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Redwood City Stormwater Roadmap Funding Program September 2025 7-4 Schaaf & Wheeler 7.1.5 Other Sources of Revenue The above revenue strategies can fully fund the needed improvements and services if the community is a willing partner to approve a funding mechanism at the appropriate level. However, there are additional revenue sources that, if justifiable and collectible on a substantive scale, would reduce that final levy amount needed from the community, or, in other words, the total revenue requirement. Development Impact Fees A development impact fee is a one-time fee imposed as a condition of approval on new development, infill, or redevelopment that creates new, unmitigated impermeable surface area. Development impact fees are authorized by Government Code 66000 et seq., created by the Mitigation Fee Act, and commonly referred to as “AB 1600” fees. A development impact fee may be justifiable under one of two conditions: 1. The City has previously invested in drainage infrastructure, which has remaining value and is available and/or sized to meet impacts caused by future development/ redevelopment. 2. The capital and maintenance projects documented by the Stormwater Master Plan are sized to meet stormwater-related impacts caused by future development/redevelopment An impact fee may be based on (1) a “buy-in” to existing infrastructure, or (2) the “incremental” costs of new facilities necessary to serve new development that will create additional impermeable surface areas. A combination of these two impact fees may also be used to repay existing customers for historical capital investments. However, they cannot be used to fund operating or maintenance costs, which must be met through one of the funding mechanisms described above. The chief benefit of examining the viability of development impact fees is that they may be approved by consensus of the City after proper public notice and public hearing processes. Since existing City drainage guidelines already require residential and commercial developments to maintain post-development runoff rates at or below pre-development levels through on-site detention or controlled release, further fees may be difficult to impose. Regulatory Fees Regulatory fees, typically imposed by the City on property owners, recover costs associated with the City’s constitutional and statutory power to govern activities, such as development and construction. For example, within the stormwater program, the City provides services/activities that may be eligible for recovery in a regulatory fee. These services/activities may include:  Plan review and site inspection of development/construction that must meet stormwater program regulations. (A common area for stormwater program activity is grading and drainage permitting/oversight.)  Review of maintenance plans for, and periodic site inspection of, onsite stormwater management/mitigation facilities.  Inspection of properties documented under the municipal permit as high-pollution risk operations requiring onsite management and/or facilities to mitigate risk to the environment and public rights-of-way. 11.A. - Page 35 of 53 466