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CC - CONSENT ITEM: Receipt and Acceptance of the Fiscal Year 2024-2025 Annual Reporting of Development Impact Fees per the State of California Mitigation Fee Act.
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Meeting Date: January 26, 2026
Contact Person/Dept: Michael Towler/Finance Department
Phone Number: (310) 253-5865
Fiscal Impact: Yes [ ] No [X] General Fund: Yes [ ] No [X]
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (01/22/2026)
Department Approval: Lisa Soghor, Chief Financial Officer (01/19/2026)
RECOMMENDATION
Staff recommends the City Council receive and accept the Fiscal Year 2024-2025 Annual Reporting of Development Impact Fees per the State of California Mitigation Fee Act.
BACKGROUND
In 1987, the California State Legislature adopted AB1600, codified as California Government Code Sections 66000-66025 (“Mitigation Fee Act”), which sets certain legal and procedural parameters for the charging of development impact fees. This legislation went into effect January 1, 1989. A development fee is a monetary exaction, other than a tax or special assessment, that an applicant of an approved development project pays to defray a portion of all the cost of public facilities related to the project. The Mitigation Fee Act defines public facilities broadly to include public improvements, public services, and community amenities. Under the Mitigation Fee Act, local agencies that impose mitigation fees are required to prepare an annual Development Impact Fee Report as well as make certain findings every five years.
Culver City collects City Council authorized fees from developments to mitigate increased demands on public improvements, public services, and community amenities. This report transmits the attached Fiscal Year 2024-2025 Development Impact Fees Reports on the status of funds collected from the City’s development impact fees, including investments made in the last fiscal year, that qualify under the California Mitigation Fee Act. The California Government Code also requires the City Council to make findings every five years after a development fee is established. All development impact fees are currently compliant with the five-year requirement.
DISCUSSION
Per Government Code Section 66006, collection of these fees requires separate funds or accounts to avoid any commingling of the fees with other revenues and funds of the local agency. Additionally, the local agency shall make the annual report available to the public within 180 days after fiscal year-end. The City properly posted the annual Mitigation Fee Act Report, as required by AB1600, on the City’s website on December 29, 2025 for the following fees:
New Development Impact Fee, CCMC 15.06.005
The purpose of this fee is to provide a method for the financing of public works capital improvements made necessary by permitting new development for nonresidential use. Fees from each new development shall be appropriated and disbursed only for street improvements, traffic controls, and traffic management projects which are made necessary by the development. The fee was established in 1983. The fund accumulated a balance of approximately $403,000 at the end of Fiscal Year 2024-2025. Fiscal Year 2025-2026 programmed activity includes approximately $173,000 of budgeted projects including the continuation of minor repairs of streets and concrete, and for traffic engineering data collection, analysis, studies, and tools for the Neighborhood Traffic Management Plan. As part of the Fiscal Year 2026-2027 Proposed Budget process, staff will prioritize the eligible projects against available funds and return to Council in May 2026 for Council appropriation considerations.
Art in Public Places Program In-Lieu Fee, CCMC 15.06.100
The purpose of this fee is to ensure that the development of cultural and artistic assets is financed by those whose development and revitalization diminishes the availability of the community’s resources and contributes to community urbanization. The fee was established in 1988. Fiscal Year 2024-2025 activity included work towards public art installations for Washington Boulevard and National Boulevard Transit Oriented Development (TOD) District, the installation of a tiled mural along the Farragut Connector, ongoing projects focused on performing art grant awards, and efforts towards the installation, restoration, cleaning, and conservation of city-owned artworks. Fiscal Year 2025-2026 programmed activity includes approximately $3.8 million of budgeted projects including the continuation of the public art installations for the TOD District, grants for the performing arts, temporary or permanent art installations in anticipation of the 2028 Olympics/Paralympics, continuing conservation efforts including updating municipal code as it pertain to the Historic Preservation Program, the commissioning of new temporary artworks and exhibits, and the development of a new Community Cultural Equity Plan.
Residential Development Park Dedication & In-Lieu Parkland Fee, CCMC 15.06.300
The purpose of this fee is to mitigate the impact of development activity and ensure that the required three acres of community parks or recreation facilities for each 1,000 persons within the City is maintained. The fee shall be used solely for the acquisition of new and rehabilitation of existing community parks and recreation facilities. The fee was established in 1996. Fiscal Year 2024-2025 activity included updates to playground equipment at various parks for compliance with California safety guidelines. Fiscal Year 2025-2026 programmed activity includes approximately $1.1 million of budgeted projects including the continuation of updates to facilities at all parks including the replacement of fencing, the update of irrigation systems, the upgrade of Veterans Memorial Park ballfield lighting, the development of Community Gardens at both Syd Kronenthal Park and Veterans Memorial Park, and hiring a consultant to evaluate compliance and create an action plan for California’s Model Water Efficient Landscape Ordinance (MWELO).
Mobility Improvement Fee, CCMC 15.06.500
The purpose of this fee is to provide a method for new development projects to pay their fair share towards the funding of the City’s identified mobility infrastructure and programs, intended to reduce vehicles miles traveled, and needed to support projected jobs and housing growth. The projects funded by this fee assist in creating new and improved mobility alternatives to single-occupancy driving, help reduce the amount of transportation-related greenhouse gas emissions and address the need to move more people through and around the City generated by new developments, thereby supporting a balanced community which is beneficial to public health, safety, and welfare of the City. The fee was established in 2021. The fund accumulated a balance of approximately $3.5 million at the end of Fiscal Year 2024-2025. Fiscal Year 2025-2026 programmed activity includes approximately $3.0 million of budgeted projects including the construction of a new sidewalk on Ocean Dr., the development of Complete Streets Implementation Procedures, pedestrian and bicycle improvements, and upgrades to the City’s traffic signals including the installation of fiber optic cables, the installation of battery backups, and the updating of traffic signal timing. As part of the Fiscal Year 2026-2027 Proposed Budget process, staff will prioritize the infrastructure improvements and programs on the Project List and return to Council in May 2026 for Council appropriation considerations.
Affordable Housing Commercial Development Impact Fee, CCMC 15.06.600
The purpose of this fee is to facilitate the development and availability of affordable housing to a range of households with varying income levels within the City through creation and imposition of a fee on new commercial development. This fee will partially fund the need for affordable housing created by the workforce of this new commercial development. The fee was established in 2022. The fund accumulated a balance of approximately $1.0 million at the end of Fiscal Year 2024-2025. Fiscal Year 2025-2026 programmed activity includes the contribution of approximately $1.6 million to the Jubilo Village project. Staff anticipates the payment of fees in the current year to cover that budgeted amount. As part of the Fiscal Year 2026-2027 Proposed Budget process, staff will evaluate if there any additional revenues expected and identify eligible projects for Council appropriation considerations.
FISCAL ANALYSIS
There is no fiscal impact associated with the receipt and filing of the attached reports.
ATTACHMENTS
1. 2026-01-26_ATT1_FY 2024-25 New Development Impact Fee Report
2. 2026-01-26_ATT2_FY 2024-25 Art in Public Places Fee Report
3. 2026-01-26_ATT3_FY 2024-25 Park Dedication In-Lieu Fee Report
4. 2026-01-26_ATT4_FY 2024-25 Mobility Improvement Fee Report
5. 2026-01-26_ATT5_FY 2024-25 Affordable Housing Linkage Fee Report
..recommended action
MOTION
That the City Council:
Receive and accept the Fiscal Year 2024-2025 Annual Reporting of Development Impact Fees per the State of California Mitigation Fee Act.