REPORT TO COUNCIL
SUBJECT
Title
Receive and File FY 2015/16 Annual Status Report on Receipt and Use of Development Impact Fees and Adopt a Resolution Approving Findings Regarding Unspent Impact Fees (Exempt from CEQA pursuant to Section 15378(b)(4) of the CEQA Guidelines)
Report
BACKGROUND
In order to ensure that mitigation fees are spent in a timely manner and on projects for which they were being collected, the State Legislature passed the Mitigation Fee Act (AB 1600). This bill applies to developer fees which were increased or imposed on or after January 1, 1989.
The Mitigation Fee Act (California Government Code Section 66000 et seq.) requires local agencies to present an annual, consolidated report showing the receipt and use of all development impact fees that are subject to the act collected by the agency. The Annual Status Report must be reviewed by Council within 180 days after the close of the fiscal year represented.
The Mitigation Fee Act also requires that the local agency make certain findings every five years regarding any unspent impact fees. Previously, the City's impact fees have been on separate reporting timetables. Council last made the required findings for the Housing Mitigation Fees, Park Dedication Fees, and Traffic Mitigation Fees in 2011 (for FY 2010/11). The required findings for the Transportation Impact Fees and Sense of Place Fees were made in 2014 (for FY 2013/14). As new fees are adopted (such as the Sense of Place and Infrastructure Fees recently adopted for Peery Park), the complexity of complying with the Mitigation Fee Act's reporting requirements will increase. Many agencies have opted to make the required 5-year findings for all impact fees every year when the annual report is presented. This increases efficiency and public transparency and eliminates the possibility that a deadline will be missed. Therefore, starting with the FY 2015/16 Report, a resolution making the required findings for all impact fees will be prov...
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