Roseville council introduces updated public facilities fee after debate over steep increases

The Roseville City Council on Nov. 19 introduced for first reading an ordinance to adopt the city’s 2025 Public Facilities Fee Nexus Study and adjust development impact fees to reflect rising construction costs and a new state rule that requires residential fees to be calculated by building square footage. The motion passed by a 4–1 roll-call vote; a second reading is scheduled for Dec. 17 and, if adopted, the fee changes would take effect 60 days later (staff identified Feb. 16, 2026, as the target effective date).

City staff and the consultant Economic & Planning Systems (EPS) described why the update is needed. Scott Pettengill, the city’s finance director, said state law under the Mitigation Fee Act (Gov. Code §66000) requires fees to be legally defensible and proportional to the impact of new development. EPS consultant Jamie Gomes said the planned-facility methodology and AB602’s square-foot approach produce different charges by unit size: for example, EPS showed the current low-density single-family fee of about $4,042 could rise to a maximum justifiable $6,281 per unit (roughly a 55% increase), while typical multifamily fees might go from about $2,700 to $3,420 (≈27%). Staff also presented an inventory of fee-funded projects with total costs of roughly $121 million and a current fee fund balance near $26.6 million, leaving an estimated funding gap of about $94.5 million.

The council’s discussion focused on balancing long-term facility needs with housing affordability. Jeff Short of the North State Building Industry Association told the council the association is not opposed to funding needed city facilities but urged the city to reconsider the scale and phasing of some large park, recreation and library projects and to seek alternative funding so the maximum fee does not worsen affordability. "These are $200,000,000 facilities," Short said, urging continued refinement of the proposal and more collaboration with the development community.

Other speakers raised legal and analytical questions. A commenter who identified himself as representing neighborhood and development interests said AB602 requires level-of-service calculations and that the draft study should show how the updated fees maintain — not raise — the city’s existing level of service.

Council members debated timing and strategy. Some members warned that waiting too long risks underfunding projects as construction costs escalate; others urged a short delay to produce alternative fee scenarios and assess impacts on affordability. The council ultimately voted 4–1 to introduce the ordinance for first reading and set a second reading for Dec. 17.

If adopted following second reading, the update would put Roseville’s maximum justifiable public facilities fee in the middle of comparable regional fees, staff said, but it would also represent a significant increase for some housing types. Staff told the council they will continue stakeholder outreach and return with any refinements requested by council before the second reading.

The council did not adopt final fee rates on Nov. 19; the November action was to adopt the nexus study and introduce the ordinance for the required subsequent hearing and vote.