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Menlo Park may raise some fees by more than 300% as part of a proposal by city staff to confront a projected deficit in the annual budget.
If approved, the proposed fee schedule would impact nearly every city department, including community development, police, public works, library services and the municipal water system.
The city hopes to increase its cost recovery for various services. Currently, user fees generate about $10 million annually and cover roughly 41% of the city’s cost to provide those services. Under the proposed changes, fee revenue would increase by an estimated $4.3 million, boosting Menlo Park’s cost recovery to about 59%.
Under state law, the city may not increase or impose new fees that exceed the actual cost of the service without voter approval. In August 2025, the Menlo Park City Council approved an estimated $65,000 contract with Government Consulting Partners, Inc. to study the city’s costs for its services.
In its report, city officials say that aligning fees more closely with actual costs promotes fairness by ensuring that those who directly benefit from services bear the expense, while preserving Menlo Park’s general fund dollars for priorities like public safety and infrastructure.
The report said the city’s goal is to achieve near 100% fee recovery for departments like public works, planning and building.
According to the staff report, community development fees, including building and planning services, could see the largest increase, with projected revenue rising by 72%. Public works fees are expected to increase by about 22%, while police-related fees would rise by 12%. Library and community services fees would see more modest increases of around 4%, in keeping with the city’s policy to keep recreation programs accessible.
The proposed fee increases will go before the City Council at its regular meeting on Tuesday, April 28. If approved, the city would implement the new charges by July 1, the first day of the new fiscal year.
Some of the most notable changes include new fees that the city has not previously charged.
Among them is a credit card surcharge that would pass processing costs directly to users, replacing what staff estimates is currently around a $600,000 annual subsidy from the city. The police department could start charging $212 per hour for special events that require police personnel to be on standby.
The city is also proposing to charge newspapers $373 for newspaper rack permits, plus $233 annually for each newspaper box, most of which are owned by the publishers. The report did not say what cost the city incurs by allowing newspapers to be distributed to residents. Menlo Park would be the only nearby city to charge such fees.
Embarcadero Media Foundation, which publishes The Almanac and Palo Alto Weekly, has more than 40 boxes in Menlo Park to distribute both newspapers. The proposed fees would cost the nonprofit news organization between $10,000 to $12,000 a year, according to Publisher Adam Dawes.
“This gets right at the ability of the public to engage in the debates before the City Council. Without high quality information that is freely available, Menlo Park will see lower quality of debate and community engagement, which I am sure the council does not want,” Dawes said.
Dawes said the fees may force The Almanac and Palo Alto Weekly to decrease availability of its newspapers in Menlo Park.
The staff’s proposal also introduces higher deposits for certain development applications, such as architectural control permits and variances, which staff said is in an effort to better reflect the true cost of staff time and reduce the need for additional billing later in the process.
Programs offered through library and community services, which includes recreation classes for adults, children and seniors, would continue to be subsidized to some degree to support broader community access.
A 10% increase is proposed for all after-school sport programs and adult sport leagues. There would also be a 10% increase to the cost of renting many spaces from the city. Aquatic fees for the city’s public swimming pools were not included in this review, but are scheduled to go before the council at a later date. Some childcare services would increase between 5% and 10%.
While the fines for parking and nuisance citations will stay the same, the penalties for high-risk false alarm calls would more than double. Standard-risk false alarms would also increase depending on how many false calls a user incurs per year.
The price of commercial filming permits could almost triple.
The April 28 meeting will include a public hearing, where residents and stakeholders will have an opportunity to weigh in before the council makes a final decision. The meeting starts at 6 p.m. in the City Council Chambers at 751 Laurel Street. It is also accessible via Zoom.
