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California Struggles to Plug Budget Hole—Hundreds of City Fees Raised, Some Tripled

Jacob Shelton March 5, 2025

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San Diego City Council

SAN DIEGO — San Diego residents and businesses will see a significant increase in fees for various city services in 2025, following an 8-1 vote by the City Council on Monday. The move is aimed at addressing a roughly $250 million budget shortfall.

The approved fee hikes, which include increases for boat rentals, event permits, and police security services, are projected to generate an additional $21.2 million in revenue, with $18.5 million going directly into the city’s general fund.

According to a presentation by Charles Modica, the city’s independent budget analyst, 295 fees will increase (43%), 229 new fees will be implemented (34%), 61 fees will remain the same (9%), and 25 will decrease. Additionally, 71 fees (10%) will be eliminated. Most of the increases are approximately 20%.

Councilwoman Vivian Moreno cast the sole dissenting vote, expressing concerns about the impact on lower-income neighborhoods. City planners have stated they will address this issue.

The increase in police security fees has drawn particular attention. Laurel McFarlane, president and CEO of McFarlane Promotions, told NBC last month that some clients could see their costs for police officers triple compared to rates from two years ago. She cited an example where the hourly fee for an officer could rise from $55 to $154. This increase will significantly impact large events like San Diego Padres games and San Diego Pride, which require substantial police and traffic control.

Public comments highlighted the potential burden on residents. One speaker, Tommy, illustrated the rising costs by detailing a day of fishing at Barrett Lake. He calculated that the total cost, including boat motor reservation, permits, Ticketmaster fees, gas, food, and a fishing license, would reach $446.

“Do you think that that is reasonable? Can you afford that? Can your constituents afford that?” Tommy asked the council.

The fee increases are scheduled to take effect on either April 1 or July 1, 2025.

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