Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Development Impact Fees topic
No spam. Unsubscribe anytime.
Los Banos council adopts 0.4% annual increase to development impact fees amid housing‑cost concerns
Summary
After a public hearing, the Los Banos City Council on April 15 approved a 0.4% annual adjustment to development impact fees, a change staff said keeps fees aligned with construction costs; residents urged the council to consider fee structures that encourage multifamily and affordable housing.
Los Banos — The City Council on April 15 voted to adopt a 0.4% increase to the city’s development impact fees, a routine annual adjustment staff tied to the Engineering News‑Record construction cost index that will take effect July 1, 2026.
Soua Elms, the community and economic development director, told the council the adjustment follows a resolution requiring annual indexing of impact fees to the ENR CCI and noted the change is intended to ensure new development pays its fair share of infrastructure costs. "The adjustment according to the Engineering News‑Record construction cost index ending in April 2026 was a 0.4% increase," Elms said in the presentation and explained the adjustment is required to avoid the city subsidizing new development.
The fee schedule staff cited shows per‑unit impacts after the increase of about $33,490 for single‑family and roughly $26,000 for multifamily, with other categories calculated per 1,000 square feet. Elms also said the proposal is exempt from CEQA under section 15061(b)(3) because it does not approve a physical project.
Residents used the public‑hearing period to press the council on the effects of fees on housing affordability. "If they're paying $27,000 per unit and you're building something that has 10, 15, 20 units, that's a chunk to pay in these fees," said Kathy Ballard, who urged the council to consider distinct fee lines for duplexes or small multifamily projects to help prospective builders and missing‑middle housing pencil out.
A Roses resident asked whether the city provides regular reporting on how impact fee revenue is spent; staff pointed to the AB 1600 report, saying it is produced annually and was most recently presented to council on Dec. 17. Finance staff said the AB 1600 accounting and related project lists are available and that the council could later direct staff to consider targeted fee reductions, grants, or other financing mechanisms to reduce upfront costs for affordable projects.
Council members asked whether impact fees are ultimately reflected in home prices; staff replied developers typically incorporate fees into project costs that affect eventual sale prices or rent. Several council members said the city could consider nexus updates tied to master‑plan work and grant pursuits to incentivize multifamily development.
On a motion and second, the council adopted Resolution No. 7082 to approve the 0.4% increase to development impact fees, effective July 1, 2026.
The council also agreed the topic of adjusting fees for specific housing types or pursuing fee subsidies would be appropriate for future discussion once the city completes its infrastructure master plans and an updated nexus study, where staff can present options and potential funding sources.
What happens next: The adjustment is scheduled to take effect July 1, 2026, following the 90‑day notice period required by state law. Council directed staff to continue providing AB 1600 reports and to return with options tied to the forthcoming system master‑plan updates if members want the city to consider targeted incentives for affordable or multifamily housing.
