HomeMy WebLinkAboutItem 6h - Fiscal Year 2024-25 Development Impact Fee Annual Report Item 6h
Department: Finance
Cost Center: 2001
For Agenda of: 11/18/2025
Placement: Consent
Estimated Time: n/a
FROM: Emily Jackson, Finance Director
Prepared By: Brent Taylor, Financial Analyst – Infrastructure Finance
SUBJECT: FISCAL YEAR 2024-25 DEVELOPMENT IMPACT FEE ANNUAL REPORT
(AB1600)
RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, accepting the Fiscal Year 2024 -25 Annual Report on Development
Impact Fees and make findings related to Development Impact Fees held longer than five
years.”
REPORT-IN-BRIEF
The purpose of the Fiscal Year 2024-25 Annual Report on Development Impact Fees is
to maintain compliance with The Mitigation Fee Act (“Act”), by disclosing certain
information to the public. Local agencies are required under the Act to annually report on
specific details of fees such as revenue amounts, expenditure amounts, available fund
balances, and information about the projects on which the fees were expended. In
addition, the Act requires local agencies to provide specific findings should there be any
fee revenue held unexpended for more than five years. Those specific findings are
provided in this report and the recommended Resolution for two fee accounts which
currently have funds held for more than five years (the Margarita Area Development
Impact fee and the Airport Area Transportation Impact fee). These requirements are
further described in the Policy Context Section below. The Annual Report contains key
information required under the Act that must be made available to the Public each year.
POLICY CONTEXT
The Mitigation Fee Act, specifically California Government Code 66006, requires that
local agencies which have adopted and established d evelopment impact fees must, by
December 31st each year, make available to the public the following information for the
most recent fiscal year:
1) A brief description of the type of fee in the account or fund.
2) The amount of the fee.
3) The beginning and ending balance of the account or fund.
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4) The amount of the fees collected, and the interest earned.
5) An identification of each public improvement on which fees were expended and
the amount of the expenditures on each improvement, including the total
percentage of the cost of the public improvement that was funded with fees.
6) (a) An identification of an approximate date by which the construction of the public
improvement will commence if the local agency determines that sufficient funds
have been collected to complete financing on an incomplete public improvement,
and the public improvement remains incomplete.
(b) An identification of each public improvement identified in a previous report and
whether construction began on the approximate date noted in the previous repo rt.
(c) For a project identified pursuant to 6(b) for which construction did not
commence by the approximate date provided in the previous report, the reason for
delay and a revised approximate date that the local agency will commence
construction.
7) A description of each interfund transfer or loan made from the account or fund,
including the public improvement on which the transferred or loaned fees will be
expended, and, in the case of an interfund loan, the date on which the loan will be
repaid, and the rate of interest that the account or fund will receive on the loan.
8) The amount of refunds made pursuant to subdivision (e) of Section 66001, the
number of persons or entities identified to receive those refunds, and any
allocations pursuant to subdivision (f) of Section 66001.
In addition, The Mitigation Fee Act, California Government Code 66001, requires, that for
the fifth fiscal year following the first deposit into the account or fund, and every five years
thereafter, the local agency shall make all the following findings with respect to that portion
of the account or fund remaining unexpended, whether committed or uncommitted:
1) Identify the purpose for which the fee is to be put.
2) Demonstrate a reasonable relationship between the fee and the purpose for which
it is charged.
3) Identify all sources and amounts of funding anticipated to complete financing.
4) Designate the approximate dates on which the funding referred to is expected to
be deposited into the appropriate account or fund.
When findings are required, they shall be made in connection with the Annual Report. If
the local agency is unable to make valid findings, then the local agency shall refund to
the then current owner(s) the unexpended portion of the fee and any interest thereon.
DISCUSSION
Background
The City of San Luis Obispo has a Capital Facilities Fee Program as detailed in Municipal
Code chapter 4.56 and chapter 4.20.140 and governed under California Government
Code Sections 66000-66025. Development Impact Fees are imposed as a condition of
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Item 6h
approval upon new development and collected through the building permit process.
Development Impact Fees are established for use on public facilities such as fire, police,
transportation, park, water, and wastewater facilities. The City of San Luis Obispo has a
critical need to ensure that the impacts from new development are addressed. The City
Council has declared via Ordinance 1646 that development impact fees are required due
to existing local, state and federal resources which are insufficient to meet the capital
improvement infrastructure and facility needs for new development. Development impact
fees are a commonly used mechanism to address this type of need.
Below is a summary of the Fees the City has established, and are included in the Annual
Report for compliance with the Mitigation Fee Act:
Fund Fee Name Intended Purpose/ Use
510 Citywide Park Development Impact Fee Acquisition of Parkland (not located in a specific plan area)
519 Citywide Park Improvement Impact Fee Park facility improvements for existing and newly acquired parkland,
(not located in a specific plan area)
511 OASP Park Improvement Impact Fee*Funding for 100% of the cost to construct and improve the Orcutt Area
Park System (Charged to OASP Developers only)
512 Margarita Area Development Impact Fee*DISCONTINUED - Margarita Area Specific Plan Park Improvements
507 Citywide Transportation Impact Fee*
Citywide Transportation Improvements, (not located in a specific plan
area), such as interchanges, intersections, street widening, street
extensions, pedestrian/ bike improvements, transit improvements
and/ or reimbursements to developers
503 Airport Area Transportation Impact Fee*
DISCONTINUED - Tank Farm Road Median Improvements, Unocal Local
Road, Santa Fe Extension, Buckley Extension, and Bike Paths in the
Airport Area and/ or to reimburse developers
504 LOVR Area Transportation Impact Fee*Reimburse Costco for Los Osos Valley Road transportation
improvements constructed
514 San Luis Ranch Area Transportation Impact Fee*
Citywide Transportation Improvements as specified for Fund 507,
EXCEPT for the HWY 101/ Prado Road Interchange (Charged to San Luis
Ranch Developer only)
515 OASP Area Transportation Impact Fee*Transportation improvements within the Orcutt Area Specific Plan
Boundaries
506 Wastewater Impact Fee*The expansion and improvement of facilities used for sewer collection
and sewer treatment
509 Water Impact Fee*The expansion and improvement of facilities used for water supply,
water treatment, and water distribution
516 Fire Impact Fee*Renovations to Fire Station #1-4, to construct Fire Station #5 and to
replace fire vehicles
517 Police Impact Fee*Construct new police headquarters and purchase police vehicles
501 Parkland In-Lieu Fee (Quimby)
Develop (acquire and improve) new parkland or to rehabilitate existing
neighborhood park, community park or recreational facilities to serve
the subdivision in which the fees were collected
502 Open Space Protection In-Lieu Fee DISCONTINUED - Acquire new open space land, specifically in the
Airport Area Specific Plan boundaries
505 Affordable Housing In-Lieu Fee Funding for the provision of affordable housing and for reasonable
costs associated with the development of affordable housing
611 Parking In-Lieu Fee Develop (acquire and improve) or maintenance of parking facilities
within the established in-lieu fee area
207 Public Art In-Lieu Fee Public Art in both private developments and public spaces
* The fee was calculated using a plan based methodology where specific projects and costs were identified in the nexus study and the fee
revenue must be used on the specified projects up to the cost used to calculate the fee.
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Item 6h
Impact Fee Summary – Revenue and Expenses
For FY 2024-25, the City of San Luis Obispo collected through its Capital Facilities Fee
program a total revenue of $11,333,645.95 and expended $5,546,263.85 on eligible
projects throughout the city. The impact fee revenue helped advance construction on
thirty-five projects in the city which included three Parks Projects, fourteen Transportation
Projects, and eighteen Utility Projects. Refer to Exhibit A & Exhibit B in the attached
report for details on projects funded by impact fees.
In-Lieu Fee Summary – Revenue and Expenses
For FY 2024-25, the City of San Luis Obispo collected through its In-Lieu Fee Programs
a total revenue of $941,209.99 and expended $2,692,546.36 on eligible projects
throughout the city. The In-Lieu fee revenue helped to advance construction on six
projects in the city which included three Park Projects, one Parking Project, and two Public
Art Projects. Refer to Exhibit A & Exhibit B in the attached report for details on projects
funded by In-Lieu fee funds.
Fund Balances
The figures below represent the current fund balances available for expenditure as of
June 30, 2025, whether committed or uncommitted to a Capital Improvement Plan project
and serves to illustrate the amount of funding from impact fees and in -lieu fees currently
available to budget and expend on projects through the City’s adopted Capital
Improvement Plan. In addition, any revenue held longer than five years is reflected to
show the amount of the available fund balance that is subject to findings. The five -year
Fund Name Revenue/ Interest Expenditures # of Projects
510 Citywide Park Development 267,469.74$ -$ 0
519 Citywide Park Improvement 240,241.20$ 173,119.86$ 1
511 OASP Park Improvement 186,753.91$ 245,981.47$ 2
512 Margarita Area Development 162,040.26$ -$ 0
507 Citywide Transportation 1,798,621.90$ 739,340.93$ 10
503 Airport Area Transportation 13,592.12$ 234,242.23$ 3
504 LOVR Area Transportation (52,452.58)$ 566,787.71$ 1
514 San Luis Ranch Area Transportation 448,783.75$ -$ 0
515 OASP Area Transportation 391,555.04$ -$ 0
506 Wastewater 2,729,022.70$ 943,559.30$ 6
509 Water 4,843,918.78$ 2,643,232.35$ 12
516 Fire 112,691.28$ -$ 0
517 Police 191,407.85$ -$ 0
11,333,645.95$ 5,546,263.85$ 35
Fund Name Revenue/ Interest Expenditures # of Projects
501 Parkland In-Lieu (Quimby)117,103.04$ 1,759,459.54$ 3
502 Open Space Protection In-Lieu 86,786.60$ -$ 0
505 Affordable Housing In-Lieu 297,945.78$ 207,000.00$ 0
611 Parking In-Lieu -$ 317,995.41$ 1
207 Public Art In-Lieu 439,374.57$ 408,091.41$ 2
941,209.99$ 2,692,546.36$ 6
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Item 6h
revenue analysis and any required findings for revenue held for more than five years is
included in this section and within the report under the individual fund summaries.
Impact Fee – Fund Balance Summary
In-Lieu Fee – Fund Balance Summary
The negative fund balance $(2,639,233.06) for the Affordable Housing In-Lieu Fee fund can
be attributed to the Interest Receivable on Long Term Loans in the amount of $2,850,875.37.
More information on the negative fund balance can be found in Attachment B (FY 2024-25
Development Impact Fee Annual Report).
Five-Year Revenue Findings
Margarita Area Development Impact Fee (Fund 512) - As of June 30, 2025, there is
$2,817,860.18 in revenue collected which has been held for more than five years. The
fund balance is intended to be used for pre -construction activities (design, planning,
permitting, etc.) and the overall construction costs for a twenty-one-acre community park
located in the Margarita Area Specific Plan.
The use of these funds for a park in t he Margarita Area is in conformance with the
Margarita Area Specific Plan and the Parks & Recreation Blueprint for the Future: 2021 -
2041 (General Plan Element) and allows the City to meet the need for a community park
Fund Name Fund Balance Revenue Held > 5-Years
510 Citywide Park Development 968,939.59$ -$
519 Citywide Park Improvement 2,040,551.64$ -$
511 OASP Park Improvement 2,056,785.98$ -$
512 Margarita Area Development 3,454,600.12$ 2,817,860.18$
507 Citywide Transportation 5,488,500.91$ -$
503 Airport Area Transportation 162,943.21$ 132,691.31$
504 LOVR Area Transportation (2,452.56)$ -$
514 San Luis Ranch Area Transportation 2,606,606.76$ -$
515 OASP Area Transportation 1,864,800.06$ -$
506 Wastewater 5,799,629.03$ -$
509 Water 6,851,326.63$ -$
516 Fire 393,732.58$ -$
517 Police 543,411.50$ -$
Fund Name Fund Balance Revenue Held > 5-Years
501 Parkland In-Lieu (Quimby)351,517.50$ -$
502 Open Space Protection In-Lieu 100,484.32$ -$
505 Affordable Housing In-Lieu (2,639,233.06)$ -$
611 Parking In-Lieu -$ -$
207 Public Art In-Lieu 1,557,870.95$ -$
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Item 6h
that includes sport/athletic fields, sport courts, playground amenities, public art, and social
gathering area(s). In 2005, the need for the park was identified in the Margarita Area
Specific Plan and the financing strategy was identified in the Public Facilities Financing
Plan for Margarita Area. The plan was amended in 2012 to adjust the equitable sharing
of the cost of the purchase and construction of the Damon-Garcia Sports Fields, which is
satisfying a portion of the park needs in the Margarita Area.
The table below reflects the overall funding sources and amount anticipated to cover the
costs of the future park project in the Margarita Area.
The total cost of the park project was originally estimated using a 2012 calculation and
was the basis for fee amounts. Since this time, costs to construct the park have
significantly increased; therefore, to establish the current total cost, the City applied a
onetime Consumer Price Index (CPI) adjustment from 2012 to 2024 and annually
thereafter.
At this time, the project is not ready to move toward construction because the identified
land, zoned for park space, is privately owned, and the current owners are not interested
in selling or developing the property. The City remains committed to using the funds
collected for the MASP park whenever the landowners decide to sell or develop the site.
Additionally, the City will need to cover a substantial amount of the project costs with other
yet-to-be-determined funding sources. Currently, no construction start date has been
identified.
