C E N T R A L A N A H E I M
SANITARY S E W E R
F I N A N C I A L I M P L E M E N T A T I O N
P L A N
C I T Y O F A N A H E I M
A P R I L
2 0 2 6
P r e p a r e d B y
A K M C o n s u l t i n g E n g i n e e r s
5 5 3 W a l d
I r v i n e , C a l i f o r n i a
CITY OF ANAHEIM
CENTRAL ANAHEIM SEWER MASTER PLAN
FINANCIAL IMPLEMENTATION PLAN
Date of Signing: 04/22/26 Date of Signing: 04/22/26
Submitted to:
City of Anaheim
200 South Anaheim Boulevard
Anaheim, CA 92805
Submitted by:
AKM Consulting Engineers
553 Wald
Irvine, California 92618
(949) 753-7333
April 2026
CITY OF ANAHEIM TOC-1 Central Anaheim Financial
R:\RPTS\Anaheim\2026_Financial Implementation Plan Implementation Plan
TABLE OF CONTENTS
Section Page
1 INTRODUCTION
1-1 General ................................ ................................ ................................ ............ 1-1 1-2 Sewer Service Areas ................................ ................................ ........................ 1-1 1-3 Scope of Work ................................ ................................ ................................ . 1-1 2 CAPITAL IMPROVEMENT PROGRAM
2-1 General ................................ ................................ ................................ ............ 2-1 2-2 Project Costs................................ ................................ ................................ .... 2-1 2-3 Capital Improvement Program ................................ ................................ ......... 2-1 2-3.1 Adjusted Capital Improvement Program ................................ ............ 2-3 3 FUNDING MECHANISMS
3-1 Federal Programs ................................ ................................ ............................ 3-1 3-2 State Programs ................................ ................................ ................................ 3-1 3-3 Local Financing Programs................................ ................................ ................ 3-1 3-3.1 Developer Imposed Programs ................................ ........................... 3-1 3-3.2 General Obligation Bonds ................................ ................................ .. 3-2 3-3.3 Sewer Revenue Bonds ................................ ................................ ...... 3-2 3-3.4 Districts................................ ................................ .............................. 3-2 3-4 Revenue Sources ................................ ................................ ............................ 3-3 3-4.1 Impact Fees ................................ ................................ ....................... 3-3 3-4.2 Direct Developer Funding ................................ ................................ .. 3-3 3-4.3 Ad Valorem Taxes ................................ ................................ ............. 3-3 3-4.4 Sewer User Charge ................................ ................................ ........... 3-3 3-4.5 Assessment District Revenue ................................ ............................ 3-3 3-4.6 Tax Increment Revenue ................................ ................................ .... 3-3 3-5 Recommended Funding Mechanism ................................ ................................ 3-4 4 FINANCIAL ANALYSIS
4-1 General ................................ ................................ ................................ .......... 4-1 4-2 Sewer Impact Fee Components ................................ ................................ ....... 4-1 4-2.1 Adjusted CIP Cost ................................ ................................ ............. 4-1 4-2.2 Future Development Load Increase ................................ ................... 4-1 4-2.3 Sewer Impact fee Load Factors ................................ ......................... 4-1 4-3 Sewer Impact Fees ................................ ................................ .......................... 4-2 4-4 Implementation ................................ ................................ ................................ 4-5
TABLE OF CONTENTS
CITY OF ANAHEIM TOC-2 Central Anaheim Financial
R:\RPTS\Anaheim\2026_Financial Implementation Plan Implementation Plan
LIST OF FIGURES
Figure No. Page
1-1 System Boundary Map ................................ ................................ ................................ ... 1-3 2-1 Capital Improvement Project Locations ................................ ................................ .......... 2-2
LIST OF TABLES
Table No. Page
2-1 Capital Improvement Project Summary ................................ ................................ .......... 2-3 3-1 Comparison of Financing Alternatives for Future Development ................................ ...... 3-5 4-1 Future Development Load Increase ................................ ................................ ................ 4-1 4-2 Sewer Impact Fee Load Factors ................................ ................................ ..................... 4-2 4-3 Central Anaheim Sewer Impact Fee ................................ ................................ ............... 4-3 4-4 Supplemental Platinum Triangle Sewer Impact Fee ................................ ...................... 4-4 4-5 Sewer Impact Fees................................ ................................ ................................ ......... 4-4
CITY OF ANAHEIM 1-1 Central Anaheim Financial
R:\RPTS\Anaheim\2026_Financial Implementation Plan Implementation Plan SECTION 1
INTRODUCTION
1-1 General
The City of Anaheim Municipal Code establishes how sewer improvement projects are funded under both existing and future development conditions.
