Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2025 Page 1 of 6 Rev: 7/27/2023
RESOLUTION NO. 26-9529
A RESOLUTION OF THE CITY OF SANTA CLARA, CALIFORNIA,
ACCEPTING THE AB1600 REPORT ON DEVELOPMENT IMPACT
FEES FOR FISCAL YEAR ENDED JUNE 30, 2025 AND MAKING
FINDINGS REGARDING THE CONTINUING NEED FOR
UNEXPENDED BALANCES OF IMPACT FEES AS OF JUNE 30,
2025
WHEREAS, Government Code Sections 66000 et seq. (commonly known as, and referenced herein as, “AB1600”) regulate the imposition, collection, maintenance, expenditure and reporting of impact fees imposed on developers for the purpose of defraying their impacts on public facilities;
WHEREAS, the City of Santa Clara (“City”) has identified nine (9) impact fees which require reporting under AB1600’s requirements. Those fees are the Traffic Mitigation Fee (Funds 123/533), the Sanitary Sewer Outlet Fee (Fund 594), the Sanitary Sewer Connection Fee (Fund 594), the Sanitary Sewer Conveyance Fee (Fund 594), the Storm Drain Fee (Fund 535), the Parks Mitigation Fee (Fund 532), the Tasman East Specific Plan Infrastructure Impact Fee (Fund 541), the Patrick Henry Drive Infrastructure Impact Fee (Fund 542), and the Affordable Housing Fee (Fund 565);
WHEREAS, in accordance with the provisions of AB1600, the City has set up separate special revenue funds for each fee type, crediting earned interest to those funds, and spending the accumulated fees and related interest on appropriate expenditures; WHEREAS, the City has prepared an annual report for fiscal year 2024 -25 in accordance with AB1600, “AB1600 Report on Development Impact Fees f or Fiscal Year ended June 30, 2025,” reflecting the beginning and ending balances of each separate fund containing impact fees; the amount of fees collected and the interest earned for the year; the amount of expenditures and refunds made in the year; the percentage of expenditures paid for by fees; and a description of the type of fees. The amount of each of these AB1600 fees for FY 2024-25 is reflected in the City’s Municipal Fee Schedule, previously adopted by this Council; Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2025 Page 2 of 6 Rev: 7/27/2023
WHEREAS, a copy of the annual report was filed with and is available for review in the City Clerk’s Office and the Finance Department at Santa Clara City Hall, and online at Santaclaraca.gov/Finance since December 17, 2025;
WHEREAS, AB1600 requires the City to make specific findings every five (5) years with respect to any portion of the fees remaining unexpended or uncommitted after a period of five (5) years to 1) identify the purpose to which the fee is to be put, 2) demonstrate a reasonable relationship between the fee and the purpose for which it was charged, 3) identify all sources and amounts of funding anticipated to complete financing of the improvement, and 4) designate the approximate date on which such funding will be available; WHEREAS, the Traffic Mitigation Impact Fee, which was established for the purpose of providing a source of funding for traffic improvements, contains some fee revenues which were received more than five (5) years ago. The sum of $3 50,630 representing fees and accrued interest collected for traffic mitigation remains unexpended five (5) or more years after deposit of the fees;
WHEREAS, the Storm Drain Fee, which was established for the purpose of mitigating storm drainage that results directly or indirectly from development projects, contains some fee revenues which were received more than five (5) years ago. The sum of $ 173,718 representing fees and accrued interest collected for storm drainage mitigation remains unexpended five (5) or more years after deposit of the fees;
WHEREAS, the Sanitary Sewer Conveyance Fee, which was established for the purpose of mitigating sanitary sewer conveyance load that results directly or indirectly from development projects, contains some fee revenues which were received more than five (5) years ago. The sum of $28,877,229 representing fees and accrued interest collected for sewer conveyance mitigation remains unexpended five (5) or more years after deposit of the fees; and WHEREAS, the City desires to make the findings required by law with respect to these unexpended fees.
Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2025 Page 3 of 6 Rev: 7/27/2023
NOW THEREFORE, BE IT RESOLVED BY THE CITY OF SANTA CLARA AS FOLLOWS:
1. That the City Council hereby accepts the attached AB 1600 Report on Development Impact Fees for Fiscal Year ended June 30, 202 5 (“Report”), and, based on the following facts, finds that the unexpended balances in the City’s various Development Impact Fee funds are to be used solely for the purpose for which such fees were collected and that no refunds are required or have been made for the Fiscal Year ended June 30, 2025, as the unexpended funds are still necessary for the completion of identified projects :
A. The Traffic Mitigation Impact Fee revenues are to be used to construct traffic improvements needed by new development. The amount of the fee for different land use types is proportionate to the need for traffic improvements generated by such land use types. This fee is still necessary as several projects are tied to larger development projects that have yet to occur. These development projects are still anticipated to take place based on the City’s General Plan. The traffic mitigation fee is set at a lower rate than justified, and as a result projects are underfunded. This has also slowed down progress on projects resulting in some project costs increasing. Periodically, as the City updates the General Plan and as new development occurs, additional improvement projects are identified and added to the Traffic Mitigation Fee Project List.
