City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Matthew Boring, Interim Finance Director |
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Prepared by: |
Loretta Olmos, Senior Budget Analyst |
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Date: |
December 2, 2025 |
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Subject: |
Receive and File Report on the Review of Development Impact Fees Subject to AB 1600 Annual (Fiscal Year 2024-25) and Five-Year (Fiscal Year 2020-21 through Fiscal Year 2024-25) Reporting Requirements |
Recommendation:
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Adopt a resolution accepting, filing, and making the findings identified in the City’s AB 1600 Annual report for the fiscal year ended June 30, 2025 and Five-Year (Fiscal Year 2020-21 through Fiscal Year 2024-25) report on Development Impact Fees.
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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:
• 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.
• The revenue fee must be segregated from the general fund in order to avoid commingling of public improvement fees and the general fund.
• 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.
• If a local jurisdiction cannot make the findings required under Paragraph 3, the city or county must refund the fees collected.
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 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
• Identification of any refunds made, and the number of persons or entities refunded
• Identification of each public improvement in previous year’s report (Fiscal Year 2023-24) and report whether construction began with an approximate date; if not, then provide reason for delay and a revised date construction will commence.
For the fifth fiscal year following the first deposit into the account or fund, and every five years thereafter, the City must make the following findings with respect to any remaining funds in the fee account, regardless of whether those funds are committed or uncommitted:
• An identification of the purpose to which the fee is to be put
• A demonstration of a reasonable relationship between the fee and the purpose for which it is charged
• An identification of all sources and amounts of funding anticipated to complete financing of incomplete improvements in the fee program
• A designation of the approximate date on which the funding is expected to be deposited into the appropriate account or fund
The attached report outlines each development fee, including its purpose, current balance, fee amount, interest earned, and the planned improvements to be funded by these revenues. These fees are development impact fees only-not user fees-and are collected one time from new development projects. Similar reports have been presented to the City Council in previous years.
This report will serve as the City of Manteca’s AB 1600 report for the fiscal year starting July 1, 2024, and ending June 30, 2025. This report also satisfies the five-year findings requirement for fiscal years starting July 1, 2020, and ending June 30, 2025.
The report (Attachment 2) was completed and made available to the public on November 14, 2025, satisfying the requirement that it be accessible at least 15 days prior to the City Council meeting.
The only action required of the City Council is to adopt the attached resolution, which formally receives the report and affirms its findings as those of the City Council. This action must be completed within 180 days of the close of fiscal year 2025, which is December 27, 2025.
This report fulfills the AB 1600 Annual and Five-Year requirements.
Fiscal Impact:
There is no fiscal impact associated with this proposed Council action.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - AB 1600 Annual and Five-Year Report