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San Marcos council raises development and user fees to keep pace with inflation
Summary
The City Council adopted a staff proposal to raise development impact, inclusionary housing in-lieu and user fees (ENR CCI +2.7% for construction-related fees; CPI +3.2% for user fees) to preserve cost recovery and support infrastructure and affordable-housing programs.
The San Marcos City Council on June 23 adopted Resolution 2026-9632 to increase a suite of city fees that fund infrastructure and affordable-housing programs.
City Senior Planner Donna Apgar told the council staff used two indices recommended in the 2024 fee study: the ENR Construction Cost Index for construction-related fees and the Consumer Price Index for user fees and overhead. Staff proposed a 2.7% adjustment tied to the CCI and 3.2% tied to the CPI, calculated March-to-March to reflect recent inflation. As an example, the single-family residential development impact fee moves from $6.70 per square foot to $6.88.
Apgar said the city's prior fee updates lagged inflation, requiring the general fund and other revenue sources to make up the difference. "By updating our fees to take inflation into consideration, we keep pace with today's costs and ensure an ongoing ability to recover costs for services directly benefiting the user," she said.
No members of the public spoke on the item. Councilmembers asked clarifying questions about indices and noted the adjustments were intended to preserve cost recovery rather than create new revenue. The council unanimously approved the resolution.
The increases take effect as specified in the adopted resolution; developers and applicants should consult Development Services for exact fee tables and effective dates.