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Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2025 Page 4 of 6 Rev: 7/27/2023
B. The portion of the $4,716,182 fund balance in the Traffic Mitigation Fund that was at least five (5) years old as of June 30, 202 5, totals $350,630. The City will use the entire fund balance for the projects identified in Exhibit A of the Report which are programmed in the Capital Improvement Plan. The Traffic Mitigation Fund has projects scheduled in the current Capital Improvement Plan for the next five (5) years, and depends upon additional fees and interest each year. Projects identified in Exhibit A which are funded at less than 100% with Traffic Mitigation Impact Fees are funded by other sources totaling $17,375,214. Remaining appropriations totaling $3,932,000 from the other sources are as follows: Reimbursable Grants $97,577; Santana Row Settlement $1,640,309, Vehicle Registration Fee $501,722; Bonds Proceeds $211,420; Measure B $215,245; Gas Tax $425,917; Electric Utility Contribution $630,663; Sewer Utility Contribution $12,447, General Fund $180,000; and Developer Contributions $16,700. All these amounts have been received and are available except $684,466 in Reimbursable Grants, $289,647 in Measure B, and $300,000 in Vehicle Registration Fees.
C. The Storm Drain Impact Fee revenues are to be used to mitigate City storm drainage that results either directly or indirectly from development projects . The amount of the fee is proportionate to the need for storm drainage improvements generated by development projects. This fee is still necessary as several storm drain projects are tied to larger development projects that have yet to occur. These development projects are still anticipated to take place based on the City’s General Plan. A s new development occurs, additional improvement projects are identified and added to the Storm Drain Impact Fee Project List. //
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Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2025 Page 5 of 6 Rev: 7/27/2023
D. The portion of the $313,479 fund balance in the Storm Drain Impact Fee Fund that was at least five (5) years old as of June 30, 202 5, totals $173,718. The City will use the entire fund balance for the projects identified in Exhibit A of the Report which are programmed in the Capital Improvement Plan. The Storm Drain Impact Fee Fund has projects scheduled in the current Capital Improvement Plan for the next five (5) years, and depends upon additional fees and interest each year. The project identified in Exhibit A which is funded at less than 100% with Storm Drain Impact Fees is funded by the General Fund Capital Project Reserve (CPR) totaling $366,577. The remaining appropriation from the CPR is $366,577.
E. The Sanitary Sewer Conveyance Fee was adopted in fiscal year 2006-07 to address Sewer Main capacity deficiencies resulting from increased development. //
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F. The portion of the $58,024,009 fund balance in the Sanitary Sewer Conveyance Fees Fund that was at least five (5) years old as of June 30, 2025, totals $28,877,229. The City will use the entire fund balance for the projects identified in Exhibit A of the Report which are programmed in the Capital Improvement Plan. The Sanitary Sewer Conveyance Fee has projects scheduled in the current Capital Improvement Plan for the next five (5) years, and depends upon additional fees and interest each year. The project identified in Exhibit A funded 100% with Sanitary Sewer Conveyance.
2. Effective date. This resolution shall become effective immediately.
I HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED
AND ADOPTED BY THE CITY OF SANTA CLARA, CALIFORNIA, AT A REGULAR MEETING THEREOF HELD ON THE 27TH DAY OF JANUARY, 2026, BY THE FOLLOWING VOTE:
AYES: COUNCILORS:
NOES: COUNCILORS:
ABSENT: COUNCILORS:
ABSTAINED: COUNCILORS:
Attachments incorporated by reference:
Chahal, Cox, Gonzalez, Hardy, Jain, and Park
None
Mayor Gillmor
None
ATTEST~
NORA PIMENTEL, MMC
ASSISTANT CITY CLERK
CITY OF SANTA CLARA
1. AB 1600 Report on Development Impact Fees FYE June 30, 2025 Resolution/AB1600 Report on Development Impact Fees FYE June 30, 2025 Rev: 7/27/2023
AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2025
BACKGROUND
Cities and counties often charge fees on new development to fund public improvements, public amenities and public services. For example, Traffic Mitigation Fees are used to fund transit facilities, streets, bike lanes and sidewalks. These fees are commonly known as development impact fees (Developer Fees). In 1989, the State Legislature passed Assembly Bill 1600 (AB1600) which added Section 66000, et seq., to the California Government Code. The chapter sets forth a number of requirements that local agencies must follow if they are to collect fees from developers to defray the cost of the construction of public facilities related to development projects. Government Code Sections 66000-66025 apply to developer fees established, increased or imposed on or after January 1, 1989, and generally sets forth four broad requirements:
1. A local jurisdiction must follow the process set forth in the bill and make certain determinations regarding the purpose and use of the fees and to establish a "nexus" or connection between a development project or class of project and the public improvement being financed with the fee.
2. The fee revenue must be segregated from the General Fund to prevent commingling of public improvement fees and the General Fund.
3. If a local jurisdiction has had possession of a developer fee for five years or more and has not committed that money to a project or actually spent that money, then it must make findings describing the continuing need for that money each fiscal year after the five years have expired.
4. If a local jurisdiction cannot make the findings required under paragraph 3, then the city or county must go through a refund procedure.
The Traffic Mitigation Fee, Sanitary Sewer Outlet Fee, Sanitary Sewer Connection Fee, Sanitary Sewer Conveyance Fee, Storm Drain Fee, Parks Mitigation Fee, Tasman East Specific Plan Infrastructure Impact Fee, Affordable Housing Fees, and Patrick Henry Drive Infrastructure Impact Fee that the City of Santa Clara (City) collects qualify as Development Impact Fees and therefore must comply with the above referenced Government Code Sections. The amount of each of these development impact fees for fiscal year 2024-25 is reflected in the City’s Municipal Fee Schedule, previously adopted by the City Council. The adopted City’s Municipal Fee Schedule for fiscal year 2024-25 is available at:
https://www.santaclaraca.gov/home/showpublisheddocument/83567/638500888825330000. As required by law, these fees are segregated and accounted for as Special Revenue Funds. Government Code Section 66001 requires the City to make available to the public certain information regarding these fees for each fund within 180 days after the end of each fiscal year. Accordingly, the following report is presented to the City Council for review.
