CITY OF GROVER BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 5
Placement: Consent
Meeting Date: December 8, 2025
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Nick Szamet, Administrative Services Director Megan Martin, Community Development Director
SUBJECT: FY 2024-25 Development Impact Fee Annual Report
RECOMMENDATION
Receive and file the FY 2024-2025 Development Impact Fee Report pursuant to Government Code Section 66006.
BACKGROUND
Government Code Section 66000 et seq., establishes the Mitigation Fee Act (AB 1600), which provides the legal framework for imposing Development Impact Fees (DIFs) to fund public facilities needed to mitigate impacts of new development. AB 1600 also requires local agencies to prepare an annual report detailing the collection and use of DIFs. The report must include the beginning and ending balances of each fee account, amounts collected and interest earned, identification of each public improvement funded by the fees, and a description of interfund transfers or loans, if applicable. State law also requires the report to be provided at a public meeting at least once every fiscal year.
This report summarizes DIF activity for the reporting period of July 1, 2024 – June 30, 2025 and presents the DIF Annual Report (Attachment 1) in compliance with State law.
City of Grover Beach Development Impact Fees
The City collects a variety of DIFs to ensure new development contributes its fair share toward the cost of public facilities and infrastructure required to serve a growing community. These fees are restricted to funding improvements identified in the City’s adopted fee programs and must be expended for the purposes for which they were collected. Impact fees are intended to mitigate all or a portion of the cost of public facilities related to a development project. The City’s current DIF program includes several fee categories. For the FY 2024-25 reporting period, the following categories are included in the annual report:
• Administrative Facilities • Storm Drain Facilities
• Fire Protection Facilities • Transportation Facilities • Law Enforcement Facilities • Wastewater Facilities
• Parks and Recreation Facilities • Water System Facilities Staff Report: FY 2024-25 Development Impact Fee Annual Report Page 2 December 8, 2025
Multi-Year Goals
☐ Public Safety and Community Services ☐ Economic Development and Housing ☐ Community Infrastructure ☒ Financial and Organization Sustainability Council Priorities
☐ Water & Wastewater Infrastructure ☐ Community Engagement Summary of FY 2024-25 DIF Activity
Between July 1, 2024, and June 30, 2025, the City collected a total of $588,793 in DIF revenues across all categories and expended $242,683 on qualifying capital projects, including installation of a storm drain as part of the West Grand Avenue Streetscape project and the Ramona Garden Park rehabilitation project. These revenues also provided funding for conducting a study to update the City’s DIF structure with these updates adopted by the Council on August 26, 2024. Ending balances for each fee category reflect funds available for future eligible projects. Detailed accounts are included in Attachment 1.
FISCAL IMPACT
There are no funding impacts to this staff report.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Receive and file a report on the 2025 Development Impact Fee Report ;or
2. Provide alternative direction to staff.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act. In accordance with State law, the annual report must be made available to the public and presented at a public meeting. The report will be posted on the City’s website to satisfy this requirement.
ATTACHMENTS
1. FY 2024-2025 Development Impact Fee Annual Report
CITY OF GROVER BEACH
2024-25 DEVELOPMENT IMPACT FEE REPORT
2 Table of Contents
Annual Development Impact Fee Report ................................................ Error! Bookmark not defined.
Executive Summary............................................................................................................................... 3 Reporting Requirements for Development Impact Fees......................................................................... 3 Description of Development Impact Fee Funds ..................................................................................... 3 250 Transportation Development Impact Fee Fund................................................................... 3 251 Law Enforcement Development Impact Fee Fund .............................................................. 4 252 Administrative Development Impact Fee Fund ................................................................... 4 253 Fire Development Impact Fee Fund.................................................................................... 4 254 Stormwater Development Impact Fee Fund........................................................................ 4 255 Wastewater Development Impact Fee Fund ....................................................................... 4 256 Parks Facilities Development Impact Fee Fund.................................................................. 4 257 Recreation Facilities Development Impact Fee Fund.......................................................... 4 258 Water Development Impact Fee Fund ................................................................................ 5 Fund Balance Summary ........................................................................................................................ 5 3 Executive Summary
The City of Grover Beach (the “City”) collects Development Impact Fees (DIFs) in accordance with the Mitigation Fee Act (commonly referred to as “AB 1600”) to ensure new development contributes its fair share toward the cost of public facilities and infrastructure required to serve a growing community. These fees are legally restricted to funding improvements identified in the City’s adopted fee programs and must be expended for the purposes for which they were collected.
