TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Evan Crockett, Management Analyst - Finance
SUBJECT:
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Introduction of Assembly Bill 1600 Annual Report of Development Impact Fee Expenditures for Fiscal Year 2024/25
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RECOMMENDATION
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Receive an introduction of the Assembly Bill (AB) 1600 Annual Report of Development Impact Fee expenditures for Fiscal Year 2024/25.
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PRIOR ACTION/VOTE
On July 19, 2016, the City Council adopted Resolution No. 16-3602, replacing Resolution No. 98-612 and establishing a new Development Impact Fee Schedule, and imposing a phased-in approach for some residential and office development for projects with entitlements no later than December 31, 2016 (Vote: 4-1).
On April 16, 2024, the City Council held a public hearing and adopted Resolution No. 24-4733, approving an update of the Public Facilities Development Impact Fee Schedule and Resolution No. 24-4734, adopting a Development Impact Fee Nexus Study, which included the Five-Year Fee Report (AB 1600) for Fiscal Year 2022/23 and made findings required by the Mitigation Fee Act (Vote: 3-2).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
DISCUSSION
A development impact fee (DIF) is a monetary charge imposed by a local government on developers in connection with an approved development project. DIFs can vary widely between jurisdictions due to differing facility needs. With the passage of AB 1600, known as the 1987 Mitigation Fee Act (Government Code Section 66000 and following), the State of California acknowledged the burden on local governments from the rising costs associated with needed infrastructure and population increases resulting from new development. The Mitigation Fee Act secured a system for identifying and collecting specific fees, dedications, reservations, and other ...
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