Airport Area Transportation Impact Fee (Fund 503) – The fund balance held more
than five years is to be used for pre-construction activities (design, planning, permitting,
etc.) for two transportation improvement projects programmed in the AASP TIF program:
Tank Farm Road Widening (including the Tank Farm/Santa Fe Roundabout , and shared-
use path between Santa Fe and Innovation Way) and Santa Fe Road Extension north of
Tank Farm Road. Specifically, these funds will be used to reimburse Covelop, Inc. for
costs related to transportation improvements required for the 600 Tank Farm
development project and are also included in the Airport Area Transportation Impact Fee
calculation.
As conditions of approval of the project, the 600 Tank Farm developer is required to
design and construct portions of the Tank Farm Road Widening and Santa Fe Road
Extension (North) improvements prior to their development projects construction of
units. As documented in detail in the AASP and its related EIR, the Tank Farm Widening
and Santa Fe Road Extension projects represent transportation infrastructure that is
needed to mitigate the impacts of new development within the city, particularly within the
Current Development
Impact Fees %Other Funding
Sources (1)%
Margarita Area Community Park 3,454,600.12$ 21%12,621,328.58$ 79%$16,075,928.70 100%
Project Total %
Cost by Fund Source
(1) Other funding sources will include Citywide Parkland Improvement Impact Fees, Quimby In-Lieu Fees, General Fund
(Local Revenue Measure G) and/or Future Grants
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Item 6h
AASP boundaries. The proportionality and nexus to new development is des cribed in
further detail in the AASP (Chapter 8, Public Facilities Financing Plan).
Below is a list of projects on which the fees collected will be used and the anticipated
amount of funding from all sources needed to complete the financing of these pro jects.
The Tank Farm Road Widening and Santa Fe Road Extension projects are large, complex
transportation improvements that are anticipated to be constructed in phases over several
years as incremental development occurs. Funding is expected to be completed for the
remaining projects as identified in the following timelines:
o For the Tank Farm Road Widening Project, funding for the first components of
the project that are the responsibility of the 600 Tank Farm development, is
expected to be available by 2026, and associated improvements could be
constructed as soon as 2027. These first components of the Project include
design/pre-construction costs for the future Tank Farm Road/Santa Fe
Roundabout and Tank Farm Road shared-use path (not constructed with 600
Tank Farm development), and a portion of the construction costs associated with
widening of Tank Farm Road at the intersection with Santa Fe (constructed by
600 Tank Farm development). Funding and construction for the remaining
project components, including construction of the Tank Farm/Santa Fe
Roundabout, construction of the Tank Farm shared-use path and further
widening of Tank Farm Road, are dependent on future development within the
AASP area, which could reasonably occur within the next 5-15 years.
o For the Santa Fe Road Extension (North) Project, funding for the first component
of the project, which will be constructed by 600 Tank Farm development,
(approximately 40% of the planned road extension) is expected to be available
by 2026, and improvements could be constructed as soon as 2027. Funding and
construction timing for the remaining project components are dependent on
future development within the AASP area, which could reasonably occur within
the next 5-15 years.
o For the Santa Fe Road Extension (South), funding and construction timing are
dependent on future development within the AASP area, which could reasonably
occur within the next 5-15 years.
The direct developer contribution and local funds needed for these improvements are fully
funded. The portion of these project costs from development impact fees are partially
funded, with $162,943.21 to be applied from existing AASP TIF fund balance, and the
remainder to be reimbursed to the developer from future Citywide Transportation Impact
Direct Developer
Contribution %Development
Impact Fees %Other Local
Funds/Grants %
Tank Farm Road Widening*3,000,000.00$ 14%13,300,000.00$ 60%5,700,000.00$ 26%22,000,000.00$ 100%
Santa Fe Road Extension (North)-$ 0%432,000.00$ 40%648,000.00$ 60%1,080,000.00$ 100%
Santa Fe Road Extension (South)-$ 0%1,000,000.00$ 40%1,500,000.00$ 60%2,500,000.00$ 100%
* Includes Tank Farm/ Santa Fe Roundabout
%
Cost by Fund Source
Project TOTAL
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Item 6h
Fee revenues—the Citywide Transportation Impact Fee obligations for the 600 Tank
Farm development itself would fully fund this reimbursement.
Previous Council or Advisory Body Action
The annual report and necessary findings have been filed in compliance with the
Mitigation Fee Act since the adoption and implementation of the Development Impact Fee
program at the City of San Luis Obispo. Below are the 4 most recent fiscal year’s Annual
Reports approved by City Council.
RESOLUTION NO. 11535 (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUI S OBISPO,
CALIFORNIA, ACCEPTING THE 2023-2024 ANNUAL REPORT ON DEVELOPMENT
IMPACT FEES AND MAKING FINDINGS RELATED TO DEVELOPMENT IMPACT
FEES HELD LONGER THAN FIVE YEARS
RESOLUTION NO. 11469 (2024 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO,
CALIFORNIA, ACCEPTING THE 2022-23 ANNUAL REPORT ON DEVELOPMENT
IMPACT FEES AND MAKING FINDINGS RELATED TO IMPACT FEES HELD LONGER
THAN FIVE YEARS
RESOLUTION NO. 11386 (2023 SERIES)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO,
CALIFORNIA, ACCEPTING THE 2021-22 ANNUAL REPORT ON DEVELOPMENT
IMPACT FEES REAFFIRMING THE NECESSITY FOR DEVELOPMENT IMPACT FEES
AND MAKE FINDINGS RELATED TO IMPACT FEE BALANCES AND IN-LIEU FEES
RESOLUTION NO. 11301 (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA,
ACCEPTING THE 2020-21 ANNUAL REPORT ON DEVELOPMENT IMPACT FEES
REAFFIRMING THE NECESSITY FOR DEVELOPMENT IMPACT FEES AND MAKE FINDINGS
RELATED TO IMPACT FEE BALANCES AND IN-LIEU FEES
Public Engagement
The Mitigation Fee Act requires that the city post notice of availability of the Draft Annual
Report fifteen days prior to the Public Hearing. On October 30, 2025, the Legal Ad was
published in the New Times, a notice was posted on the Finance door/ kiosk, a news item
was published to City’s website, and an e-notification was sent to subscribers of Public
Notices. The draft report posted to the city website has since been updated to include
various clarifications throughout the report, corrected MASP Park Development Impact
fee to its correct name Margarita Area Development Impact Fee, adjusted the estimated
timing on construction for the Tank Farm Road Widening Project, and corrected
inconsistencies to the timing of projects funded by the Airport Area Transportation Impact
Fees. The version attached herein is the final version and replaces the draft version
posted to city website.
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Item 6h
CONCURRENCE
The City Attorney’s Office, Finance, Public Works, Community Development, Parks and
Recreation, and Utilities Departments concur with the information contained within this
report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in
this report, because the action does not constitute a “Project” under CEQA Guidelines
Sec. 15378.
FISCAL IMPACT
Budgeted: N/A Budget Year: N/A
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $N/A
State
Federal
Fees
Other:
Total $N/A
The action before City Council does not have any direct fiscal impact. The Annual Report
of Development Impact Fees discloses to the public fee revenue, fee expenditures, fund
balance, revenue held longer than five-years, and the status of projects for which the fee
will be used. The administrative cost(s) to prepare this report and to manage the impact
fee program is included in the salaries of staff and in the respective department budgets.
The City of San Luis Obispo recovers these costs by charging a 1.75% administrative fee
through the permit process which is based on the total impact fee amount (excluding
water & wastewater amounts).
ALTERNATIVES
1. Direct staff to refund fee revenue held more than five years. This alternative
should only be considered if the findings presented by staff are found to be insufficient
to meet the requirements of the Mitigation Fee Act. Refunding of impact fees held
more than five years would create a monetary shortfall for the proj ects which are to
be constructed and would ultimately need to be funded by other sources, such as the
General Fund.
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Item 6h
2. Do not approve the Fiscal Year 2024-25 Development Impact Fee Annual Report
(AB1600). Not approving the annual report would lead to non-compliance under the
Mitigation Fee Act and could require refunding of certain impact fees collected and
held more than five years creating a monetary shortfall for the projects which are to
be constructed.
ATTACHMENTS
A - Draft Resolution adopting the Fiscal Year 2024-25 Development Impact Fee Annual
Report (AB 1600)
B - Fiscal Year 2024-25 Development Impact Fee Annual Report (AB 1600)
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R ______
RESOLUTION NO._____ (2025 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ACCEPTING THE 2024-25 ANNUAL REPORT
ON DEVELOPMENT IMPACT FEES AND MAKING FINDINGS RELATED
TO DEVELOPMENT IMPACT FEES HELD LONGER THAN FIVE YEARS.
WHEREAS, the City of San Luis Obispo (“City”) has an established Development
Impact Fee program and collects applicable impact fees pursuant to Municipal Code 4.56
and 4.20.140; and
WHEREAS, the documents reflecting the balance in each development impact fee
fund or account, accrued interest in said fund or account, and the amount of expend iture
by public facility for the fiscal year have been made available for public review as required
by California Government Code section 66006; and
WHEREAS, the City is required to make certain findings every five years with
respect to the unexpended fund balance of certain development impact fee funds
pursuant to California Government Code section 66001; and
WHEREAS, the “five-year findings” required by Government Code section 66001
are included in the 2024-25 Annual Report on Development Impact Fees.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows/or that:
SECTION 1. Recitals. All the above recitals are true and correct and are
incorporated herein by this reference.
SECTION 2. Acceptance. The 2024-25 Annual Report on Development Impact
Fees is hereby accepted.
SECTION 3. Findings. The findings made by staff within the 2024-25 Annual
Report on Development Impact Fees related to fee revenue held for longer than five years
are hereby accepted. The findings are summarized as follows:
1. Margarita Area Development Impact Fee (Fund 512) - As of June 30,
2025, there is $2,817,860.18 in revenue collected which has been held for
more than five years. The fund balance is intended to be used for pre -
construction activities (design, planning, permitting, etc.) and the overall
construction costs for a twenty-one-acre community park located in the
Margarita Area Specific Plan.
2. Airport Area Transportation Impact Fee (Fund 503) – The fund balance
held more than five years is to be used for pre-construction activities (design,
planning, permitting, etc.) for two transportation improvement projects
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Resolution No. _____ (2025 Series) Page 2
R ______
programmed in the AASP TIF program: Tank Farm Road Widening and
Santa Fe Road Extension. Specifically, these funds will be used to reimburse
Covelop, Inc. for costs related to transportation improvements required for
the 600 Tank Farm development project and are also included in the Airport
Area Transportation Impact Fee calculation.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of November 2025.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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0
FISCAL YEAR 2024-25
City of San Luis Obispo, California
AB 1600
DEVELOPMENT
IMPACT FEE
ANNUAL REPORT
Page 237 of 509
1
Table of Contents
City of San Luis Obispo – Capital Facilities Fee Program ________________________________ Page 2
Revenue & Expense Summary for FY 2024-25 ________________________________________ Page 6
Fund Balance Summary for FY 2024-25 _____________________________________________ Page 7
Parks Improvement and Parkland Acquisition Impact Fees
Citywide Parkland Development Impact Fee Fund _______________________________ Page 9
Citywide Parkland Improvement Impact Fee Fund ______________________________ Page 10
Orcutt Area Park Impact Fee Fund ___________________________________________ Page 11
Margarita Area Impact Fee Fund ____________________________________________ Page 13
Transportation Impact Fees
Citywide Transportation Impact Fee Fund_____________________________________ Page 16
Airport Area Transportation Impact Fee Fund __________________________________Page 18
Los Osos Valley Road Transportation Impact Fee Fund ___________________________Page 20
San Luis Ranch Transportation Impact Fee Fund _______________________________ Page 22
Orcutt Area Transportation Impact Fee Fund __________________________________ Page 23
Wastewater and Water Impact Fees
Wastewater Impact Fee Fund ______________________________________________ Page 26
Water Impact Fee Fund ___________________________________________________ Page 27
Emergency Services Impact Fees
Fire Impact Fee Fund _____________________________________________________ Page 29
Police Impact Fee Fund ___________________________________________________ Page 30
In-Lieu Fees
Parkland In-Lieu Fee Fund _________________________________________________ Page 32
Open Space Protection In-Lieu Fee Fund ______________________________________Page 33
Affordable Housing Inclusionary In-Lieu Fee Fund ______________________________ Page 34
Parking In-Lieu Fee Fund __________________________________________________ Page 36
Public Art In-Lieu Fund ____________________________________________________Page 37
Exhibit A – Project Details List ___________________________________________________ Page 38
Exhibit B – Historical Project Expenditures _________________________________________ Page 43
Exhibit C – Fiscal Year 2024-25 Fee Amounts _______________________________________ Page 49
Page 238 of 509
2
City of San Luis Obispo – Capital Facilities Fee Program
Overview of Fee Program
The City of San Luis Obispo’s Capital Facilities Fee Program, established in 2018, is managed as detailed in
Municipal Code 4.56 and 4.20.140 and governed under California Government Code 66000-66025, also known
as the Mitigation Fee Act. With authority granted under this Act, Development Impact Fees are imposed as a
condition of approval upon new development and collected through the building permit process. The
Development Impact Fees are established for use towards public facilities such as fire facilities, police facilities,
transportation facilities, park facilities, water facilities, and wastewater facilities. The City of San Luis Obispo City
Council has declared via Ordinance 1646 that development impact fees are required due to existing local, state
and federal resources being insufficient to meet the capital improvement infrastructure and facility needs for
new development. The City has a critical need to ensure that the impacts from new development are addressed.
