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Lompoc staff warn refunding past developer impact fees could risk public-fund "gift" claim
Summary
Finance staff told the City Council that refunding previously collected developer impact fees would be legally complex and could be perceived as an improper gift of public funds; staff reported only a handful of recent payers and asked for further direction on accounting and appeals.
Finance staff told the Lompoc City Council on Nov. 4 that refunding developer impact fees that were lawfully assessed and paid could be legally fraught and operationally complex.
"The biggest concern here is if we refund legally established fees, it could be argued that the city is providing a gift of public funds," Finance Department staff said during a presentation on the feasibility of refunding impact fees that were collected in the two years before a fee schedule change effective Aug. 5, 2025. The staff review found the city previously charged fees for a range of categories — parks, library, public…
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