MEETING DATE:
June 23, 2026
SUBJECT:
Title
RESOLUTION NO. 2026-9632 - ADOPTING INDEXED INCREASES IN DEVELOPMENT IMPACT FEES, INCLUSIONARY HOUSING IN-LIEU FEES, AND USER FEES FOR 2026
Body
Recommendation
Recommendation
ADOPT resolution adopting indexed increases in Development Impact Fees, Inclusionary Housing In-Lieu Fees, and User Fees.
Body
Board or Commission Action
Not Applicable
Executive Summary
In 2024, the City Council adopted a comprehensive fee update to the City's Development Impact Fees, Inclusionary Housing In-Lieu Fee, and User Fees. As part of that adoption, the City identified the ability to update the adopted fees based on reasonable inflation indices to retain purchasing power of those fees.
Discussion
The City of San Marcos ("City") charges development-related and service-related fees to ensure that the cost of private development activity and limited-benefit services is not borne entirely by the broader community.
Development Impact Fees, also known as Public Facilities Fees (PFF), are imposed on new development to mitigate the impacts of growth on City infrastructure and public facilities. These fees fund the construction of various facilities needed in the future as a result of growth. The City assesses fees in several categories such as transportation facilities, parks and recreation facilities, fire and emergency medical services facilities, advanced planning, habitat conservation, and storm drainage facilities.
The City also maintains an Inclusionary Housing In-Lieu Fee (IH Fee), which allows certain residential development projects to satisfy inclusionary housing requirements through payment of a fee in lieu of constructing affordable units.
Citywide User Fees are charged for specific services that primarily benefit an individual applicant or customer, such as development review, permitting, inspection, entitlement processing, and similar services. These fees are intended to recover all or a portion of the City's reas...
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