Development Impact Fees are a commonly used financing mechanism to address this type of need.
Mitigation Fee Act - Overview
The Mitigation Fee Act sets forth the procedural requirements for establishing, collecting, and expending
Development Impact Fees. These procedures require that a reasonable relationship, or nexus, must exist
between a governmental exaction and the purpose of the condition. The Mitigation Fee Act applies to all local
agencies in the state, including all general law and charter cities, (California Government Code 66000(c)),
however, the Mitigation Fee Act does not apply to every fee or exaction collected by a local agency. The
Mitigation Fee Act only applies when a local agency establishes, increases, or imposes a fee as a condition of
approval of a development project to defray all or a portion of the cost of public facilities related to the project
(California Government Code 66001). "Public Facilities" are defined to include public improvements, public
services, and community amenities (California Government Code 66000(d)). Three key requirements of the
Mitigation Fee Act that determine the structure, scope and amounts of the Development Impact Fee Program
are:
o Development Impact Fee revenue must be collected and used to cover the cost of capital facilities and
infrastructure that are required to serve only new development and future growth in the city. Fees
cannot be used to cover cost of operation or maintenance of those facilities.
o Development Impact Fee revenue can only be used to pay for new or expanded capital facilities needed
to accommodate growth. Fees cannot be used to cover the cost of existing deficiencies.
o Development Impact Fees must be based on a reasonable nexus between new development and the
costs of capital facilities needed to accommodate future growth.
Definition of Fees which are Subject to the Mitigation Fee Act
According to California Government Code Section 66000(b), a “Fee” means a monetary exaction other than a tax
or special assessment, whether established for a broad class of projects by legislation of general applicability or
imposed on a specific project on an ad hoc basis, that is charged by a local agency to the applicant in connection
with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities
related to the development project, but does not include fees specified in Section 66477, fees for processing
applications for governmental regulatory actions or approvals, fees collected under development agreements
adopted pursuant to Article 2.5 (commencing with Section 65864) of Chapter 4, or fees collected pursuant to
agreements with redevelopment agencies that provide for the redevelopment of property in furtherance or for
the benefit of a redevelopment project for which a redevelopment plan has been adopted pursuant to the
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Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety
Code). The City of San Luis Obispo has a total of eighteen fees which meet the definition and are the basis of this
report.
Accounting Requirements for Development Impact Fees
The Mitigation Fee Act requires that Development Impact Fees collected by the City are to be deposited with the
other fees for the improvement in separate capital facilities accounts or funds in a way to avoid any commingling
of the fees with other revenues and funds. In addition, the City must expend those fees solely for the purpose
for which the fee was collected. The facilities and maximum amounts to be funded by a specific fee’s revenue
are specified in the Nexus Study calculating and adopting the fee and is summarized in Exhibits A and Exhibit B of
this report. Any interest income earned in the capital facilities account or fund shall be deposited in that account
or fund and shall be expended only for the purpose for which the fee was originally collected. The City maintains
compliance with this requirement by establishing a dedicated fund for each type of fee and budgeting the
expenditures to the required projects through the Capital Improvement Plan. (California Government Code
66006(a)).
Annual Report Requirements
The Mitigation Fee Act requires that for each separate account or fund established, the City shall within 180 days
after the last day of each fiscal year make available to the public the following information for the prior fiscal
year:
o A brief description of the type of fee in the account or fund.
o The amount of the fee.
o The beginning and ending balance of the account or fund.
o The amount of the fees collected, and the interest earned.
o An identification of each public improvement on which fees were expended and the amount of the
expenditures on each improvement, including the total percentage of the cost of the public improvement
that was funded with fees.
o (a) An identification of an approximate date by which the construction of the public improvement will
commence if the local agency determines that sufficient funds have been collected to complete financing
on an incomplete public improvement, and the public improvement remains incomplete.
(b) An identification of each public improvement identified in a previous report and whether construction
began on the approximate date noted in the previous report
(c) For a project identified pursuant to 6(b) for which construction did not commence by the approximate
date provided in the previous report, the reason for delay and a revised approximate date that the local
agency will commence construction.
o A description of each interfund transfer or loan made from the account or fund, including the public
improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund
loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will
receive on the loan.
o The amount of refunds made, the number of persons or entities identified to receive those refunds, and
any allocations pursuant to Section (f) of Government Code 66001.
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Five Year Revenue Analysis Requirements
The Mitigation Fee Act also requires that each fee collected to mitigate a specific impact must be spent within
five years of collection. If the fee is held beyond this time frame due to specific circumstances or insufficient
collection for the improvements needed, the City must make specific findings to continue holding the fees.
Otherwise, if the findings are not made or if the findings are deemed to be insufficient the fees are subject to
refund. The requirements for the findings that must be made for funds held more than five years are as follows:
o Identify the purpose for which the fee is to be put.
o Demonstrate a reasonable relationship between the fee and the purpose for which it is charged.
o Identify all sources and amounts of funding anticipated to complete financing in incomplete
improvements identified.
o Designate the approximate dates on which the funding referred to in item 3 is expected to be deposited
into the appropriate account or fund.
Fee Program Updates
To maintain compliance with the Mitigation Fee Act, it is recommended that every eight years an update to the
Development Impact Fees be completed through a Nexus Study to determine the maximum level of fees that can
be attributed to new development and do not impede or burden new development from occurring. In addition,
periodic reviews and updates to fee calculations shall be completed upon receipt of updated cost estimates or
changes to the scope of the projects to minimize the risk of inadequate funding and ensure sufficient fees are
collected to fund the project. Below is summary of the most recent updates to the fee program. The City will
soon be moving forward with a study to update all Development Impact Fees.
NOTE: Impact Fees are escalated by inflation each year. The City currently uses the annual change (April to April) to the
California Cost of Construction Index (CCCI). Annual increases are effective July 1st.
Fund Fee Name Established Last Updated
510 Citywide Park Development 4/3/2018 4/3/2018
519 Citywide Park Improvement 4/3/2018 4/3/2018
511 OASP Park Improvement 3/2/2010 11/15/2016
512 Margarita Area Development 2/1/2005 Discontinued
507 Citywide Transportation 4/3/2018 7/2/2019
503 Airport Area Transportation 8/23/2005 Discontinued
504 LOVR Area Transportation 4/3/2018 7/2/2019
514 San Luis Ranch Area Transportation 4/3/2018 7/2/2019
515 OASP Area Transportation 3/2/2010 10/16/2018
506 Wastewater 4/3/2018 6/4/2019
509 Water 4/3/2018 4/3/2018
516 Fire 4/3/2018 4/3/2018
517 Police 4/3/2018 4/3/2018
501 Parkland In-Lieu (Quimby)4/3/2018 4/3/2018
502 Open Space Protection In-Lieu 8/23/2005 Discontinued
505 Affordable Housing In-Lieu 1/19/1999 8/16/2022
611 Parking In-Lieu 9/3/2002 1/3/2006
207 Public Art In-Lieu 8/15/2000 9/18/2018
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Public Noticing
As required by the Mitigation Fee Act, this Annual Report of Development Impact Fees was made available for
public inspection 15 days prior to the City Council’s public meeting. On October 30, 2025, a Legal Ad was
published in the New Times, a notice was posted on the Finance door/ kiosk, a news item was published to City’s
website, an e-notification was sent to subscribers of Public Notices, and a copy of the Draft Report was posted to
the City Website.
Administration Fee
Included in the establishment of the 2018 Capital Facilities Fee Program, the City Council adopted an
Administration Fee, allowed for by the provisions of the Mitigation Fee Act, for the cost of administering the
impact fee program. Administration requirements include collecting and allocating impact fee revenue, record
keeping, reporting of fund activity, and periodic updates to the fee program. The Administration Fee is included
in the 2018 Impact Fee Nexus Study calculation of the maximum Capital Facilities Fees that can be charged to
new development. The fee is currently set at 1.75% of the total impact fees charged on a permit (excluding water
and wastewater impact fees). The revenue is deposited to the General Fund and allocated for expenditure on
annual budgets.
Annual Report
This report provides a comprehensive summary of the individual fund activity for FY 2024-25 and is prepared to
meet the requirements of the Mitigation Fee Act as specified above. Fund balances reflected in this report are
as of June 30, 2025, based on unaudited financial information. A summary of the exhibits and their purpose for
inclusion in the report can be found below.
o Project Details: Exhibit A reflects a complete detailed list of projects which are being funded by impact
fees collected and reported on through this annual report. Details of projects include Construction Start
Date, Project Status, Total Estimated Project Cost, Estimated Project Cost Funded by Fees, Percentage of
Project Funded by Fees, Fees Expended to Date, and the Percentage of Fees Funded.
o Historical Expenditure Amounts: Exhibit B reflects a complete detailed list of projects for which expenses
were incurred since FY 2018-19. Each fund’s expenditure is organized by fiscal year and summarize the
total contributions for a given project over the past 7 years.
o Fee Schedule: Exhibit C reflects the applicable amount of impact fees and in-lieu fees charged to new
development and collected through the building permit process as conditions of approval in FY 2024-25.
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Revenue and Expense Summary for FY 2024-25
Impact Fee Revenue and Expense Summary
For FY 2024-25 the City of San Luis Obispo collected through its Capital Facilities Fee program, a total of
$11,333,645.95 and expended $5,546,263.85 on eligible projects throughout the city. The impact fee revenue
helped to advance construction on thirty-five projects in the city which included 3 parks projects, 14
transportation projects, and 18 utility projects. Refer to Exhibit A and Exhibit B for details on projects funded by
impact fees.
In-Lieu Fee Revenue and Expenses Summary
For FY 2024-25 the City of San Luis Obispo collected through its In-Lieu Fee programs a total of $941,209.99 and
expended $2,692,546.36 on eligible projects throughout the city. The In-Lieu fee revenue helped to advance
construction on six projects in the city which included two park projects, 1 parking project, and 2 public art
projects. Refer to Exhibit A and Exhibit B for details on projects funded by In-Lieu fee funds.
Fund Name Revenue/ Interest Expenditures # of Projects
510 Citywide Park Development 267,469.74$ -$ 0
519 Citywide Park Improvement 240,241.20$ 173,119.86$ 1
511 OASP Park Improvement 186,753.91$ 245,981.47$ 2
512 Margarita Area Development 162,040.26$ -$ 0
507 Citywide Transportation 1,798,621.90$ 739,340.93$ 10
503 Airport Area Transportation 13,592.12$ 234,242.23$ 3
504 LOVR Area Transportation (52,452.58)$ 566,787.71$ 1
514 San Luis Ranch Area Transportation 448,783.75$ -$ 0
515 OASP Area Transportation 391,555.04$ -$ 0
506 Wastewater 2,729,022.70$ 943,559.30$ 6
509 Water 4,843,918.78$ 2,643,232.35$ 12
516 Fire 112,691.28$ -$ 0
517 Police 191,407.85$ -$ 0
11,333,645.95$ 5,546,263.85$ 35
Fund Name Revenue/ Interest Expenditures # of Projects
501 Parkland In-Lieu (Quimby)117,103.04$ 1,759,459.54$ 3
502 Open Space Protection In-Lieu 86,786.60$ -$ 0
505 Affordable Housing In-Lieu 297,945.78$ 207,000.00$ 0
611 Parking In-Lieu -$ 317,995.41$ 1
207 Public Art In-Lieu 439,374.57$ 408,091.41$ 2
941,209.99$ 2,692,546.36$ 6
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Fund Balance Summary for FY 2024-25
The figures below represent the fund balances available as of 6/30/2025, whether committed or uncommitted
to a Capital Improvement Plan project and serve to illustrate the amount of funding from impact fees and in-lieu
fees available to budget and expend on projects through the City’s adopted Capital Improvement Plan. In
addition, any revenue held for longer than five years is reflected to show the amount of the available fund balance
that is subject to findings. The five-year revenue analysis for all funds and the required findings for the Margarita
Area Development Impact Fee and the Airport Area Transportation Impact Fee revenue held for more than five
years is included within this report under the individual fund summaries. The findings apply to the Margarita
Area Development Impact Fee (Fund 512) and the Airport Area Transportation Impact Fee (Fund 503).
Impact Fee Fund Balance Summary
In-Lieu Fee Fund Balance Summary
Fund Name Fund Balance Revenue Held > 5-Years
510 Citywide Park Development 968,939.59$ -$
519 Citywide Park Improvement 2,040,551.64$ -$
511 OASP Park Improvement 2,056,785.98$ -$
512 Margarita Area Development 3,454,600.12$ 2,817,860.18$
507 Citywide Transportation 5,488,500.91$ -$
503 Airport Area Transportation 162,943.21$ 132,691.31$
504 LOVR Area Transportation (2,452.56)$ -$
514 San Luis Ranch Area Transportation 2,606,606.76$ -$
515 OASP Area Transportation 1,864,800.06$ -$
506 Wastewater 5,799,629.03$ -$
509 Water 6,851,326.63$ -$
516 Fire 393,732.58$ -$
517 Police 543,411.50$ -$
Fund Name Fund Balance Revenue Held > 5-Years
501 Parkland In-Lieu (Quimby)351,517.50$ -$
502 Open Space Protection In-Lieu 100,484.32$ -$
505 Affordable Housing In-Lieu (2,639,233.06)$ -$
611 Parking In-Lieu -$ -$
207 Public Art In-Lieu 1,557,870.95$ -$
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Park Improvement and Parkland Acquisition Impact Fees
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Citywide Park Development Impact Fee – Fund 510
The Citywide Park Development Impact Fee was established in 2018 as part of the Capital Facilities Development
Impact Fee Nexus Study and adopted by Resolution No. 10879 to sustain current levels of parkland to new
development within the city. This impact fee is intended to be used on acquisition of parkland for all areas of the
City.
