Development Impact Fees
Authority and Background: Under Municipal Code Article V – Development Impact Fees, the City establishes Development Impact Fees under its police power, consistent with state law, to fund capital facilities needed for new construction and development. Development impact fees ensure that new development contributes to the infrastructure it demands, rather than placing the financial burden on its residents. Collected funds are kept separate from the City’s General Fund and may only be used for capital projects identified in the respective Nexus Studies. Development impact fees apply to residential and non-residential projects requiring a building permit whenever enclosed building space is added, including mobile homes and manufactured homes, with some fees currently based on the number of bedrooms. Development impact fee amounts are determined through Nexus Studies that demonstrate a clear connection between development and infrastructure needs. An example is the Traffic Improvement Program, which requires new development to contribute to traffic and street improvements, with funds used only for projects identified by the Traffic Improvement Program.
Indexing: Fees are adjusted annually in accordance with Municipal Code Section 9-42 (Indexing), based on changes in the Engineering News Record Construction Cost Index. Updates are reviewed and adopted by the City Council each year to reflect construction cost trends.
Current Development Impact Fee Schedule (Fiscal Year 2025-26 effective July 5, 2025): FY 2025-26 Development Impact Fee Schedule, effective July 5, 2025(PDF, 313KB)
Proposed Annual Adjustment of Development Impact Fees for Fiscal Year 2026-27: APRIL 21, 2026, PUBLIC HEARING NOTICE(PDF, 181KB)
Related Ordinances and Studies: The below-listed ordinances, resolutions, and Nexus Studies provide additional details about the City’s Development Impact Fees. Please note that the fee values in these documents are outdated and do not reflect the annual adjustments which may have been reviewed and adopted by the City Council to address rising construction costs.
SANITARY SEWER DEVELOPMENT IMPACT FEE(Resolution No. 23100, September 24, 2024)(PDF, 225KB)
Amend the Sanitary Sewer Development Impact Fee approved through Resolution No. 22942, which updated the fee schedule to align with the adopted Sanitary Sewer Master Plan Update and AB 602 which requires assessment of impact fees based on square footage of building area.
Sanitary Sewer Development Impact Fee Justification Study.(PDF, 1MB)
UPDATE TO THE CITYWIDE PARKS DEVELOPMENT IMPACT FEE SCHEDULE FOR RESIDENTIAL UNITS (Resolution No. 22048, February 16, 2021)(PDF, 513KB)
Update to the Citywide Parks Impact Fee Schedule for residential units based on the Parks Development Impact Fee Structure Analysis conducted by Willdan Financial Services.
Parks Development Impact Fee Structure Analysis (January 20, 2021)(PDF, 515KB)
UPDATE TO THE PUBLIC FACILITIES IMPACT FEE SCHEDULE (Resolution No. 22007, December 1, 2020)(PDF, 546KB)
Update to the Public Facilities Impact Fee Schedule for residential units based on the Residential Development Impact Fee Structure Analysis conducted by Willdan Financial Services.
Public Facilities Development Impact Fees- Residential DIF Structure Analysis (November 20, 2020)(PDF, 233KB)
UPDATE PARK IMPACT FEE SCHEDULE TO INCLUDE PARK IMPACT FEES UNIQUE TO THE CENTRAL AREA SPECIFIC PLAN (CASP) (Resolution No. 21996, November 17, 2020)(PDF, 154KB)
Update to the Park Impact Fee Schedule to include park impact fees unique to the Central Area Specific Plan (CASP). A park impact fee unique to the Central Area Specific Plan will fund park improvements within the Area Specific Plan at a 3.0 acre per 1,000 resident standard. The fee was developed with the assistance of Central Area Specific Plan developers to meet their park facilities dedication requirements and to facilitate the credits and reimbursements between developers within the Specific Plan.
Park Facilities Development Impact Fee Update Study-Admin Draft (September 21, 2020)(PDF, 470KB)
UPDATE PARK IMPACT FEE SCHEDULE TO INCLUDE PARK IMPACT FEES UNIQUE TO THE WEST AREA SPECIFIC PLAN (WASP) (Resolution No. 21750, December 3, 2019)(PDF, 209KB)
Update the Park Impact Fee Schedule to include park impact fees unique to the West Area Specific Plan (WASP) of the North of Boronda Future Growth Area [the West Area Impact Fee (WAPIF)] to fund park improvements within the West Area Specific Plan. The fee was developed with the assistance of West Area Specific Plan developers to meet their park facilities dedication requirements and to facilitate the credits and reimbursements between developers within the West Area Specific Plan.
Park Facilities Development Impact Fee Update Study-Admin Draft (November 5, 2019)(PDF, 685KB)
2010 TRAFFIC IMPROVEMENT PROGRAM UPDATE AND TRAFFIC MITIGATION FEE UPDATE (Resolution No. 19802, January 19, 2010)(PDF, 41MB)
An update to the City’s Traffic Improvement Program resulting in the addition and modification of projects in the Traffic Improvement Program and an update to the traffic impact fee. The traffic fee program relates increases in traffic generated by new development to the cost of projects required to mitigate the impacts based on build-out of the 2002 City of Salinas General Plan and the Salinas Ag-Industrial Center. Additional vehicular trips generated by new development include infill properties as well as traffic increases created by a higher level of land use.