City Council Agenda
Memo to:
Manteca City Council
From:
Shay Narayan Finance Director
Prepared by:
Loretta Olmos, Senior Budget Analyst
Date:
November 19, 2024
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 ended June 30, 2021.
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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 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 repo...
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