Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Finance topic
No spam. Unsubscribe anytime.
Council approves proposed joint response to grand jury on development impact fees
Summary
Council approved staff’s proposed joint mayoral‑council response to the County Grand Jury report on the Development Impact Fee (DIF) program. Staff agreed with some findings about late reporting, disputed others, described Build Better San Diego changes, and committed to internal controls and independent audits.
The council approved a proposed joint response Nov. 4 to the San Diego County Grand Jury report critiquing the city’s administration of development impact fees (DIF). The Independent Budget Analyst and City Planning staff summarized the draft response and the actions the city has taken or plans to take.
The city acknowledged some findings — such as chronic late publication of annual DIF reports — and described steps to improve compliance, including a transition to a citywide DIF structure (Build Better San Diego), new internal controls, and a 5% cap on administrative charges. Staff disagreed with other grand-jury findings, saying administrative use of DIF funds for nexus studies and program continuity is legally permissible and that reporting has improved since FY2023.
The proposed response lists 13 grand-jury recommendations and indicates which have been implemented, which are planned, and which the city does not intend to adopt. Among the city’s commitments: publishing the FY24 DIF report (completed and presented to council Oct. 21), requesting an independent audit of DIF accounts and seeking funding for the City Auditor to conduct the audit, and improving internal controls to ensure administrative charges remain within caps.
Public commenters urged the council to return community DIF funds used to develop Build Better San Diego and to increase transparency about how fees are spent. The council approved the staff recommendation to submit the proposed response to the presiding judge; the vote was recorded as 6–0 with three members absent.
City staff said community-specific DIF accounts with unallocated balances have been reviewed and many have been reallocated through action on the FY24 DIF report. Moving forward, staff said citywide nexus studies will provide an updated basis for DIF collections and better periodic reporting.
The council’s approval authorizes the council president to execute and submit the response to the San Diego County Superior Court by the Nov. 26, 2025 deadline. Staff said they will continue work on the independent audit request and other follow-up items in coordination with the City Auditor and relevant departments.