Starting in FY 2020-21, a reorganization of the impact fees funds was approved to facilitate the accounting,
controlling, and reporting of development impact fees. Fund 510 was created to separate the accounting of
Citywide Parkland Development impact fees from Quimby In-Lieu fees, Fund 501. Transfers of $317,753.15 from
the Parkland In-Lieu Quimby Fee Fund were attributed to FY 2019-20 as a prior period adjustment.
As of June 30, 2025, the fund balance available for expenditure was $968,939.59. There have been no expenditure
from this fund since inception. Refer to Exhibit A and Exhibit B for details of projects funded by this fee. Fund balance
is currently being held until a need for acquisition of parkland is identified. As of June 30, 2025, there were no funds
collected that had been held for more than five years.
510 - Citywide Park Development Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year -$ 549,433.00$ 658,029.82$ 854,358.99$ 1,246,760.12$
Prior Period Adjustment (1)317,753.15$ -$ -$ -$ -$
Fund Balance Beginning of Year After Adjustment 317,753.15$ 549,433.00$ 658,029.82$ 854,358.99$ 1,246,760.12$
Interest 87.97$ (13,137.64)$ 10,395.73$ 49,077.72$ 67,165.64$
Impact Fees 231,591.88$ 121,734.46$ 185,933.44$ 343,323.41$ 200,304.10$
Total Revenue 231,679.85$ 108,596.82$ 196,329.17$ 392,401.13$ 267,469.74$
Expenses -$ -$ -$ -$ -$
Transfers Out -$ -$ -$ -$ -$
Total Expenditures -$ -$ -$ -$ -$
Fund Balance End of Year 549,433.00$ 658,029.82$ 854,358.99$ 1,246,760.12$ 1,514,229.86$
Interest Receivable - Long Term Loans (2)-$ -$ -$ 83,693.01$ 98,463.84$
Less Loans Receivable (3)-$ 446,826.43$ 446,826.43$ 446,826.43$ 446,826.43$
Net Fund Balance End of Year 549,433.00$ 211,203.39$ 407,532.56$ 716,240.68$ 968,939.59$
Net Fund Ending Balance (6/30/25)968,939.59$
Less: Revenues for last five years:
Revenues FY 20-21 231,679.85$
Revenues FY 21-22 108,596.82$
Revenues FY 22-23 196,329.17$
Revenues FY 23-24 392,401.13$
Revenues FY 24-25 267,469.74$
Total Revenues for last five years 1,196,476.71$
Funds Held in Excess of Five Years (227,537.12)$ if positive, then subject to findings
Notes
Five Year Revenue Analysis
(1) Prior Period Adjustment related to transfer in from Fund 501 attributed to FY 2019/ 2020.
(2) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces the
amount of available funding.
(3) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.
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Citywide Park Improvement Impact Fee – Fund 519
The Citywide Park Improvement Impact Fee was established in 2018 as part of the Capital Facilities Development
Impact Fee Nexus Study and adopted by Resolution No. 10879 to sustain current levels of park service to new
development within the City. This impact fee is intended to be used on the improvement of facilities for existing
and newly acquired parkland intended for all areas of the city.
Starting in FY 2020-21, a reorganization of the impact fee funds was approved to facilitate the accounting,
controlling, and reporting of development impact fees. Fund 519 was created to separate the accounting of
citywide park improvement impact fees from Quimby In-Lieu fees, Fund 501. Transfers of $320,032.52 from the
Parkland In-Lieu Quimby Fee Fund were attributed to FY 2019-20 as a prior period adjustment.
As of June 30, 2025, the fund balance available for expenditure was $2,040,551.64. Expenditures from fund
balance totaled $173,119.86 in FY 2024-25. Refer to Exhibit A and Exhibit B for details of projects which are
funded with this fee. As of June 30, 2025, there were no funds collected that had been held for more than five years.
519 - Citywide Park Improvement Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year -$ 837,762.15$ 1,008,615.38$ 1,421,721.92$ 2,176,584.18$
Prior Period Adjustment (1)320,032.52$ -$ -$ -$ -$
Fund Balance Beginning of Year After Adjustment 320,032.52$ 837,762.15$ 1,008,615.38$ 1,421,721.92$ 2,176,584.18$
Interest 108.72$ (20,015.16)$ 16,423.70$ 84,786.78$ 106,954.79$
Impact Fees 517,620.91$ 190,868.39$ 396,682.84$ 721,791.61$ 133,286.41$
Total Revenue 517,729.63$ 170,853.23$ 413,106.54$ 806,578.39$ 240,241.20$
Expenses -$ -$ -$ 51,716.13$ 173,119.86$
Transfers Out -$ -$ -$ -$ -$
Total Expenditures -$ -$ -$ 51,716.13$ 173,119.86$
Fund Balance End of Year 837,762.15$ 1,008,615.38$ 1,421,721.92$ 2,176,584.18$ 2,243,705.52$
Accounts Receivable - SCIP Impact Fee Distributions(2)-$ -$ -$ 60,755.74$ -$
Less Interest Receivable - Long Term Loans (3)-$ -$ -$ 9,960.45$ 13,944.91$
Less Loans Receivable (4)-$ 82,806.89$ 82,806.89$ 203,153.88$ 203,153.88$
Net Fund Balance End of Year 837,762.15$ 925,808.49$ 1,338,915.03$ 1,973,430.30$ 2,040,551.64$
Net Fund Ending Balance (6/30/25)2,040,551.64$
Less: Revenues for last five years:
Revenues FY 20-21 517,729.63$
Revenues FY 21-22 170,853.23$
Revenues FY 22-23 413,106.54$
Revenues FY 23-24 806,578.39$
Revenues FY 24-25 240,241.20$
Total Revenues for last five years 2,148,508.99$
Funds Held in Excess of Five Years (107,957.35)$ if positive, then subject to findings
Notes
Five Year Revenue Analysis
(1) Prior Period Adjustment related to transfer in from Fund 501 attributed to FY 2019/ 2020.
(2) Accounts Receivable are impact fees due to City through the Statewide Community Infrastructure Program (SCIP) financing for the San Luis Square Project.
(3) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces the
amount of available funding.
(4) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.
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Orcutt Area Specific Plan Parks Impact Fee – Fund 511
The Orcutt Area Specific Plan Parks Impact Fee was established in March 2010 by Resolution No. 10222 for the
improvement of the Orcutt Area Specific Plan (OASP) parks system. This fee created a funding mechanism to
allocate 100% of the cost of the park improvements to the OASP developers. Specifically, Chapter 8 of the Public
Facilities Financing Plan (PFFP) for the OASP provides a detailed description of the park improvements, allocates
the cost to developers and provides a funding plan for the parks needed to serve new development in this area.
The OASP PFFP was originally established in March 2010, and revised in November 2016, December 2017, and
most recently October 2018 to update costs of infrastructure estimates and to revise the scope of certain capital
improvement projects within the PFFP. Details regarding the park plan were only included in the 2016 update.
Starting in FY 2020-21, a reorganization of the impact fees funds was approved to facilitate the accounting,
controlling, and reporting of development impact fees. Fund 511 was created to separate the accounting of
Orcutt Area Specific Plan Parks Impact Fees from Quimby In-Lieu fees, Fund 501. Transfers of $1,355,409.52 from
the Parkland In-Lieu Quimby Fee Fund were attributed to FY 2018-19 and FY 2019-20 as prior period adjustments.
As of June 30, 2025, the fund balance available for expenditure was $2,056,785.98. Expenditures from fund
balance totaled $245,981.47. Refer to Exhibit A and Exhibit B for details of projects which are funded with this
fee. As of June 30, 2025, there were no funds collected that had been held for more than five years.
Reimbursements paid from this fund in FY 2020-21 and FY 2021-22 are associated with the parkland dedicated by the
Righetti Ranch, LP Developer, under the Quimby Act, on behalf of the entire Orcutt Area. Since Righetti Ranch dedicated
all the parkland needed for the Orcutt Area, the City agreed to enter into the Parkland Reimbursement Agreement in
which the City collects a fair share allocation from benefiting properties within the Orcutt Area and passes through the
fee collected as reimbursement to Righetti Ranch for dedication of parkland. These reimbursements were considered
pass through payments collected from benefiting properties and no impact fees were used to satisfy the private
obligations under the Parkland Reimbursement Agreement. The City has recently taken steps to separate the
accounting of Impact Fees and Reimbursement Fees, therefore, future reimbursements to Righetti Ranch under the
Parkland Reimbursement Agreement will be collected and passed through a separate custodial fund which has been
established specifically for purpose of reimbursement to Righetti Ranch, LP.
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511 - Orcutt Area Specific Plan Parks Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year -$ 2,248,529.96$ 2,043,551.64$ 2,323,855.42$ 2,116,013.54$
Prior Period Adjustment (1)1,355,409.52$ -$ -$ -$ -$
Fund Balance Beginning of Year After Adjustment 1,355,409.52$ 2,248,529.96$ 2,043,551.64$ 2,323,855.42$ 2,116,013.54$
Interest 377.92$ (51,550.30)$ 30,226.87$ 100,569.30$ 102,398.83$
Impact Fees 1,277,619.60$ 130,976.42$ 327,160.19$ 132,780.71$ 84,355.08$
Total Revenue 1,277,997.52$ 79,426.12$ 357,387.06$ 233,350.01$ 186,753.91$
Expenses -$ -$ 77,083.28$ 441,191.89$ 245,981.47$
Reimbursements 366,800.56$ 284,404.44$ -$ -$ -$
Transfers Out 18,076.52$ -$ -$ -$ -$
Total Expenditures 384,877.08$ 284,404.44$ 77,083.28$ 441,191.89$ 245,981.47$
Fund Balance End of Year 2,248,529.96$ 2,043,551.64$ 2,323,855.42$ 2,116,013.54$ 2,056,785.98$
Less Loans Receivable -$ -$ -$ -$ -$
Net Fund Balance End of Year 2,248,529.96$ 2,043,551.64$ 2,323,855.42$ 2,116,013.54$ 2,056,785.98$
Net Fund Ending Balance (6/30/25)2,056,785.98$
Less: Revenues for last five years:
Revenues FY 20-21 1,277,997.52$
Revenues FY 21-22 79,426.12$
Revenues FY 22-23 357,387.06$
Revenues FY 23-24 233,350.01$
Revenues FY 24-25 186,753.91$
Total Revenues for last five years 2,134,914.62$
Funds Held in Excess of Five Years (78,128.64)$ if positive, then subject to findings
Notes
Five Year Revenue Analysis
(1) Prior Period Adjustment related to Transfers in from Fund 501: FY $430,022 FY 19-20; $925,388 FY 18-19
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Margarita Area Development Impact Fee – Fund 512
The Margarita Area Specific Plan Parks Impact fee was established in 2005 and adopted by Resolution No. 9643
for the Margarita Area Park design and construction, including construction management as set forth in Chapter
9 of the Margarita Area Specific Plan under the Public Facilities Financing Plan. Funds may also be used to
reimburse the City for expenses advanced by other sources to pay for design and construction or may be used to
reimburse developers who have been required to construct park facilities and improvements beyond their fair
share. While the fee has been discontinued, the fund is still active to properly account for the fe es that were
collected in the past and that must be used specifically on the park system in the Margarita Area Specific Plan.
Starting in FY 2020-21, a reorganization of the impact fee funds was approved to facilitate the accounting,
controlling, and reporting of development impact fees. Fund 512 was created to separate the accounting of
Margarita Area Park Impact Fees from Quimby in-lieu fees, Fund 501. Transfers of $1,313,184.10 from the
Parkland In-Lieu Quimby Fee Fund have been attributed to fiscal years prior to 2018-19 as a prior period
adjustment.
As of June 30, 2025, the fund balance available for expenditure was $3,454,600.12. There have been no
expenditure from this fund since inception. Refer to Exhibit A and Exhibit B for details of projects which are funded
with this fee. Fund balance is currently being held to be used for the planned park system in the Margarita Area Specific
Plan. As of June 30, 2025, there was $2,817,860.18 which had been held for more than five years.
Interfund Loan: The Interfund Loan shown in the table below was authorized by Resolution No. 10513 (2014
Series) in the amount of $1,504,676.08 to advance early reimbursement/ credit of Prado Road improvement
costs from the Margarita Area Development Impact Fee fund. Funds were loaned from MASP Transportation
Impact Fee Fund (now consolidated with the Citywide Transportation Impact Fee Fund) to accommodate the
reimbursement of funds advanced from other sources. Final reconciliation for loan repayment occurred in FY
2023-24 and the loan has been paid in full along with interest, at a rate of average return for City investments.
Five Year Findings: As of June 30, 2025, there is $2,817,860.18 in revenue collected which has been held for more
than five years. The fund balance is intended to be used for pre-construction activities (design, planning,
permitting, etc.) and the overall construction costs for a twenty-one-acre community park located in the Margarita
Area Specific Plan area.
