City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Shay Narayan, Finance Director |
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Prepared by: |
Loretta Olmos, Senior Budget Analyst |
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Date: |
December 17, 2024 |
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Subject: |
Receive and File Report on the Review of Development Impact Fees Received by the City of Manteca that are Subject to AB 1600 Reporting Requirements |
Recommendation:
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Adopt a resolution accepting, filing, and making the findings identified in the City’s AB 1600 report on Development Impact Fees for the fiscal year ending June 30, 2024.
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Background:
The City is authorized, by state law, to collect development impact fees from new development to fund public improvements and services to support the new development. AB 1600 (Government Code Sections 66000-66008), known as the Mitigation Fee Act, requires cities to justify and account for developer fees which they enact, increase or impose as a condition of new development for the purposes of financing public facilities and improvements. This bill applies to developer fees increased or imposed on or after January 1, 1989. Government Code Sections 66000-66008 generally contain the following four requirements:
1. A local jurisdiction must follow the process set forth in the bill and make certain determinations regarding the purpose and use of the fees and establish a “nexus” or connection between a development project or class of project and the public improvement being financed with the fee.
2. The fee revenue must be segregated from the general fund in order to avoid commingling of public improvement fees and the general fund.
3. If a local jurisdiction has had possession of a developer fee for five years or more and has not committed that money to a project or actually spent that money, then it must make findings describing the continuing need for that money. In addition, an annual report must be made of fees collected, interest earned, projects on which fees were expended, and any transfers or loans from the fee account. This report is to be reviewed by the local agency assessing the fees.
4. If a local jurisdiction cannot make the findings required under Paragraph 3, the city or county must refund the fees collected.
This report fulfills the AB 1600 requirements.
In accordance with the provisions of California Government Code Section 66001 (AB1600), the City is required to prepare a report annually which reviews the status of any development fees collected. Specifically, the annual report must include:
- A description of the development fee
- Fee schedule
- Amount of fees collected, interest earned, funds spent and remaining balance
- Estimated timeline for expending funds if sufficient funding has been collected for an identified project.
The attached report provides specific information regarding the types of development fees, their amounts, purposes, balances, interest earned for each and planned improvements to be funded by the various fees. The fees referenced in the report are development fees only - not user fees. They are one-time fees assessed of new development. Similar reports have been presented to the City Council in previous years.
Fiscal Impact:
There is no direct fiscal impact associated with this action.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - AB1600 Report