1 AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2025
ANALYSIS
Utilizing the first in, first out (FIFO) accounting method – where the initial revenue received is the first expended, staff analyzed the year-end balances for the fiscal year 2024-25. This analysis is to identify any portion of the balances that had been outstanding for five or more years. In instances where a balance exceeded the five-year threshold, a thorough review of previously identified projects is initiated to assess whether any developer fees collected require refunding.
Many of the identified projects are already underway, and the City has appropriated funds for these projects as noted in the City’s FY2024-25 and 2025-26 Adopted Biennial Capital Improvement Program Budget. The publication can be found on the City’s website and is accessible at the following location:
https://www.santaclaraca.gov/home/showpublisheddocument/83797/638634795386670000. Exhibit A provides a detailed breakdown of the identification of every Capital Project where fees were utilized, along with the corresponding expenditure amounts for each project. This exhibit also specifies the total percentage of the Capital Project cost covered by these fees.
Traffic Mitigation Fee
The Traffic Mitigation Fee is levied to fund improvements or programs to mitigate City traffic impacts that result either directly or indirectly from development projects. To determine the traffic mitigation fees the City conducts a Traffic Impact Fee Nexus study. The most recent report was approved by Council August 21, 2018. The basis of Santa Clara’s traffic mitigation fee, also more commonly known as a traffic impact fee, is the number of net new PM peak hour vehicle trips generated by new development. Those additional trips result in the traffic impacts the fee is intended to mitigate. The fee is calculated by dividing the total cost of the improvement projects in the Traffic Mitigation Program by the number of additional PM peak hour trips generated by new development, which results in a “per PM peak hour trip” fee amount. For simplicity of application, this fee is then converted to a fee per square foot, per hotel room, or per dwelling unit, based on the trip generation rates in the latest ITE Trip Generation Manual.
The fee is automatically adjusted for inflation annually at the start of each fiscal year, based on the latest Engineering News Record Construction Cost Index.
The following table summarizes the activity for the Traffic Mitigation Fee from fiscal year 2020-21 through fiscal year 2024-25.
Fund 123 & 533 2020-21 2021-22 2022-23 2023-24(1)
2024-25
Beginning Balance 10,448,972 $ 10,505,590 $ 10,938,618 $ 11,413,512 $ 8,991,018 $ Developer Fees 728,208 978,860 1,092,092 (165,694) 414,853 Interest Income 152,901 165,723 177,957 188,580 249,350 Expenditures (824,491) (711,555) (795,155) (2,445,380) (4,939,039) Ending Balance 10,505,590 $ 10,938,618 $ 11,413,512 $ 8,991,018 $ 4,716,182 $ (1) The negative developer fees in FY23-24 is due to a $474,695 voluntary developer contribution received in December 2018 being reclassified out of the Traffic Mitigation Fund in FY23-24. 2 AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2025
During the fiscal year 2024-25, the City collected $414,853 in developer fees. The City earned $249,350 in interest, and expended $4,939,039 on various projects. The ending balance of the Traffic Impact Fees available at the end of fiscal year 2024-25 is $4,716,182 with $350,630 being held for over five years.
Exhibit A identifies the projects that will make use of all unspent fees held over five years.
There is no impact on City resources since all qualified impact fees held by the City for over five years are either spent or committed, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000 and subsequent section.
Sanitary Sewer Outlet Fee
The Sanitary Sewer Outlet Fee is collected from developers to construct public sanitary sewer facilities.
City Council passed Ordinance 1778 on December 3, 2002 which created the sanitary sewer outlet charge which is used for the acquisition, construction, reconstruction, maintenance, and operation of off-site sewerage facilities, and to repay principal and interest on bonds issued for the construction and reconstruction of such sewerage facilities. The fee shall automatically adjust for inflation annually at the start of each fiscal year, based on the latest Engineering News Record Construction Cost Index.
The following table summarizes the activity for the Sanitary Sewer Outlet Fees from fiscal year 2020-21 through fiscal year 2024-25.
Fund 594 2020-21 2021-22 2022-23 2023-24 2024-25
Beginning Balance (1,288,884) $ (1,089,598) $ (669,142) $ 131,522 $ 130,907 $ Developer Fees 199,286 420,456 798,692 (3,133) 24,579
Interest Income - - 1,972 2,518 5,621
Ending Balance (1,089,598) $ (669,142) $ 131,522 $ 130,907 $ 161,107 $ In fiscal year 2024-25, the City collected $24,579 in developer fees. The City earned $5,621 in interest, and no project expenditures were incurred. The remaining balance of Sanitary Sewer Outlet Fees at the end of fiscal year 2024-25 is $161,107.
There is no impact on City resources since all qualified impact fees collected by the City have been spent, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000-66003.
Sanitary Sewer Connection Fee
The Sanitary Sewer Connection Fee was adopted to improve and expand the sewer collection system.
