Title
Annual Reports on Receipt and Use of Development Impact Fees for the Fiscal Year Ended June 30, 2025
Staffreport
SUMMARY
Annual Development Impact Fee reports for the fiscal year ending June 30, 2025 required as part of AB 1600.
RECOMMENDATIONS
Staff recommends Finance Committee review the Annual Reports on Receipt and Use of Development Impact Fees for the Fiscal Year Ended June 30, 2025, and recommend to the City Council for consideration and acceptance.
BACKGROUND
The legal requirements for enacting development impact fees are set forth in Government Code sections 66000-66025 (Mitigation Fee Act) and are commonly referred to as AB 1600 and SB 1693 requirements. These fees are generally intended to mitigate cost impacts that development projects have on existing City infrastructure and facilities.
Requirements under Government Code Section 66006 are:
1. A brief description of the fee program.
2. The amount of the fee.
3. Beginning and ending balances of the fee program.
4. Amount of fees collected, interest earned, and transfers/loans.
5. An identification of each public improvement. The expenditures on each project. The total percentage of the cost of the public improvement is funded with development impact fees.
6. A description of each interfund transfer or loan. The date the loan will be repaid, the rate of interest, and a description of the public improvement.
7. The estimated date when projects will begin if enough revenues are available to construct the project.
8. The number of refunds made to property owners.
The Annual Report must be reviewed by the City Council at a regularly scheduled public meeting. Notice of the time and place of the meeting shall be mailed at least 15 days prior to the meeting to any interested party having filed a written request with the City.
One of the provisions in the State law regulating development fees is to regularly review funds collected and held for more than five years and to make certain findings to continue to hold those funds.
ANALYSIS
The Government Code requires an annual accounting of all development fees to be made available at the close of the fiscal year. The Annual Reports (Attachments A & B) presents the revenues, expenditures, and fund balance for the City development fees. Two City fees are subject to AB 1600 requirements-Development Fee for Street Improvement (DFSI) and the Park Development Impact Fee. The attached report includes revenues collected and project costs incurred through fiscal year ending June 30, 2025.
Developer fees are segregated from the General Fund and from other funds and accounts containing fees for other purposes in accordance with accounting standards. Interest earned on each fee is deposited into the fund or account and used only for the purposes of the fee.
Development Fees for Street Improvements (DFSI) are deposited into the Street/Traffic Improvement Special Revenue Fund. This separate fund is used to account for development fee assessments levied to provide street and traffic improvement costs attributable to residential and commercial growth. Fees may be used for improvements to right-of-way, pavement, traffic signals, curbs, gutters, and sidewalks. In FY 2025, DFSI fund revenue totaled $210,180, which included $96,529 in Development impact fees, and $113,651 in interest earnings and other revenue. Projects expenditures amounted to $148,474, with an ending DFSI fund balance of $1,667,623
Effective July 1st, 2023, Development Fees for Street Improvements (DFSI) were set as
follows:
Development Fees for Street Improvements (DFSI)
|
Residential |
General Residential |
$1,711.57 per unit |
|
|
Senior Housing |
$854.07 per unit |
|
|
Accessory Dwelling Unit (ADU) |
$854.07 per unit (No fee when < 750 sq. ft) |
|
Commercial |
General Office |
$4.75 / gross building square feet |
|
|
Medical Office |
$6.65 / gross building square feet |
|
Retail |
General Retail |
$5.32 / gross building square feet |
|
|
Personal Services |
$2.85 / gross building square feet |
|
Restaurants |
Quality Restaurants |
$3.81 / gross building square feet |
|
|
Others |
$15.40 / gross building square feet |
|
Financial Services |
|
