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HEARING - Chief Administrative Office recommending the Board to consider a request from the El Dorado Hills Community Services District (“District”) to adopt and authorize the Chair to sign Resolution XXX-2025, increasing development impact mitigation fees for parks and recreation by 2.6% based on the change in the Annual Consumer Price Index Adjustment for the Calendar Year 2023 and 2.4% based on the change in the Annual Consumer Price Index Adjustment for the Calendar Year 2024.
FUNDING: Development Impact Fees.
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DISCUSSION / BACKGROUND
The California Mitigation Fee Act (Gov. Code §66000 et seq.) authorizes the establishment of fees to offset the impacts of new development on public facilities, ensuring that service levels are maintained as growth occurs. Because individual Special Districts lack the authority to impose these fees independently, the County establishes and collects the fees on their behalf. In compliance with the Mitigation Fee Act, the revenue is deposited into separate, dedicated accounts for each district.
Parks and recreation development impact mitigation fees were first collected on the District's behalf in 1998. The current fees are based on a Fee Nexus Study and Report (“Report”) detailing the legal and policy basis justifying the development impact mitigation fee within the District. The fee was updated in 2018, by adoption of Resolution 135-2018 (Legistar File 18-1034).
Resolution 135-2018 did not include a provision for automatic annual inflationary adjustments to the fee because any increase to the fee must be made by resolution of the Board of Supervisors at a notice public hearing, pursuant to the Mitigation Fee Act. The District recommended, and the Board has adopted, annual adjustments in the fee in 2022 (Resolution No. 069-2022 and in 2023 (Resolution No. 057-2023).
On February 8, 2024, the District adopted Resolution No. 2024-03, recommending a 2.6% adjustment to the fees based on the change in the Consumer Price Index for the calendar year 2023 and requesting that the Board of Supervisors adopt the proposed 2.6% increase to the established impact fees.
On March 13, 2025, the District adopted Resolution 2024-06, recommending a 2.4% adjustment to the fees based on the change in the Consumer Price Index for the calendar year 2024 and requesting that the Board of Supervisors adopt the proposed 2.4% increase to the established impact fees.
This request covers both calendar years 2023 and 2024 CPI increases. The proposed fees are outlined in Exhibit A of the resolution.
Notice of Today’s public hearing was published in the Mountain Democrat on June 6, 2025, and June 13, 2025.
If approved by the Board, the revised fees will become effective 60 days following the Board's adoption of the resolution. The County Planning and Building Department currently calculates and collects the fee and will continue to do so as provided in the collection and indemnity agreement approved by the Board of Supervisors on December 19, 2017 (Legistar file 17-1355).
The County has entered into an agreement with EDHCSD, whereby the district agrees to "hold County harmless and defend County and its employees, officers, and agents from any claim, liability, or action" resulting from the County’s calculation, imposition, and collection of impact fees on the District’s behalf.
ALTERNATIVES
If the Board does not adopt the resolution, the existing fees would continue in effect.
PRIOR BOARD ACTION
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OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
FINANCIAL IMPACT
There is no fiscal impact on the County. Impact mitigation fees are collected by the County on behalf of the district and held in a separate account. The account balance as of May 6, 2025, is $25,340,960.38
CLERK OF THE BOARD FOLLOW UP ACTIONS
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STRATEGIC PLAN COMPONENT
N/A
CONTACT
Tara Stout, Principal Management Analyst