City Council passed Ordinance 1428 on August 25, 1981 which created the sanitary sewer connection fee which is charged whenever a property is initially connected or requires an addition of a new connection to the sanitary sewer system. The fee is charged based on type of dwelling unit for residential (single family, duplex, condominium, etc.) and non-residential which charges based on connection size. The fee shall automatically adjust for inflation annually at the start of each fiscal year, based on the latest Engineering News Record Construction Cost Index.
3 AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2025
The following table summarizes activity for the Sanitary Sewer Connection Fee from fiscal year 2020-21 through fiscal year 2024-25.
Fund 594 2020-21 2021-22 2022-23 2023-24 2024-25
Beginning Balance (116,641,597) $ (114,296,942) $ (145,899,755) $ (154,958,451) $ (167,750,089) $ Developer Fees 1,007,031 1,389,253 2,610,881 307,449 545,586 Expenditures (5,488,096) (37,645,683) (13,852,060) (13,099,087) (9,491,341) Refunded Expenditures 6,825,720 4,653,617 2,182,483 - 1,383,137 Ending Balance (114,296,942) $ (145,899,755) $ (154,958,451) $ (167,750,089) $ (175,312,707) $ In fiscal year 2024-25, the City collected $545,586 in developer fees and expended $9,491,341 on the San Jose/Santa Clara Regional Wastewater Facility construction project. A construction refund of $1,383,137 was received from the City of San Jose for a joint project. As of June 30, 2025, the accumulative deficit in Sanitary Sewer Connection Fee is negative $175,312,707. To address the deficit in the capital projects funded by Sanitary Sewer Connection Fees, transfers were made within the Sewer Enterprise Fund.
There is no impact on City resources since all qualified impact fees held by the City have been spent, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000- 66003.
Sanitary Sewer Conveyance Fee
The Sewer Conveyance Fee was approved by City Council in June 2007 and is intended to mitigate development impacts to the City’s sanitary sewer conveyance system resulting from increases in the sanitary sewer discharges. The amount of Sanitary Sewer Conveyance Fee is based directly on the potential sewer discharge volumes of the proposed land uses. The fee was based on a Sanitary Sewer Capacity Assessment Report 2006, and subsequent update in 2016. The basis of Santa Clara’s sewer conveyance fee is sewer flow rate generated by a new development. The fee is calculated by dividing the total cost of the capacity improvement projects in the Sanitary Sewer Master Plan or its predecessor reports by the total projected sanitary sewer flow rate generated by future developments, which results in a “per gallon per day (GPD)” fee amount. The per GPD fee multiplied by the estimated sanitary sewer flow rate (GPD) generated by a new development is the sanitary sewer conveyance fee for that development.
The following table summarizes the activity for the Sanitary Sewer Conveyance Fees from fiscal year 2020-21 through fiscal year 2024-25.
Fund 594 2020-21 2021-22 2022-23 2023-24 2024-25
Beginning Balance 38,232,186 $ 39,419,207 $ 44,853,964 $ 54,098,272 $ 55,815,618 $ Developer Fees 3,126,854 5,214,338 9,053,180 1,110,240 1,328,550 Interest Income 559,621 720,262 811,032 1,090,180 2,048,922 Expenditures (2,499,454) (499,843) (619,904) (483,074) (467,919) Ending Balance 39,419,207 $ 44,853,964 $ 54,098,272 $ 55,815,618 $ 58,725,171 $ 4 AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2025
The developer fees of $1,328,550 along with interest income of $2,048,922 were partly offset by expenditures of $467,919 in fiscal year 2024-25. The net change yielded a current balance of $58,725,171, out of which $28,877,229 has been held for over five years. Exhibit A outlines the projects that will make use of all unspent fees held over five years.
There is no impact on City resources since all qualified impact fees held by the City for over five years are either spent or committed, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000-66003.
Storm Drain Fee
The Storm Drain Fee is levied to mitigate City storm drainage that results either directly or indirectly from development projects. The Storm Drain Fee is codified in the Santa Clara City Code Section
17.15.220 Sanitary Sewer and Storm Drains and was created for the purpose of defraying the estimated costs of constructing planned drainage facilities for removal of surface and storm waters from local drainage areas. The fee is charged based on the amount of acreage being developed with a project. The fee shall automatically adjust for inflation annually at the start of each fiscal year, based on the latest Engineering News Record Construction Cost Index.
The following table summarizes the activity for the Storm Drain Fees from fiscal year 2020-21 through fiscal year 2024-25.
Fund 535 2020-21 2021-22 2022-23 2023-24 2024-25
Beginning Balance 613,299 $ 650,435 $ 423,110 $ 433,968 $ 300,670 $ Developer Fees 27,903 33,450 4,352 6,119 1,869
Interest Income 9,233 6,794 6,506 5,784 10,940
Expenditures with Prior Year Adjustment - (267,569) - (145,201) - Ending Balance 650,435 $ 423,110 $ 433,968 $ 300,670 $ 313,479 $ In the fiscal year 2024-25, the City collected $1,869 in developer fees and earned $10,940 in interest. The accumulative amount of Storm Drain Fees available at the end of fiscal year 2024-25 is $313,479 with $173,718 being held for over five years. Exhibit A identifies the projects that will make use of all unspent fees held over five years.
There is no impact on City resources since all qualified impact fees held by the City for over five years are either spent or committed, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000-66003.
Parks Mitigation Fee
The Parks Mitigation Fee was adopted in fiscal year 2014-15 and went into effect in fiscal year 2016-17.
