Council introduces ordinance to sharply reduce residential impact fees, adds appeal rights and a 3‑year inflation moratorium

The City Council on May 6 introduced an ordinance that substantially lowers the city's development impact fees and modifies how those fees are administered.

City Attorney and staff summarized staff-prepared ordinance language and an Exhibit C fee table (posted for public inspection) that reflects council direction from the prior meeting. Counsel said an appeal provision was added that allows a developer to contest an applicable fee on nexus grounds. The ordinance was changed from a resolution to an ordinance at staff's recommendation so changes would require two readings.

Public comment favored lowering fees to spur housing. A local planning veteran urged the council to reduce fees to encourage new housing supply and to speed construction of accessory dwelling units and other housing types.

Councilmembers discussed grandfathering or refunding arrangements for developers who already paid fees or had approvals in place. The council directed staff to research whether and how to refund or adjust impact fees paid in the recent past; staff said any refund could require using prior impact fee fund balances or general-fund transfers if the fee revenue has already been spent. Council also added a three-year moratorium on inflation increases tied to the Engineering News-Record construction cost index.

The council moved to introduce the ordinance, with several clarifying directions: remove a clause that would automatically lock in old fees in cases the council did not intend to protect, keep an existing resolution provision that allows payment of impact fees at certificate-of-occupancy when the council previously authorized such timing, and return with a staff report on possible refunds for recent payers. The ordinance introduction passed on the council vote (5–0). The ordinance will return for final reading and adoption at a subsequent meeting.