Attachment 3
Finance and Administrative Services Department
DATE: November 3, 2025
TO: City Council
FROM: Elliot Young, Principal Financial Analyst
Grace Zheng, Assistant Finance and Administrative Services Director Derek Rampone, Finance and Admi nistrative Services Director
VIA: Kimbra McCarthy, City Manager
SUBJECT: Fiscal Year 2024-25 Informational Reporting of Park Land Dedication Fee
BACKGROUND
As defined in CGC Section 66000(b), “fee” does not include fees specified in CGC Section 66477 (the Quimby Act), which governs the City’s Park Land Dedication (PLD) Fee and does not require annual reporting. The Park Land Dedication F und (PLD Fund) is included in this report for informational purposes only.
ANALYSIS
PLD fees are collected as a condition of approv al for new residential de velopment and must be used for park or recreational purposes. PLD fees are not subject to annual reporting under CGC Section 66477. However, staff will continue to report on this fee for informational purposes.
In 1997, the City adopted a Park Land Dedication Ordinance, Chapter 41 of the City Code (Park Land Dedication), which requires park land dedication or payments of in-lieu fees for residential development. On November 28, 2006, the City Council amended the Ci ty Council Policy for prioritizing the use of PLD In-Lieu Fees to esta blish objectives for use of PLD In-Lieu fees as detailed below:
• Priority No. 1—Acquisition
• Priority No. 2—Development
• Priority No. 3—Rehabilitation
Within each priority, first consideration goes to projects that are located within the same parks and open space area as the development generating the fee. Next, prioritization goes to projects within one mile of the developmen t generating the fee. Last, cons ideration is for projects that provide a communitywide asset, which can be lo cated anywhere in the City. The Parks and Fiscal Year 2024-25 Informational Reporting of Park Land Dedication Fee November 3, 2025
Recreation Commission reviews projects and fo rwards a recommendation to the City Council regarding commitment of both the available in-lie u fees received and th e available investment earnings generated each fiscal year.
Subsequent amendments to th e Park Land Dedication Ordina nce were enacted, including amendments adopted on October 13, 2015 and April 13, 2021 to exclude affordable housing units from the PLD requirement, modify the process of establishing a fair-market range for land values, and provide for a privately owned/publicly accessible open space credit.
The beginning balance, revenues, expenditures, and available balance of the PLD Fund for Fiscal Year 2024-25 are as follows:
Beginning Balance, July 1, 2024 $49,677,699
Unaudited Revenues:
Park Land Dedication Fees $ 45,084
Use of Money & Property 2,960,863
Capital Projects Refunds 4,308,122
Total Unaudited Revenues 7,314,069
Total Available 56,991,768
Unaudited Expenditures:
Acquisition Costs (6,012,305)
Park Land Dedication Fee Refunds (45,360)
Fiscal Year 2024-25 Adopted Capital Improvement
Projects (CIPs) (1,800,000)
Fiscal Year 2024-25 Midyear CIPs (4,401,869)
Total Unaudited Expenditures (12,259,534)
Unexpended Ending Balance 44,732,234
Total Committed by City Council for Specific Future
Projects
(5,592,547)
Available Balance, June 30, 2025 $39,139,687
PLD fees, investment earnings, and capital proj ect refunds total $7.3 million, and expenditures total $12.3 million. After deducting $5.6 million in funds committed for future projects, there is an available balance of approximately $39.1 million as of June 30, 2025. Of this $39.1 million balance, $38.5 million is comprised of fees, inve stment earnings, and capital project refunds deposited during Fiscal Years 2018-19 through 2024-25.
The Fiscal Year 2025-26 Adopted CIP includes appr opriations for projects and commitments for future projects, which utilized a portion of th e committed and available PLD funds indicated above.
Fiscal Year 2024-25 Informational Reporting of Park Land Dedication Fee November 3, 2025
CONCLUSION
This report is prepared for informational purposes only.
cc: CSD, SMA—Wong