Fees received can be used to acquire public parkland and/or make necessary park improvements according to the restrictions of the Mitigation Fee Act and help the City to address its park, recreation and open space needs. The City completed a Parks & Recreation Facilities Development Impact Fee Study in 2014 and in 2019 which were both reviewed and approved by the City Council after community and stakeholder public comment hearings. These reports provide the necessary findings required by the 5 AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2025
Mitigation Fee Act and Quimby Act for the adoption of this fee by Council resolution contained in the Municipal Fee Schedule. These reports provide facility cost and land acquisition cost data and analysis and describe the methodology for calculation of the fees.
The parks and recreation facilities fees use an existing inventory demand standard translated into facility costs per capita to determine new development’s fair share of planned facility costs. A cost standard provides a reasonable method for converting disparate types of facilities, in this case parkland and special use recreational facilities, into a single measure of demand (capital cost per capita). New residential development would fund the expansion of facilities at the same rate that existing residential development has provided facilities to date. The City uses the existing ratio of developed parkland per 1,000 residents.
In 2010 the standard was 2.45 acres. The current standard is 2.60 acres. (Quimby Act allows a 3.0 acres/1,000 resident standard).
The calculation tables are provided in the in-Lieu Fee Resolution adopted by Council, posted on the City website and incorporated into the Municipal Fee Schedule. Based on the date the resident developer’s project application is deemed complete, the total parkland due can be calculated, the developed parkland dedicated, and credits deducted for eligible on-site recreational amenities.
The following table summarizes the activity for the Parks Mitigation Fee from fiscal year 2020-21 through fiscal year 2024-25.
Fund 532 2020-21 2021-22 2022-23 2023-24 2024-25
Beginning Balance 10,771,523 $ 8,937,718 $ 20,682,234 $ 45,670,527 $ 43,767,479 $ Developer Fees 1,522,149 14,634,898 36,637,032 2,177,539 1,508,002 Interest Income 110,320 124,450 577,716 852,739 1,468,464 Expenditures (3,466,274) (3,014,832) (12,226,455) (4,933,326) (6,023,065) Ending Balance 8,937,718 $ 20,682,234 $ 45,670,527 $ 43,767,479 $ 40,720,880 $ During the fiscal year 2024-25, the City collected $1,508,002 in Parks Mitigation Fees, earned $1,468,464 in interest, and incurred expenditures of $6,023,065 on various projects. The balance of the Parks Mitigation Fees as of June 30, 2025 is $40,720,880 with no fees being held for over five years.
There is no impact on City resources since all qualified impact fees held by the City for over five years are either spent or committed, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000-66003.
6 AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2025
Tasman East Specific Plan Infrastructure Impact Fee
On November 13, 2018, the City Council adopted the Tasman East Specific Plan to guide the transition of an underutilized 45-acre industrial neighborhood east of the Great America Transit Center into a pedestrian-friendly, transit-oriented development, providing for the addition of 4,500 new residential units, 100,000 square feet of retail, and 10 acres of open space near transit and jobs. In coordination with developers within the specific plan area, the City established an Infrastructure Impact Fee for the specific plan area to create an equitable distribution of area-wide and common public infrastructure costs for all residential developments within the specific plan and to finance capital facility and infrastructure costs to serve these developments.
Ordinance No. 2026 Adding Subsection 17.15.350 to Chapter 15 of Title 17 of the Santa Clara City Code Regarding the Tasman East Specific Plan Infrastructure Impact Fee was adopted on November 17, 2020.
The following table summarizes the activity for the Tasman East Specific Plan Infrastructure Impact Fee from fiscal year 2020-21 through fiscal year 2024-25.
Fund 541 2020-21 2021-22 2022-23 2023-24 2024-25
Beginning Balance - $ (170,921) $ 3,260,003 $ 5,960,739 $ 5,943,663 $ Developer Fees - 3,465,453 4,411,858 335 -
Interest Income - 5,896 75,296 118,993 217,682
Expenditures (170,921) (40,425) (1,786,418) (136,404) (27,793) Ending Balance (170,921) $ 3,260,003 $ 5,960,739 $ 5,943,663 $ 6,133,552 $ In the fiscal year 2024-25, the City did not receive developer fees, earned $217,682 in interest and incurred expenditure of $27,793 in project costs. The accumulative balance of the Tasman East Specific Plan Infrastructure Impact Fees at the end of fiscal year 2024-25 is $6,133,552 with no fees being held for over five years.
There is no impact on City resources since all qualified impact fees collected by the City have been spent, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000-66003.
Affordable Housing Fee
The Affordable Housing Fee was adopted to mitigate the impacts of new market-rate housing development and non-residential development on the need for affordable housing, in addition to assisting in meeting the City’s share of the region’s housing need and implementing the goals, policies and actions specified in the Housing Element of the general plan. City Council passed Ordinance 1974 on December 5, 2017 which established the affordable housing fee applicable to residential and nonresidential projects and to encourage the development of rental housing and as well as smaller units that may be more affordable by design. The fees established are significantly lower than the amount needed to fully mitigate the impacts of the new for sale and rental resident projects and non-residential project on the need for affordable housing. The fees shall automatically adjust for inflation annually using the Engineering News Record McGraw-Hill Construction Weekly Building Index for San Francisco. 7 AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2025
The following table summarizes the activity for the Affordable Housing Fee from fiscal year 2020-21 through fiscal year 2024-25.
