That the City Council APPROVE AND ADOPT RESOLUTION NO. CC 2026-__ ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA HABRA, ORANGE COUNTY, CALIFORNIA AMENDING THE CITY OF LA HABRA MASTER SCHEDULE OF FEES PERTAINING TO FEES FOR GENERAL SERVICES, ADMINISTRATIVE SERVICES, COMMUNITY DEVELOPMENT SERVICES, BUILDING SERVICES, FIRE SERVICES, POLICE SERVICES, AMBULANCE SERVICES, PUBLIC WORKS SERVICES, UTILITY SERVICES, AND PENALTIES FOR MUNICIPAL CODE AND VEHICLE CODE PARKING VIOLATIONS.

Section 4.08.010 of the La Habra Municipal Code provides for the City to adjust various fees and charges it assesses for services by the increase or decrease in the Bureau of Labor Statistics Consumer Price Index for all Urban Consumers. The City utilizes changes in the Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim “all items” as the benchmark for these annual adjustments. The CPI change for this index in 2025 was 3.16 percent higher than 2024; therefore, it is recommended that eligible user fees contained in the Master Schedule of Fees be increased by 3.16 percent.

Some fees contained in the Master Schedule of Fees may not be adjusted by the Consumer Price Index. These include fees related to Enterprise Funds (water, sewer, refuse), franchises (such as cable, pipelines, etc.), or fees for which the State sets the rate. These fees, while listed in the Master Schedule of Fees, remain at the levels, rates and formulas previously authorized by Council or other governing law.

User fees listed in the Master Schedule of Fees were most recently set in 2015-16, after the completion of a comprehensive user fee study to determine the actual cost of providing the services that fees paid for. Under state law, fees may only be set in an amount not to exceed the actual cost of providing the service for which the fee is being assessed. The cost to provide the service is based on factors such as personnel costs, materials, personnel time, and overhead. Certain fees have been rounded to the nearest dollar. The City is currently undertaking a comprehensive review of all City fees and charges and will be presenting the results of this analysis at a future City Council meeting.

If approved by City Council, the increase in revenue as a result of adjusting eligible fees will result in additional resources for the City’s General Fund; however, any new revenues will be used to directly offset the cost to provide those services. Fee adjustments, if approved, will become effective on July 1, 2026, with the exception of Community Development and certain Public Works related fees which, consistent with State law, will become effective 60 days after passage of the resolution.

This report is consistent with the following area(s) of the General Plan:
ED 9.1 – Balanced Fiscal Practices

It is also consistent with the following City Council Goals and Objectives:
Goal 2: Management of Public Revenues and Fiscal Assets
Objective A: Closely monitor revenues, expenditures, and fiscal trends to ensure the City's long-term fiscal stability.