City of Morgan Hill Bikeways, Trails, Parks and Recreation Master Plan

REVENUE ANALYSIS: APPENDIX A

Fees can be collected from developers to pay for the impact that their residential development will have on existing infrastructure or in creating the need for new infrastructure such as roads or parks. Such fees are required as conditions of approval of a proposed development under the city’s police powers over land use. Typically these fees are paid prior to City approval of a parcel map or final map or at the time a building permit is issued. Some Bay Area jurisdictions now impose fees on any improvements anticipated to increase the number of residents likely to reside in a dwelling unit, including residential additions, remodels and renovations. Development impact fees may be reasonably exacted on new non-residential development in a City, as it may increase the daytime population resulting in additional facility users. A nexus study should be conducted to quantify such a relationship in order to justify fees on the non-residential development.  Establish a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed  Determine whether there is a reasonable relationship between the need for the public improvement and the development project on which the fee is imposed  Justify that the fee is “roughly proportional” to the impact a new development has on public facilities and services (i.e. parks and community centers) SALES AND SPECIAL TAXES Taxes may, with voter approval, be increased to provide revenue for, among other things, parks and recreation or land conservation purposes. The ability to raise funds through sales or use taxes requires approval by two-thirds of voters. Many communities throughout the state have been successful in getting voter support for measures that add one-fourth or one-half cent to local sales taxes. The following are brief descriptions of the most common funding sources. Section 66000 (et seq) of the California Government Code requires the agency exacting the fee to do the following:  Identify the fee’s purpose  Identify the fee’s uses

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