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Council adopts final phase of public-facilities fee schedule; changes effective Aug. 1
Summary
Staff presented the final one-third phase-in of the Public Facilities Element (PFE) fee schedule adopted in 2022; after a public hearing council approved the final phase-in and set the increases to take effect August 1, 2025. Consultants reported no CPI adjustment was required this year, so only the planned phase-in portion took effect.
Finance staff and consultants presented a public hearing on May 27 to adopt the final third phase-in of the city's Public Facilities Element (PFE) fee schedule established in 2022. The PFE fees provide an impact-based nexus for fees charged to new development to pay for infrastructure and services.
Consultants said the fee study adopted in June 2022 provided a multi-step phase-in. The council previously implemented earlier phase-ins; staff recommended adopting the final third step now and noted the construction-cost index (the San Francisco Engineering News-Record construction cost index) did not warrant any additional CPI-based increase this year. If adopted, the final phase-in would take effect 60 days after adoption, on Aug. 1, 2025.
No public testimony was offered during the hearing. Council adopted the resolution to implement the final phase-in of the PFE fee schedule. Staff and consultants said they would provide comparative data if requested.
Why this matters: The PFE fees fund infrastructure required to support new development; the phase-in policy spreads the cost impact over time and ties the fees to a nexus study to comply with state law on impact fees.
Council action: Council adopted the resolution and directed staff to implement the final phase of fees effective Aug. 1, 2025.
