ARCATA — The City Council signaled support Tuesday for a rewrite of Arcata’s residential rental inspection fees after staff said the program costs about $115,000 a year but generates only about $31,000 under the current structure.

At the May 20 meeting, building official Joe Bishop told council the program has helped reduce rental complaints but is running at roughly a 73% funding gap. Staff said the city now subsidizes the program through the general fund and presented options for changing how fees are charged.

Council members generally backed moving from a per-parcel fee to a per-unit fee, along with simpler renewal and payment rules and revised self-certification requirements. Staff said the goal is to return with an updated ordinance after more stakeholder outreach.

The discussion did not produce final ordinance language or a vote on a new fee schedule. But council’s direction points toward a structure that staff said would move the program closer to full cost recovery.

Staff also said the proposal could expand the program’s reach to multifamily housing units, though the meeting record summarized here does not specify how fees would vary by unit type or whether any exemptions would remain.

The rental inspection item was one part of a longer council meeting that also included a chamber of commerce presentation, a continuance of a West End Road abatement hearing, and a consent calendar that included a letter of support for Assembly Bill 1821 and a June Pride Month proclamation.