Pasadena to Raise Some Municipal Fees As Inflation Heats Up

Pasadena residents and businesses can expect to pay more for various City taxes, licenses, and permits in the upcoming fiscal year, as the City intends to raise many fees by 3.3570% based on the Consumer Price Index (CPI) to keep pace with inflation.

The Pasadena City Council will hold a public meeting on May 20 and follow that with a public hearing on June 3 to discuss the proposed Amendments to the Schedule of Taxes, Fees, and Charges for fiscal year 2025, which was last adopted by the City Council on May 22, 2023.

If approved, the fee increases, which exclude New Year’s Day revenues and Admission Tax, would take effect on July 1 and apply to certain taxes, licenses, and certain permits that are billed, assessed, and collected throughout the year when due.

The City estimates that the fee hikes (if approved) would generate an additional $155,500 for the General Fund and $264,200 for the Non-General Funds.

The proposed fee schedule covers a wide range of municipal services, including business licenses, sewer use rates, and development impact fees.

For example, the general business license tax would increase from $196.34 to $202.93, with an additional $40.27 charge for each employee beyond one.

Residential impact fees, which are charged to developers to offset the costs of new development on City infrastructure, would also see increases. The fee for a studio apartment will rise from $22,362.31 to $23,113.02, while the fee for a five-bedroom or larger unit will increase from $41,393.62 to $42,783.22.

The City is also considering changes to its sewer fee structure, with a proposed shift to a fixed monthly charge of $6.16 for single-family residences and commercial properties, plus a consumption-based rate of $0.65 per hundred cubic feet (hcf) for single-family residences and $1.24 per hcf for commercial properties. However, these proposed fees would only be assessed if approved by the City Council. If not approved, the existing fees would continue.

One notable exception to the fee increases is the cannabis business tax, which will remain unchanged. The current rates, as approved by Pasadena voters in June 2018, are set at a maximum of $7 per square foot for cultivation using artificial lighting, $4 for mixed lighting, $2 for no artificial lighting, and $1 for nurseries. The gross receipt percentages for other cannabis businesses are 1% for testing laboratories, 4% for retailers, 2% for distribution, and 2.5% for manufacturing, processing, and non-retail activities.

Those who wish to comment on the proposed fees, taxes and rates may submit correspondence to: correspondence@Cityofpasadena.net prior to the start of the meeting and provide live public comment during the meeting.

Residents and business owners will have the opportunity to comment on the proposed fee increases at the public meeting on May 20 and the public hearing on June 3.

The City Council will consider these comments before voting on the Amendment to the Schedule of Taxes, Fees, and Charges.

Copies of the proposed fee schedule and supporting documentation will be available on the City’s website at: https://www.Cityofpasadena.net/finance/general-fund/fees-tax-schedules/.

Written comments may be sent to the Finance Director at the Department of Finance, 100 N. Garfield Ave., Pasadena, CA 91101.