Fund 565 2020-21 2021-22 2022-23 2023-24 2024-25
Beginning Balance - $ 131,284 $ 5,760,577 $ 6,487,986 $ 6,535,204 $ Developer Fees 130,201 5,613,415 630,142 16,150 3,479,128 Interest Income 1,083 15,878 97,267 31,068 394,430
Expenditures - - - - -
Ending Balance 131,284 $ 5,760,577 $ 6,487,986 $ 6,535,204 $ 10,408,762 $ On November 14, 2023, the City Council approved RTC 23-952, authorizing a $4,944,484 loan to Charities Housing Development Corporation of Santa Clara County to support the construction of 106 affordable housing units at 1601 Civic Center Drive. Accordingly, an internal transfer of $4,944,484 was made from Fund 565 to the City Affordable Housing Fund 165 to restrict funding for the development of Project #16506 - Civic Center Drive. However, at this time, the project has not yet commenced. As a result, the transfer reported in fiscal year 2023-24 has been restated to zero and the catch-up interest related to the restated amount has been reflected in interest income in fiscal year 2024-25. During the fiscal year 2024-25, the City collected $3,479,128 in developer fees and earned $394,430 in interest. The accumulative balance of Affordable Housing Fees as of June 30, 2025 is $10,408,762 with no fees being held for over five years.
There is no impact on City resources since all qualified impact fees collected by the City have been spent, thus eliminating the need to refund any fees to developers according to Government Code Sections 66000-66003.
Patrick Henry Drive Infrastructure Impact Fee
On March 22, 2022, the City Council adopted the Patrick Henry Drive Specific Plan (Specific Plan) to guide the transition of an underutilized 74-acre industrial neighborhood bounded by Mission College to the south, Great America Parkway to the east, the Hetch-Hetchy right-of-way to the north, and Calabazas Creek to the west into a pedestrian-friendly, transit-oriented neighborhood. The Specific Plan contemplates two unique land use scenarios related to proposed residential units and office uses. The Specific Plan also incorporates approximately 310,000 square feet of neighborhood-oriented convenience retail and up to 14 acres of open space which will include a diverse network of public parks, publicly accessible green infrastructure, and private recreational spaces.
Ordinance No. 2046 Adding Subsection 17.15.360 to Chapter 15 of Title 17 of the Santa Clara City Code Regarding the Patrick Henry Drive Specific Plan Infrastructure Impact Fee was adopted on March 22, 2022.
In the fiscal year 2024-25, no activities were conducted for this impact fee.
PUBLIC NOTICE: Public notification was achieved by posting the availability of the report 15 days prior to the meeting, as required by Government Code Section 66006(b)(2). 8 AB1600 REPORT ON DEVELOPMENT IMPACT FEES
For Fiscal Year ended June 30, 2025
Attachments:
Exhibit A: Summary of Development Impact Fees
9 Traffic Mitigation Fee (Fund 123 and 533)
FY 2023-24 Ending
Fees Collected
Interest Earned
Expenditures
Fund Balance $
8,991,018
414,853
249,350
(4,939,039)
FY 2024-25 Ending Fund Balance $ 4,716,182
Funds Accumulated in Current and Last
Funds Held Longer than 5 Years
5 Years $
$
4,365,552
350,630
Projects Programmed for Impact Fees $ 5,053,409
Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2025
Streets and Highways (Fund 123 & 533)
Traffic Mitigation Fee
Since Inception Date Through June 30, 2025
10 Project
# Description
Project Status/
Estimated
Completion Year
Total Project
Appropriation All
Funding Sources
Funding
Status
1217 Traffic Signal Management Software Upgrade/Replacement 2025 $ 3,372,871 100% 1218 Traffic Pre-Emptors 2025 1,445,259 100%
1219 Traffic Signal Enhancements Ongoing 2,437,831 88%
1220 Pedestrian and Bicycle Enhancement Facilities Ongoing 1,560,196 100% 1225 Santa Clara VTA - Congestion Management Program Ongoing 281,000 100% 1232 Traffic Signal Interconnect Upgrade 2032 1,293,217 100% 1234 Transportation Modeling Update Ongoing 266,700 100% 1237 MCB/GAP Intersection Improvement Project 2025 12,988,606 100% 1245 Benton Bike Lanes 2025 1,726,000 100%
1246 Bassett and Laurelwood Bicycle Lanes 2025 1,428,058 52% 1251 HAWK Beacon on Scott and Harrison 2025 750,000 100% 1259 Monroe Los Padres Traffic Signal Modification 2025 1,180,000 100% 1261 Santa Clara School Access Improvements 2025 2,471,000 100% 1272 TDA21 Bicycle Facilities Upgrade 2025 131,410 100% 1274 Lafayette St Class IV Bike Lanes 2026 600,000 86%
