City begins multi‑month review of development impact fees; staff outlines legal framework, pay‑as‑you‑go model and schedule

Vacaville staff presented an informational session June 24 to introduce a multi‑month process to update the city’s development impact fees (DIFs), describe the legal framework and explain next steps for community outreach and council policy sessions.

Public Works Director Brian McClain and Special Projects Coordinator Gwen Owens said Vacaville’s DIF program has existed since 1992 and was updated after the 2015 general plan. The city and its consultant are now finalizing a 2025 nexus study that updates project cost estimates, aligns fee structures with adopted service levels and implements AB602 guidance that ties certain housing fees to square footage.

Staff explained the typical fee‑setting work flow: (1) identify capital projects from adopted plans that are needed to serve growth, (2) estimate project costs, (3) apportion growth‑related shares, and (4) derive per‑unit or per‑square‑foot fees under the Mitigation Fee Act. Staff reiterated that DIF proceeds are restricted to capital improvements (not ongoing operations) and described the pay‑as‑you‑go model Vacaville uses: developers pay fees and the city collects and prioritizes projects in the CIP to match revenues and timing.

Staff also reviewed reporting and compliance requirements under state law: annual DIF accounting and a five‑year nexus review (with public reporting of balances and projects). McClain said the 2025 refinement will also bring the program into compliance with AB602 and that staff will hold developer outreach meetings (July 15, August 25) and a council study session on Community Facilities District policy before returning with a fee update in the fall for council consideration.

No action was required; the presentation was informational and staff said it will continue outreach with developers and the public.