CPMS
Agenda Item A.5
CONSENT CALENDAR
Meeting Date: August 18, 2026
TO: Mayor and Councilmembers
SUBMITTED BY: Luz “Nina” Buelna, Public Works Director
SUBJECT: 2026 Development Impact Fee Program Update
RECOMMENDATIONS:
Receive and File the 2026 Development Impact Fee Program Update and Adopted Fee Schedule Based on City Council’s Direction
BACKGROUND
Development Impact Fees (“DIF”) are fees imposed on development projects to offset, in whole or in part, the cost of new or additional public facilities resulting from the development. Cities have the authority to charge DIFs by way of the Mitigation Fee Act (Government Code sections 66000 -66025). Under the Mitigation Fee Act, cities must ensure that there is a nexus between the development project’s impacts and the imposed fee amounts. To have a DIF program, cities must adopt an ordinance or resolution to approve and establish the types of fees, and to requ ire a nexus study to analyze the impacts of development types (e.g., residential, commercial, industrial) and their proportionate impacts on public facilities.
Goleta has operated a DIF program since its incorporation, originally relying on ordinances an d nexus studies conducted by the County of Santa Barbara prior to incorporation. The City adopted the County’s impact fee amounts for the Goleta Planning Area when the City incorporated in 2002. In 2019, the City prepared its own Nexus Study Development Im pact Fee Study, which provided the supporting analysis for a new ordinance. The ordinance , referred to as the “DIF Ordinance” (Ordinance 19-04), consolidated previous existing DIF regulations into one regulation in the Zoning Ordinance. The Development Impact Fees listed in Ordinance 19 -04, codified in Goleta Municipal Code Chapter 17.70, are:
1. Public Administration Facilities Fee
2. Fire Facilities Fee
3. Library Facilities Fee
4. Parks and Recreation Facilities Fee
5. Storm Drain Facilities Fee
6. Transportation Facilities Fee
7. Bicycle and Pedestrian Facilities Fee
1 Meeting Date: August 18, 2026
The Fire Facilities Fee is not included in this report. The City collects the fee on behalf of the County of Santa Barbara, which is responsible for providing fire facilities and services through the County Fire Department.
DISCUSSION
At the July 21, 2026, City Council meeting, the Public Hearing was opened to consider the adoption of Resolution No. 26 -40, approving the 2026 Development Impact Fee Program Update Nexus Study (Nexus Study), prepared by Urban Economics and DKS Associates. Following deliberation, the Public Hearing was closed, and the City Council adopted Resolution 26 -40 with modifications to the Maximum Justified Fees (MJF) identified in the Nexus Study, as summarized in Table 1 below. The Council also directed staff to bring the item back as a receive-and-file, with the exact calculations for the modified Maximum Justified Fees.
Table 1. Council-Approved Modifications to the Maximum Justified Fee Development Impact Fee Approved Modifications to the Maximum Justified Fee (MJF)
Public Administration Facilities Fee Adopt 80% of MJF
Library Facilities Fee Adopt 100% of MJF
Parks and Recreation Facilities Fee Adopt 100% of MJF
Storm Drain Facilities Fee Adopt 80% of MJF
Transportation Facilities Fee Adopt 100% of MJF
Bicycle and Pedestrian Facilities Fee Adopt 80% of MJF
Attachment 1 provides the 2026 Adopted Fee Schedule reflecting the Council-approved modifications to the Maximum Justified Fees as shown in the table above. It also compares the adopted fees with the 2019 fee schedule, the existing FY 2025-26 fee schedule, and the original Maximum Justified Fee established in the Nexus Study.
ENVIRONMENTAL REVIEW
The adoption of new development impact fees, and related nexus study is exempt from the California Environmental Quality Act (CEQA) and the regulations promulgated thereunder (14 Cal. Code of Regulations, §§ 15000, et seq., “CEQA Guidelines”) because this action does not constitute a “project” pursuant t o the CEQA Guidelines, § 15061(b)(3), this action constitutes a creation of governing funding mechanism, who do not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment CEQA Guidelines, § 15378(b)(4), and the action constitutes an organization and administrative activity of government that will not result in direct or indirect physical changes in the environment CEQA Guidelines, § 15378(b)(5). In addition, obtaining funds (fees) for capital projects for services in existing service areas is statutorily exempt under CEQA Guidelines, § 15273(a)(4).
2 Meeting Date: August 18, 2026
FISCAL IMPACTS:
The updated DIFs were adopted by the City Council on July 21, 2026, and will take effect 60 days after adoption. City staff will be able to implement and collect the proposed fees as part of the current development process. The actual fee revenues generated by the adjusted DIFs will depend on the number of development projects subject to DIF payments during the period the fees are in effect, as development activity occurs. All DIF revenues are restricted to payment of identified projects and expenditures and are not discretionary to the City. The DIF amounts will be automatically adjusted on July 1st of each fiscal year by the construction cost index (CCI) specific to California or the nearest region, as published by Engineering News -Record or its successor publication, for the preceding 12-month period, when available.
The DIF revenue estimates will be revised with each annual budget process, along with the related project costs funded by these fees. The City approves an Annual Development Impact Fee Financial Report every December, which includes detailing the beginning and ending fund balances, revenues, expenditures , and other reporting elements mandated by the Mitigation Fee Act.
