To ensure the fee schedule remains current with changes in labor and service delivery costs, staff recommends including an annual inflationary adjustment mechanism. This adjustment, to be included in the adopting resolution, will allow the City Manager to increase fees annually based on the annual percentage increase from the prior year's Consumer Price Index - All Urban Consumers for Riverside-San Bernardino-Ontario, California, calculated by the 12-month change as of March each year as published by the U.S. Bureau of Labor Statistics, or a similar index if the CPI is no longer published or is otherwise unavailable. If the CPI does not change or decreases in any given year, no change will be made to the user fee schedule applicable that year. In no event will the user fees be increased annually to exceed the estimated reasonable costs to the City in providing the Services. A comprehensive fee study will be conducted every five years.
FISCAL IMPACT:
The fiscal impact associated with the approval of this item will result in fee revenue increases that will be better estimated as activity occurs. Actual revenue will be dependent upon fee related activities.
MOTION:
Approve staff recommendation.