DATE: December 17, 2025
TO: Honorable Mayor and City Councilmembers
FROM: Development Services Department
TITLE: REVIEW OF ASSEMBLY BILL 1600 FINAL REPORT FOR FISCAL YEAR 2024-25 REGARDING DEVELOPMENT IMPACT FEES
RECOMMENDATION
title
Staff recommends that the City Council review the City's Assembly Bill (AB) 1600 Annual Report for Fiscal Year (FY) 2024-25 regarding collection and use of Development Impact Fees (DIFs).
body
BACKGROUND AND ANALYSIS
The City's Capital Improvement Program (CIP) budget is funded by multiple sources, including DIFs. AB 1600, also known as the Mitigation Fee Act, requires agencies to annually report within 180 days after the last day of each fiscal year on DIFs collected and how they were used. The City's AB 1600 Annual Report for DIFs for FY 2024-25 (Attachment 2) was prepared by Harris and Associates and made available to the public beginning on December 3, 2025. The report provides details on four DIFs, as identified below:
1. Thoroughfare and Signal Fee: The San Diego Association of Governments (SANDAG) collects development fees under the Regional Transportation Improvement Plan (RTIP), which are used to maintain traffic movement and safety on City streets. In 2016, the City combined two separate fees (Major Thoroughfare and Signals) into the current Thoroughfare Signal Fee, which provides funding to accommodate traffic generated by future development within the City in accordance with the City's Circulation Element of the General Plan. The fees are used to finance construction of bridges and roadway improvements, as well as installation of traffic signals. The Major Thoroughfare fund is a subset of the Thoroughfare and Signal Fees collected used to identify the Regional Transportation Congestion Improvement Program (RTCIP) Fee component collected and is in place to fund arterial roadway and regional roadway improvements.
2. Citywide Drainage Fee: The purpose of this fee is to finance Citywide storm drain and flood...
Click here for full text