Government Building Facilities FEE Nexus Study UPDATE
March 3, 2026
Development Impact Fees (DIFs) are fees imposed by a local government on new development projects to ensure public services and infrastructure will be sufficient to serve new development.
Governing law for DIFs is Assembly Bill 1600 (Mitigation Fee Act) (GC 66000) Fees are established on new development’s fair share based on a rational nexus test DIFs are a one-time fee on new development to mitigate their impacts Only includes cost attributable to new development
Fees can only fund capital costs
Fees cannot fund existing deficiencies, ongoing maintenance or salaries Funds must be used for the projects for which they were intended AB602 (July 2022) made several amendments to state law to fees and fee studies Encourages charging fees on residential land uses per square foot Nexus Study must identify the existing level of service for each public facility, identify the proposed new level of service, and include an explanation of why the new level of service is necessary Requires the Nexus Study to include a Capital Improvement Program (CIP) Requires Nexus Studies to be updated every 8 years
Development Impact Fees (DIFs)
Overview
Why are impact fees important?
New development pays for their fair share of new infrastructure without burdening existing development.
DIFs equitably, and roughly proportionately, distribute the costs related to new infrastructure to all potential new developments.
Why are fees updated/adjusted?
Without an update to old fees and annual adjustments to adopted DIFs, there would not be adequate funding to support infrastructure for future growth as estimated by the City’s General Plan.
Last updated in 2024
Significant updates in cost for construction of the future new police headquarters and training facility that were not available in the 2024 update Updated assumptions for 2025
Comply with the legal requirements of the Mitigation Fee Act (AB 1600) and AB 602.
Development Impact Fees (DIF)
OVERVIEW
NEXUS STUDY PURPOSE
This report updates the Government Building
Facilities Impact Fee for the City of Manteca by
incorporating new estimates for construction of
the future new police headquarters, escalates costs to
2025 dollars, and updates land uses and assumptions.
Satisfies AB 1600 Nexus requirements, AB 602 guidance,
and provides the necessary technical analysis to support the adoption of the updated fees.
Fees are effective 60 days after the City’s final
action establishing and authorizing the collection of the fees.
Updated Data: Coordinated with City staff to obtain updated infrastructure/facilities inventory, value of existing facilities and vehicles, and permit data. Also updated population and household density.
Updated Construction Costs: Updated Police Facilities construction costs prepared by LDA Partners and remaining costs using Engineering News Record (ENR) Construction Cost Index (CCI).
Methodology: Methodology complies with AB 602 – including review of existing level of service, residential fees per square foot, and capital improvement plan to the Nexus Study. Took into consideration the Sheetz and Patterson cases.
The fee has an essential nexus to the City’s interest in ensuring that there are adequate government facilities to serve new development. The methodology demonstrates that the fees are roughly proportionate to the need for new government facilities created by new development.
Methodologies are from CA Department of Housing and Community Development Impact Fee Nexus Study Template.
Coordination Meetings: Harris scheduled teleconferences with the City to discuss facility needs to support new development, costs, fee methodology, and key assumptions. City staff reviewed the draft tables and draft Nexus Study.
City of Manteca: government facilities fee updates
The City has a design development budget for the new police headquarters Costs exceed simple Engineering News Record Construction Cost Index (ENR CCI) adjustments ENR CCI does not capture local conditions, contractor availability, regulatory requirements, or project specific complexities Public Works projects are heavily influenced by prevailing wages, underground utility work, asphalt and aggregate pricing, specialty equipment Public facility construction has historically escalated at rates significantly higher than the ENR CCI Municipal projects face rising soft costs, additional regulatory requirements, traffic control, environmental mitigation, and contract risk premiums POLICE FACILITIES COSTs
WHY Update them now?
As the City continues to grow, additional demands are placed on police staffing and therefore police facilities/infrastructure because of increases in:
Population
Calls for service
Geographic service area
New development and the resulting growth create a direct need to expand and modernize the City’s public safety infrastructure. Police departments hire additional personnel to maintain appropriate response times, coverage standards, and public safety service levels.
Training Capacity must scale with development
The City currently relies on limited access to facilities managed by outside agencies The demand for additional training facilities is directly attributable to new development because the facility provides capacity to train officers hired specifically to serve new residents, businesses, and neighborhoods created by growth.
The facilities are needed to maintain public safety service levels
ADDITIONAL POLICE TRAINING FACILITIES
WHY Are they NEEDED ?
UPDATED POLICE Headquarters FACILITIES COSTS
General Government Facilities Fee
Maximum Justifiable Fee
Proposed Fee Comparison
CAPITAL IMPROVEMENT PLAN
AS REQUIRED BY AB 602
MAY 2026
March 2026
Fees go into effect 60 days after adoption
Development Impact fee Program
NEXT STEPS
Public Hearing
Fees adopted
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