➢ Existing sewer improvement projects are funded through sewer user fees. ➢ Sewer projects associated with future development s are funded either through developer-built sewer improvement projects or through sewer impact fees paid at permitting.
The Central Anaheim Financial Implementation Plan (FIP) was last updated in November 2021. Since that time, the City of Anaheim (City) has implemented several sewer improvement projects, updated its hydraulic model, revised future sewer load estimates based on current planning projections, and completed an update to the Central Anaheim Sewer Master Plan (CASMP) in April 2026.
The 2026 CASMP recommended $288.33 Million in sewer system improvements within the Central Anaheim Sewer Service Area to be funded through both sewer user fees and through sewer impact fees . This updated FIP incorporates these changes and analyses and updates the City’s sewer impact fees accordingly. 1-2 Sewer Service Areas
The City divides its sewer service area into three distinct areas: West Anaheim, Central Anaheim, and East Anaheim, as shown on Figure 1-1. The Central Anaheim and West Anaheim Sewer Service Areas are generally separated by Euclid Street, while the Central Anaheim and East Anaheim Sewer Service Areas are separated by the 57 Freeway (SR‑57), the 91 Freeway (SR‑91), and Glassell Street.
This FIP focuses on the Central Anaheim Sewer Service Area. The total service area encompasses approximately 8,781 acres, with residential uses accounting for about 50 percent of the total land area. The sewer system includes roughly 251 miles of pipe, with diameters ranging from 6 inches to 33 inches. 1-2.1 Platinum Triangle
As detailed on Figure 1-1, the Platinum Triangle is a subarea within the Central Anaheim Sewer Service Area.
It is bounded the Interstate-5 Freeway to the west, the Santa Ana River to the east, and Cerritos Avenue to the north. With regards to funding programs, the Platinum Triangle is divided into two areas, with one funded through a Community Facilities District (CFD), and the other currently funded through the Supplemental Platinum Triangle Fees.
Sewer Impact fees will be evaluated for the Central Anaheim (CA) Sewer Impact Fee Area, which excludes the Platinum Triangle, and the Supplemental Platinum Triangle (SPT) Sewer Impact Fee Area.
For clarity, the “Central Anaheim Sewer Service Area” refers to the planning area evaluated in the Sewer Master Plan, while the “Central Anaheim Sewer Impact Fee Area (CA Sewer Impact Fee Area)” refers to the area used for financial analysis in this FIP. While these areas generally overlap, they differ slightly in boundary definition based on their respective purposes.
1-3 Scope of Work
The scope of work for this FIP includes the following:
➢ Review capital improvements in the CASMP
INTRODUCTION
CITY OF ANAHEIM 1-2 Central Anaheim Financial
R:\RPTS\Anaheim\2026_Financial Implementation Plan Implementation Plan ➢ Allocate capital costs to future developments based on sewer load projections ➢ Update the sewer impact fee for the CA Sewer Impact Fee Area to reflect future improvement projects identified in the CASMP that are attributed to future development loads ➢ Update the sewer impact fee for the SPT Sewer Impact Fee Area to reflect future improvement projects identified in the CASMP that are attributed to future development loads ➢ Prepare supporting documentation regarding the development of the updated sewer impact fee
Euclid St
Harbor Blvd
Anaheim Blvd State College Blvd
Orangewood Ave
Ball Rd
Katella Ave
Lincoln Ave
Harbor Blvd
Raymond Ave
State College BlvdOrangethorpe Ave
Kraemer Blvd
Placentia Ave
Chapman Ave
Lemon St
Euclid St
Lewis St
9th St
West St
Orangewood Ave
Katella Ave
Ball Rd
Lincoln Ave
La Palma Ave La Palma Ave
Cerritos Ave
Cerritos Ave
Broadway
Santa Ana River
91-FWY
91-FWY
57-FWY
5 Fwy
5 Fwy
City of
Fullerton
City of
Placentia
City of
Orange
City of
Garden Grove
East
Anaheim
West
Anaheim
Central
Anaheim
22 91
57 5
CENTRAL ANAHEIM
FINANCIAL IMPLEMENTATION PLAN
Location Map
Figure 1-1
PROJECT NO: 751879
DATE: April 2026
Legend
Central Anaheim Service Area
Major Highways
Platinum Triangle Boundary
Community Facilities District
Supplemental Platinum Triangle
Fee Area
City of Anaheim
City of Fullerton
City of Garden Grove
City of Orange
City of Placentia
Unincorporated Orange County
0 3,000 6,0001,500
US Feet
³
1"=3,000'
Platinum
Triangle
Boundary
Community
Facilities
District
Supplemental Platinum
Triangle Fee Area
CITY OF ANAHEIM 2-1 Central Anaheim Financial
R:\RPTS\Anaheim\2026_Financial Implementation Plan Implementation Plan SECTION 2
CAPITAL IMPROVEMENT PROGRAM
