Finance director says impact-fee annual report shows compliance and $4 million park impact balance

City staff presented the city's 2024 annual impact fee report to the finance committee, describing receipts, expenditures and the projects charged to park and transportation impact fees.

Director Bond told the committee the report tracks compliance with the legal requirement to spend collected impact fee money within 10 years of receipt. “We are required, under law, we have to spend any impact fee money that's been received within 10 years of receiving those funds,” he said while reviewing the packet. The report lists projects where fees have been spent, developer credits issued, and current fund balances.

Committee members asked how the park and transportation impact fees are used geographically. Staff explained the city has a single service area covering the entire city boundary; impact fees collected in one neighborhood can be spent on projects elsewhere in the city as long as the project appears on the city's adopted project list. “We have one service area and it's the entire city boundary,” Director Bond said, explaining that state law allows multiple service areas but the city has not adopted them.

Staff said the park impact fee fund holds roughly $4 million and that the city intends to appropriate those funds toward the community event center and plaza. The report includes a table of active projects that had activity in 2024, including the splash pad (now complete), the community event center, and Orchard Plaza.

The annual report will go to the full City Council as a presentation or discussion item to create a public record and respond to prior public questions about how impact fees are tracked and spent. Committee members asked staff to coordinate the agenda label so it appears appropriately as a presentation in the council packet.

No formal committee action was taken; staff said the report will appear on the council agenda the following week.