Impact Fees are used to fund public facilities through a fee program where new residential and commercial developments pay the capital costs associated with growth. All new development projects are subject to impact fees with the exception of:
- Alterations to an existing building;
- Reconstruction (within two years), when a building has been destroyed by fire, wind,
- earthquakes, vandalism, or other natural or man-made disasters;
- Additions to a single-family or multiple-family residence; and
- Construction of public schools
In 2021, when NewGen Strategies and Solutions performed a Water and Sewer Rate Study, they gathered information to conduct a Water and Sewer Impact Fees Study. Proposed fees were based upon the 2021 Water Master Plan. Similarly, the City also hired Willdan Financial Services to conduct a Fire and Dispatch Study. Willdan gathered additional information on capital needs from both the City’s Police and Fire Departments to calculate the related impact fees.
It is the industry standard to update Impact Fees every five (5) years. It has been a minimum of 17 years since the City’s last study was adopted for these Impact Fees.
The last adopted Fire and Dispatch Fees Study was in 2006. A subsequent study was conducted in 2012, but not finalized because of the plan to regionalize dispatch, as well as the Fire Command sharing with the City of Fullerton was still being analyzed. The City's Impact Fees have been the same since 2006 and have not been subject to annual fee adjustments, which are typically based upon an industry index.
The last Water Impact Fee Study was performed in 2002. Fees were adopted in 2003; however, these fees have been adjusted annually based upon the Construction Cost Index (CCI).