Joint Special CC/BFPD/Odesa
02/17/26 05:15 PM
Finance
Sydnie Harris
Other
Doc ID: 6311
AGENDA ITEM
AGENDA MATTER:
ACCEPTANCE OF ANNUAL STATUS REPORT ON RECEIPT AND USE OF DEVELOPMENT IMPACT FEES
EXECUTIVE SUMMARY:
The Mitigation Fee Act (also known as AB1600, as codified in Government Code Section 66000, et seq.,) requires local agencies that impose development impact fees (DIFs) to report annually on the receipt and use of mitigation funding. Additionally, the Mitigation Fee Act requires that Council make periodic findings in order to justify continued receipt of unexpended funds, or possibly be subject to refunding portions of such funds.
Though City staff reports to Council and the public on the receipt and use of DIF funding through a variety of means at different times throughout each fiscal year, this annual report is also prepared for Council review and acceptance.
Staff recommends that Council accept the annual summary report for the fiscal year ending June 30, 2025.
DISCUSSION:
The Mitigation Fee Act (hereafter “the Act”), is contained in the California State Government Code Section 66000 et sq. and governs the establishment and administration of DIFs. These DIFs are charged to new development projects. DIF revenue is required to be used for new public capital facilities which are necessitated by new development. DIF revenue must be separately accounted for and used specifically for the purpose for which the money was collected. The City has eight DIF categories.
The Act requires that the City prepare an annual accounting review of all DIFs. This review is made available to interested parties and the public at least 15 days prior to the time the report is presented at a City Council Meeting. This annual accounting review is to be received and filed by Council. The exhibits attached to this memo summarize each DIF funding source and includes the beginning balance, annual revenues and expenditures and the ending balances as of June 30, 2025.
The Act also requires that every five years, the City identify any DIF revenue which has been held for more than five years without being expended. This analysis has been completed for the fiscal year ending June 30, 2025.
FISCAL IMPACT:
There is no fiscal impact associated with this report. If the reporting is not completed pursuant to the Act as noted above, the City may be required to refund fees collected.
RECOMMENDED ACTION:
Receive and file this report on Development Impact Fees.