The use of these funds for a park in the Margarita Area is in conformance with the Margarita Area Specific Plan
and the Parks & Recreation Blueprint for the Future: 2021-2041 (General Plan Element) and allows the City to
meet the need for a community park that includes sport/athletic fields, sport courts, playground amenities, public
art, and social gathering area(s). In 2005 the need for the park was identified in the Margarita Area Specific Plan
and the financing strategy was identified in the Public Facilities Financing Plan for Margarita Area. The plan was
amended in 2012 to adjust the equitable sharing of the cost of the purchase and construction of the Damon-
Garcia Sports Fields, which is satisfying a portion of the park needs in the Margarita Area.
The table below reflects the overall funding sources and amount anticipated to cover the costs of the future park
project in the Margarita Area.
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14
The total cost of the park project was originally estimated using a 2012 calculation and was the basis for fee
amounts. Since this time, costs to construct the park have significantly increased and therefore to establish the
current total cost, the City applied a onetime Consumer Price Index (CPI) adjustment from 2012 to 2024 and
annually thereafter.
At this time, the project is on hold because the identified land, zoned for park space, is privately owned, and the
current owners are not interested in selling or developing the property. The City remains committed to using the
funds collected for the MASP park whenever the landowners decide to sell or develop the site. Additionally, the
project faces a lack of funding sources, and the City will need to cover a substantial amount of the project costs
with other yet-to -be-determined funding sources. Currently, no construction start date has been identified.
Current Development
Impact Fees %Other Funding
Sources (1)%
Margarita Area Community Park 3,454,600.12$ 21%12,621,328.58$ 79%$16,075,928.70 100%
Project Total %
Cost by Fund Source
(1) Other funding sources will include Citywide Parkland Improvement Impact Fees, Quimby In-Lieu Fees, General Fund
(Local Revenue Measure G) and/or Future Grants
512 - Margarita Area Development Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year -$ 1,632,841.88$ 1,668,914.59$ 1,688,634.64$ 3,292,559.86$
Prior Period Adjustment (1) 1,313,184.10$ -$ -$ -$ -$
Interfund Loan from Fund 507 (2)-$ -$ -$ 1,504,676.08$ -$
Fund Balance Beginning of Year After Adjustment 1,313,184.10$ 1,632,841.88$ 1,668,914.59$ 3,193,310.72$ 3,292,559.86$
Interest 269.64$ (38,916.34)$ 19,685.31$ 99,249.14$ 162,040.26$
Impact Fees 319,388.14$ 74,989.05$ 34.74$ -$ -$
Total Revenue 319,657.78$ 36,072.71$ 19,720.05$ 99,249.14$ 162,040.26$
Expenses -$ -$ -$ -$ -$
Transfers Out -$ -$ -$ -$ -$
Total Expenditures -$ -$ -$ -$ -$
Fund Balance End of Year 1,632,841.88$ 1,668,914.59$ 1,688,634.64$ 3,292,559.86$ 3,454,600.12$
Less Loans Receivable -$ -$ -$ -$ -$
Net Fund Balance End of Year 1,632,841.88$ 1,668,914.59$ 1,688,634.64$ 3,292,559.86$ 3,454,600.12$
Net Fund Ending Balance (6/30/25)3,454,600.12$
Less: Revenues for last five years:
Revenues FY 20-21 319,657.78$
Revenues FY 21-22 36,072.71$
Revenues FY 22-23 19,720.05$
Revenues FY 23-24 99,249.14$
Revenues FY 24-25 162,040.26$
Total Revenues for last five years 636,739.94$
Funds Held in Excess of Five Years 2,817,860.18$ if positive, then subject to findings
Notes
Five Year Revenue Analysis
(1) Prior Period Adjustment for FY 20-21 related to Transfers in from Fund 501: $354,240 FY 17-18; $958,944 prior to 2017.
(2) $1,504,676.08 is related to Interfund Loan repayment from Fund 507.
Page 251 of 509
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Transportation Impact Fees
Page 252 of 509
16
Citywide Transportation Impact Fee – Fund 507
The Citywide Transportation Impact Fee was established in 2018 as part of the Capital Facilities Development
Impact Fee Nexus Study and adopted by Resolution No. 10879 to help maintain adequate levels of transportation
facilities in the city by mitigating the impacts that new development will have on the City’s transportation system.
Fee revenue is used to fund transportation improvements such as interchanges, intersections, street widening
and extensions, pedestrian and bicycle improvements, transit improvements and is also used for reimbursements
to developers for improvements they constructed which exceed their fair share and are also included in the City’s
Transportation Impact Fee program.
As of June 30, 2025, the fund balance available for expenditure was $5,488,500.91. Expenditures from fund
balance totaled $739,340.93 in FY 2024-25, refer to Exhibit A and Exhibit B for details of projects which are funded
with this fee. As of June 30, 2025, there were no funds collected that had been held for more than five years.
Transfers Out: There is an annual Transfer Out of fees collected for reimbursement to the General Fund for direct
costs incurred for debt service associated with the Los Osos Valley Road Interchange. The City Council has
authorized the use of Traffic Impact Fees to finance at least half of the cost of the annual debt service payments.
The transfer is annually assessed through the City’s Cost Allocation Plan and transfers are made in quarterly
installments. For FY 2024-25, an amount of $280,000 was transferred and used on debt service payments related
to the LOVR Interchange completed project. Final debt payments associated with this transfer of funds will be
FY 2044-45.
Interfund Loan #1: There was an Interfund Loan which was authorized by Resolution No. 10513 (2014 Series) in
the amount of $1,504,676.08 to advance early reimbursement/credit of Prado Road improvement costs from the
Margarita Area Development Impact Fee fund. Funds were loaned from MASP Transportation Impact Fee Fund
(now consolidated to the Citywide TIF Fund) to accommodate the reimbursement of funds advanced from other
sources. Final reconciliation for loan repayment occurred in FY 2023-24 and the loan has been paid in full along
with interest, at a rate of average return for City investments.
Interfund Loan #2: LOVR Subarea Citywide Base Fees in the amount of $67,478.34 were deposited to the LOVR
Transportation Impact Fee Fund (504) in error during FY 2024-25. The revenue should have been received by the
Citywide Transportation Impact Fee Fund (507). Therefore, to reconcile and correct the error, an interfund loan
has been established as a short-term liability which will ensure the correct revenue amounts are received by Fund
507. Payback of the interfund loan is expected to occur during FY 2025-26 at a 0% rate of interest.
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507 - Citywide Transportation Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year 8,655,656.59$ 9,524,297.08$ 7,031,866.19$ 7,100,279.50$ 6,100,162.30$
Prior Period Adjustment (1)(3,151.00)$ -$ -$ -$ -$
Interfund Loan Repayment (2)-$ -$ -$ (1,504,676.08)$ -$
8,652,505.59$ 9,524,297.08$ 7,031,866.19$ 5,595,603.42$ 6,100,162.30$
Interest 2,509.13$ (236,023.88)$ 82,951.89$ 315,953.58$ 301,827.84$
Misc. Revenue -$ -$ -$ -$ -$
Impact Fees 3,065,469.58$ 1,715,908.93$ 1,369,546.11$ 899,741.83$ 1,496,794.06$
Total Revenue 3,067,978.71$ 1,479,885.05$ 1,452,498.00$ 1,215,695.41$ 1,798,621.90$
Expenses 1,542,832.20$ 3,380,159.86$ 1,104,084.69$ 390,536.53$ 459,340.93$
Reimbursements 367,755.02$ 312,156.08$ -$ -$ -$
Transfers Out 285,600.00$ 280,000.00$ 280,000.00$ 320,600.00$ 280,000.00$
Total Expenditures 2,196,187.22$ 3,972,315.94$ 1,384,084.69$ 711,136.53$ 739,340.93$
Fund Balance End of Year 9,524,297.08$ 7,031,866.19$ 7,100,279.50$ 6,100,162.30$ 7,159,443.27$
Less Interest Receivable - Long Term Loans (3)-$ -$ -$ 163,432.04$ 201,536.10$
Less Loans Receivable (4)-$ 1,164,368.13$ 1,164,368.13$ 1,401,927.92$ 1,401,927.92$
Interfund Loan Receivable (5)-$ -$ -$ -$ 67,478.34$
Net Fund Balance End of Year 9,524,297.08$ 5,867,498.06$ 5,935,911.37$ 4,534,802.34$ 5,488,500.91$
Net Fund Ending Balance (6/30/25)5,488,500.91$
Less: Revenues for last five years:
Revenues FY 20-21 3,067,978.71$
Revenues FY 21-22 1,479,885.05$
Revenues FY 22-23 1,452,498.00$
Revenues FY 23-24 1,215,695.41$
Revenues FY 24-25 1,798,621.90$
Total Revenues for last five years 9,014,679.07$
Funds Held in Excess of Five Years (3,526,178.16)$ if positive, subject to findings
Notes
(1) Prior Period Adjustment related to transfer in from Fund 501 attributed to FY 2019/ 2020.
(2) $1,504,676.08 is related to Interfund Loan repayment from Fund 507.
(3) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces
the amount of available funding.
(4) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.
(5) Interfund Loan to Fund 504, LOVR TIF.
Five Year Revenue Analysis
Page 254 of 509
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Airport Area Transportation Impact Fee – Fund 503
The Airport Area Transportation Impact Fee was established in 2005 by Resolution No. 9727 for the expansion of
transportation facilities in the Airport Area Specific Plan (AASP) boundaries. The fees are intended to be used on
Tank Farm Road Median Improvements, Unocal Local Road, Santa Fe Extension, Buckley Extension, and Bike Paths
in the Airport Area. In addition, these funds can be used to reimburse the City for funds advanced from other
sources or to reimburse developers who have been required to construct improvements beyond their fair share,
and those improvements costs are also included in the Airport Area Transportation Fee calculation. In 2018, the
City Council adopted Resolution No. 10879 that consolidated the Airport Area Transportation Impact Fee into the
Citywide Transportation Impact Fee Program. Although the Airport Area Transportation Impact Fee has been
discontinued, the fund is still active to properly account for the fees that were collected that must be used on
transportation projects in the Airport Area Specific Plan.
As of June 30, 2025, the fund balance available for expenditure was $162,943.21. Expenditures from fund balance
totaled $234,242.23 in FY 2024-25, refer to Exhibit A and Exhibit B for details of projects which are funded with
this fee. In FY 2023-24, expenditures included a reimbursement payment in the amount of $127,951.77 which is
associated with the 600 Tank Farm Reimbursement Agreement between the City of San Luis Obispo and Covelop, Inc.
As of June 30, 2025, there was a balance of $132,691.31 which has been held for more than five years.
Five Year Finding:
The fund balance held more than five years is to be used for pre-construction activities (design, planning,
permitting, etc.) for two transportation improvement projects programmed in the AASP TIF program: Tank Farm
Road Widening (including the Tank Farm/Santa Fe Roundabout, and shared-use path between Santa Fe and
Innovation Way) and Santa Fe Road Extension north of Tank Farm Road. Specifically, these funds will be used to
reimburse Covelop, Inc. for costs related to transportation improvements required for the 600 Tank Farm
development project and are also included in the Airport Area Transportation Impact Fee calculation.
As conditions of approval of the project, the 600 Tank Farm developer is required to design and construct
portions of the Tank Farm Road Widening and Santa Fe Road Extension (North) improvements prior to their
development projects construction of units. As documented in detail in the AASP and its related EIR, the Tank
Farm Widening and Santa Fe Road Extension projects represent transportation infrastructure that is needed to
mitigate the impacts of new development within the city, particularly within the AASP boundaries. The
proportionality and nexus to new development is described in further detail in the AASP (Chapter 8, Public
Facilities Financing Plan).
Below is a list of projects on which the fees collected will be used and the anticipated amount of funding from
all sources needed to complete the financing of these projects.
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The Tank Farm Road Widening and Santa Fe Road Extension projects are large, complex transportation
improvements that are anticipated to be constructed in phases over several years as incremental development
occurs. Funding is expected to be completed for the remaining projects as identified in the following timelines:
o For the Tank Farm Road Widening Project, funding for the first components of the project that are the
responsibility of the 600 Tank Farm development, is expected to be available by 2026, and associated
improvements could be constructed as soon as 2027. These first components of the Project include
design/pre-construction costs for the future Tank Farm Road/Santa Fe Roundabout and Tank Farm
Road shared-use path (not constructed with 600 Tank Farm development), and a portion of the
construction costs associated with widening of Tank Farm Road at the intersection with Santa Fe
(constructed by 600 Tank Farm development). Funding and construction for the remaining project
components, including construction of the Tank Farm/Santa Fe Roundabout, construction of the Tank
Farm shared-use path and further widening of Tank Farm Road, are dependent on future
development within the AASP area, which could reasonably occur within the next 5-15 years.
o For the Santa Fe Road Extension (North) Project, funding for the first component of the project, which
will be constructed by 600 Tank Farm development, (approximately 40% of the planned road
extension) is expected to be available by 2026, and improvements could be constructed as soon as
2027. Funding and construction timing for the remaining project components are dependent on
future development within the AASP area, which could reasonably occur within the next 5-15 years.
o For the Santa Fe Road Extension (South), funding and construction timing are dependent on future
development within the AASP area, which could reasonably occur within the next 5-15 years.
