Agenda Item Wording:
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2023/24 AB 1600 Report - Request for City Council to receive, review, and file the 2023/24 Impact Fee Report as required by State Law.
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Deadline for Action: 12/3/2024
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Renee Nagel, 713-4375, renee.nagel@visalia.city
Amee Swearingen, 713-4170, amee.swearigen@visalia.ciy
Department Recommendation:
The 2023/24 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 2023-24 Fiscal Year, the Impact Fee funds received $19.3 million in revenues which is an increase of 32% ($6.2 million) from the previous year (FY 22/23 revenues $13.1 million). The $19.3 million consists current year impact fee revenue, prior year revenue adjustments, and interest earnings as shown in the table below. FY 23/24 investment earnings had a large increase mainly due to Government Accounting Standards Board (GASB) 31. GASB 31 requires the City to recognize all investments future gains and losses which inflates or deflates the actual amount received. Due to the investment market, FY 23/24 had unrealized investment gains which in...
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