 |
AGENDA ITEM NO. 8.
CITY OF HAWTHORNE City Council AGENDA BILL For the meeting of 02/10/2026 Originating Department: Public Works |
City Manager:
Department Head:
SUBJECT:
RESOLUTION NO. 8581 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA, APPROVING THE 2022-23 DEVELOPMENT IMPACT FEE ANNUAL REPORT PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 66006(B).
RECOMMENDED MOTION:
Adopt Resolution No. 8581.
DISCUSSION:
Resolution No. 8581, approves the 2022-23 Development Impact Fee Annual Report, Prepared by Harris & Associates and attached as Exhibit A to the Resolution. This Report is required by California Government Code sections 66000 through 66008 ("Mitigation Fee Act") for the implementation and management of Development Impact Fees ("Diff").
Specifically, Government Code Section 66006(b) requires the following information be made available within 180 days of the last day of each fiscal year for each separate account or fund established for an Impact Fee that is collected for the construction of an improvement.
1. A brief description of the type of fee in each fund.
2. The amount of the fee.
3.The beginning and ending amount of each fund.
4. The amount of the fees collected and interest earned.
5. An identification of each public improvement on which fees were expended and the percent of the public improvement fund with fees.
6. An identification of approximate dates by which the construction of the public improvements will commence if the city determines that sufficient funds have been collected to complete the project.
7. A description of each interfund transfer or loan made from the fund (if any).
8. The amount of refunds made of fees collected (if any).
This report must be made available to the public fifteen (15) days prior to review at a public meeting.
In approving Assembly Bill ("AB") 1600 (1987), the California Legislature set specific legal parameters for the implementation and management of Development Impact Fees ("DIF"). These parameters took effect January 1, 1989 and are codified as California Government Code Sections 66000 through 66008 ("Mitigation Fee Act").
In accordance with Government Code Section 66006(b), a local agency that requires payment of DIFs must prepare an annual report summarizing the revenues, interest income, and expenditures for each separate Impact Fee.
DIFs were first imposed in the City of Hawthorne ("City") in 1990 to ensure new development pays the capital costs associated with resulting growth. City Council Resolution No. 5892 (1990) approved the establishment of a Water Impact Fee and the formation of a Development Impact Fund (Fund 410) ("Development Impact Fund") to avoid any commingling of the fees with other revenues and funds of the local agency, as required by Government Section 66006(a). The City plans projects based on the fund balance and revenue projections, and it accumulates the fees in the account until they are sufficient to cover projects.
In 1995, the City adopted additional fees. The fee structure was updated in City Ordinance 1844 (2005) for the Police fee, Parks Fee, Traffic Fee, and Storm Drainage Fee. The fee amounts were most recently updated in City Ordinance No. 1972 (2010), which set the rates for 2010 based on a Nexus Study completed in that year and stipulated annual adjustments. As Fiscal Year 2022-23, the City still charges these four Impact Fees.
Specifically, Government Code Section 66006(b) requires the following information be made available within 180 days of the last day of each fiscal year for each separate account or fund established for an Impact Fee that is collected for the construction of an improvement.
1. A brief description of the type of fee in each fund.
2. The amount of the fee.
3.The beginning and ending amount of each fund.
4. The amount of the fees collected and interest earned.
5. An identification of each public improvement on which fees were expended and the percent of the public improvement fund with fees.
6. An identification of approximate dates by which the construction of the public improvements will commence if the city determines that sufficient funds have been collected to complete the project.
7. A description of each interfund transfer or loan made from the fund (if any).
8. The amount of refunds made of fees collected (if any).
This report must be made available to the public fifteen (15) days prior to review at a public meeting.
In approving Assembly Bill ("AB") 1600 (1987), the California Legislature set specific legal parameters for the implementation and management of Development Impact Fees ("DIF"). These parameters took effect January 1, 1989 and are codified as California Government Code Sections 66000 through 66008 ("Mitigation Fee Act").
In accordance with Government Code Section 66006(b), a local agency that requires payment of DIFs must prepare an annual report summarizing the revenues, interest income, and expenditures for each separate Impact Fee.
DIFs were first imposed in the City of Hawthorne ("City") in 1990 to ensure new development pays the capital costs associated with resulting growth. City Council Resolution No. 5892 (1990) approved the establishment of a Water Impact Fee and the formation of a Development Impact Fund (Fund 410) ("Development Impact Fund") to avoid any commingling of the fees with other revenues and funds of the local agency, as required by Government Section 66006(a). The City plans projects based on the fund balance and revenue projections, and it accumulates the fees in the account until they are sufficient to cover projects.
In 1995, the City adopted additional fees. The fee structure was updated in City Ordinance 1844 (2005) for the Police fee, Parks Fee, Traffic Fee, and Storm Drainage Fee. The fee amounts were most recently updated in City Ordinance No. 1972 (2010), which set the rates for 2010 based on a Nexus Study completed in that year and stipulated annual adjustments. As Fiscal Year 2022-23, the City still charges these four Impact Fees.
ECONOMIC DEVELOPMENT STRATEGIC PLAN:
Approving the Development Impact Fee Annual Report supports the City of Hawthorne’s Economic Development Plan by ensuring that growth pays for the infrastructure needed to attract and sustain new investment, such as water, parks, traffic, public safety, and storm drainage improvements. Transparent reporting and compliance with state law build trust with developers and the public, providing predictability and accountability that reduce risk and encourage responsible development. By strategically planning and funding capital improvements through DIFs, the City can accommodate growth and improve service level.
FISCAL IMPACT:
None.
NOTICING PROCEDURE:
72 hours posted notice pursuant to the Ralph M. Brown Act.