200 S. Anaheim Blvd.
Suite #643
Anaheim, CA 92805
Tel: (714) 765-5195
Fax: (714) 765-5260
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF FINANCE
DATE: JANUARY 28, 2025
FROM: FINANCE DEPARTMENT
SUBJECT: FY 2023/24 ANNUAL AND FIVE-YEAR DEVELOPMENT IMPACT
FEE REPORT
ATTACHMENT (Y/N): YES ITEM # 04
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion, receive and file the Fiscal Year (FY) 2023/24 Annual and Five-Year Development Impact Fee Report.
DISCUSSION:
Assembly Bill 516 (AB 516) was signed into law in October 2023 and amends certain portions of the Mitigation Fee Act (AB 1600), commencing with Government Code Section 66000. AB 1600 governs Development Impact Fees that municipalities can collect to fund infrastructure needed to mitigate the impacts of new development. A development impact fee is a one-time payment imposed on a property developer that is intended to offset the financial impact that new development places on public infrastructure, including transportation, sewers, storm drains, parks, libraries, and police and fire facilities and equipment.
California agencies are required to report annually on the Development Impact Fees collected throughout the fiscal year and their uses. Within 180 days after the last day of each fiscal year, agencies must make the following information available for each fee:
A brief description of the type of fee in the account or fund. The amount of the fee.
The beginning and ending balances in the account or fund. The amount of fees collected, and interest earned.
Identification of public improvements on which fees were used and the amount of expenditures on each improvement, including the total percentage of improvement costs that were funded by fees.
The expected start date for construction on incomplete fee-funded improvements for which sufficient funds have been collected.
A description of any inter-fund transfers or loans, the interest the account will receive for the loan, and the date on which the loan will be repaid. Identification of any refunds.
FY 2023/24 Annual and Five-Year Development Impact Fee Report January 28, 2025
In addition, every five years, agencies must:
Identify the purpose of the fee.
Demonstrate a reasonable relationship between the fee and the purpose for which it’s charged.
Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements.
Designate the approximate dates on which the funding is expected to be deposited into the appropriate account or fund.
Agencies are required to present this information at the next regularly scheduled public meeting no less than 15 days after making it available. This report was made available on the City’s website and at the City Clerk’s public counter on December 30, 2024.
The attached Development Impact Fee report for FY 2023/24 includes both the annual and five-year reports.
IMPACT ON BUDGET:
There is no budgetary impact. Staff is working with outside consultants currently to review and update our existing development impact fees based on projected development through 2045 and anticipated impact on city infrastructure. The study and fee change recommendations will be brought back to Council for review and approval upon completion.
Respectfully submitted,
Deborah A. Moreno
Finance Director/City Treasurer
Attachment:
1. FY 2023/24 Annual and Five-Year Development Impact Fee Report