TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Chantarangsu, AICP, Development Services Director
PREPARED BY: Chris Tracy, AICP, Senior Planner, Advanced Planning
SUBJECT:
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Second Reading of Ordinance No. 630-26 to Update the City’s Participation in the Western Riverside County Transportation Uniform Mitigation Fee (TUMF) Program (MCA-2026-00012) for Development Projects within the City
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ABSTRACT
The City Council held a public hearing on April 7, 2026, to consider updating its participation in the Western Riverside County Transportation Uniform Mitigation Fee (TUMF) Program, administered by the Western Riverside Council of Governments (WRCOG), which funds regional transportation improvements through developer fees. The proposed update includes a 2.45%-2.66% construction cost adjustment and establishes an annual automatic adjustment (capped at 5%) to maintain revenue purchasing power, along with clarifications to land-use definitions and exemptions for junior and standard accessory dwelling units (JADUs and ADUs).
RECOMMENDATION
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Conduct the second reading and adopt Ordinance No. 630-26 entitled: An Ordinance of the City Council of the City of Murrieta, California, Amending Ordinance No. 613-25 to Update Participation in the Western Riverside County Transportation Uniform Mitigation Fee (TUMF) Program.
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PRIOR ACTION/VOTE
On April 7, 2026, the City Council conducted the first reading and introduced Ordinance No. 630-26 (Vote: 4-0-1).
STRATEGIC ALIGNMENT
This item aligns with the City Council to: planning, programming and creating infrastructure development relating to an administrative priority.
DISCUSSION
In September 2024, WRCOG adopted an updated TUMF Nexus Study, leading to revised fees that local jurisdictions, including Murrieta, implemented by July 2025. A subsequent Construction Cost Index adjustment approved in late 2025 is set to take effect July 1, 2026, requiring each jurisdiction to update its ordinance at least 60 days prior. To meet this timeline, the City Council will need to approve the ordinance by no later than April 2026, ensuring the updated fees take effect as scheduled. Inclusive of the first reading of the Ordinance No. 630-26, a related Resolution included a one-time Construction Cost Index (CCI) adjustment to maintain alignment with rising regional construction costs and preserve purchasing power. Overall, this ranged from approximately 2.45% to 2.66% across residential, retail, service-commercial, industrial, and office land uses. Staff and WRCOG representatives at the April 7, 2026 meeting, explained that fees are collected at occupancy, pooled regionally, and allocated based on infrastructure needs, with annual and five-year reporting for transparency. Council discussion emphasized the program’s regional benefits and clarified that declining to implement the fee increases would obligate the City to fund the resulting shortfall, potentially creating significant fiscal impacts
Beginning July 1, 2026, per the Ordinance, TUMF will be automatically adjusted each year based on a blended construction cost index using national home price data and the Engineering News Record (ENR) CCI, calculated from prior September values. Annual adjustments are capped at +/-5 percent to ensure predictability while maintaining alignment with market conditions. The adjustment takes effect each July 1, and if either index is discontinued or significantly changed, a comparable industry index will be used.
The Ordinance also clarifies that residential unit classifications are based on physical attachment rather than ownership or lot configuration, with updated definitions to single-family (detached) and multi-family (attached) units. It further confirms that ADUs and JADUs are exempt from TUMF and are excluded from residential land-use calculations.
PUBLIC NOTICING
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
CEQA AND REGULATORY OVERVIEW
The adoption of the proposed Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the California Code of Regulations, Title 14, Division 6, Chapter 3 (CEQA Guidelines) because the activity makes administrative changes to an existing traffic mitigation fee program, including the adoption of updated fees. No specific traffic improvement project is being proposed or approved. The activity is covered by the common-sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. The proposed changes are administrative only and will not have a significant effect on the environment; therefore, the activity is not subject to CEQA.
FISCAL IMPACT
There is no fiscal impact associated with this item, as the collection and distribution of TUMF funds will continue to be administered by WRCOG.
If approved, the Ordinance will establish the City of Murrieta’s TUMF Fee Schedule, as set forth in the attachments below.
ATTACHMENTS
ATT 1 - Ordinance No. 630-26