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Public Works Agency <br />www.santa-ana.org/pw <br />Item # 12 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />December 2, 2025 <br />TOPIC: Annual Development Impact Fee Report for Fiscal Year 2024-2025 <br />AGENDA TITLE <br />Annual Development Impact Fee Report for Fiscal Year 2024-2025 <br />RECOMMENDED ACTION <br />Receive and file the Annual Development Impact Fee Report for Fiscal Year 2024-2025. <br />GOVERNMENT CODE §84308 APPLIES: No <br />DISCUSSION <br />Following the passage of California Proposition 13 in 1978 which restricted local <br />governments from raising revenue through property taxes, many cities began charging <br />fees on new development to fund public improvements and services related to streets, <br />public utilities, and parks. These fees are commonly known as development impact <br />fees. To ensure these fees were spent in a timely manner and on projects for which <br />they were being collected, the State Legislature passed Assembly Bill 1600, known as <br />the Mitigation Fee Act and codified as California Government Code Sections 66000- <br />66025. The law requires the City to publish an annual report (Exhibit 1) for each fund <br />established to account for development impact fees. The report must include: a brief <br />description of the type of fee, fee amount, beginning and ending balance of the account <br />or fund, amount of fees collected and interest earned, identification of each public <br />improvement on which fees were expended and the amount expended, an estimated <br />date construction will commence, and descriptions of each inter-fund transfer or loan. <br />The law also requires an annual accounting of development impact fees be made <br />available to the public within 180 days of the end of the City's fiscal year. Additionally, <br />this information must be presented to the City Council at least 15 days after it is made <br />available to the public. The City collects the following development impact fees: <br />Transportation System Improvement Area, Transit Zoning Code Traffic Impact <br />Mitigation Fair Share, Harbor Specific Plan Mitigation Fair Share, Drainage Assessment <br />Fee, Sewer Connection Fee, Park Acquisition, and Development Fees. <br />The fees are collected prior to the issuance of building permits for new residential and <br />commercial construction. The impact fees are established by City Council resolution <br />and are deposited into the designated impact fee fund.