CITY COUNCIL STAFF REPORT
DATE: November 12, 2025 CONSENT CALENDAR
SUBJECT: CITY OF PALM SPRINGS AB 1600 REPORT FOR FISCAL YEAR 2024- 2025
FROM: Scott C. Stiles, City Manager
BY: Department of Finance and Treasury
SUMMARY:
The City is required by Government Code Section 66000 to annually prepare the AB 1600 report for the prior fiscal year concerning the activity of the City’s development project fees. The Report must be submitted to the City Council within 180 days of the end of the fiscal year or posted on the City’s website and submitted to the City Council within 15 days. The report was posted on the City’s website on October 28, 2025.
RECOMMENDATION:
Receive and File the City’s Development Project Fee Report for Fiscal Year 2024-2025 (Attachment A).
STAFF ANALYSIS:
In 1987, Government Code Section 66000 became effective with the passage of Assembly Bill 1600. AB 1600 was enacted to regulate the establishment of any new development fee or fee increase after January 1, 1989.
A key provision of the legislation, namely Section 66006 (b) (1) of the Government Code, requires that the local agency shall, within 180 days of the close of each fiscal year, make available to the public the following information for each separate account or fund:
- A brief description of the type of fee in the account. - The amount of the fee.
- The beginning and ending balance of the account.
- The amount of fees collected, and interest earned.
- An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.
City Council Staff Report
November 12, 2025 -- Page 2
City of Palm Springs AB 1600 Report for Fiscal Year 2024-2025 - An identification of an approximate date by which construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
- A description of each interfund transfer or loan made from the account, including the public improvement on which the transferred or loaned fees will be expended.
In the case of an interfund loan, an identification of that date on which the loan will be repaid, and the rate of interest the account will receive on the loan.
In Fiscal Year 2024-25, the City has two developer project fees subject to the requirements of Government Code Section 66000 – Drainage Construction and Special Development Fees. The City has elected to report Public Arts In-Lieu Fees and Wastewater Connection Fees. Staff have prepared the reports that provide an analysis of each fee.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the City Council’s Broad Goal of Financial and Organizational Well- Being.
FISCAL IMPACT:
The City must expend or commit developer fees from the Special Development Fund and the Drainage Fund within five years of their receipt, and these fees must be accounted for in a separate fund.
REVIEWED BY:
Department Director: Kristopher J. Mooney
City Manager: Scott Stiles
ATTACHMENTS:
A. AB 1600 Report for Fiscal Year 2024-25