2-1 General
The Capital Improvement Program (CIP) for the Central Anaheim Sewer Master Plan (CASMP) was developed to identify sewer improvements necessary to accommodate existing and future sewer loads, and to provide planning-level cost estimates. The recommended projects were based on hydraulic analyses performed as part of the 2026 CASMP. Detailed descriptions of the hydraulic modeling methodology, flow development , design criteria, and development of the sewer CIP are provided in the 2026 CASMP document. 2-2 Project Costs
The CASMP improvement project cost estimates include construction, engineering design, administration, construction management, inspection, and contingencies. Unit construction costs were derived from recent sewer pipeline bids within the City and reflect current market conditions at the time of the master plan update.
All improvement projects were assumed to replace existing facilities within the same general alignment. Costs presented in this report are expressed in January 2026 dollars and represent planning-level estimates suitable for fee development purposes. Detailed unit costs, assumptions, and inflation considerations are documented in the CASMP report.
2-3 Capital Improvement Program
The CASMP Capital Improvement Program ( CIP) includes gravity sewer improvements addressing both existing and future capacity deficiencies, as well as improvements to replace small-diameter pipes throughout the service area. The improvement projects are shown on Figure 2-1 and summarized in Table 2-1.
The City’s proactive approach to sewer system management has significantly strengthened the performance of its collection system. Since the completion of the 2017 Central Anaheim Sewer Master Plan, the City has successfully implemented a series of capacity improvement projects. This is the primary reason for the limited number of existing capacity deficiencies within the Central Anaheim Sewer Service Area.
Only capital improvements directly attributed to future developments are included for the purposes of this FIP.
These consist of gravity sewer projects that address the increased flows generated by future developments.
Existing system capacity deficiency projects and small-diameter pipe replacement projects are excluded. Small- diameter pipe improvements, consisting of replacing 6-inch pipes with 8-inch in accordance with the 2023 Sewer Design Manual, address existing system deficiencies. These improvements e nhance system reliability and reduce the risk of blockages but are not directly associated with increased flows from new development and are therefore excluded from this study. In addition, Project 08 is located within the Community Facilities District, and its project cost are excluded from this study.
This study utilized project costs for the Central Anaheim (CA) Sewer Impact Fee Area and the Supplemental Platinum Triangle (SPT) Sewer Impact Fee Area.
Euclid St
Harbor Blvd
Anaheim Blvd State College Blvd
Orangewood Ave
Ball Rd
Harbor Blvd
Raymond Ave
State College BlvdOrangethorpe Ave
Kraemer Blvd
Placentia Ave
Chapman Ave
Lemon St
Euclid St
Lewis St
9th St
West St
Orangewood Ave
Ball Rd
La Palma Ave La Palma Ave
Cerritos Ave
Cerritos Ave
Broadway
Santa Ana River
91-FWY
91-FWY
57-FWY
5 Fwy
5 Fwy
P-3
P-2
P-1
P-4
P-6
P-8
P-7
P-5
Cerritos
Improvement
Katella
Improvement
P-9
P-10
P-13
P-12
P-14
0 6,0003,000
US Feet
1"=3,000'
³
Figure 2-1
CENTRAL ANAHEIM
FINANCIAL IMPLEMENTATION PLAN
Capital Improvement Project Locations
PROJECT NO: 751879
DATE: April 2026
Legend
Improvement Locations
Project 1 (P-1)
Project 2 (P-2)
Project 3 (P-3)
Project 4 (P-4)
Project 5 (P-5)
Project 6 (P-6)
Project 7 (P-7)
Project 8 (P-8)
Project 9 (P-9)
Project 10 (P-10)
Project 12 (P-12)
Project 13 (P-13)
Project 14 (P-14)
City of Anaheim Sewer < 8"
Diameter
Cerritos Improvement and
Katella Improvement Locations
Private Sewer
OCSD Trunk Sewer
Central Anaheim Service Area
City of Anaheim Sewer
Community Facilities District
Supplemental Platinum Triangle
Sewer Impact Fee Area
Platinum Triangle Boundary
CAPITAL IMPROVEMENT PROGRAM
CITY OF ANAHEIM 2-3 Central Anaheim Financial
R:\RPTS\Anaheim\2026_Financial Implementation Plan Implementation Plan Table 2-1
Capital Improvement Project Summary
2-3.1 Adjusted Capital Improvement Program
The City has reported having $8.0 Million in revenues for the CA Sewer Impact Fee Area . These funds were collected to support improvement projects related to future development and are used to reduce the total future development project costs. After deducting the existing available funds, the adjusted cost that requires funding is $43.69 Million.
