Council to Hear Budget Update, Proposal for Fee Increases

Residents may comment Tuesday on city staffers' proposals to increase and add new fees for a variety of services, including a new permit and inspection fee of between $350 and $700 for the installation of solar panels.

Included in the proposal is a request for the City Council to decide whether it will extend the 75 percent discount on sewer, water and traffic impact fees given to hotel and auto dealership developers between July 31, 2010,  and July 31, 2011.

In a memo to, San Juan Capistrano's financial officer, Cindy Russell, reports that by the end of fiscal year 2010-11, the city is projected to collect about $304,000 of the $1.2 million it would have collected without the developer incentives—meaning forgone revenue of about $900,000.

If the City Council were to extend the ordinance for another year, and the development agreement for were executed during fiscal year 2011-12, the city would receive an estimated $196,000 of the $785,000 it would have received, Russell said.

In a separate report, Russell says city revenues are 16 percent higher in the general fund—the catchall account for basic services like public safety—than this time last year, with business activity picking up: expects to open June 1, is undergoing an expansion, and construction has begun on a new 130-room . Despite the increase over last year, Russell is asking for $229,000 in budget cuts, with only 46.5 percent of the original budgeted revenue projections actually in city coffers.

The city has shelled out $75,000 more than expected to pay for legal service costs, and $85,000 for a she said.

The proposal to raise fees is one of four public hearings slated for the regularly scheduled City Council meeting at 6 p.m. in City Hall. One of the other public hearings will be devoted to a. The over the city.

The last item on the night's agenda is an item for the council to discuss the mayor's brown bag luncheon series, as well as other "informational programs."

To read more about the proposed fee changes, Russell's report on the state of the city's budget and other agenda items, visit sanjuancapistrano.org.