The direct developer contribution and local funds needed for these improvements are fully funded. The portion
of these project costs from development impact fees are partially funded, with $162,943.21 to be applied from
existing AASP TIF fund balance, and the remainder to be reimbursed to the developer from future Citywide
Transportation Impact Fee revenues—the Citywide Transportation Impact Fee obligations for the 600 Tank Farm
development itself would fully fund this reimbursement.
Page 256 of 509
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503 - Airport Area Transportation Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year 1,141,565.19$ 896,694.57$ 675,535.70$ 664,234.94$ 383,593.32$
Prior Period Adjustment -$ -$ -$ -$ -$
Fund Balance Beginning of Year After Adjustment 1,141,565.19$ 896,694.57$ 675,535.70$ 664,234.94$ 383,593.32$
Interest 262.43$ (21,170.76)$ 7,701.88$ 27,958.46$ 13,592.12$
Impact Fees 400.12$ 1,507.65$ -$ -$ -$
Total Revenue 662.55$ (19,663.11)$ 7,701.88$ 27,958.46$ 13,592.12$
Expenses 245,533.17$ 201,495.76$ 19,002.64$ 180,648.31$ 234,242.23$
Reimbursements -$ -$ -$ 127,951.77$ -$
Transfers Out -$ -$ -$ -$ -$
Total Expenditures 245,533.17$ 201,495.76$ 19,002.64$ 308,600.08$ 234,242.23$
Fund Balance End of Year 896,694.57$ 675,535.70$ 664,234.94$ 383,593.32$ 162,943.21$
Less Loans Receivable -$ -$ -$ -$ -$
Net Fund Balance End of Year 896,694.57$ 675,535.70$ 664,234.94$ 383,593.32$ 162,943.21$
Net Fund Ending Balance (6/30/25)162,943.21$
Less: Revenues for last five years:
Revenues FY 20-21 662.55$
Revenues FY 21-22 (19,663.11)$
Revenues FY 22-23 7,701.88$
Revenues FY 23-24 27,958.46$
Revenues FY 24-25 13,592.12$
Total Revenues for last five years 30,251.90$
Funds Held in Excess of Five Years 132,691.31$ if positive, then subject to findings
Notes
Five Year Revenue Analysis
N/A
Page 257 of 509
21
Los Osos Valley Road Transportation Impact Fee – Fund 504
The Los Osos Valley Road Transportation Impact Fee was established as an add-on fee in 2018 as part of the
Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 for the expansion
of capacity for the Los Osos Valley Road (LOVR) interchange at US 101 for construction, project management,
and inspection. Though the project has been completed, there are still minor projects that the City will need to
implement at this location. The fee program was revised in 2019 to reflect the completion of the interchange
construction work and the remaining projects. The City has a Reimbursement Agreement with Costco Wholesale
Corporation for the realignment of Calle Joaquin improvements constructed by Costco at the LOVR interchange
beyond their fair share. The reimbursement agreement with Costco has priority of revenue collected from this
fee.
As of June 30, 2025, the fund balance available for expenditures was ($2,452.56). The only expenditure in FY
2023-24 was the annual reimbursement payment made to Costco in the amount of $566,787.71. Refer to Exhibit
A and Exhibit B for details of projects being funded by this fee. As of June 30, 2025, there are no fees collected that
have been held for more than five years.
Interfund Loan: LOVR Subarea Citywide Base Fees in the amount of $67,478.34 were deposited to the LOVR
Transportation Impact Fee Fund (504) in error during FY 2024-25. The revenue should have been received by the
Citywide Transportation Impact Fee Fund (507). Therefore, to reconcile and correct the error, an interfund loan
has been established as a short-term liability which will ensure the correct revenue amounts are received by Fund
507. Payback of the interfund loan is expected to occur during FY 2025-26 at a 0% rate of interest.
Page 258 of 509
22
504 - LOVR Transportation Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year 469,605.94$ 469,730.00$ 584,365.27$ 416,719.77$ 616,787.73$
Interest 124.06$ (12,090.27)$ 4,582.99$ 21,181.85$ 15,025.76$
Impact Fees -$ 126,725.54$ (57,593.49)$ 201,771.80$ (67,478.34)$
Total Revenue 124.06$ 114,635.27$ (53,010.50)$ 222,953.65$ (52,452.58)$
Expenses -$ -$ -$ -$ -$
Reimbursements (1)-$ -$ 114,635.00$ 22,885.69$ 566,787.71$
Transfers Out -$ -$ -$ -$ -$
Total Expenditures -$ -$ 114,635.00$ 22,885.69$ 566,787.71$
Fund Balance End of Year 469,730.00$ 584,365.27$ 416,719.77$ 616,787.73$ (2,452.56)$
Less Loans Receivable -$ -$ -$ -$ -$
Net Fund Balance End of Year 469,730.00$ 584,365.27$ 416,719.77$ 616,787.73$ (2,452.56)$
Net Fund Ending Balance (6/30/25)(2,452.56)$
Less: Revenues for last five years:
Revenues FY 20-21 124.06$
Revenues FY 21-22 114,635.27$
Revenues FY 22-23 (53,010.50)$
Revenues FY 23-24 222,953.65$
Revenues FY 24-25 (52,452.58)$
Total Revenues for last five years 232,249.90$
Funds Held in Excess of Five Years (234,702.46)$ if positive, then subject to findings
Notes
Five Year Revenue Analysis
(1) Reimbursement payments to Costco for realignment of Calle Joaquin
Page 259 of 509
23
San Luis Ranch Transportation Impact Fee – Fund 514
The San Luis Ranch Transportation Impact Fee was established in 2018 as part of the Capital Facilities
Development Impact Fee Nexus Study and adopted by Resolution No. 10879. This fee applies to development
within San Luis Ranch only and represents the Citywide Transportation Impact Fee with appropriate adjustments
to exclude costs related to the US 101/Prado Road Interchange project. The Development Agreement between
the City and San Luis Ranch was adopted by the City Council in 2018 and requires the San Luis Ranch development
to provide a direct contribution of 28% of the costs of construction of the Highway 101/ Prado Road Interchange.
In exchange, the city charges the San Luis Ranch developer a discounted Citywide Transportation Impact Fee.
Because the developer is paying this obligation directly, an adjusted Citywide Transportation Impact Fee —the
San Luis Ranch Transportation Impact Fee— was created to ensure that development within San Luis Ranch does
not overpay towards the Prado Road Interchange project.
As of June 30, 2025, the fund balance available for expenditures was $2,606,606.76. There were no expenditures
from fund balance FY 2024-25, refer to Exhibit A and Exhibit B for details of projects which are funded with this
fee. As of June 30, 2024, there were no funds which had been held for more than five years.
514 - SLR Transportation Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year -$ -$ 458,855.53$ 1,289,408.48$ 2,157,823.01$
Interest -$ (2,186.54)$ 17,116.18$ 79,786.64$ 119,281.53$
Transfers In -$ 10,000.00$ -$ -$ -$
Impact Fees -$ 457,690.07$ 837,532.77$ 792,331.69$ 329,502.22$
Total Revenue -$ 465,503.53$ 854,648.95$ 872,118.33$ 448,783.75$
Expenses -$ 6,648.00$ 24,096.00$ 3,703.80$ -$
Reimbursements -$ -$ -$ -$ -$
Transfers Out -$ -$ -$ -$ -$
Total Expenditures -$ 6,648.00$ 24,096.00$ 3,703.80$ -$
Fund Balance End of Year -$ 458,855.53$ 1,289,408.48$ 2,157,823.01$ 2,606,606.76$
Less Loans Receivable -$ -$ -$ -$ -$
Net Fund Balance End of Year -$ 458,855.53$ 1,289,408.48$ 2,157,823.01$ 2,606,606.76$
Net Fund Ending Balance (6/30/25)2,606,606.76$
Less: Revenues for last five years:
Revenues FY 20-21 -$
Revenues FY 21-22 465,503.53$
Revenues FY 22-23 854,648.95$
Revenues FY 23-24 872,118.33$
Revenues FY 24-25 448,783.75$
Total Revenues for last five years 2,641,054.56$
Funds Held in Excess of Five Years (34,447.80)$ if positive, then subject to findings
Notes
Five Year Revenue Analysis
N/A
Page 260 of 509
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Orcutt Area Transportation Impact Fee – Fund 515
The Orcutt Area Transportation Impact Fee was established in 2010 by Resolution No. 10222 for the expansion
of transportation facilities in and around the Orcutt Area Specific Plan boundaries. Specifically, Chapter 8 of the
Public Facilities Financing Plan for the Orcutt Area Specific Plan provides a detailed description of the
transportation improvements needed to serve this area. The fees are intended to fund transportation
improvements or may be used to reimburse the City for funds advanced from other sources to pay for design and
construction, or to reimburse developers who have constructed transportation improvements beyond their fair
share and are also included in the Orcutt Area Transportation Impact Fee calculation. The fee was created as a
financing strategy to fund the burden of public facilities that must be funded by development in the Orcutt Area
Specific Plan.
The OASP Public Facilities Financing Plan (PFFP) was originally prepared in September 2009, and revised in
November 2016, December 2017, and October 2018, to update costs reflecting current construction estimates
and to revise the scope of certain capital improvement projects within the PFFP. The Orcutt Area Transportation
Impact Fee fund was established in FY 2020-21 with the reorganization of the chart of accounts to account for
Orcutt Area Transportation Impact Fees separately from other transportation impact fees.
As of June 30, 2025, the fund balance available for expenditure was $1,864,800.06. There have been no
expenditures made in the prior four years. Refer to Exhibit A and Exhibit B for details of projects which are being
funded with this fee. Fund balance is being held until eligible transportation projects are identified in the Orcutt Area.
As of June 30, 2025, there were no funds collected which had been held for more than five years.
Page 261 of 509
25
515 - OASP Transportation Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year -$ 692,609.95$ 1,392,254.93$ 1,408,677.24$ 1,473,245.02$
Interest 51.35$ (29,354.51)$ 16,422.31$ 64,567.78$ 82,225.04$
Impact Fees 909,089.60$ 728,999.49$ -$ -$ 309,330.00$
Total Revenue 909,140.95$ 699,644.98$ 16,422.31$ 64,567.78$ 391,555.04$
Expenses 216,531.00$ -$ -$ -$ -$
Reimbursements -$ -$ -$ -$ -$
Transfers Out -$ -$ -$ -$ -$
Total Expenditures 216,531.00$ -$ -$ -$ -$
Fund Balance End of Year 692,609.95$ 1,392,254.93$ 1,408,677.24$ 1,473,245.02$ 1,864,800.06$
Less Loans Receivable -$ -$ -$ -$ -$
Net Fund Balance End of Year 692,609.95$ 1,392,254.93$ 1,408,677.24$ 1,473,245.02$ 1,864,800.06$
Net Fund Ending Balance (6/30/25)1,864,800.06$
Less: Revenues for last five years:
Revenues FY 20-21 909,140.95$
Revenues FY 21-22 699,644.98$
Revenues FY 22-23 16,422.31$
Revenues FY 23-24 64,567.78$
Revenues FY 24-25 391,555.04$
Total Revenues for last five years 2,081,331.06$
Funds Held in Excess of Five Years (216,531.00)$ if positive, then subject to findings
Notes
Five Year Revenue Analysis
N/A
Page 262 of 509
26
Wastewater and Water Impact Fees
Page 263 of 509
27
Wastewater Impact Fee – Fund 506
The Wastewater Impact Fee was established in 2018 by Resolution No. 10880 as part of the 2017 Water and
Wastewater Capacity and Connection Fee Study. Effective June 5, 2019, the Wastewater Impact Fee was updated
to include the cost of the Buckley Lift Station, the updated fee was adopted via Resolution No. 11020. The fees
collected are to be used for the expansion and improvement of facilities used for sewer collection and sewer
treatment. Specifically, the facilities and improvements to be paid for by these fees are listed in the 2017 Water
and Wastewater Capacity and Connection Fee Study. Wastewater Impact Fees are governed by Municipal Code
4.20.140 and 4.56. The Wastewater Impact Fee Fund 506 is used to separately collect and account for
Wastewater Impact Fees. The fees collected are transferred to the Sewer Fund (602) as reimbursement and/or
advancement for eligible project costs which occur from the Sewer Fund.
As of June 30, 2025, the fund balance available for expenditure is $5,799,629.03. Expenditures from fund balance
totaled $943,559.30 in FY 2024-25. Refer to Exhibit A and Exhibit B for details of projects which are being funded
with this fee. As of June 30, 2025, there were no funds which had been held for more than five years.
