DATE: May 17, 2016.
TO: Mayor and City Council
FROM: Director of Finance
SUBJECT
Title
Annual Mitigation Fee Act Report (AB 1600)
End
RECOMMENDATION
Recommendation
That Council adopts the annual Mitigation Fee Act (AB 1600) report prepared to satisfy Government Code Subsection 66006(b)(1)
Body
BACKGROUND
It is common for local agencies to charge fees on new development to fund construction of capital facilities that will serve the development. The AB 1600 (Cortese) portion of the Mitigation Fee Act applies to fees charged in connection with the approval of development projects to defray cost of public facilities. AB 1600 was enacted by the State Legislature in 1987, and applies to developer fees established, increased, or imposed on or after January 1, 1989. This legislation also requires an annual report on the status of all eligible fees pursuant to the Mitigation Act.
DISCUSSION
Below are the four primary requirements that the City must satisfy in order to comply with the Mitigation Fee Act, and the City's response for each requirement for the prior fiscal year.
1. Requirement: Make certain determinations regarding the purpose and use of a fee and establish a "nexus" or connection between a development project (or class of projects) and the public improvement being financed with the fee.
Response: For all projects requiring development fees subject to AB 1600, the City complies with this requirement by establishing a connection between the development and public improvements to be financed. This is accomplished through the established fee structure, which calculates the amount of public improvements required to be financed based on the type of development.
2. Requirement: Segregate fee revenue from the General Fund in order to avoid comingling of capital facilities fees and general funds.
Response: AB 1600 development fees are held in special deposit accounts outside of the General F...
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