During the reporting period (July 1, 2024 – June 30, 2025), the City collected a total of $588,793.35 in impact fee revenues across all fund categories and expended $242,683 on qualifying projects, including Ramona Park, West Grand Avenue, and costs for a DIF study.
Reporting Requirements for Development Impact Fees
In California, the charging and administration of development impact fees (DIFs) is governed by State legislation known as the Mitigation Fee Act. The law establishes the legal and procedural requirements for collecting, accounting for, and expending DIF revenues.
The City of Grover Beach is required to make a report containing the following information for each separate DIF fund:
A. Brief description of the type of fee in the account or fund.
B. Amount of the fee.
C. Beginning and ending balance of the account or fund.
D. Amount of fees collected, and the amount of interest earned.
E. Identification of each public improvement on which fees were expended, the amount of expenditures for each improvement, and the total percentage of the project cost funded by impact fees.
F. Approximate date by which construction of the public improvement will commence if sufficient funds have been collected to fully finance the project and the improvement remains incomplete.
G. Description of each interfund transfer or loan, including the improvement to be funded and, for loans, the repayment date and interest rate.
H. Amount of any refunds or reallocations made pursuant to the Mitigation Fee Act. 1Description of Development Impact Funds
250 Transportation Development Impact Fee Fund
This fee provides funding for transportation infrastructure projects such as roadways, sidewalks, traffic signals, bike lanes, and transit improvements necessary to accommodate increased traffic and maintain safe, efficient circulation within Grover Beach. 1 Note: Items F-H are not applicable and have been omitted from the report. 4 251 Law Enforcement Development Impact Fee Fund
This fee supports the construction, expansion, and modernization of law enforcement facilities, including police stations, training centers, and related infrastructure, to address the public safety needs generated by new growth in the community.
252 Administrative Development Impact Fee Fund
This fee covers the costs associated with the ongoing administration, implementation, and monitoring of the City’s development impact fee programs. In addition to supporting program management and compliance activities, a portion of this fee funds capital improvements and maintenance for key City facilities such as City Hall, Ramona Garden Park, and the Trouville Community Center. These facilities serve the community broadly and are essential to supporting municipal operations and public services.
253 Fire Development Impact Fee Fund
This fee funds capital improvements necessary to maintain and enhance fire protection services for new development. Eligible projects may include fire stations, apparatus, equipment, and infrastructure upgrades required to meet increased demand and maintain response times.
254 Stormwater Development Impact Fee Fund
This fee is used for stormwater management infrastructure improvements, including drainage systems, retention basins, and flood control measures, which mitigate the increased runoff and drainage impacts from new development.
255 Wastewater Development Impact Fee Fund
This fee contributes to the expansion and upgrade of wastewater collection, treatment, and disposal facilities to ensure the City’s sewer system can accommodate growth while protecting public health and the environment.
256 Parks Facilities Development Impact Fee Fund
This fee finances the acquisition, development, and improvement of parks, trails, recreational facilities, and open space areas needed to serve new residents and maintain quality recreational opportunities in the City.
257 Recreation Facilities Development Impact Fee Fund
This fee finances the acquisition, development, and improvement of parks, trails, recreational facilities, and open space areas needed to serve new residents and maintain quality recreational opportunities in the City.
5 258 Water Development Impact Fee Fund
This fee funds capital improvements to water supply, treatment, storage, and distribution infrastructure to meet the demands of new development and maintain reliable, safe water service throughout Grover Beach.
