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San Diego council approves Development Impact Fee report, repays interfund loan and commits to nexus updates
Summary
The council accepted the FY2023 Development Impact Fees (DIF) annual report, approved appropriations from long‑held community funds and authorized repayment of an interfund loan (approximately $4.3M) using citywide mobility DIF; council also directed updates to nexus studies.
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Planning staff presented the FY2023 Development Impact Fees (DIF) annual report Feb. 24 and asked the council to approve appropriations from community‑specific funds and to repay a $5.94 million interfund advance made to Torrey Highlands. Staff requested council approval to use about $4.3 million from citywide mobility DIF to repay the loan in FY2026 and described the transition from more than 50 community funds to four citywide DIF funds.
Sameera Rao, assistant deputy director with the City Planning Department, said the city collected approximately $58,100,000 in fees for FY2023 and allocated roughly $66,000,000 to infrastructure projects; outside the reporting period the citywide DIFs have collected about $42,000,000 with approximately $40,000,000 already allocated. Rao said the city will continue work on updated citywide nexus studies — including mobility, parks, library and fire — and expects those updates to be completed this calendar year.
Public commenters asked for more clarity on allocation processes, equity across districts and how interest is calculated on interfund loans. Council members asked staff to follow the fire department’s station planning study and confirmed the nexus study updates would proceed. The council approved the staff recommendations and appropriations and the proposed repayment unanimously, 9–0.
Staff said the appropriation action will allow the city to reduce stale fund balances and put money toward specific capital projects in Carmel Valley and North University; the Torrey Highlands repayment arises from a prior reimbursement agreement tied to completed infrastructure work. Planning staff indicated anticipated future contributions from new development will exceed the loan amount over time, based on projected life‑science and housing development in the area.
The council’s action completes the annual reporting requirement under the Mitigation Fee Act and provides staff authority to proceed with the listed appropriations and repayment schedule.
