Parks & Recreation Impact Fee Overview
December 2, 2025
Finance & Technology Department
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PARK & RECREATION IMPACT FEE
The Park & Recreation Impact Fee is a development fee which is used to fund new or expanded infrastructure to serve growth and development. These fees are charged on new development when the final parcel map is recorded and when permits are issued.
Impact fees are increased annually by the Engineering News Record Construction Cost Index (ENRCCI).
These fees are not allowed to be used for maintenance or to improve existing infrastructure.
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Current Park & Recreation Impact Fee Capital Plan (FY 2526 – FY 29/30)
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PARK & RECREATION IMPACT FUND – 5 YR FINANCIAL SUMMARY
Capital costs do not include:
Aquatic Center;
East Side Regional Park construction; or
Additional Projects that will be determined with the updated Master Plan
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Parks and Recreation Staff will return on Dec 15th to present:
Conceptual designs for parks at Elliott Property and Pearl Wood. Staff will also request to transfer funds from existing projects.
Aquatic Center estimates as directed by Council.
CURRENT PROJECTS NEEDING ADDITIONAL FUNDING
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The impact fee collected is approximately $2.6 million annually. Based on Pearl Wood Park estimated cost of $7.5 million, the entire fee for 3 years would need to be dedicated for the park which equates to 1,568 single family houses.
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What can be done to solve the funding shortfall?
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CURRENT FUNDING OPTIONS AVAILABLE NOW
Continue to pursue additional grants – competitive and not guaranteed Direct General Fund money towards projects – This would take away from operations or limit any additional capital needed for other departments Use one-time monies – property sales and surplus funds. This option is very limited due to available properties and the amount of surplus available.
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Increase Park Impact Fee – This is expected to be a recommendation once the Parks Master Plan is completed in Spring 2027.
Increase Transient Occupancy Tax (TOT) – each 1% increase would generate approx. $500,000 annually.
Increase Sales Tax – Each .25% increase would generate approx. $9 million annually. Maximum sales tax rate for Tulare County is 9.25%, which is .75% higher than Visalia’s current rate. An additional .75% would generate an additional $27 million.
Implement Utility Users Tax (UUT) – Visalia and Farmersville are the only two cities in Tulare County that do not have Utility Users Tax. Cities in Tulare County range between 5-7%. 1% would generate approx. $2.5 million annually (6% would generate approx. $15 million) Implement Cannabis Retail Sales Tax – Estimates vary, but it’s projected that cannabis could generate an additional $500,000 a year.
ADDITIONAL FUNDING OPTIONS
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TAX RATES FOR TULARE COUNTY CITIES’
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RECOMMENDATION:
Staff recommends Council receive the Park & Recreation Facilities funding update and revenue options.