TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Libby Bretthauer, Finance Director
Julie Bondarchuk, Financial Controller
SUBJECT:Title
Conduct Public Hearing and Consider a Resolution Regarding the Annual Storm Drain Service Fee for Fiscal Year 2026-2027 (Budgeted) (Finance Director Bretthauer).
(Estimated Time: 15 Mins.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NO. 26-0056
Body
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RECOMMENDATION:
Staff recommends that the City Council conduct a public hearing regarding the annual storm drain service fee for fiscal year (FY) 2026-2027 and adopt Resolution No. 26-0056 authorizing the collection of storm drain fees on the Los Angeles County Tax Roll and approving a Consumer Price Index (CPI) increase of 3.0%.
FISCAL IMPLICATIONS:
The storm drain fee is estimated to generate $2.4 million in direct property assessments for Fiscal Year 2026-2027. If approved, the CPI increase will generate an additional $72,507.
BACKGROUND:
The City levies an annual storm drain service fee on each parcel of real property in the City. The fee is levied to finance the costs of ongoing operations and maintenance of storm drain facilities and services.
The storm drain fee is collected each fiscal year via the County of Los Angeles consolidated property tax bill. The City submits such fees to the County each year by the County Auditor's specified August due date for inclusion on the property tax bills issued in October.
DISCUSSION:
Storm Drain fees in FY 2026-2027 are estimated to generate $2.4 million plus an additional $72,507, if the CPI adjustment is approved. The storm drain fee for each property varies based on the impervious square footage and is adjusted annually for inflation. The CPI adjustment is allowable with City Council approval, based on the Proposition 218 storm drain fee ballot measure, which concluded in January 2024. The FY 2026-2027 storm drain rate includes a 3.0% CPI adjustment based on the All Urban Consumers in the Los Angeles-Long Beach-Anaheim region from December 2024 to December 2025.
The Property Report for Proposed Storm Drain Fee is available for viewing with the City Clerk. Due to Los Angeles County's timing in finalizing appeals to the impervious square footage data, the final tax roll will be updated before it is sent to Los Angeles County in August, before the deadline. An updated report titled Property Report for Proposed Storm Drain Fee will be filed with the City Clerk if there are any changes.
To include the fee on the property tax bill, the City Council must hold a public hearing to consider all objections and protests to the proposed FY 2026-2027 fee levy. Assuming there is not a majority protest, the City Council may then adopt Resolution No. 26-0056, approving the CPI increase of 3.0% and ordering that the fee be collected for FY 2026-2027 on the County of Los Angeles tax roll.
PUBLIC OUTREACH:
The notice of this hearing was properly published in The Beach Reporter on May 28, 2026, and June 4, 2026.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environment; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has approved the Resolution as to legal form.
ATTACHMENT:
1. Resolution No. 26-0056