Item 21 - Early Direction for the Fiscal Year 2026-27 Budget

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Early Direction for the Fiscal Year 2026-27 Budget April 7, 2026 Page 6 5 6 9 0 reinstated, staff would remove this administrative limit to provide greater flexibility for customers. Several neighboring cities charge a credit card convenience fee to offset merchant processing costs. A comparison of selected jurisdictions and their fee structures is included as Exhibit 2. Staff seeks City Council guidance on whether to add a 2.50% credit card processing fee to the Miscellaneous Fee Schedule. For reference, the estimated cost to a customer is typically $3.51 for typical transactions, although it varies with transaction value. Technology Fee Evaluation The City anticipates launching its new permitting and licensing system, Accela, in June 2026. This system is expected to enhance service delivery by improving processing times, increasing transparency, and providing a more user-friendly online experience for residents and businesses. As the system becomes operational, staff will continue to assess the full scope of ongoing costs associated with maintaining and supporting the enhanced technology to customers. These costs may include permitting and plan review software, online customer portals, electronic plan review platforms, GIS integration, hardware, cybersecurity measures, and system maintenance and support. At a future date, once sufficient operational data is available, staff may return to Council to discuss potential cost recovery options, which could include a technology fee. Any such fee would be evaluated for compliance with applicable state law and would not exceed the reasonable cost of providing the associated services. This item is provided for informational purposes only, and no Council action is requested at this time. One-Time General Fund Spending As reported in the Mid-Year Update on March 3, 2026, the estimated spendable fund balance for one-time expenditures in the General Fund is $11,617,075. The following are potential options for utilizing this one-time funding and are presented for City Council discussion. Staff will return with formal recommendations for Council consideration in the Proposed Budget. The recommendations for the one-time resource is summarized in the following table. Use Amount Workers Compensation Fund Balance addition $2.5 million General Liability Fund Balance addition $1.7 million Pension Stabilization Fund contribution $1.5 million Street Sweeping Interim Subsidy $0.9 million