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Annual and Five-Year Development Impact Fee Report Fiscal Year Ending June 30, 2024 City of Redwood City 7 Description of Capacity Fee Programs In FY 2023-24, the City started with four capacity fees. On January 22, 2024, Ordinance 2533 updated and amended these to three capacity fees. Capacity fees are typically related to utilities such as water or wastewater and are used to cover costs associated with expanding the associated infrastructure systems to accommodate increased demand by new development. 1. Wastewater Treatment Capacity Fee.10 The Wastewater Treatment Capacity Fee (also sometimes referred to as the “Sewer Treatment Capacity Fee”) fee is a one-time charge that the City collects on behalf of Silicon Valley Clean Water (“SVCW”). This passthrough fee is imposed on residential and non-residential customers that require new or expanded connections to the City’s wastewater system. The purpose of this fee is to provide funding to compensate SVCW for the additional capacity required for new or expanded wastewater connections within the City. Wastewater Treatment Capacity fees are deposited into Account 688 and passed through to Silicon Valley Clean Water at the close of each fiscal year. As such, the Water Treatment Capacity account balance is $0 each year, and the City does not direct or control project-specific expenditures. 2. Wastewater Collection Capacity Charge.11 The Wastewater Facilities Fee was modified by Ordinance 2533 adopted on January 22, 2024 and was renamed the Wastewater Collection Capacity Charge (also sometimes referred to as the “Sewer Collection Capacity Charge). It is a one-time charge that is imposed on new development to fund a proportionate share of the costs of existing and future wastewater system facilities and assets that are reasonably necessary to provide wastewater collection capacity to new development. Eligible expenditures are included in the City’s CIP and include the construction and improvement of existing and future sewer facilities such as treatment plants, pipelines, or other facilities. 3. Water Capacity Fee.12 Ordinance 2533 was adopted on January 22, 2024, to include the purposes of the former Water Capacity Charge and the former Water Facilities Fee. This fee is a one-time charge that the City imposes on residential and non-residential customers that funds a proportionate share of the costs of existing and future water system facilities and assets that are reasonably necessary to provide potable and recycled water capacity for new development. 10 https://library.municode.com/ca/redwood_city/codes/city_code?nodeId=CH27SASEFA_ARTIXFECH_S27.101WATR CACHWACOCACH 11 https://library.municode.com/ca/redwood_city/codes/city_code?nodeId=CH27SASEFA_ARTIXFECH_S2 7.101WATRCACHWACOCACH 12 https://library.municode.com/ca/redwood_city/codes/city_code?nodeId=CH38WASYRE_ARTIIICOCAU SFE_S38.12WACAFE 6.A. - Page 16 of 55 21