Agenda Item Wording:
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2022/23 Impact Fee Report - Request for City Council to receive, review, and file the 2022/23 Impact Fee Report as required by State Law.
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Deadline for Action: 12/30/2023
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Renee Nagel, Finance and Technology Director 713-4375, Amee Swearingen Financial Analyst 713-4170
Department Recommendation:
The 2022/23 Impact Fee Report has been prepared and submitted in compliance with California Government Code Section 66006(a) and (b), and no Council action is required other than to receive, review, and file the report.
Background Discussion:
Development impact fees are a funding mechanism used by California cities to pay for the new or expanded infrastructure needed to serve growth and development. Impact fees are imposed by a local government on new development to pay for the proportionate costs attributable to providing public infrastructure to serve each new development. Impact fees are a charge on new development which helps fund and pay for the construction or needed expansion of offsite capital infrastructure improvements which include roads, parks, storm drains, public safety and other public facilities.
In the 2022-23 Fiscal Year, the City collected Impact Fee revenues of $13.1 million which is a decrease of 29% from the previous year (FY 21/22 collected $16.1 million). The decrease in revenue is an effect of the slowdown in development in Visalia. These funds also receive investment earnings and some miscellaneous revenues.
As shown in the Impact Fee report (Attachment 1), a total of $3 million was spent on impact fee related projects in the 22/23 Fiscal Year. The funds collectively hold $68.2 million in cash; however, these funds will need to collect an additional $131 million by FY 27/28 to fund the projects listed in the current 6-Year Capital Improvement Plan. Projects are planne...
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