AB 1600 ANNUAL REPORT
CHAPTER 927, STATUTE OF 1987
CITY COUNCIL MEETING
DECEMBER 15, 2025
Attachment 4
PURPOSE OF AB 1600
Continued need for
Public Improvements
Substantiates the
collection of future
development fees
BACKGROUND
In 1988, the City Council adopted Resolution #88-72.
In 1998, the “Public Facilities Impact Fee” was added.
In 2002, 20-year time frame (2000 to 2020) for projects was included. • Amended the Public Facilities Impact Fees
• Re-examined the fees for High T urnover Retail uses
June 2003
• Increased based on Engineering Construction Cost Index.
August 2003
• Mar. 2006, Sept. 2009, Dec. 2012, Feb. 2022
Fee Modifications/Updates in:
REQUIREMENTS OF GOVERNMENT CODE
SECTION 66006
Brief description of the type of fee in the fund
The amount of the fee
The beginning and ending balance of the fund
The amount of fees collected, and the interest earned
An amount identification for each public improvement
Identification of construction timeframe for the public improvement, and any reasons for delays
A description of each interfund transfer or loan made from the fund; and,
The amount of refunds made.
ADDITIONAL REQUIREMENTS OF
GOVERNMENT CODE SECTION 66006
The City must make the following required findings
Funds are committed or uncommitted
Identify the purpose to which the fee is to be put
Demonstrate a reasonable relationship for the purpose of the fee
Identify all sources and amounts of funding anticipated
When sufficient funds have been collected
The agency is required to identify a timeframe for completion
Or shall refund to the then current owner(s) of record
COMPONENTS
OF THE
COMPLIANCE
REPORT
Public Facility Impact Fees
Roadway Facilities
Traffic Signal Facilities
Fire Facilities
Police Facilities
Parks Facilities
PW Corp Yard Facilities
Info T ech Facilities
Transportation Facilities
Community Park 42 – Fall 2025
Park Reserve
–
Capital Project Fund
Refuse Capital Equipment Charge
Wastewater Facility Charge
Water Facility Charge
Information was provided
on the following funds
IDENTIFIED PROJECTS
Water Well Site 22
Expand Capacity for Future Development
Well 22
Yosemite Ave Sewer Main
IDENTIFIED PROJECTS CONTINUED
Fire Station #56
• Located in North Merced
• Conceptual Design at M Circle
General Vang Pao Park
• Currently in Design
Police Station
–
Land Acquisition, Location TBD
CITYWIDE CAPITAL IMPROVEMENT
PROJECTS
PHASE NO. OF PROJECTS ESTIMATED VALUE
DESIGN 25 $50,917,795
CONSTRUCTION OR
NEARING
CONSTRUCTION
14 $49,071,404
CLOSEOUT 12 $10,561,516
TOTALS 51 $110,550,715
STAFF RECOMMENDATIONS
Accept the Compliance Report for AB1600 Development Fees for FY 24/25 and make findings related to unexpended balances as required by California Government Code Section 66001; and,
Adopt a Resolution entitled: “A Resolution of the City Council of the City of Merced, California, Accepting the Development Impact Fees fiscal year 2024/2025 annual report and making findings related to unexpended developer deposits for public improvements as required by California Government Code Section 66001”.
COUNCIL ACTION
POSSIBLE CITY COUNCIL ACTIONS:
Approve as recommended by staff;
Refer back to staff for consideration of specific items; Deny.