CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 1 of 7 Item #8 CITY COUNCIL AGENDA REPORT December 17, 2024 Finance TITLE: ADOPT A RESOLUTION FINDING THAT CERTAIN DEVELOPMENT IMPACT FEES SUBJECT TO AB 1600 AND SB 1693 ARE UNEXPENDED AFTER FIVE YEARS AND THE FUNDS ARE COMMITTED TO PARTICULAR PROJECTS SUMMARY As required by AB 1600 and SB 1693, this annual report has been prepared showing the status of development impact fees held as of June 30, 2024. The attached resolution finds that certain development impact fees have been held for five or more years and identifies the projects and the City’s commitment thereto for the City’s retention of the funds. This report also contains the annual information on water and sewer connection fees as required by SB 1760. Staff provided the required public meeting notice on December 2, 2024, and made this report available 15 days in advance of the City Council meeting, as required by law. RECOMMENDATION Adopt a resolution finding that certain development impact fees subject to AB 1600 and SB 1693 are unexpended after five years and the funds are committed to particular projects. BACKGROUND Beginning in 1984, public entities were required to provide an annual accounting concerning the collection and use of all development impact fees. Effective January 1, 1989, AB 1600 (Government Code Section 66000 et seq.) established new accounting guidelines regarding the imposition and use of development impact fees. Effective January 1, 1997, SB 1693 made certain changes to AB 1600 and clarified and expanded the responsibilities of local agencies. In February 1998, SB 1760 further clarified the development impact fees that are subject to AB 1600 and excluded water and sewer connection fees from the requirements to expend these fees within five years. While not required, water and sewer connection fees are included in this report in order to provide the information on the receipt and utilization of these funds. One of the mandated accounting guidelines, as stated in Government Code Section 66006(a), provides that a local agency shall establish separate capital facility accounts for each improvement funded by development impact fees. Any interest income earned by funds in such an account shall also be deposited in that account. Each local agency is required within 180 days after the financial year is closed (for the City this is December 31) to make available to the public the following information for each separate account: (1) the account’s beginning and ending balance; (2) the amount of fees, interest, and other income in the account; (3) the amount of expenditure for each public facility or improvement made from the account; (4) the total percentage of the cost of the improvement that was funded with the fees; (5) the date construction will commence if sufficient funds have been collected; (6) a description of any interfund transfers or loans made from an account; and (7) the amount of refunds made from the account. Attachment 2 and 3 provide this information for funds held on June 30, 2024. Page 239 of 893