CA Sewer Impact Fee Area Project Costs $51.69 Million
Existing Funds - $8.00 Million
Adjusted CA Sewer Impact Fee Area Project Costs $43.69 Million Capacity-related improvements for the SPT Sewer Impact Fee Area total $9.93 million.
Capital Improvement
Project ID Location
Project Total
Cost ($)
Project 011 South of W Eleanor Dr and S West St $ 943,465 Project 081
South of E Katella Ave and S State College
Blvd $ 1,870,655
Small Diameter Pipe
Replacements 1 N.A. $ 223,901,808
Project 02 E Palais Rd and S Anaheim Blvd $ 2,502,724 Project 03 E Cerritos Ave and S Anaheim Blvd $ 3,314,984 Project 05 W Midway Dr and Anaheim Blvd $ 2,353,309 Project 06 W Disney Way and S Harbor Blvd $ 1,059,154 Project 12 Southwest of E Lincoln Ave and N Evelyn Dr $ 2,273,954 Project 13 East of Durst St and N Lemon St $ 1,468,303 Project 14 West of W Katella Ave and S Clementine St $ 7,627,333 Resort Area: City of
Anaheim Cost
Katella Improvements and Cerritos
Improvements $ 31,085,900
$ 51,685,661
Project 04
E Howell Ave between S Sinclair St and west
of S Sunkist St $ 4,439,202
Project 07 E Howell Ave and S Lewis St $ 2,212,930 Project 09 South of E Orangewood Ave and S Dupont Dr $ 1,714,573 Project 10 North of Towne Centre Pl and Rampart St $ 1,566,416 $ 9,933,121
$ 288,334,710
CA Sewer Impact Fee Area
SPT Sewer Impact Fee Area
Total Project Costs
Total Project Costs
Grand Total
1 Projects are funded through sewer user fees or through community facility district.
CITY OF ANAHEIM 3-1 Central Anaheim Financial
R:\RPTS\Anaheim\2026_Financial Implementation Plan Implementation Plan SECTION 3
FUNDING MECHANISMS
This section includes descriptions of potential funding mechanisms and revenue sources available for sewer improvement projects related to increased flows from future development. Federal, State, and local funding and financing programs that may be used to fund sewer improvement projects are described in Sections 3-1 through 3-3. The revenue sources that may be used to support or repay these funding mechanisms are identified in Section 3-4.
While available sources for financing new capital improvements are identified in this FIP, an evaluation of the level of funding that could be generated or the associated repayment implications are not included. A summary of the funding mechanisms and revenue sources is provided in Table 3-1. 3-1 Federal Programs
Federal funding programs for sewer infrastructure are available on a case -by-case basis, subject to eligibility requirements, funding availability, and project-specific criteria. There are no known funding programs available to the City for sewer improvements at this time. Broader infrastructure funding initiatives, such as nationwide stimulus or infrastructure investment programs, may be implemented in the future. The City should monitor, evaluate, and pursue applicable federal programs when they become available and possibly utilize the opportunities as a supplemental funding source for the proposed sewer improvement projects . 3-2 State Programs
The City can elect to apply for State-level funding programs, when available, as a supplemental source for the proposed sewer improvement projects. There are no known funding programs available to the City for sewer improvements at this time.
Financing programs primarily designed for other types of infrastructure, which might include sewer improvements only as a secondary component, were not evaluated for the purposes of this Financial Implementation Plan (FIP).
