TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
title
Adoption of Resolution 2025-030 - Annual Adjustment of Development Impact Fees, Park Development Fees & Administrative Fee for Fiscal Year 2025-26.
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RECOMMENDATION
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1) Conduct a duly noticed public hearing in accordance with Government Code Section 66016; 2) find that the City's Development Impact Fee (DIF) program continues to represent the most expedient and equitable mechanism for financing the construction and improvement of public facilities necessitated by development; 3) adopt Resolution No. 2025-030 authorizing: (a) the annual adjustment of DIF based on the applicable Engineering News-Record (ENR) Construction Cost Index escalator, consistent with the City's adopted passthrough methodology; (b) the reduction of the Capital Administration Fee from 12% to 3% to reflect actual costs incurred by the City for administering the DIF program; and (c) the update of Residential Park Development Fees pursuant to the provisions of Title 18 of the Chino Municipal Code; and 4) authorize staff to implement the adjusted fees effective 60 days after adoption of Resolution No. 2025-30, in accordance with Government Code Section 66017.
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FISCAL IMPACT
The proposed updates to the DIF and Residential Park Development Fees have no impact on the General Fund. These fees are restricted for infrastructure and park improvements.
However, following the recent User Fee Study, the City reallocated overhead costs to the appropriate development-related user fees. As a result, the existing 12% administrative fee on DIF collections is no longer justified. The DIF Administrative Fee will be reduced to 3%, reflecting only the direct costs of managing the DIF program.
This adjustment does not reduce overall cost recovery. It shifts overhead expenses away from DIF collections and into the user fees where those costs are incurred and assessed.
Because DIFs generate sign...
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