REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution Accepting the AB1600 Report on Development Impact Fees for Fiscal Year Ended June 30, 2024
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
A development impact fee is a monetary exaction other than a tax or special assessment that is charged by a local governmental agency to an applicant in connection with approval of a development project for the purpose of defraying all or a portion of a development project’s impact on public facilities with certain exceptions. The legal requirements for enactment of a development impact fee program are set forth in Government Code §§ 66000-66025 (the "Mitigation Fee Act"), the bulk of which were adopted as 1987’s AB 1600 and thus are commonly referred to as “AB 1600 requirements.” Under AB 1600, there must be reasonably relation between amount of the fee and the cost of the public facility or portion of the public facility attributable to the development on which the fee is imposed.
The allocation of all development impact fees is included in the annual budget process and detailed in the most recent FY 2024/25 & FY 2025/26 Biennial Capital Budget. In addition to the legal required uses of these fees, the allocation of these fees aligns with department and Council priorities. All programmed project allocations will strategically incorporate those priorities, community needs and the goals outlined in specific infrastructure plans (e.g. Park Master Plan).
DISCUSSION
Attached is the AB1600 Report on Development Impact Fees for the fiscal year ended June 30, 2024. This report contains all the information required by Government Code Section 66006(b). AB 1600 also require that the City make certain findings with respect to unexpended funds held by the City in excess of five years. Staff has determined that the following City funds and amounts meet this threshold: 1) Traffic Mitigation funds of $3,134,582; 2) Sanitary Sewer Conveyance funds of $21,913,625; and 3) Storm Drain Impact funds of $159,214. In conformance with AB 1600, the City does not have any refund exposure for these funds as they have been budgeted to fund future projects. Therefore, Staff is submitting the attached Resolution to accept the AB1600 Report and make findings that there is a continuing need for these unexpended balances, among other required findings.
On December 20, 2024, the City posted notice and made copies of the report available for public review in the City Clerk’s Office, the Finance Department, and online at www.Santaclaraca.gov/Finance. In addition, written notice of the time and place of the regularly scheduled City Council meeting on January 28, 2025, along with a copy of the AB1600 Report, were sent to interested parties as requested.
Staff has scheduled a review of this report for the regularly scheduled City Council meeting on January 28, 2025. More than 15 days will have elapsed as of the date of City Council review since the report was made available to the public, as required by applicable state law.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(4) of Title 14 of the California Code of Regulations in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
There is no cost to the City other than administrative staff time and expense to develop the report and resolution. There is no economic/fiscal impact since all qualified impact fees held by the City for over five years are either spent or committed, thus eliminating the need to refund any fees to developers according to the Government Code Sections 66000-66003.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Adopt a Resolution accepting the AB1600 Report on Development Impact Fees for fiscal year ending June 30, 2024, and making findings regarding the continuing need for the unexpended balances of certain impact fees as of June 30, 2024.
Staff
Reviewed by: Kenn Lee, Director of Finance
Approved by: Jovan Grogan, City Manager
ATTACHMENTS
1. AB1600 Report on Development Impact Fees
2. AB1600 Resolution