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Committee recommends 1.6% increase to development impact fees, effective July 1
Summary
The committee recommended city council approve a 1.6% adjustment to development impact fees based on the Construction Cost Index; staff reported a combined balance of about $6.1 million in fee accounts and said outreach produced no objections.
The Salinas Finance Committee voted to recommend that city council increase the city's development impact fees by 1.6%, citing the Engineering News-Record construction cost index.
Adriana, the community development director, said the requested 1.6% adjustment is consistent with the Engineering News-Record published January rate comparing January 2024 to January 2025. The committee voted unanimously to recommend the adjustment to council: Council member D'Arrigo, Council member De La Rosa and Mayor Donahue recorded aye votes.
Staff provided financial exhibits attached to the staff report and said the combined balance across the development-related impact fee accounts was $6,100,000 as of the January 29 statement of revenues and expenditures. Outreach materials and notices were sent to the Salinas Valley Chamber of Commerce, Suba, the development community (including known FGA developers) and the Builders Exchange; staff reported no feedback was received.
Adriana said the resolution would set the 1.6% increase effective July 1 and be presented to council for approval. Committee members said the modest increase (under 2%) appeared reasonable; no public commenters registered on the item at the meeting.
Staff noted the fee adjustments have been aligned with the construction cost index in prior years except for a no-increase decision during FY 2020-21 and that a resolution to increase fees will be brought to council for action.
