City Increases Fees to Help Budget Deficit

During a public hearing on Tuesday, agreed to a majority of fee increase recommendations presented by staff in an effort to close the city’s budget gap.

Residents can expect increases for participation in community events, new business licenses, various permits, dog licenses and environmental fees. Most filming permit fees and facility rental fees will increase.

Some police and fire-related fees, like vehicle release and EMS/Paramedic subscriptions, will increase as well. There will be no increase in zoning fees for CUPs or Variances.

Garage sale permits and yearly overnight parking permits will increase by $3 each. Many library fees will go up. Replacement library cards will jump from $5 to $11; replacing CD, DVD and tape covers will increase from $2 to $17. DVD rentals will now cost $1. However, educational DVDs will remain free to borrow.

Participation in the annual store window painting event around Halloween will now cost $25 for a group of four. Previously, it was free. The cost increase will cover staff time, window cleaning, paints and materials.

Fourth of July Parade entries, Huck Finn Day fish and camping, Oktoberfest golfing, Mt. Wilson Trail Race participation and Adult Softball League registration will all increase.

To see all of the proposed fees, check out page 20 of the attached document.

There was no change to the $73 tobacco fee which ignited a reaction from Councilmember John Capoccia. Capoccia suggested the fee should double to $150.

“We are subsidizing tobacco retailing. Is that what we want to do as a commission?” asked Capoccia. “It’s generally understood that this is a health hazard, and should we be recovering the cost on it? If we are going to subsidize things we should do it for the good of the community,” Capoccia said. Mayor Pro Tem Nancy Walsh agreed with Capoccia’s sentiments on subsidizing a product that is a known health hazard.

Resident Heather Allen spoke out against the garage sale permit fee increase from $11 to $15.

“This is a stickler for me! I know it might not seem a lot to some people, but I don’t understand why we need to have a permit at all. I don’t see what the city does for people who have yard sales… it’s their stuff and their property,” Allen said.

Allen was also opposed to having any fee for DVD rentals and the $25 fee toward kids’ Halloween window painting. “I remember doing that as a kid… it was fun and it was free,” Allen said.

Other suggestions by staff to bridge the budget gap included eliminating a 3rd full-time Captain position on the Fire Department, eliminate full-time positions in Public Works, possibly contracting out dispatching services for the Police Department and cutting library hours.

About the City's Budget Deficit

In the city’s review of the 2011-2013 Biennial Budget, Administrative Services Director Karin Schnaider outlined estimated revenues and projected expenses for Fiscal Year (FY) ending June 30, 2012, and proposed revisions for the next fiscal period.

The Water Fund was the most significant change cited, with the water revenue growing 7.5% due to the recent water rate increase and operating expenditures in the water fund showing reduction for three reasons: Water consumption has declined lowering pumping costs; melting snow in the mountains has caused a water increase in the tunnel; and there was cost savings due to unfilled personnel positions.

Schnaider noted that they project water pumping to resume to normal levels in the future and as a result, they will need to fill the two vacant positions to take care of maintenance. In addition, the Water Utility will need to begin paying back the San Gabriel Valley Water District loan. There has been an overall drop in electricity usage as well, which Schnaider attributes to the economic downturn. 

But, despite the City’s savings in some areas, the FY 2012-2013 General Plan has projected a deficit of $48,000 and the FY 2011-2012 General Plan has projected operating deficit of $964,000 mainly due to the 2011 windstorms and loss of redevelopment monies. It is projected also, that the water fund will expend $625,000 more than incoming revenue as a result of increased department service and capitol improvements.

The Council adopted three resolutions were unanimously on Tuesday: The first for the mid-year budget amendments, the second to establish a schedule of fees and charges, and lastly the adoption of a classification plan and matrix.

Council will meet again on June 12 at 6:30 p.m. at City Hall, 232 W Sierra Madre Blvd.