1275 De La Cruz Boulevard Class IV Bikeway Study 2025 250,083 100% 1276 Monroe Street Class II Buffered Bike Lane Study 2025 263,700 100% 1277 Walsh Avenue Class IV Bikeway Study 2025 301,708 100% 1280 MCB Class IV Bike Lanes 2025 65,000 100%
1282 Traffic Impact Fee Nexus Study Update 2026 300,000 100% 1283 Steven Creek Boulevard Vision Study 2025 100,296 100% 1285 Pruneridge Avenue Signal Timing 2025 1,000,000 95% 1376 Safe Route to School Ongoing 1,309,157 84%
1386 Santa Clara Citywide ITS Project 2 2025 1,304,198 100% Totals $ 36,826,290
Total Impact Total Impact Impact Fee FY 2024-25
% Impact Fee Fee Appropriation Impact Fee
Fee Funded Appropriation Expenditures Remaining Expenditure 89% $ 3,000,942 $ 2,479,068 $ 521,874 $ 34
94% 1,358,104 647,831 710,273
61% 1,481,824 653,742 828,082 2
96% 1,495,196 1,383,560 111,636
100% 281,000 280,638 362 28
100% 1,293,217 904,034 389,183 76
94% 250,000 152,110 97,890
36% 4,735,309 4,735,309 - 2,55
14% 249,000 129,810 119,190
29% 410,000 318,001 91,999 31
100% 750,000 492,292 257,708
11% 127,856 10,722 117,134
54% 1,325,000 1,127,511 197,489 (84
28% 37,356 36,717 639
3% 20,000 297 19,703
44% 110,083 87,338 22,745 3
47% 123,700 98,911 24,789
42% 126,708 94,150 32,558 1
83% 53,877 3,694 50,183
100% 300,000 19,000 281,000
100% 100,296 98,935 1,361 9
92% 915,030 10,689 904,341 1
8% 102,653 28,660 73,993 2
62% 804,198 604,921 199,277 53
$ 4,93 $ 19,451,349 $ 14,397,940 $ 5,053,409
11 Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2025
Sanitary Sewer Outlet Fee (Fund 594)
Sanitary Sewer Outlet Fee (Fund 594)
FY 2023-24 Ending Fund Balance $ 130,907
Fees Collected (Refunded) 24,579
Interest Earned 5,621
FY 2024-25 Ending Fund Balance $ 161,107
Funds Accumulated in Current and Last 5 Years $ 161,107 Funds Held Longer than 5 Years $ -
Projects Programmed for Impact Fees $ -
12 Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2025
Sanitary Sewer Connection Fee (Fund 594)
Sanitary Sewer Connection Fee (Fund 594)
FY 2023-24 Ending Fund Balance $ (167,750,089)
Fees Collected 545,586
Expenditures (8,108,204)
FY 2024-25 Ending Fund Balance $ (175,312,707)
Funds Accumulated in Current and Last 5 Years $ -
Funds Held Longer than 5 Years $ -
Projects Programmed for Impact Fees $ -
Project
# Description Project Status
Total Project
Appropriation All
Funding Sources
Funding
Status
% Impact
Fee Funded
Total Impact Fee
Appropriation
Total Impact Fee
Expenditures
Impact Fee
Appropriation
Remaining (1)
FY 2024-
Expenditure
1908 S.J.- S.C. Regional Wastewater Facility Ongoing $ 265,629,552 100% 37% $ 99,494,491 $ 99,494,491 $ - $ Sanitary Sewer Connection Fee
Since Inception Date Through June 30, 2025
Note (1) Amounts have been transferred within the Sewer Enterprise Operating Fund and Debt Service Fund to make up the negative balance for Capital Projects financed with AB1600 Development Fees There were no interfund loans.
Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2025
Sanitary Sewer Conveyance Fee (Fund 594)
Sanitary Sewer Conveyance Fee (Fund 594)
FY 2023-24 Ending Fund Balance
Fees Collected
Interest Earned
Expenditures
FY 2024-25 Ending Fund Balance
$
$
55,815,618
1,328,550
2,048,922
(467,919)
58,725,171
Funds Accumulated in Current and Last 5 Years
Funds Held Longer than 5 Years
Projects Programmed for Impact Fees
$
$
$
29,847,942
28,877,229
43,285,158
13 Project
# Description
Project
Status
Total Project
Appropriation
All Funding
Sources
Funding
Status
1909 Sanitary Sewer Capacity Improvements Ongoing $ 55,648,450 100% 1920 Sanitary Sewer Master Plan Update Ongoing 1,069,038 100% Totals $ 56,717,488
Sanitary Sewer Conveyance Fee
Since Inception Date Through June 30, 2025
% Impact
Fee Funded
100%
Total Impact
Fee
Appropriation
$ 55,648,450
Total Impact
Fee
Expenditures
$ 12,363,292
Impact Fee
Appropriation
Remaining
$ 43,285,158
FY 2024-25
Impact Fee
Expenditure
$ 467,919
100% 480,038 480,038 - -
$ 56,128,488 $ 12,843,330 $ 43,285,158 $ 467,919
Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2025
Storm Drain Fee (Fund 535)
Storm Drain Fee (Fund 535)
FY 2023-24 Ending Fund Balance
Fees Collected
Interest Earned
Expenditures Adjustment
FY 2024-25 Ending Fund Balance
$
$
300,670
1,869
10,940
-
313,479
Funds Accumulated in Current and Last 5 Years
Funds Held Longer than 5 Years
Projects Programmed for Impact Fees
$
$
$
139,761
173,718
302,630
14 Project
# Description Project Status
Total Project
Appropriation
All Funding
Sources Funding Status
1831 Miscellaneous Storm Drain Improvements Ongoing $ 466,577 100% 1834 Storm Drain System Improvement Ongoing 594,826 100% Totals 1,061,403 $
Storm Drain Fee
Since Inception Date Through June 30, 2025
