Background:
In September 1986, the Governor signed into law Assembly Bill 2926, which granted school district governing boards the authority to impose developer fees. This authority is codified in Ed Code 17620, which states as part, “…the governing board of any school district is authorized to levy a fee, charge, dedication or other form of requirement against any development project for the construction or modernization of school facilities provided the District can show justification for levying of fees.”
Level I Developer Fees are adjusted for inflation by the State Allocation Board every two years (even years). In January 2024, the State Allocation Board’s biennial inflation adjustment changed the fee to $5.17 per square foot for residential construction and $0.84 per square foot for commercial/industrial construction. The Mountain View Whisman School District collects 66.67% of the fee, while the Mountain View Los Altos High School District collects 33.33%. The District’s current developer fee rate is $3.45 (66.67 percent of $5.17) per square foot for residential construction and $0.56 (66.67 percent of $0.84) per square foot of commercial/industrial construction with the exception of mini storage. The mini storage category of construction should be collected at a rate of $0.09 per square foot.
A notice of a public hearing to amend developer fees was published in the Daily Post on April 22, 2024 and April 29, 2024. Enclosed with the background materials are Resolution No. 02-050224 and the Developer Fee Study.
A public hearing is scheduled to precede action to allow the Board to receive public comment on a recommendation to adjust the developer fees levied against residential, commercial, and industrial development projects pursuant to Government Code Section 65995 (b)(3).
Fiscal Implication:
The proposed increase represents $3.45 per square foot for residential and $0.56 per square foot for commercial/industrial construction.
Recommended Action:
It is recommended that the Board of Trustees approve and adopt Resolution 02-050224, authorizing the increase in developer fees rate as presented in the Developer Fee Study.