February 17, 2026
TO: City Council
REQUESTED BY: Kimberly Ganimian, Finance Director
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: FY 2024-25 Development Impact Fee Report
RECOMMENDATION:
Staff recommends that the City Council receive and file the FY 2024-25 AB1600 Development Impact Fee Report on the collection and use of certain development impact fees.
DISCUSSION:
The City of San Jacinto charges fees on new development to fund public improvements to mitigate the impact of development activity. The fees are commonly known as development impact fees (DIF). In 1989, the California Legislature passed Assembly Bill 1600 (AB1600), which added §66000 et seq. to the California Government Code, commonly known as the Mitigation Fee Act.
As required by law, DIF are segregated from the General Fund and accounted for in special revenue funds. Government Code §66001 requires that the City make available to the public information regarding development impact fees for each fund annually, including:
• A brief description of the fee and the fund into which the fee was deposited • The amount of the fee
• The associated fund’s beginning and ending balances for the fiscal year • The total amount of fees collected and interest earned • Identification of each public improvement on which impact fees were expended and the amount of expenditure on each improvement, including the total percentage of the cost of the public improvement that was funded with impact fees • Identification of the approximate date by which construction of a public improvement will commence if the local agency determined that sufficient funds have been collected to complete financing on an incomplete public improvement and the public improvement remains incomplete
• A description of each interfund transfer or loan made from an account or fund Further, Government Code §66000 et. seq. also requires that findings describing the continuing need for impact fees be made every five years, specifying the intended use of any unexpended impact fees, regardless of whether the fees are committed or uncommitted. Failure to make such findings subjects the City to going through a refunding procedure. This report meets the requirements to comply with the Mitigation Fee Act.
Section 66006(b)(2) further requires that the local agency shall review the information made available to the public pursuant to Section 66006(b)(1).
Attached is the Development Impact Fee report for fiscal year 2024-25 containing the information required by Section 66006(b)(1). The report summarizes revenue and expenditures for the funds and includes beginning and ending balances. Detail is provided for any expenditures and transfers made during the fiscal year.
FISCAL IMPACT:
There is no impact on City resources resulting from this annual report.
ATTACHMENTS:
AB 1600 Report