San Bruno is increasing the city’s user fees and making plans to manage a projected budget deficit of $4 million ahead of an upcoming budget approval for the 2024-25 fiscal year.
The City Council unanimously approved a user fee schedule update that will go into effect July 1 in tandem with the new fiscal year at its April 23 meeting.
The city is also considering a “reorganization” of key general administration departments — including the City Manager’s Office, the City Clerk, Finance and Human Resources — to narrow the budget deficit, Chief Financial Officer Nick Pegueros said.
“My wish would be to honor the contracts that we have,” Mayor Rico Medina said, with City Manager Alex McIntyre affirming that would be the case.
The city is also considering the possibility of using its contingency and one-time revenue reserves, which currently sit at $23.7 million total, as well as moving community development revenue into a special fund to ensure more accurate tracking of service reimbursement.
On the proceeds side, the city is budgeting for an assumption of future cannabis tax revenue — a storefront has not been opened, but the city expects it sometime during the fiscal year, Pegueros said. Also included is expected revenue from the educational revenue augmentation fund, money from within a community and sometimes provided to other government agencies.
Increased user fees have yet to be incorporated into the new budget, and will include raises to a general plan maintenance fee for building permits. Those permits currently sit at .4% of construction valuation — if a project is valued at $1,000, residents would pay $4, for example.
Now, residents will pay .7% valuation for the 2024-25 fiscal year and .9% for the 2025-26 fiscal year and beyond, about which Councilmember Michael Salazar expressed some concerns.
“I’m sure a lot of people are going to consider, do I want to pay close to 10% of the cost to the city just for somebody to come inspect it, or do I take my chances?” he said. “It becomes almost too big of a burden, where you almost create an incentive for people to not do what they should be doing.”
Additionally, a $95 application fee for temporary fireworks stands will be implemented as a cost recovery method and will be further discussed at an upcoming City Council meeting.
Daily drop-in fees for the Recreation and Aquatic Center will cost $2 extra, punch passes will cost $26 extra and new rental fees are being implemented for the gymnasium, exercise room and aquatic areas.
Ultimately, elements of the city’s budget are still in flux, Pegueros emphasized, pointing to unknown tax revenue from Walmart.com, Tanforan and the YouTube campus, as well as a lack of property tax revenue in lieu of the vehicle license fee loss.
(650) 344-5200 ext. 105
Daily Journal staff
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(1) comment
This is funny, in an ironic sort of way… Remember San Bruno wasting $4 million on setting up and implementing downtown parking meters to nickel and dime patrons? And now there’s a deficit of $4 million? San Bruno needs some way to pay off that $4 million and of course, ever increasing pensions and benefits so expect user fees, property taxes, bond measures, parcel taxes, for everything under the sun to increase. I feel for San Bruno residents but you get the government you vote for. Other cities, pay heed because these increased taxes and fees, if they haven’t already, will hit you next.
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