City Council Staff Report Page 1 of 2 December 16, 2025 Staff Report
Agenda Item No. 4.1
DATE: December 16, 2025
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Accepting the Annual Report for Fiscal Year 2024-2025 Concerning Sources and Uses of Development Impact Fees Pursuant to Government Code Section 66000, et seq., and Making Certain Findings Related Thereto
EXECUTIVE SUMMARY
Staff recommend that the City Council adopt a resolution accepting the annual report for Fiscal Year 2024-2025 concerning sources and uses of Development Impact Fees pursuant to Government Code Section 66000, et seq., and making certain findings related thereto.
STRATEGIC PLAN ALIGNMENT
This agenda item does not have alignment with the Strategic Plan.
BACKGROUND
Established under California Government Code 66000, Development Impact Fees (DIF) are one-time charges by a local agency to finance some or all of the cost of providing public facilities related to a new development project. The enacting agency must identify the uses for the fees and show that there is a reasonable relationship between the public facilities needed and the development upon which the fees will be assessed. These fees can only be used for capital projects and cannot be used for ongoing salaries.
The City has established eight Development Impact Fees that are assessed on development within the City for the following purposes:
Fund 221 – Fire Equipment Acquisition
Fund 235 – Affordable Housing Impact
Fund 255 – Park In Lieu
Fund 261 – Traffic Signalization Impact
Fund 266 – DIPSA Development Impact
Fund 268 – Public Art In Lieu
Fund 411 – Capital Facilities Impact
Fund 412 – Park Facilities Impact
Agenda Item No. 4.1
City Council Staff Report Page 2 of 2 December 16, 2025 3 3 California state law obligates local authorities to compile an annual report on the state of their Development Impact Fee Program, with further assessments mandated every fifth year. The resolution and the report attached to it demonstrate a reasonable relationship between the fees and the purposes for which each is assessed. The reports also provide a status on the Development Impact Fees collected, including the projects funded with these fees and the fund balances of the various Development Impact Fees.
DISCUSSION
As required under AB 1600 guidelines, the reports provide:
• A brief description of the type of fee
• The amount of the fee
• Beginning and ending fund balances, including total fees collected and investment earnings, if applicable
• Identification of the public improvement(s) the fees were used for • Identification and timeline of public improvements any unexpended fees will be used for
• Description and uses for transfers or loans of fees, if applicable • Amount of refunds made pursuant to Section 66001(e), if applicable • Amount of allocations pursuant to Section 66001(f), if applicable
FISCAL IMPACT
There is no fiscal impact related to the review and approval of this resolution and the accompanying report.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution accepting the annual report for Fiscal Year 2024-2025 concerning sources and uses of Development Impact Fees pursuant to Government Code Section 66000, et seq., and making certain findings related thereto.
Prepared by: Chu Thai, Accounting Manager
Submitted by: Jackie Acosta, Finance Director
Attachments
1. Draft Resolution
2. Exhibit A - AB 1600 Annual Report For FY 2024-2025