Agenda Item Wording:
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2024/25 AB 1600 Report - Request for City Council to receive, review, and file the 2024/25 Impact Fee Report as required by State Law.
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Prepared by: Renee Nagel, Finance and Technology Director,559-713-4375, Renee.Nagel@visalia.gov; Amee Swearingen, Budget Analyst, 559-713-4170, Amee.Swearingen@visalia.gov
Department Recommendation: The 2024/25 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.
Summary:
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 2024/25 Fiscal Year, the Impact Fee funds received $22.3 million in revenues which is an increase of 13.6% ($3.0 million) from the previous year (FY 23/24 revenues $19.3 million). The $22.3 million consists current year impact fee revenue, prior year revenue adjustments, and interest earnings as shown in the table below.
As shown in the Impact Fee report (Attachment 1), a total of $15.4 million was spent on impact fee related projects in the 24/25 Fiscal Year. The funds collectively hold $93.0 million in cash; however, these funds will need to collect an additional $201.9 million by FY 29/30 to fund the projects listed in the current 6-Year Capital Improvement Plan. Projects are planned based upon the resources projected to be available in each respective fund, and the Capital Impro...
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