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Committee recommends 2.8% increase to development impact fees, cites Amazon boost to impact-fund balance
Summary
The Finance Committee voted to recommend a 2.8% increase to the city’s development impact fees (effective July 1, 2026). Staff said the impact-fee fund balance stood at $20.9 million — largely driven by a nearly $10 million contribution tied to an Amazon fulfillment center.
The Salinas Finance Committee voted to recommend that the City Council approve a 2.8% increase to development impact fees effective July 1, 2026.
The committee’s recommendation followed a presentation by Adrianna Robles, assistant public works director and city engineer, who described the methodology for adjusting fees (the Engineering News-Record construction cost index) and reviewed the funds held for infrastructure projects. Robles said, “as of March 2 the balance was 20,900,000,” and identified traffic impact fees as the largest component of that balance.
Robles and members discussed how the balance will be used. Robles said identified traffic projects are listed in the traffic-fee ordinance and that money collected will fund those projects or reimburse developers who advance improvements. She characterized the recent spike in fund balance as tied to a large development, saying that “Amazon was basically a $10,000,000 boost to the impact fees.”
Committee members pressed staff on where specific fee revenue flows and whether current levels will cover future capital needs. One member noted that without the Amazon contribution the traffic fund would be closer to $3 million and questioned how the city will finance projects such as Fire Station 7, where staff said impact-fee updates are intended to contribute to funding costs as new development occurs.
A council member moved that the committee recommend council approval of a resolution increasing development impact fees by 2.8% effective July 1, 2026; the motion was seconded and, after roll call, the committee passed the recommendation to council.
Staff said outreach has included the Chamber of Commerce, the Central Coast Builders Association and the planning commission; Robles noted the city is required to include a statement of where impact fees stand financially and that the fee update is not a CEQA project but will follow state notification rules. The committee asked staff to continue clarifying which projects will be funded from fee revenues and to present forecasting that distinguishes one-time large payments from recurring revenue.
The committee will forward the recommendation to the full City Council for final action.