3-3 Local Financing Programs
Local financing programs provide additional mechanisms for funding sewer improvement projects and are generally supported by locally generated revenues. These programs include developer-imposed funding mechanisms, municipal bond financing, and special districts. 3-3.1 Developer Imposed Programs
Developer imposed programs are a potential source of funding for sewer improvements associated with new development. These programs require developers to cover the cost of associated improvements needed to serve future development. The primary mechanisms are described as follows:
Developer Imposed Program: Pay-as-you-go
Funding is collected through developer impact fees, which are deposited into a special fund until sufficient revenue is available to initiate construction of the improvements.
Developer Imposed Program: Developer Build
Developers construct the required improvements directly as part of their development project.
FUNDING MECHANISMS
CITY OF ANAHEIM 3-2 Central Anaheim Financial
R:\RPTS\Anaheim\2026_Financial Implementation Plan Implementation Plan Developer Imposed Program: Bond Issuance
A less conventional approach is to issue a revenue bond backed by future impact fee revenues to fund upfront construction. This method would generally require a substantial reserve fund and potentially a guarantor outside of the City. Due to these complexi ties, other funding options may be more practical and effective for supporting sewer improvements.
3-3.2 General Obligation Bonds
General obligation bonds are a form of municipal debt that are secured by the full faith and credit of the issuing municipality. Repayment is typically provided through ad valorem property taxes. These bonds are generally used to finance projects that bene fit the entire community, particularly capital improvements that do not generate dedicated revenue, such as user fees. In California, approval by a two -thirds (2/3) vote of the City’s registered voters would be required before such bonds could be issued. 3-3.3 Sewer Revenue Bonds
Sewer Revenue Bonds are a form of debt that is secured by the operating revenues generated by the sewer utility. Unlike general obligation bonds, they do not require voter approval. 3-3.4 Districts
Many commonly used sources of debt for sewer infrastructure involve special districts. Unlike some State and Federal loans, interest rates on these debt sources are generally not subsidized and are subject to market conditions and timing of issuance. In recent years, interest rates have typically ranged from 6 to 7 percent, although rates vary over time and may be higher or lower depending on market conditions.
Assessment Districts
Assessment districts, formed under the Improvements Act of 1911, the Municipal Improvement Act of 1913, and the Improvement Bond Act of 1915, provide relatively low-cost financing for development projects due to the security offered by real estate security. These districts do not require voter approval; however, a protest by more than 50 percent of affected property owners can stop the proceedi ngs. Districts could be initiated either by petition of at least 60 percent of property owners within the proposed area or by action of the City Council.
Mello-Roos Assessment District
The Mello-Roos Community Facilities Act allows Cities, Counties, and special districts to establish community facilities districts (CFDs) to finance the construction, acquisition, or improvement of public facilities within a defined service area. Multiple government agencies may form a joint CFD, but all agencies with jurisdiction over the proposed district must consent to its formation. Bonds issued by the district require approval by a two-thirds majority of voters within the district and are repaid throu gh special tax assessments. These taxes are not required to be proportional to property value and may be based on acreage, street frontage, or building square footage.
Infrastructure Financing Districts
Infrastructure Financing Districts (IFDs) are formed through procedures similar to those for Mello-Roos CFDs.
Once established, they may use the property tax increment from new development within the district to finance public facilities. Authorized by legislation in 1991, IFDs must fund projects of community-wide significance, obtain consent from affected taxing entities, avoid overlap with redevelopment project areas, and be approved by a two-thirds vote of qualified electors within the district.
FUNDING MECHANISMS
CITY OF ANAHEIM 3-3 Central Anaheim Financial
R:\RPTS\Anaheim\2026_Financial Implementation Plan Implementation Plan Community Rehabilitation District
Enacted in 1985, the Community Rehabilitation District (CRD) Law provides a mechanism to finance the repair and expansion of existing public facilities, including streets, water, sewer, drainage, and public buildings, provided the facilities have a minimum useful life of five years. Revenue is generally derived from tax increment financing. Rehabilitation districts must be separate from redevelopment project areas. Bond issuance requires approval by a simple majority of voters within the district, which can limit the practicality of this financing method.
3-4 Revenue Sources
3-4.1 Impact Fees
As part of the developer imposed programs, revenues can be generated by imposing impact fees on developers to fund improvement projects. The fees may be applied under both the pay -as-you-go and the bond issuance options. The impact fee calculation is regulated by Section 66000 of the California Government Code, which governs impact fees by requiring that fees do not exceed the costs that can be attributed to each new user. 3-4.2 Direct Developer Funding
As part of the Developer Imposed Program: Developer Build option, the developer can fund and construct the entire project directly, covering all associated costs for the recommended improvements . The developer can fund and construct the entire project directly, covering all associated costs for the recommended improvement.