506 - Wastewater Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year 1,327,831.75$ 1,313,758.21$ 2,059,353.65$ 2,075,751.37$ 5,006,412.64$
Prior Period Adjustment (1) -$ 875,136.06$ -$ -$ -$
Fund Balance Beginning of Year After Adjustment 1,327,831.75$ 2,188,894.27$ 2,059,353.65$ 2,075,751.37$ 5,006,412.64$
Interest 412.53$ 11,202.64$ 4,104.37$ 19,232.11$ -$
Impact Fees 3,822,468.61$ 3,685,007.64$ 1,980,885.60$ 2,911,429.16$ 2,729,022.70$
Total Revenue 3,822,881.14$ 3,696,210.28$ 1,984,989.97$ 2,930,661.27$ 2,729,022.70$
Expenses -$ -$ -$ -$ -$
Transfers Out (4)3,836,954.68$ 3,825,750.90$ 1,968,592.25$ -$ 943,559.30$
Total Expenditures 3,836,954.68$ 3,825,750.90$ 1,968,592.25$ -$ 943,559.30$
Fund Balance End of Year 1,313,758.21$ 2,059,353.65$ 2,075,751.37$ 5,006,412.64$ 6,791,876.04$
Interest Receiveable - Long Term Loans (2)-$ -$ -$ 134,087.39$ 193,502.01$
Less Loans Receivable (3)-$ 798,745.00$ 798,745.00$ 798,745.00$ 798,745.00$
Net Fund Balance End of Year 1,313,758.21$ 1,260,608.65$ 1,277,006.37$ 4,073,580.25$ 5,799,629.03$
Net Fund Ending Balance (6/30/25)5,799,629.03$
Less: Revenues for last five years:
Revenues FY 20-21 3,822,881.14$
Revenues FY 21-22 3,696,210.28$
Revenues FY 22-23 1,984,989.97$
Revenues FY 23-24 2,930,661.27$
Revenues FY 24-25 2,729,022.70$
Total Revenues for last five years 15,163,765.36$
Funds Held in Excess of Five Years (9,364,136.33)$ if positive, subject to findings
Notes
Five Year Revenue Analysis
(1) Prior Period Adjustments are related to Loan Receivable & Accrued Interest
(2) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces the
amount of available funding.
(3) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.
(4) Transfers Out to Enterprise Fund for reimbursement and/or advancement of eligible project expenditures which occur out of the Enterprise Fund.
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Water Impact Fee – Fund 509
The Water Impact Fee was established in 2018 by Resolution No. 10880 as part of the 2017 Water and
Wastewater Capacity and Connection Fee Study. The fees collected are intended to fund the expansion and
improvement of facilities used for water supply, water treatment, and water distribution necessary to serve new
development. Specifically, the facilities and improvements to be paid for by these fees are listed in the 2017
Water and Wastewater Capacity and Connection Fee Study. Water Impact Fees are governed by Municipal Code
4.20.140 and 4.56. The Water Impact Fee Fund 506 is used to separately collect and account for Water Impact
Fees. The fees collected are transferred to the Water Fund (601) as reimbursement and/or advancement for
eligible project costs which occur from the Water Fund.
As of June 30, 2025, the fund balance available for expenditure was $6,851,326.63. Expenditures from fund
balance totaled $2,643,232.35 in FY 2024-25. Refer to Exhibit A and Exhibit B for details of projects which are
funded with this fee. As of June 30, 2025, there were no funds which had been held for more than five years.
509 - Water Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year -$ (2,019.05)$ 1,654,607.49$ 1,688,539.45$ 6,410,586.48$
Prior Period Adjustment (1) -$ 1,624,196.66$ -$ -$ -$
Fund Balance Beginning of Year After Adjustment -$ 1,622,177.61$ 1,654,607.49$ 1,688,539.45$ 6,410,586.48$
Interest 59.19$ 34,684.96$ 32,425.24$ 35,327.89$ -$
Impact Fees 4,744,361.10$ 5,160,019.76$ 3,616,306.55$ 4,686,719.14$ 4,843,918.78$
Total Revenue 4,744,420.29$ 5,194,704.72$ 3,648,731.79$ 4,722,047.03$ 4,843,918.78$
Expenses -$ -$ -$ -$ -$
Transfers Out (4)4,746,439.34$ 5,162,274.84$ 3,614,799.83$ -$ 2,643,232.35$
Total Expenditures 4,746,439.34$ 5,162,274.84$ 3,614,799.83$ -$ 2,643,232.35$
Fund Balance End of Year (2,019.05)$ 1,654,607.49$ 1,688,539.45$ 6,410,586.48$ 8,611,272.91$
Interest Receiveable - Long Term Loans (2)-$ -$ -$ 253,900.30$ 283,603.81$
Less Loans Receivable (3)-$ 1,476,189.03$ 1,476,189.03$ 1,476,342.47$ 1,476,342.47$
Net Fund Balance End of Year (2,019.05)$ 178,418.46$ 212,350.42$ 4,680,343.71$ 6,851,326.63$
Net Fund Ending Balance (6/30/25)6,851,326.63$
Less: Revenues for last five years:
Revenues FY 20-21 4,744,420.29$
Revenues FY 21-22 5,194,704.72$
Revenues FY 22-23 3,648,731.79$
Revenues FY 23-24 4,722,047.03$
Revenues FY 24-25 4,843,918.78$
Total Revenues for last five years 23,153,822.61$
Funds Held in Excess of Five Years (16,302,495.98)$ if positive, subject to findings
Notes
Five Year Revenue Analysis
(1) Prior Period Adjustments is related to Loan Receivable & Accrued Interest
(2) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces the
amount of available funding.
(3) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.
(4) Transfers Out to Enterprise Fund for reimbursement and/or advancement of eligible project expenditures which occur out of the Enterprise Fund.
Page 265 of 509
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Emergency Service Facilities Impact Fee
Page 266 of 509
30
Fire Impact Fee – Fund 516
The Fire Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study
and adopted by Resolution No. 10879 to help ensure there are sufficient fire facilities and vehicles to serve new
development. Fees collected will be used to help renovate Fire Stations 1-4, to construct Fire Station 5, and to
replace fire vehicles, all of which are needed to serve new development.
As of June 30, 2025, the fund balance available for expenditure is $393,732.58. There have been no expenditures
from this fund since inception, however, it is expected that a portion of the balance will be used in FY 2025-26 to fund
improvements to Fire Station 3 & 4 remodels. Refer to Exhibit A and Exhibit B for details of projects which are
funded with this fee. As of June 30, 2025, there were no funds collected that had been held for more than five years.
516 - Fire Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year -$ 66,123.61$ 200,219.76$ 214,607.26$ 398,564.20$
Interest 10.18$ (16,497.18)$ 2,710.96$ 14,584.27$ 22,401.43$
Transfers In (1)-$ 85,996.16$ -$ -$ -$
Impact Fees 66,113.43$ 64,597.17$ 11,676.54$ 169,372.67$ 90,289.85$
Total Revenue 66,123.61$ 134,096.15$ 14,387.50$ 183,956.94$ 112,691.28$
Expenses -$ -$ -$ -$ -$
Reimbursements -$ -$ -$ -$ -$
Transfers Out -$ -$ -$ -$ -$
Total Expenditures -$ -$ -$ -$ -$
Fund Balance End of Year 66,123.61$ 200,219.76$ 214,607.26$ 398,564.20$ 511,255.48$
Less Interest Receivable - Long Term Loans (2)-$ -$ -$ 12,005.26$ 14,954.16$
Less Loans Receivable (3)-$ 78,276.25$ 78,276.25$ 102,568.74$ 102,568.74$
Net Fund Balance End of Year 66,123.61$ 121,943.51$ 136,331.01$ 283,990.20$ 393,732.58$
Net Fund Ending Balance (6/30/25)393,732.58$
Less: Revenues for last five years:
Revenues FY 20-21 66,123.61$
Revenues FY 21-22 134,096.15$
Revenues FY 22-23 14,387.50$
Revenues FY 23-24 183,956.94$
Revenues FY 24-25 112,691.28$
Total Revenues for last five years 511,255.48$
Funds Held in Excess of Five Years (117,522.90)$ if positive, subject to findings
Notes
Five Year Revenue Analysis
(1) Transfer in from Fund 508: FY 2019/ 20 = $96,344.08 fees + $2,732.41 int = $99,076.49; FY 2020/21 = $235.50 int
(2) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces the
amount of available funding.
(3) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.
Page 267 of 509
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Police Impact Fee – Fund 517
The Police Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus
Study and adopted by Resolution No. 10879 to help ensure there are sufficient police facilities and vehicles to
serve new development. Fees collected are to be used to help construct the new police headquarters and
purchase vehicles to maintain the existing ratio of police vehicles to serve new development.
As of June 30, 2025, the fund balance available for expenditure was $543,411.50. There have been no expenditures
from this fund since inception, however, it is expected that the balance will be used in FY 2025-26 to fund tenant
improvements to a facility recently purchased by the City located at 1106 Walnut Street, which will house police
administration functions. Refer to Exhibit A and Exhibit B for details of projects which are being funded with this
fee. As of June 30, 2025, there were no funds collected which had been held for more than five years.
517 - Police Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year -$ 72,656.08$ 245,445.94$ 237,008.22$ 448,418.67$
Interest 10.89$ (19,445.24)$ 3,214.90$ 16,294.44$ 26,295.93$
Transfers In (1)-$ 102,358.84$ -$ -$ -$
Impact Fees 72,645.19$ 89,876.26$ (11,652.62)$ 195,116.01$ 165,111.92$
Total Revenue 72,656.08$ 172,789.86$ (8,437.72)$ 211,410.45$ 191,407.85$
Expenses -$ -$ -$ -$ -$
Reimbursements -$ -$ -$ -$ -$
Transfers Out -$ -$ -$ -$ -$
Total Expenditures -$ -$ -$ -$ -$
Fund Balance End of Year 72,656.08$ 245,445.94$ 237,008.22$ 448,418.67$ 639,826.52$
Less Interest Receivable - Long Term Loans (2)-$ -$ -$ 6,299.92$ 11,134.87$
Less Loans Receivable (3)-$ 56,781.01$ 56,781.01$ 85,280.15$ 85,280.15$
Net Fund Balance End of Year 72,656.08$ 188,664.93$ 180,227.21$ 356,838.60$ 543,411.50$
Net Fund Ending Balance (6/30/25)543,411.50$
Less: Revenues for last five years:
Revenues FY 20-21 72,656.08$
Revenues FY 21-22 172,789.86$
Revenues FY 22-23 (8,437.72)$
Revenues FY 23-24 211,410.45$
Revenues FY 24-25 191,407.85$
Total Revenues for last five years 639,826.52$
Funds Held in Excess of Five Years (96,415.02)$ if positive, then subject to findings
Notes
Five Year Revenue Analysis
(1) Transfer in from Fund 508: FY 2019/ 20 = $96,344.08 fees + $2,732.41 int = $99,076.49; FY 2020/21 = $235.50 int
(2) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces
the amount of available funding.
(3) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments reduce the amount of available funding.
Page 268 of 509
32
In-Lieu Fees
» Affordable Housing «
» Parkland (Quimby) «
» Open Space Protection «
» Parking «
» Public Art «
Page 269 of 509
33
Parkland In-Lieu Fee (Quimby) - Fund 501
The Parkland In-Lieu Fee was established in 2018 per Government Code 66477, also known as the Quimby Act,
and applies to new single-family and multifamily condominium developments. Parkland In-lieu Fees are
governed by Municipal Code 16.22.040 – 16.22.110. Developers are required to either dedicate parkland or pay
an in-lieu fee as a condition of approval. The land, fees, or combination thereof are to be used only for the
purpose of developing new or rehabilitating existing neighborhood parks, community parks or recreational
facilities which serve the subdivision in which the fees were collected. Under the Quimby Act, the base standard
for parks is 3.0 acres per 1,000 residents and cannot be any higher than 5.0 acres per 1,000 residents. The
Parkland In-Lieu fee has been established for the City with a standard of 4.18 acres per 1,000 residents.
As of June 30, 2025, the fund balance available for expenditure was $351,517.50. Expenditures from fund balance
totaled $1,759,459.54 in FY 2024-25. Refer to Exhibit A and Exhibit B for details of projects which are funded
with this fee. As of June 30, 2025, there were no funds which had been held for more than five years.
501 - Quimby In-Lieu Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year 4,709,560.11$ 3,405,467.67$ 3,107,198.95$ 3,205,116.00$ 2,241,596.43$
Prior Period Adjustment (1)(3,193,263.41)$ -$ -$ -$ -$
Fund Balance Beginning of Year After Adjustment 1,516,296.70$ 3,405,467.67$ 3,107,198.95$ 3,205,116.00$ 2,241,596.43$
Interest 941.09$ (84,393.63)$ 37,390.95$ 142,963.66$ 60,968.64$
In-Lieu Fees (4)1,900,253.58$ 126,518.63$ 110,414.52$ 128,484.95$ 56,134.40$
Total Revenue 1,901,194.67$ 42,125.00$ 147,805.47$ 271,448.61$ 117,103.04$
Expenses 12,023.70$ 340,393.72$ 49,888.42$ 1,234,968.18$ 1,759,459.54$
Reimbursements -$ -$ -$ -$ -$
Total Expenditures 12,023.70$ 340,393.72$ 49,888.42$ 1,234,968.18$ 1,759,459.54$
Fund Balance End of Year 3,405,467.67$ 3,107,198.95$ 3,205,116.00$ 2,241,596.43$ 599,239.93$
Interest Receivable - Long Term Loans (2)-$ -$ -$ 15,421.27$ 20,163.70$
Less Loans Receivable (3)-$ 143,044.36$ 143,044.36$ 227,588.73$ 227,558.73$
Net Fund Balance End of Year 3,405,467.67$ 2,964,154.59$ 3,062,071.64$ 1,998,586.43$ 351,517.50$
Net Fund Ending Balance (6/30/25)351,517.50$
Less: Revenues for last five years:
Revenues FY 20-21 1,901,194.67$
Revenues FY 21-22 42,125.00$
Revenues FY 22-23 147,805.47$
Revenues FY 23-24 271,448.61$
Revenues FY 24-25 117,103.04$
Total Revenues for last five years 2,479,676.79$
Funds Held in Excess of Five Years (2,128,159.29)$ if positive, then subject to findings
Notes
Five Year Revenue Analysis
(1) Prior Period Adjustment is related to transfer out to other funds 510, 511, 512, and 519.
