Development Impact Fees - Proposed Updates
The City’s Department of Utilities is proposing to adjust its “development impact fees,” which help fund utilities infrastructure for new development in the city of Sacramento.
Because California law prevents utility rates from being used for new construction infrastructure, development impact fees are needed to help fund new utilities infrastructure for development in the city.
Current impact fees are not enough to support infrastructure for future growth as estimated by the City’s upcoming 2040 General Plan.
City of Sacramento impact fees are about 75 percent lower than many nearby cities and counties.
Public COMMENTS
Public comment and feedback related to the 2023 Development Impact Fee Program and Nexus Studies were requested earlier this year.
During the formal comment period, the Department of Utilities received four letters, which have been addressed in the document below.
FREQUENTLY ASKED QUESTIONS
Below are some frequently asked questions about development impact fees:
Why are development impact fees important?
Development impact fees equitably distribute the costs related to water, stormwater and wastewater infrastructure to all potential developments rather than any one project having to pay for their own private utilities systems.
Without development impact fees, individual developers would pay disproportionate out-of-pocket costs for City utilities infrastructure in a new development.
What would happen if development impact fees are not adjusted?
Without an adjustment to current development impact fees, there will not be adequate funding to support infrastructure for future growth as estimated by the City’s 2035 General Plan.
Do other cities use impact fees?
Yes. Development impact fees are a common practice across California and the United States.
All nearby cities and counties -- including the cities of Elk Grove, Folsom, Roseville and West Sacramento, and the counties of Sacramento, Yolo, Placer and El Dorado -- have development impact fees.
The City of Sacramento’s development impact fees are about 75 percent lower than many nearby cities and counties.
Above: A chart showing the City's drinking water development impact fee compared to other jurisdictions.
What are the current development impacts fees?
There are three development impact fees, water, separated sewer, and combined sewer infrastructure.
There is no current development impact fee for the City’s stormwater system.
What are the proposed development impact fees?
The City is proposing to adjust development impact fees for water, separated sewer, combined sewer and include a new fee for stormwater systems, such as pumped basin, and gravity basin infrastructure.
How would the adjusted development impact fees be calculated?
Fee schedules would be used to calculate the impact fees for development projects.
The final amounts will be calculated by a DOU plan reviewer prior to building permit approval.
DOU impact fees will be added to the building permit invoice and collected by the City's Community Development Department when the permit is issued.
Full fee tables can be found below.
A nexus study was conducted to determine the amount and how to calculate the development impact fees.
Can I get an estimate of what my potential fees would be?
Yes. Send an email to DOUDevelopmentReview@cityofsacramento.org with as much project specific information as possible, such as types of use, square footage for each use, and amount of increased stormwater imperviousness.
RESOURCES