If future developments are constructed that benefit from the improvement, the funding developer may be eligible for reimbursement.
3-4.3 Ad Valorem Taxes
Upon issuance, general obligation bonds are repaid through ad valorem property taxes. The total amount of bonds that can be issued depends on the City’s outstanding general obligations and its total assessed property valuation.
3-4.4 Sewer User Charge
Repayment of sewer revenue bonds requires the City to maintain sewer user charges at a level sufficient to cover debt service payments, along with an additional margin, commonly referred to as coverage, which typically ranges from 15 to 25 percent of the debt service.
Currently, sewer user charges cover operations, maintenance, rehabilitation, existing capital improvements and debt service. The City’s existing rate structure is not set up to fund capital improvements associated with future development loads . Financing these improvements would require increasing user charges and a ny rate increase would need to follow the public notification process before it could be approved. 3-4.5 Assessment District Revenue
The formation of Assessment Districts and Mello-Roos Assessment Districts establishes a dedicated revenue source for funding public improvements. Project costs are allocated to property owners based on the proportional benefit to each property or a predetermined tax formula. This allocation ensures that costs are distributed equitably among the benefiting properties and become a lien on the property if the assessment is not paid.
3-4.6 Tax Increment Revenue
IFDs and CRDs generate revenue through tax increments. The tax increment is calculated by establishing a “frozen base” of property taxes collected from properties within the district at the time of its formation, with all
FUNDING MECHANISMS
CITY OF ANAHEIM 3-4 Central Anaheim Financial
R:\RPTS\Anaheim\2026_Financial Implementation Plan Implementation Plan additional property taxes collected above this base considered the increment. The amount of revenue generated depends on the increase in property values resulting from the planned improvements . Collection of tax increment revenue typically lags a few years after the improvements are completed. 3-5 Recommended Funding Mechanism
Previous FIPs for the Central, East, and West Anaheim areas identified three main ways to pay for sewer capital projects: using impact fees, issuing general obligation bonds that are paid by the entire community, and using assessment districts to cover project costs. Earlier studies concluded that sewer impact fees were the preferred approach, which is also the method currently used by the City and commonly employed by neighboring cities.
For these reasons, sewer impact fees are the recommended method for funding improvement projects associated with future development within the CA and SPT Sewer Impact Fee Areas, illustrated on Figure 2-1.
FUNDING MECHANISMS
CITY OF ANAHEIM 3-5 Central Anaheim Financial
R:\RPTS\Anaheim\2026_Financial Implementation Plan Implementation Plan Table 3-1
Comparison of Financing Alternatives for Future Development
Program
Funding
Source
Revenue
Source Obligation
Voter Approval
Required?
Likelihood of
Obtaining Financing Other Comments
Developer Imposed
Program: Pay-as-you-go C ash Impact Fees Developer No N.A.
Pay-as-go. This method will
not generate sufficient
revenue improvements in the
short term.
Developer Imposed
Program: Developer Build C ash Direct Developer
Funding Developer No N.A.
Developer Imposed
Program: Bond Issuance Bond Impact Fee C ity No Low
(Unconventional)
Needs Guarantor other than
the C ity
General Obligation Bond Bond Ad Valorem Tax C ity Yes, 2/3 Low (Voter approval)
Sewer Revenue Bond Bond Sewer User
C harges C ity Yes, 2/3 Low (Voter
approval)
C onventional Assessment
District (1911, 1915) Bond Assessment
District Revenue District No, Protest
Hearing Medium
Mello-Roos C ommunity
Facilities District Bond Assessment
District Revenue District
Property Owner
Election, 2/3
Vote
Medium
Infrastructure Financing
District Bond Tax Increment District Yes, 2/3 within
District
Low (Voter
approval)
C annot overlap
redevelopment area
C ommunity Rehabilitation
District Bond Tax Increment District Yes, 2/3 within
District
Low (Voter
approval)
C annot overlap
redevelopment area
Federal Programs
State Programs
Subject to availability; not a primary funding source.
Subject to availability; not a primary funding source.