Fund Balance Summary
In compliance with AB 1600, the following tables provide a summary of financial activity for each development impact fee fund during Fiscal Year 2024 –25. Each table provides:
• Beginning balance - The available funds carried forward from the previous fiscal year. • Revenues collected - Fees received from new development and any related interest earnings.
• Interest earned - Investment earnings accrued on fund balances during the fiscal year. • Expenditures - Funds spent on eligible public improvements or committed to projects in progress.
• Ending balance - The remaining funds available for future qualifying projects.
Transportation Development Impact Fee Fund 250
Balance Revenue Expenses Balance
Project Start Date End Date
Percent
Funded by
Fee
July 1,
2024
Interest
Income
Development
Impact Fee
Contractual
Obligations
Transfers
Out
June 30,
2025
188,212
5,215 123,452
DIF Study 7/1/2023 6/30/2025 13% 607
316,272
Law Enforcement Development Impact Fee Fund 251
Balance Revenue Expenses Balance
Project Start Date End Date
Percent
Funded by
Fee
July 1,
2024
Interest
Income
Development
Impact Fee
Contractual
Obligations
Transfers
Out
June 30,
2025
19,335
519 9,470
29,324
Administrative Development Impact Fee Fund 252
6 Balance Revenue Expenses Balance
Project Start Date End Date
Percent
Funded by
Fee
July 1,
2024
Interest
Income
Development
Impact Fees
Contractual
Obligations
Transfers
Out
June 30,
2025
30,434
714 8,894
DIF Study 7/1/2023 6/30/2025 13% 607
39,435
Fire Development Impact Fee Fund 253
Balance Revenue Expenses Balance
Project Start Date End Date
Percent
Funded by
Fee
July 1,
2024
Interest
Income
Development
Impact Fees
Contractual
Obligations
Transfers
Out
June 30,
2025
10,358
360 11,809
DIF Study 7/1/2023 6/30/2025 13% 607
21,919
Stormwater Development Impact Fee Fund 254
Balance Revenue Expenses Balance
Project Start Date End Date
Percent
Funded by
Fee
July 1,
2024
Interest
Income
Development
Impact Fee
Contractual
Obligations
Transfers
Out
June 30,
2025
162,549
3,301 24,343
DIF Study 7/1/2023 6/30/2025 13% 607
CIP 2287 WGA
Storm drains 7/1/2022 6/30/2025 2%
160,500
29,086
Wastewater Development Impact Fee Fund 255
Balance Revenue Expenses Balance
Project Start Date End Date
Percent
Funded by
Fee
July 1,
2024
Interest
Income
Development
Impact Fees
Contractual
Obligations
Transfers
Out
June 30,
2025
298,329
6,643 103,133
DIF Study 7/1/2023 6/30/2025 13% 607
407,498
Parks Facilities Development Impact Fee Fund 256
Balance Revenue Expenses Balance
7 Project Start Date End Date
Percent
Funded by
Fee
July 1,
2024
Interest
Income
Development
Impact Fees
Contractual
Obligations
Transfers
Out
June 30,
2025
95,666
4,173 169,590
DIF Study 7/1/2023 6/30/2025 13% 607
CIP 1259
Ramona Park 7/1/2022 6/30/2025 2%
77,325
191,497
Recreation Facilities Development Impact Fee Fund 257
Balance Revenue Expenses Balance
Project Start Date End Date
Percent
Funded by
Fee
July 1,
2024
Interest
Income
Development
Impact Fee
Contractual
Obligations
Transfers
Out
June 30,
2025
58,396
1,990 30,350
DIF Study 7/1/2023 6/30/2025 13% 607
90,129
Water Development Impact Fee Fund 258
Balance Revenue Expenses Balance
Project Start Date End Date
Percent
Funded by
Fee
July 1,
2024
Interest
Income
Development
Impact Fee
Contractual
Obligations
Transfers
Out
June 30,
2025
36,866
2,501 107,753
DIF Study 7/1/2023 6/30/2025 13% 607
146,514