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Annual and Five-Year Development Impact Fee Report <br />Fiscal Year Ending June 30, 2024 <br />City of Redwood City 1 <br />INTRODUCTION AND BACKGROUND <br />In California, State legislation sets certain legal and procedural parameters for the charging of <br />development impact fees. This legislation was passed as AB 1600 by the California Legislature <br />and is now codified as California Government Code Sections 66000 et seq. (“Mitigation Fee Act”). <br />This State law went into effect on January 1, 1989. <br />Requirements for Development Impact Fee Reporting <br />The Mitigation Fee Act imposes certain accounting and reporting requirements with respect to <br />the development impact fees collected. The fees must be deposited into separate accounts to <br />avoid comingling the fees with the City’s other revenues or funds. Interest in each development <br />fee fund or account must be credited to that fund or account and used only for those purposes <br />for which the fees were collected. <br />The Mitigation Fee Act also requires any local agency that imposes development impact fees to <br />prepare an annual report and a five-year report that provide specific information about those <br />fees. This report serves both of those functions and has been prepared for the City of Redwood <br />City for the fiscal year (FY) ending June 30, 2024, in accordance with the provisions of the <br />California Government Code Sections 66006 (b) and 66001 (d).1 <br />In addition to development impact fees, the City also collects several in-lieu fees and capacity <br />fees. In-lieu fees are an option offered to developers “in lieu,” or in place of, providing specific <br />on-site public benefits such as on-site parking or public art requirements. Capacity fees are <br />typically related to utilities such as water or wastewater and are used to cover costs of existing <br />and future public facilities that are of proportional benefit to new development. This report also <br />includes the requisite reporting information for the City’s in-lieu fees and capacity fees. <br />Annual Report <br />California Government Code Section 66006 (b) requires each local agency that imposes <br />development impact fees under the Mitigation Fee Act to prepare an annual report providing <br />specific information about those fees for the previous fiscal year. Specifically, Section 66006 (b) <br />requires that for each separate account, the local agency shall make available to the public the <br />information shown below for the most recent fiscal year. <br />66006 (b) (1) (A): A brief description of the type of fee in the account or fund. <br />66006 (b) (1) (B): The amount of the fees. <br />1 The water and wastewater capacity and facility fees are subject to the reporting requirements in Government <br />Code section 66013(d), rather than the requirements in sections 66006(b) and 66001(d). Since the information <br />required by sections 66006(b) and 66001(d) encompasses the information required by 66013(d), the City is <br />complying with the water and wastewater capacity and facilities fee reporting requirements by including them in <br />this AB 1600 report. <br />6.A. - Page 10 of 55 <br />15