CITY OF ANAHEIM 4-1 Central Anaheim Financial
R:Rpts\\Anaheim\2026_Central Anaheim Sewer Master Plan Implementation Plan SECTION 4
FINANCIAL ANALYSIS
4-1 General
Sewer impact fees are charge s collected from new developments to recover the portion of the capital improvement costs that are attributed to increased sewer loads generated by future development. This Financial Implementation Plan (FIP) is based on the use of these sewer impact fees, which is consistent with prior FIPs and the current City practice.
In recent years, the City has updated its approach to assessing sewer impact fees for adopted master plan updates. Previously, the Central Anaheim Sewer Service Area was divided into multiple assessment zones; however, the City has since adopted a single-zone approach. This approach is consistent with the methodology applied in the East Anaheim Master Plan of Sanitary Sewers Financial Implementation Plan, completed in 2023.
This approach will provide a uniform and equitable application of sewer impact fees across the East and Central Anaheim areas, and the same approach is planned for the West Anaheim area. 4-2 Sewer Impact Fee Components
Sewer impact fees were based on the costs that are attributed to future development, the projected increase in sewer loads and future land use designations.
4-2.1 Adjusted CIP Cost
The adjusted capital costs attributed to future developments for the Central Anaheim (CA) and Supplemental Platinum Triangle (SPT) Sewer Impact Fee Areas were described in Section 2-3.1.
Adjusted CA Sewer Impact Fee Area Project Costs = $43.69 Million SPT Sewer Impact Fee Area Project Costs = $9.93 Million 4-2.2 Future Development Load Increase
The Central Anaheim Sewer Master Plan (CASMP), completed in January 2026, developed existing and future sewer loads using a combination of water consumption data, sewer return ratios, planning study estimates, the 2024 General Plan Update land uses, and established sewer load factors. These sewer loads were incorporated into the updated hydraulic model
prepared as a part of the CASMP.
The resulting sewer loads are
summarized in Table 4-1.
The future development load
increase for the CA and SPT
Sewer Impact Fee Areas are 6.83
MGD and 2.4 1 MGD,
respectively.
4-2.3 Sewer Impact Fee Load Factors
Sewer impact fees were developed by future land use designations to account for differences in future development types. The proposed fees are based on the sewer load factors identified in the 2026 CASMP which are summarized in Table 4-2.
Sewer Impact Fee Area
Future
Sewer Load
(MGD)
Existing
Sewer Load
(MGD)
Future
Development
Load Increase
(MGD)
Central Anaheim 25.40 18.57 6.83
Supplemental Platinum
Triangle 2.68 0.27 2.41
Table 4-1
Future Development Load Increase
FINANCIAL ANALYSIS
CITY OF ANAHEIM 4-2 Central Anaheim Financial
R:Rpts\\Anaheim\2026_Central Anaheim Sewer Master Plan Implementation Plan Table 4-2
Sewer Impact Fee Load Factors
Load factor units were adjusted to maintain consistency with previous FIP studies. This primarily involved converting non-residential land use factors from units of acres to thousand square feet (KSF), using floor area ratios (FAR) from the City’s General Plan and a review of prior FIP calculations.
The service area includes a high concentration of commercial recreation uses , such as Disneyland, the Convention Center, Angel Stadium, and the Honda Center , which generate a large number of visitors during peak seasons and special events. As a result, hotel and motel occupancy varies throughout the year, and the sewer impact fee load factor assumes an average occupancy rate of 83.5 percent. 4-3 Sewer Impact Fees
The sewer impact fees were developed by calculating the total unit cost for sewer improvements, attributed to increased sewer loads from future developments for both the CA and SPT Sewer Impact Fee Areas. The resulting unit costs are:
CA Sewer Impact Fee Area $6.40/gpd ($43.69 Million ÷ 6.83 MGD) SPT Sewer Impact Fee Area $4.12/gpd ($9.93 Million ÷ 2.41 MGD) These unit costs were then applied to the sewer impact fee load factors for each land use category, as s hown in Table 4-3 and Table 4-4.