% Impact Total Impact Total Impact Impact Fee FY 2024-25 Fee Fee Fee Appropriation Impact Fee
Funded Appropriation Expenditures Remaining Expenditure 21% $ 100,000 $ - $ 100,000 $
100% 594,826 392,196 202,630
$ 694,826 $ 392,196 $ 302,630 $
15 Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2025
Parks Mitigation Fee (Fund 532)
Parks Mitigation Fee (Fund 532)
FY 2023-24 Ending Fund Balance
Fees Collected
Interest Earned
Expenditures
FY 2024-25 Ending Fund Balance
$
$
43,767,479
1,508,002
1,468,464
(6,023,065)
40,720,880
Funds Accumulated in Current and Last 5 Years
Funds Held Longer than 5 Years
Projects Programmed for Impact Fees
$
$
$
40,720,880
-
19,038,676
Project
# Description
Project
Status/
Estimated
Completion
Year
Total Project
Appropriation All
Funding Sources Funding Status
3101 Park & Recreation Master Plan Ongoing 442,804 $ 100% 3102 Facility Condition Assessment Update Ongoing 400,000 100% 3126 Patrick Henry Community Art Center Ongoing 55,426 100% 3127 Parkland Acquisition Ongoing 11,610,748 100%
3128 MFA Developer Reimbursement Project Ongoing 210,572 100% 3130 Maywood ParkPlaygrnd Rehab Ongoing 2,337,382 89%
3133 Central Park Master Plan New Improvement 2027 5,690,904 100% 3136 Westwood Oaks Park Playground Rehabilitation 2025 3,570,800 100% 3181 Park Impact Fees Monitoring Project Ongoing 2,091,182 100% 3183 Central Park Arbor Playground 2025 9,134,368 95%
3184 Montague Park Enhancement 2025 7,858,340 100%
3187 Bowers Roof Replacement Ongoing 1,466,934 100%
3195 Henry Schmit Park Playground Rehabilitation 2026 510,000 100% 3196 Central Park Aquatic Center Planning & Design 2026 10,254,931 100% 3197 Parks Service Center Improvement 2028 1,035,000 100% 3199 Park&Rec Engineering Management Ongoing 1,780,129 100% Totals 58,449,520 $
Parks Mitigation Fee
Since Inception Date Through June 30, 2025
Total Impact Total Impact Impact Fee FY 2024-25
% Impact Fee Fee Appropriation Impact Fee
Fee Funded Appropriation Expenditures Remaining Expenditure 84% $ 371,454 $ 214,878 $ 156,576 $ 93,029
100% 400,000 - 400,000 -
100% 55,426 55,426 - -
85% 9,879,031 - 9,879,031 -
100% 210,572 - 210,572 -
3% 80,760 - 80,760 -
100% 5,690,904 540,068 5,150,836 278,307
100% 3,570,800 3,234,618 336,182 339,740
70% 1,462,914 1,269,000 193,914 132,101
48% 4,363,413 4,099,874 263,539 4,081,054
100% 7,858,340 6,920,128 938,212 67,717
53% 780,000 - 780,000 -
54% 275,000 275,000 - 275,000
3% 358,000 358,000 - 131,784
71% 735,000 85,946 649,054 85,634
67% 1,196,689 1,196,689 - 538,69
$ 37,288,303 $ 18,249,627 $ 19,038,676 $ 6,023,06
Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2025
Tasman East Specific Plan Infrastructure Impact Fee (Fund 541) Tasman East Specific Plan Infrastructure Impact Fee (Fund 541) FY 2023-24 Ending Fund Balance
Fees Collected
Interest Earned
Expenditures
FY 2024-25 Ending Fund Balance
$
$
5,943,663
-
217,682
(27,793)
6,133,552
Funds Accumulated in Current and Last 5 Years
Funds Held Longer than 5 Years
Projects Programmed for Impact Fees
$
$
$
6,133,552
-
2,856,408
16 Project
# Description
Project
Status
Total Project
Appropriation
All Funding
Sources
Funding
Status
4610 Tasman East Admin Study and Engineering Ongoing 403,504 $ 100% 4611 Tasman East Developer Reimbursement Project Ongoing 4,598,904 100% Totals $ 5,002,408
Affordable Housing Fee
Since Inception Date Through June 30, 2025
% Impact Total Impact Total Impact Impact Fee FY 2024-25 Fee Fee Fee Appropriation Impact Fee
Funded Appropriation Expenditures Remaining Expenditure 97% $ 391,672 $ 362,452 $ 29,220 $ 27,793
100% 4,598,904 1,771,716 2,827,188 -
$ 4,990,576 $ 2,134,168 $ 2,856,408 $ 27,793
Exhibit A
City of Santa Clara
Summary of Local Agency Improvement Fees
(AB 1600 Development Impact Fees)
Report for Fiscal Year Ended June 30, 2025
Affordable Housing Fee (Fund 565)
Affordable Housing Fee (Fund 565)
FY 2023-24 Ending Fund Balance $ 1,590,720
Fees Collected 3,479,128
Prior period Adjustment 4,944,484
Interest Earned 394,430
Expenditures -
FY 2024-25 Ending Fund Balance $ 10,408,762
Funds Accumulated in Current and Last 5 Years $ 10,408,762 Funds Held Longer than 5 Years $ -
Projects Programmed for Impact Fees $ 4,944,484
17 Project
# Description Project Status
Total Project
Appropriation
All Funding
Sources
Funding
Status
16506 Civic Center Ongoing $ 4,944,484 100%
Affordable Housing Fee
Since Inception Date Through June 30, 2025
Total Impact Total Impact Impact Fee
% Impact Fee Fee Fee Appropriation
Funded Appropriation Expenditures Remaining
100% 4,944,484 $ - $ 4,944,484