Annually, the City is required to report on the disposition of collected development fees and to provide information related to the use of these fees when funding capital improvements.  Pursuant to Government Code Section 66006 (b), this Report must be reviewed by the City Council at a public meeting, not less than fifteen days after this information is made available to the public.  The attached Report summarizes the activity in several development impact fee funds, as it pertains to information for Fiscal Year ending June 30, 2018.

Fees that have been deposited with the City for more than five years must be identified and evaluated as required by Government Code Section 66001 (d)(1).  At this time, the City does not have any funds that were originally deposited in, or prior to, June 30, 2013.   First funds received are first funds utilized.

In general, the City collects development impact fees to offset the impacts of new development projects in the City.  These impacts are usually associated with increased demand placed on city facilities due to the additional usage of the facilities.  For example, the City collects a drainage fee to improve drainage facilities.  As development occurs, more of the city’s natural surfaces are replaced with paved surfaces.  Paved surfaces do not absorb storm water, causing the runoff to go into the public streets.  If drainage facilities are not improved, the streets will experience significant flooding that could damage private property.

There is no impact to the General Fund.

It is recommended that the City Council:

•  Receive and file the Fiscal Year 2017-18 Development Impact Fee Annual Report as required by Government Code Section 66006 (b).

By: Ana V. Neal, Sr. Administrative Analyst