Sample Calculation
Central Anaheim Sewer Impact Fee Area
Single Family Residential Sewer Impact Fee = Sewer Impact Fee Load Factor x Total Unit Cost = 250 gpd/dwelling unit x $6.40/gpd
= $1,600/dwelling unit
gpd unit
Commercial 1,700 gpd per acre 0.25 156 per KSF
Hotel/Motel 150 gpd per room 125 per room 4
Industrial 1,700 gpd per acre 0.35 112 per KSF
Institutional 815 gpd per acre 0.20 94 per KSF
Residential
Single Family 250 gpd per DU 250 per DU
Multi Family 245 gpd per DU 245 per DU
Land Use
Sewer Load
Factor1
Floor Area
Ratio
(FAR)2
Sewer Impact Fee
Load Factor3
1 Sewer Load Factor from CASMP, completed January 2026 2 Floor area ratio from City's General Plan
3 Formatted to be consistent with previous FIP studies 4 Hotel/Motel assumes average occupancy rate of 83.5%
FINANCIAL ANALYSIS
CITY OF ANAHEIM 4-3 Central Anaheim Financial
R:Rpts\\Anaheim\2026_Central Anaheim Sewer Master Plan Implementation Plan Table 4-3
Central Anaheim Sewer Impact Fee
Project Cost
($ Million)
$43.69
Flows (mgd)
25.40 18.57
6.83 ($/gpd)
$6.40
Land Use
Sewer
Impact Fee
Load Factor
(gpd/unit)
Sewer Impact
Fees ($/Unit)1 Units
Single Family Residential 250 $1,600 DU
Multi Family Residential 245 $1,568 DU
Commercial 156 $998 KSF
Hotel/Motel 125 $800 room
Industrial 112 $717 KSF
Institutional 94 $602 KSF
1 Sewer impact fee = Sewer Load Factor x Total Unit Cost Definitions:
DU = dwelling unit
gpd = gallons per day
KSF = thousand square feet
Capital Improvement Projects
Adjusted Capital Improvement Project Cost
Adjusted Capital Improvement Project Cost / Future
Development Load
Total Unit Cost
Sewage Load
Future Conditions
Existing Conditions
Future Development Load Increase
FINANCIAL ANALYSIS
CITY OF ANAHEIM 4-4 Central Anaheim Financial
R:Rpts\\Anaheim\2026_Central Anaheim Sewer Master Plan Implementation Plan Table 4-4
Supplemental Platinum Triangle Sewer Impact Fee
Sewer Impact Fees for both areas are summarized in Table 4-5.
Table 4-5
Sewer Impact Fees
Project Cost
($ Million)
$9.93
Flows (mgd)
2.68 0.27
2.41 ($/gpd)
$4.12
Land Use
Sewer
Impact Fee
Load Factor
(gpd/unit)
Sewer Impact
Fees ($/Unit)1 Units
Single Family Residential 250 $1,030 DU
Multi Family Residential 245 $1,009 DU
Commercial 156 $643 KSF
Hotel/Motel 125 $515 room
Industrial 112 $461 KSF
Institutional 94 $387 KSF
1 Sewer impact fee = Sewer Load Factor x Total Unit Cost Definitions:
DU = dwelling unit
gpd = gallons per day
KSF = thousand square feet
Existing Conditions
Future Development Load Increase
Total Unit Cost
Adjusted Capital Improvement Project Cost / Future
Development Load
Capital Improvement Projects
Adjusted Capital Improvement Project Cost
Sewage Load
Future Conditions
Land Use
Central Anaheim
Sewer Impact Fee
($/unit)
Supplemental
Platinum Triangle
Sewer Impact Fee
($/unit) Units
Single Family Residential $1,600 $1,030 DU
Multi Family Residential $1,568 $1,009 DU
Commercial $998 $643 KSF
Hotel/Motel $800 $515 room
Industrial $717 $461 KSF
Institutional $602 $387 KSF
FINANCIAL ANALYSIS
CITY OF ANAHEIM 4-5 Central Anaheim Financial
R:Rpts\\Anaheim\2026_Central Anaheim Sewer Master Plan Implementation Plan 4-4 Implementation
The City should implement the sewer impact fees, included in Table 4-5, to help pay for improvement projects needed to provide sewer service for future development for the CA and the SPT Sewer Impact Fee Areas, respectively. The fee is based on the amount of additional sewer loads generated by new developments, which helps ensure that costs are shared appropriately among different types of land uses based on how much they impact the sewer system.
The sewer impact fee should be charged to new development and redevelopment projects to recover the added costs of providing sewer capacity for the increased flows generated. After the fees are adopted by the City Council, the City should regularly track how much revenue is collected and how it is spent. This will help determine whether the sewer impact fees are sufficient or if additional funding sources should be considered to complete the planned improvement projects.
CITY OF ANAHEIM - CENTRAL ANAHEIM SEWER MASTER PLAN
FINANCIAL IMPLEMENTATION PLAN - APRIL 2026