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Murrieta council adopts updates to development‑impact and city user fees to keep pace with construction costs
Summary
Council approved updated development impact fees (with phase‑in for office/industrial uses) and a user fee schedule tied to CPI; staff said updates are intended for cost recovery and to fund capital projects including fire and library needs.
Murrieta — At its April 7 meeting the City Council approved two separate fee packages intended to keep municipal revenue aligned with rising costs: an update to the city’s development impact fees (DIF) and adjustments to the FY 2026‑27 user fee schedule.
Finance Director Javier Carcamo outlined the DIF update, which applies an approximately 2.5% California construction‑cost index adjustment effective July 1, 2026, and continues phase‑in increases already in place for office and industrial categories. "Based on our most recent capital improvement plan, out of the $113 million in planned projects, about $42 million are funded through development impact fees," Carcamo said. (attributed to Javier Carcamo)
Carcamo told council residential fees will be calculated on a square‑foot basis going forward as state law requires for some unit types, and that some projects already in the approval queue may retain grandfathered rates depending on their application status.
Separately, Accounting Manager Ashley Lopez presented annual user‑fee updates tied to the Riverside‑San Bernardino‑Ontario CPI (January‑to‑January change 3.2%). Proposed changes included a square‑foot escalator for exceptionally large garages, new fees for a development review program, updated EV charging rates (from $0.23/kWh to $0.29/kWh), and several fire and planning fees. Staff estimated the fiscal impact of the user‑fee package at roughly $263,089 annually based on recent activity.
Council members sought clarifications about grandfathering, timing of payments, the escalator cap and whether adjustments are purely cost‑recovery. Councilmember DeForest asked if the DIF increases apply only to new builds; staff confirmed the increases apply to new development and projects in the queue may be grandfathered depending on application approval timing.
Both measures were adopted after public hearings with no speakers and carried unanimously.
What this means: The DIF revenue supports a substantial share of the city’s capital plan (parks, public safety facilities, streets and other infrastructure). User‑fee adjustments are described as cost‑recovery measures tied to CPI and targeted to specific service areas; staff said changes will take effect July 1, 2026.
Next steps: Staff will implement the updated schedules and bring administrative procedures as needed for fee collections and developer coordination.
