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: MARCH 24, 2026
FROM: FINANCE DEPARTMENT
SUBJECT: ADOPT A DEVELOPMENT IMPACT FEE STUDY AND
IMPROVEMENT PLAN, INTRODUCE AN ORDINANCE
AMENDING CHAPTER 17.08 (SUBDIVISIONS), CHAPTER 17.34
(DEVELOPMENT FEES) AND CHAPTER 17.36 (PUBLIC
SAFETY FACILITIES AND VEHICLE EQUIPMENT IMPACT
FEES) OF TITLE 17 (LAND DEVELOPMENT AND RESOURCES
OF THE ANAHEIM MUNICIPAL CODE, AND APPROVE
RESOLUTIONS ADOPTING DEVELOPMENT IMPACT FEE
CHANGES
ATTACHMENT (Y/N): YES ITEM # 29
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council:
1. By Resolution, adopt the Development Impact Fee Study and Development Impact Fee Improvement Plan [includes determination that approval of this resolution is exempt from the provisions of the California Environmental Quality Act pursuant to Section 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines];
2. By Ordinance, amend Chapter 17.08 (Subdivisions), Chapter 17.34 (Development Fees) and Chapter 17.36 (Public Safety Facilities and Vehicle Equipment Impact Fees) of Title 17 (Land Development and Resources) of the Anaheim Municipal Code and finding and determine said ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to sections 15060(c)(2), 15060 (c)(3), and 15061(b)(3) of Title 14 of the California Code of Regulations; and
3. By three (3) Resolutions, amend the development impact fees for Public Safety, Library and Parks in accordance with the approved Development Impact Fee Study and Development Impact Fee Improvement Plan [includes determination that approval of these resolutions are exempt from the provisions of the California Environmental Quality Act pursuant to Section 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines].
Adopt a Development Impact Fee Study and Improvement Plan, Introduce an Ordinance Amending Chapter 17.08 (Subdivisions), Chapter 17.34 (Development Fees) and Chapter 17.36 (Public Safety Facilities and Vehicle Equipment Impact Fees) of Title 17 (Land Development And Resources) of The Anaheim Municipal Code, and Approve Resolutions Adopting Development Impact Fee Changes
March 24, 2026
DISCUSSION:
The City contracted with David Taussig & Associates (DTA) to prepare a Development Impact Fee (DIF) nexus study to identify the capital needs of our departments based on the impact of long-term development, determining the maximum rates to recover the reasonable cost of providing these improvements and updating land and development costs for the Quimby calculation. The Development Impact Fee Study, Development Impact Fee Improvement Plan, and proposed fees have been available for public review at the City Clerk’s public counter and online since February 19, 2026.
Development Impact Fees have not been updated for any department since 2011 or earlier. The review of Development Impact Fees was included as part of the Strategic Plan, and this action would update the fees in accordance with the current study and fund projected needs resulting from new development. The proposed fees would be applied Citywide to simplify our fee structure and are generally equal in total to the average of other Orange County cities. Proposed fees would be assessed on a per unit basis as the City has determined that, on average, there is no evidence that a larger home corresponds to additional residents in the home, thus a uniform per-unit fee best reflects the actual impact of a new home, rather than the number of square feet. A summary of proposed fees is attached. The following table demonstrates the current combined fees for development in the Platinum Triangle compared to the total proposed fees for Police, Fire, Library and Parks.
Land Use Total Current Fee
(Platinum Triangle)
Total Proposed Fee
(Citywide)
Residential (Non-ADU)* $10,530 per unit $19,521 per unit Retail/Commercial $2,283 per KSF $2,540 per KSF
Office $2,283 per KSF $3,565 per KSF
Industrial $305 per KSF $2,363 per KSF
Hotel/Motel $1,617 per room $508 per room
*Reflects the single-family residential rate, multi-family rates are lower. Pursuant to Government Code, ADUs less than 750 square feet are exempt from impact fees.
The attached resolutions will adopt the Development Impact Fee Study and related DIF Improvement Plan and set the proposed impact fees, for Police, Fire & Rescue, Library and Parks. The attached Ordinance would update Title 17 (Land Development and Resources) of the Anaheim Municipal Code as appropriate relating to public parks, consistent with the findings of the Development Impact Fee Study by DTA.
To simplify our development impact fee structure, the proposed fee changes would be applied Citywide rather than to specific, limited areas as is currently the case for Police, Fire & Rescue and Libraries. For Police, Fire & Rescue, and Libraries, the proposed fees would be assessed at the maximum amounts allowed by the study with annual escalation in accordance with the change in the California Construction Cost Index (CCCI). Park-in-lieu fees are established by formula pursuant to the Quimby Act. Staff Adopt a Development Impact Fee Study and Improvement Plan, Introduce an Ordinance Amending Chapter 17.08 (Subdivisions), Chapter 17.34 (Development Fees) and Chapter 17.36 (Public Safety Facilities and Vehicle Equipment Impact Fees) of Title 17 (Land Development And Resources) of The Anaheim Municipal Code, and Approve Resolutions Adopting Development Impact Fee Changes
March 24, 2026
recommends that park-in-lieu fees be set at approximately 35% of the maximum, bringing total fees in line with the average of Orange County cities, with an annual escalation by the greater of 5% or CCCI. This escalation would allow us to gradually recover the costs needed to support the park development standards.
IMPACT ON BUDGET:
Increased revenues in restricted Development Impact Fee funds would vary based on development activity in the City.
Respectfully submitted,
Deborah A. Moreno
Finance Director/City Treasurer
Attachments:
1. Development Impact Fee Study
2. Development Impact Fee Improvement Plan
3. Ordinance
4. Resolution – Park-In-Lieu Fees
5. Resolution – Development Impact Fee Study and Development Impact Fee Improvement Plan
6. Resolution – Public Safety Fees
7. Resolution – Library Fees
8. Proposed Development Impact Fees