Adopting fees below the maximum justified amounts established by the Nexus Study will reduce the revenue available for the affected DIF categories but will not reduce the cost of the identi fied improvements. The City will need to identify other funding to cover the difference, which could include the General Fund, other available revenues, grants, or other eligible funding sources, subject to future City Council appropriation.
ALTERNATIVES:
None.
LEGAL REVIEW BY: Isaac Rosen, City Attorney
APPROVED BY: Robert Nisbet, City Manager
ATTACHMENTS:
1. 2026 Development Impact Fee Program Update – Adopted Fee Schedule 3 ATTACHMENT 1
2026 Development Impact Fee Program Update – Adopted Fee Schedule
4 2026 Development Impact Fee Program Update
Adopted Fee Schedule
Land Use Category Units
Adopted
Fee
(2019
Nexus
Study)
Existing
Fee
(FY 2025-
26)
Maximum
Justified
Fee
Adopted
Fee
Schedule
Effective
October 1,
2026
(2026)
Public Administration
Single Family Detached1 per DU $ 3,086 $ 4,132 $ 10,540 $ 8,432 All Other Residential per DU 2,238 2,999 7,396 5,917 Retail & Commercial per KSF 487 656 1,665 1,332 Office & Medical per KSF 655 880 2,237 1,790 Industrial per KSF 243 329 829 663 Library
Single Family Detached1 per DU $ 959 $ 1,287 $ 873 $ 873 All Other Residential per DU 696 934 613 613 Retail & Commercial per KSF 151 206 138 138 Office & Medical per KSF 203 275 185 185 Industrial per KSF 75 105 69 69 Parks & Recreation
Residential Subdivisions (Quimby Act)
Single Family Detached1 per DU $ 14,998 $ 20,084 $ 36,913 $ 36,913 All Other Residential per DU 10,880 14,572 25,902 25,902 All Other Development (Mitigation Fee Act)
Single Family Detached1 per DU $ 11,900 $ 15,928 $ 32,895 $ 32,895 All Other Residential per DU 7,947 13,175 23,083 23,083 Retail & Commercial per KSF 1,880 2,519 5,196 5,196 Office & Medical per KSF 2,525 3,382 6,981 6,981 Industrial per KSF 936 1,257 2,587 2,587 Storm Drain
Single Family Detached1 per DU $ 3,596 $ 4,817 $ 10,845 $ 8,676 All Other Residential per DU 2,609 3,494 3,904 3,123 Retail & Commercial per KSF 1,988 2,665 6,290 5,032 Office & Medical per KSF 2,671 3,578 4,338 3,470 Industrial per KSF 990 1,329 5,097 4,078 Transportation
All Land Uses
per PM
Peak
Hour Trip
$ 12,450 $ 16,665 $ 21,866 $ 21,866
Sample of Land Uses
Single Family Detached1 per DU $ 12,077 $ 15,165 $ 19,725 $ 19,725 Apartment per DU 7,487 8,166 11,029 11,029 Hotel per room 7,171 9,499 9,866 9,866 Supermarket per KSF 70,816 89,491 115,321 115,321 General Office per KSF 17,808 22,998 24,770 24,770 General Light Industrial per KSF 11,835 10,666 10,500 10,500
5 Land Use Category Units
Adopted
Fee
(2019
Nexus
Study)
Existing
Fee
(FY 2025-
26)
Maximum
Justified
Fee
Adopted Fee
Schedule
(2026)
Bicycle & Pedestrian
Single Family Detached1 per DU $ 3,092 $ 4,142 $ 13,812 $ 11,050 All Other Residential per DU 2,243 3,006 9,692 7,754 Retail & Commercial per KSF 488 657 2,182 1,746 Office & Medical per KSF 656 881 2,931 2,345 Industrial per KSF 243 329 1,086 869 All Updated Fees
Single Family
Detached1 per DU $ 34,710 $ 45,471 $ 88,690 $ 81,651 All Other Residential2 per DU 23,220 31,774 55,717 51,519 Retail & Commercial3 per KSF 75,810 96,194 130,792 128,765 Office & Medical4 per KSF 24,518 31,994 41,442 39,541 Industrial5 per KSF 14,322 14,015 20,168 18,765 Notes: "DU" = dwelling unit; "KSF" = thousand building square feet. Residential fees are calculated per square foot of living space in this nexus study update, though residential fees are shown per average sized DU in this table for the purpose of comparison to current fee schedule.
The City also charges impact fees for fire and affordable housing that are not included in this update. 1 Includes detached and attached accessory dwelling units (ADU). Fees for ADUs can only be charged on ADUs greater than 750 square feet in size, and are charged proportionally based on the square footage of the ADU to the square footage of the primary dwelling unit.
2 Parks and transportation fees based on "Apartment" category. 3 For transportation fee, based on supermarket category. 4 For transportation fee, based on general office category. 5 For transportation fee, based on general light industrial category.
Sources: City of Goleta Fee Schedule, FY 2025-26; Tables 3.3, 4.3, 5.4, 6.1, 6.2, 6.4, 7.3, and 8.2.
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