$14.25 / gross building square feet |
|
Hotel / Motel |
|
$1,159.34 per room |
|
Industrial |
General |
$1.53 / gross building square feet |
|
|
Mini-Warehouse |
$0.48 / gross building square feet |
|
|
Service Station |
$12,164.51 / station |
Marina Boulevard / Interstate 880 Interchange Traffic Impact Fee
|
Residential |
General Residential |
$860.89 per unit |
|
|
Senior Housing |
$290.92 per unit |
|
|
Accessory Dwelling Unit (ADU) |
$290.92 per unit (No fee when < 750 sq. ft) |
|
Commercial |
General Office |
$1.81 / gross building square feet |
|
|
Medical Office |
$3.40 / gross building square feet |
|
Retail |
General Retail |
$2.10 / gross building square feet |
|
|
Personal Services |
$2.91 / gross building square feet |
|
Restaurants |
Quality Restaurants |
$3.95 / gross building square feet |
|
|
Others |
$6.72 / gross building square feet |
|
Financial Services |
|
$14.98 / gross building square feet |
|
Hotel / Motel |
|
$771.85 per room |
|
Industrial |
General |
$1.12 / gross building square feet |
|
|
Mini-Warehouse |
$0.25 / gross building square feet |
|
|
Service Station |
$3,090.94 / station |
Davis Street / Doolittle Drive Intersection Traffic Impact Fee
|
|
|
Zones (all rates are per square foot) |
|
|
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
Residential |
General Residential |
$0.14 |
$6.52 |
$0.32 |
$0.23 |
$0.07 |
$0.08 |
$ |
$0.87 |
|
|
Senior Housing |
$0.07 |
$3.70 |
$0.17 |
$0.12 |
$0.04 |
$0.04 |
|
$0.48 |
|
Commercial |
General Office |
$0.24 |
$10.96 |
$0.55 |
$0.38 |
$0.11 |
$0.15 |
|
$1.47 |
|
|
Medical Office |
$0.33 |
$15.74 |
$0.77 |
$0.57 |
$0.17 |
$0.22 |
|
$2.08 |
|
Retail |
General Retail |
$0.28 |
$12.59 |
$0.62 |
$0.43 |
$0.12 |
$0.17 |
|
$1.68 |
|
|
Personal Services |
$0.14 |
$6.74 |
$0.33 |
$0.23 |
$0.07 |
$0.08 |
|
$0.90 |
|
Restaurants |
Quality Restaurants |
$0.28 |
$12.59 |
$0.62 |
$0.43 |
$0.12 |
$0.17 |
|
$1.68 |
|
|
Others |
$0.14 |
$6.74 |
$0.33 |
$0.23 |
$0.07 |
$0.08 |
|
$0.90 |
|
Financial Services |
|
$0.73 |
$33.72 |
$1.67 |
$1.19 |
$0.36 |
$0.46 |
|
$4.49 |
|
Hotel / Motel |
|
$0.11 |
$5.40 |
$0.26 |
$0.19 |
$0.06 |
$0.07 |
|
$0.72 |
|
Industrial |
General |
$0.07 |
$3.59 |
$0.17 |
$0.12 |
$0.04 |
$0.04 |
|
$0.46 |
|
|
Mini-Warehouse |
$0.03 |
$1.12 |
$0.06 |
$0.04 |
$0.01 |
$0.01 |
|
$0.14 |
|
|
Service Station |
$0.98 |
$44.94 |
$2.19 |
$1.59 |
$0.50 |
$0.62 |
|
$5.98 |
Park Facilities Development Impact Fees pay for public park and recreation facility acquisition and development. Funds are directed toward the study, design, acquisition, and construction of park and recreation facilities. In FY 2025, the total fund revenue amounted to $840,993, with Park Development Impact Fees totaling $491,433, and $349,560 in interest earnings. Projects expenditures amounted to $25,066, with an ending fund balance of $6,862,255.
Effective July 1st, 2023, Park Development Impact Fees were set as:
|
|
Single Family |
Multi-Family |
Special Unit¹ |
Accessory Dwelling Unit² (ADU) |
|
Park Land Acquisition |
$17,670.00 / unit |
$15,444.00 / unit |
$7,723.00 / unit |
$6,693.00, if ≥ 750 Sq. Ft. |
|
Park Improvement Fee |
$3,009.00 / unit |
$2,630.00 / unit |
$1,315.00 / unit |
$1,140.00, if ≥ 750 Sq. Ft. |
|
Total Acquisition & Improvement Fees |
$20,679.00 / unit |
$18,074.00 / unit |
$9,038.00 / unit |
$7,833.00, if ≥ 750 Sq. Ft. |
|
|
|
|
|
|
|
¹ A Special Unit refers to any dwelling unit that is not a Single-Family unit, Multi-Family unit, or Accessory Dwelling Unit. |
|
²Impact fee for ADUs 750 sq. ft. or larger shall be charged proportionately in relation to the size of the primary dwelling unit, per CA Gov't Code Section 65852.2 |
FINANCIAL IMPACTS
The annual AB 1600 report is a mandated reporting requirement provided to the City Council for information purposes. There is no direct fiscal impact associated with receiving the annual report.
ATTACHMENT(S)
Attachment A: FY 2025 Annual AB 1600 Development Impact Fee Report Fund 120
Attachment B: FY 2025 Annual AB 1600 Development Impact Fee Report Fund 122
Attachment C: FY 2025 AB 1600 Development Fee Impact Report Presentation
PREPARED BY: Angie Nichols, Finance Manager, Finance Department