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Annual and Five-Year Development Impact Fee Report Fiscal Year Ending June 30, 2025 City of Redwood City 3 • 66001 (d) (1) (A): Identify the purpose to which the fee is to be put. • 66001 (d) (1) (B): Demonstrate a reasonable relationship between the fee and purpose for which it is charged. • 66001 (d) (1) (C): Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements. • 66001 (d) (1) (D): Designate the approximate dates on which the funding is expected to be deposited into the appropriate account or fund. Establishing a Reasonable Relationship Between the Fee and the Purpose for Which It Is Charged (Nexus) Development impact fees provide the proportionate share of the funding for the City’s capital facilities needs that can be reasonably attributed to new growth in the City. The revenue from development impact fees, in turn, provides the transportation facilities, parkland and park improvements, affordable housing, and other improvements necessary to mitigate the impacts of new residential, commercial, and industrial development on the City of Redwood City and its residents and businesses. To ensure a reasonable relationship between the fee and the purpose for which it is charged, development impact fees must be supported by a Nexus Study.3 A Nexus Study identifies the reasonable relationship between the fee and the purpose based on mathematical calculations that consider future development, the facilities and infrastructure needed to serve that future development, and the estimated costs of those improvements. These mathematical calculations establish the relationship between contemplated future development, the facilities needed to serve that development, and the estimated costs of those improvements based on the City’s Capital Improvement Programs (CIP). The fees are then used to fund facilities and infrastructure necessary to serve new development and/or benefit the broader community. Funding of Infrastructure The State of California Government Code Section 66002 states that local agencies that developed a fee program may adopt a Capital Improvement Program indicating the approximate location, size, and timing of projects, plus an estimate for the cost of all facilities or improvements to be financed by fees. The City of Redwood City has developed and adopted a CIP, which is updated every year during the normal fiscal budget process. The City also maintains a Five-Year Capital Improvement Plan which offers a longer-term outlook on needed capital improvements. This Plan serves as a fiscal and strategic tool to plan, fund, prioritize and monitor capital improvements in the Community. The City’s current, adopted FY 2025-30 Five-Year Capital Improvement Program can be found on the City’s website at www.RedwoodCity.org/CIPProjects. 3 AB 602 requires Nexus Studies to be complete prior to the adoption of each impact fee and must be updated every eight years. ATTY/RESO.0124/CC RESO ACCEPTING THE DEVELOPMENT IMPACT FEES REPORT FOR FISCAL YEAR 2024-25 - ATTACHMENT A REV: 12-05-25 MI