Adelanto council to update master fee schedule after user-fee study finds $1.3M shortfall

Adelanto officials on Jan. 13 received a citywide cost-allocation and user-fee study that found the city is recovering roughly 38% of the full cost to provide fee-related services, leaving an estimated $1.3 million gap that the general fund currently covers.

The report, presented by Ward Comer's finance director and Khushbu Hussain of Matrix Consulting Group, recommended establishing a general-plan maintenance fee and a technology fee and moving toward a 100% cost-recovery policy for many permit- and planning-related services. "First is that the city is only recovering 38% of the cost to provide fee-related services," the finance director said during the presentation.

The study breaks the shortfall down by service area: planning services showed the largest subsidy (about 32% recovery), engineering and utilities were far behind (about 10% recovery), and building services were closer to typical levels but still below benchmarks. Matrix Consulting recommended either immediate moves to full cost recovery for some services or a phased approach with an annual escalation factor to prevent the city from falling behind again.

Council members asked for clarifications before voting to receive and file the report and to direct staff to prepare a resolution updating the city's master fee schedule. "The 32% is not compliance — it's the amount of money we were recovering," Councilwoman Evans said, distinguishing percent recovery from regulatory compliance. City staff told the council the item will return for formal adoption on Jan. 27.

The proposed changes include reorganizing fees into a single master schedule, converting deposit-based fees to flat fees where appropriate for transparency, updating code-enforcement hourly rates, creating fees for cannabis operational permits and adding a technology surcharge to fund permitting-system upkeep. The study also advised the council to consider an annual adjustment factor tied to inflation or another index so the city does not fall behind in future years.

The council voted in favor of the motion to receive the study and direct staff; the vote was recorded as unanimous among present members (Mayor Reyes and four councilmembers; Mayor Pro Tem Hernandez was absent). The council will review the draft resolution at the Jan. 27 meeting before a final vote.

A follow-up adoption vote was scheduled for Jan. 27; staff advised the public that the resolution and a notice will be published in accordance with municipal procedures.