(2) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces the
amount of available funding.
(3) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments reduces the amount of available funding.
(4) In-Lieu Fees includes Parkland In-Lieu Fees as well as the Dwelling Unit Fee.
Page 270 of 509
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Open Space Protection In-Lieu Fee – Fund 502
The Open Space Protection In-Lieu Fee was established in 2005 by Resolution No. 9728 to address the need to
acquire new open space lands, specifically in the Airport Area Specific Plan, commensurate with similar land lost
to development projects. While the fee was discontinued in FY 2018-19, the fund is still active to properly account
for the fees that were collected in the past and that must be used specifically on open space protection projects
within the Airport Area Specific Plan. The fund is also utilized to capture funds related to Grants and other
Miscellaneous Revenue related to Open Space.
As of June 30, 2025, the fund balance available for expenditure was $100,484.32. There were no expenditures in
FY 2024-25. Refer to Exhibit A for details of projects which are funded with this fee. As of June 30, 2025, there
were no funds which had been held for more than five years.
502 - Open Space Protection In-Lieu Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year 20,310.51$ 20,315.51$ 12,949.06$ 13,097.39$ 13,697.72$
Interest 5.00$ (466.45)$ 148.33$ 600.33$ 3,086.60$
Other State Grants -$ -$ -$ -$
Misc. Revenue (1)-$ -$ -$ -$ 83,700.00$
In-Lieu Fees -$ -$ -$ -$ -$
Total Revenue 5.00$ (466.45)$ 148.33$ 600.33$ 86,786.60$
Expenses -$ -$ -$ -$ -$
Transfers Out -$ 6,900.00$ -$ -$ -$
Total Expenditures -$ 6,900.00$ -$ -$ -$
Fund Balance End of Year 20,315.51$ 12,949.06$ 13,097.39$ 13,697.72$ 100,484.32$
Less Loans Receivable -$ -$ -$ -$ -$
Net Fund Balance End of Year 20,315.51$ 12,949.06$ 13,097.39$ 13,697.72$ 100,484.32$
Net Fund Ending Balance (6/30/25)100,484.32$
Less: Revenues for last five years:
Revenues FY 20-21 5.00$
Revenues FY 21-22 (466.45)$
Revenues FY 22-23 148.33$
Revenues FY 23-24 600.33$
Revenues FY 24-25 86,786.60$
Total Revenues for last five years 87,073.81$
Funds Held in Excess of Five Years 13,410.51$ if positive, then subject to findings (2)
Notes
Five Year Revenue Analysis
(1) Misc. Revenue is related to other Open Space activities and does not include any In-Lieu Fees
(2) Balance held longer than 5 years is related to $200,000 State Grant in FY 19-20. Findings not required for State Grant Revenue held more than five
years.
Page 271 of 509
35
Affordable Housing Inclusionary Fee - Fund 505
The Affordable Housing Inclusionary Fee is governed by the City’s Inclusionary Housing Ordinance (Ordinance No.
1346) established in 1999 to provide funding for the provision of affordable housing and for reasonable costs
associated with the development of affordable housing. Developers either pay a fee or must construct affordable
units to meet their inclusionary housing requirements. This fee is governed by Municipal Code 17.138.060.
As of June 30, 2025, the fund balance available for expenditure was $(2,639,233.06). Expenditures from fund
balance totaled $207,000. Refer to Exhibit A and Exhibit B for details of projects which are funded with this fee.
As of June 30, 2025, there were no funds which had been held for more than five years.
Transfers Out: The transfers out amount of $207,000 was to the General Fund for FY 2024-25 and is comprised of the
following: $150,000 for HouseKeys Contract Renewal; $40,000 for Housing Trust Fund; and $17,000 for administrative
expenses. These are set amounts that occur annually and are expected to continue in future years.
Negative Fund Balance: The negative fund balance $(2,639,233.06) can be attributed to the Interest Receivable on Long
Term Loans in the amount of $2,850,875.37. This item reduces the amount of available fund balance because the City
is not expected to have the cash in hand for many years. This amount was not taken into consideration at the time staff
requested and Council approved the 736 Orcutt project, which exceeded the Affordable Housing Fund’s available
balance to provide for new initiatives. The result is that the available fund balance is now negative and will require
replenishment before further initiatives can be considered. Additionally, there is still $9,159,751.16 in Loans Receivable
to twenty affordable housing projects within the city that have been built over the last 25 years. These loans vary in
term and interest rates, from 20 to 55-year repayment terms and anywhere from 0-4% fixed interest. These loans
receivables reduce the available fund balance which can be expended in future years. Furthermore, in-lieu fee revenue
was slightly lower in FY 2024-25. In-Lieu Fees are the only source of revenue to this fund.
Page 272 of 509
36
505 - Affordable Housing Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year 8,589,919.11$ 9,178,296.23$ 9,784,738.96$ 10,275,529.96$ 8,540,730.56$
Prior Period Adjustments (1)417,042.00$ 165,548.77$ (420,335.00)$ -$ 70,654.13$
Fund Balance Beginning of Year After Adjustment 9,006,961.11$ 9,343,845.00$ 9,364,403.96$ 10,275,529.96$ 8,611,384.69$
Interest 218,935.12$ (37,152.17)$ 176,699.03$ 119,868.30$ 79,428.92$
Misc Revenue 153,171.13$ 419,260.00$ -$ -$
Grants -$ -$ 1,700,000.00$ 1,358,189.20$ (600.00)$
Housing Loan Repayment -$ -$ -$ 138,625.00$ -$
In Lieu Fees 10,600.00$ 411,875.00$ 554,987.90$ 355,408.10$ 219,116.86$
Total Revenue 229,535.12$ 527,893.96$ 2,850,946.93$ 1,972,090.60$ 297,945.78$
Expenses -$ -$ 1,700,000.00$ 3,499,890.00$ -$
Transfers Out 58,200.00$ 87,000.00$ 239,820.93$ 207,000.00$ 207,000.00$
Total Expenditures 58,200.00$ 87,000.00$ 1,939,820.93$ 3,706,890.00$ 207,000.00$
Fund Balance End of Year 9,178,296.23$ 9,784,738.96$ 10,275,529.96$ 8,540,730.56$ 8,702,330.47$
Add Unearned Revenue (ARPA Grant) (2)-$ 2,964,467.00$ 1,264,467.00$ -$ -$
Less Loans Receivable (3)8,001,471.16$ 9,670,906.16$ 9,229,751.16$ 9,229,751.16$ 9,159,751.16$
Less Interest Receivable - Long Term Loans (4)-$ -$ -$ 2,589,658.15$ 2,850,875.37$
Less Allowance for Doubtful Accounts (5)(215,000.00)$ (669,063.00)$ (669,063.00)$ (669,063.00)$ (669,063.00)$
Net Fund Balance End of Year 1,391,825.07$ 3,747,362.80$ 2,979,308.80$ (2,609,615.75)$ (2,639,233.06)$
Net Fund Ending Balance (6/30/25)(2,639,233.06)$
Less: Revenues for last five years:
Revenues FY 20-21 229,535.12$
Revenues FY 21-22 527,893.96$
Revenues FY 22-23 2,850,946.93$
Revenues FY 23-24 1,972,090.60$
Revenues FY 24-25 297,945.78$
Total Revenues for last five years 5,878,412.39$
Funds Held in Excess of Five Years (8,517,645.45)$ if positive, then subject to findings
Notes
(1) Prior Period Adjustments FY 20-21 and FY 21-22 are related to Loan Receivable & Accrued Interest. Prior Period Adjustments for FY 22-23 are related to the
separation of BEGIN loan activity into a new Fund; Prior Period Adjustments for FY 24-25 is for prior year Housing Repayment Loan not previously recorded.
(2) Unearned Revenue is ARPA Grant not reflected as Revenue.
(3) Loans Receivable are affordable housing loans to property owners. Loans Receivables reduce the amount of available funding for future spending.
(4) Interest Receivable - Long Term Loans is interest on long term affordable housing loans to property owners. Interest Receivable reduce the amount of
available funding for future spending.
(5) Allowance for doubtful accounts reduces the Loans Receivables and represents the portion of Loans Receivables which may not be realized.
Five Year Revenue Analysis
Page 273 of 509
37
Parking In-Lieu Fee - Fund 611
Parking In-Lieu fees are governed by the City’s Municipal Code 4.30 (Ordinance No. 1422) established in 2002
and are collected to satisfy parking demand requirements for new development projects within a designated
parking in-lieu fee area. The fees collected contribute to the revenue of the Parking Enterprise Fund and can be
used only for the development or maintenance of parking to offset the demand requirement for new
development projects within the parking in-lieu fee area.
As of June 30, 2025, the fund balance available for expenditures was $0.00. Expenditures from fund balance
totaled $317,995.41 in FY 2024-25. Refer to Exhibit A and Exhibit B for details of projects which are funded with
this fee. As of June 30, 2025, there were no funds which had been held for more than five years.
611 - Parking In-Lieu Account FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year 3,362,227.47$ 3,142,232.50$ 3,142,232.50$ 2,422,917.56$ 317,995.41$
Interest -$ -$ -$ -$ -$
In-Lieu Fees 10,691.28$ -$ 23,823.96$ -$ -$
Total Revenue 10,691.28$ -$ 23,823.96$ -$ -$
Expenses 230,686.25$ -$ 743,138.90$ 2,104,922.15$ 317,995.41$
Reimbursements -$ -$ -$ -$ -$
Transfers Out -$ -$ -$ -$ -$
Total Expenditures 230,686.25$ -$ 743,138.90$ 2,104,922.15$ 317,995.41$
Fund Balance End of Year 3,142,232.50$ 3,142,232.50$ 2,422,917.56$ 317,995.41$ -$
Less Loans Receivable -$ -$ -$ -$ -$
Net Fund Balance End of Year 3,142,232.50$ 3,142,232.50$ 2,422,917.56$ 317,995.41$ -$
Net Fund Ending Balance (6/30/25)-$
Less: Revenues for last five years:
Revenues FY 20-21 10,691.28$
Revenues FY 21-22 -$
Revenues FY 22-23 23,823.96$
Revenues FY 23-24 -$
Revenues FY 24-25 -$
Total Revenues for last five years 34,515.24$
Funds Held in Excess of Five Years (34,515.24)$ if positive, then subject to findings
Notes
Five Year Revenue Analysis
N/A
Page 274 of 509
38
Public Art In-Lieu Fee - Fund 207
The Public Art In-Lieu Fee, adopted by the City Council on September 14, 2000, through Ordinance No. 1372,
reflects the City's commitment to enhancing its cultural and aesthetic landscape. The program dates to 1990,
when the City established the Visual Arts in Public Places Program, which required 1% of City -funded capital
projects to be dedicated to public art. In 2000, this initiative was expanded to include private development,
requiring non-residential projects with construction costs exceeding $100,000 to contribute public art valued at
0.5% of the total cost or pay an in-lieu fee to the City's public art fund. The program offers developers flexibility,
allowing them to either incorporate art into their projects or contribute to the broader public art fund. This
voluntary approach helps ensure that public art continues to enrich the City's cultural landscape by enhancing
both private developments and public spaces. Governed under Municipal Code 17.70.140, the Public Art In-Lieu
Fee plays a vital role in promoting the City's artistic and cultural goals, helping to create a more vibrant and
engaging environment for residents and visitors alike.
As of June 30, 2025, the fund balance available for expenditure was $1,557,870.95. Expenditures from fund
balance totaled $408,091.41 in FY 2024-25. Refer to Exhibit A and Exhibit B for details of projects which are
funded with this fee. As of June 30, 2025, there were no funds that had been given for more than five years.
207 - Public Art In-Lieu Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25
Fund Balance Beginning of Year 591,096.94$ 568,401.48$ 798,038.30$ 1,269,844.49$ 1,526,587.79$
Interest 143.88$ (16,319.37)$ 16,742.18$ 63,177.70$ 76,040.57$
Transfers In -$ 442,500.00$ 442,500.00$ 425,000.00$ 312,848.00$
In-Lieu Fees (1,357.13)$ 99,698.00$ 220,854.00$ 49,763.00$ 50,486.00$
Total Revenue (1,213.25)$ 525,878.63$ 680,096.18$ 537,940.70$ 439,374.57$
Expenses 21,482.21$ 296,241.81$ 208,289.99$ 190,647.40$ 303,141.41$
Transfers Out -$ -$ -$ 90,550.00$ 104,950.00$
Total Expenditures 21,482.21$ 296,241.81$ 208,289.99$ 281,197.40$ 408,091.41$
Fund Balance End of Year 568,401.48$ 798,038.30$ 1,269,844.49$ 1,526,587.79$ 1,557,870.95$
Less Loans Receivable -$ -$ -$ -$ -$
Net Fund Balance End of Year 568,401.48$ 798,038.30$ 1,269,844.49$ 1,526,587.79$ 1,557,870.95$
Net Fund Ending Balance (6/30/25)1,557,870.95$
Less: Revenues for last five years:
Revenues FY 20-21 (1,213.25)$
Revenues FY 21-22 525,878.63$
Revenues FY 22-23 680,096.18$
Revenues FY 23-24 537,940.70$
Revenues FY 24-25 439,374.57$
Total Revenues for last five years 2,182,076.83$
Funds Held in Excess of Five Years (624,205.88)$ if positive, then subject to findings
Notes
Five Year Revenue Analysis
N/A
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