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Earlier editions: 2026-09

Title 3 — REVENUE AND FINANCE›Chapter 3.85 — DEVELOPMENT IMPACT FEES

Chico Municipal Code Art. I General Provisions

Chico Municipal Code · 2026-10 edition · updated 2026-10-04 · Chico

Cite as: Chico Municipal Code Article I · Text as of 2026-10-04

3.85.105 Purpose.

This chapter is adopted pursuant to the municipal affairs provisions of the city charter for the purpose of authorizing transportation facility fees, storm drainage facility fees, park facility fees and building and equipment fees to be assessed and levied upon the owners of residential and nonresidential property located within the city commencing the use of such property for any residential or nonresidential purpose, expanding the use of any part of the property devoted to a residential or nonresidential use, or changing the existing use of the property to a different use in order to provide all or a portion of the funds which will be necessary to construct, install or acquire the transportation facilities, storm drainage facilities, park facilities and buildings and equipment required to meet the needs of the additional persons residing or employed on the property.

(Ord. 1956 §1 (part))

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3.85.110 Findings.

In adopting this chapter, the city council finds that as a result of new development occurring on residential and nonresidential property located within the city, the city will be required to make substantial improvements to the city's transportation facilities, storm drainage facilities and park facilities; will be required to construct a number of new buildings to be used by the city in providing fire protection services, police protection services and general governmental services; and will be required to acquire a significant quantity of new equipment used in maintaining such facilities and providing such services, all in order to meet the needs of the additional persons who will reside or be employed on such property, while also maintaining existing levels of service currently provided to persons already residing or employed within the city. The city council also finds that because of existing legal constraints, it is no longer feasible to fund the cost of such facilities, buildings and equipment with local property tax revenues as was the case in years past. Accordingly, the city council finds that it is necessary and proper to authorize the transportation facility fees, storm drainage facility fees, park facility fees and building and equipment fees provided for by this chapter which will be assessed and levied on the owners of residential and nonresidential property located in the city commencing to use such property for a residential or nonresidential purpose, expanding the use of any part of the property devoted to a residential or nonresidential use, or changing the use of the property from its existing use to a different use, all at the time and in the manner provided by this chapter, and which will be used to fund construction and installation or acquisition of the transportation facilities, storm drainage facilities, park facilities and buildings and equipment required to meet the needs of the additional persons residing or employed on the property, also within the time and in the manner provided by this chapter.

(Ord. 1956 §1 (part))

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3.85.115 Additional findings to be made when establishing the amount of development…

At the time of establishing the amount of the transportation facility fees, storm drainage facility fees, park facility fees and/or building and equipment fees hereinafter authorized by this chapter, or at the time of increasing or decreasing such fees other than an annual adjustment to the fees made in the manner hereinafter provided by this chapter to account for inflation, the city council shall make the following findings in support of such fees:

A. Finding that such fees have been determined and calculated in the manner required by this chapter, and

B. The following additional findings required by Section 66001 of the Government Code which demonstrate that there is a nexus between the public improvements and facilities for which such fees are imposed and the need for such improvements and facilities created by the development of residential and nonresidential property within the city upon which the fees are imposed:

  1. Findings which identify the purpose of the fees,

  2. Findings which identify the use to which the fees are to be put,

  3. Findings which demonstrate that there is a reasonable relationship between the use of the fees and the type of development project on which the fees are imposed,

  4. Findings which demonstrate how there is a reasonable relationship between the need for the public facilities and the type of development project on which the fees are imposed, and

  5. Findings which demonstrate how there is a reasonable relationship between the amount of the fees and the cost of the public facilities or portion of the public facilities attributable to the development project on which the fees are imposed.

(Ord. 1956 §1 (part))

3.85.120 Proceedings to establish the amount of development impact fees to be assessed…

At the time of establishing the amount of the transportation facility fees, storm drainage facility fees, park facility fees and building and equipment fees authorized by this chapter, or at the time of increasing or decreasing such fees, other than an increase in the fees made in the manner hereinafter provided by this chapter to adjust the fees for inflation, the council shall hold a public hearing on the proposed fees or proposed increase or decrease in such fees as required by Section 66016 and 66017 of the Government Code. Notice of the time and place of such hearing shall be served on each person having filed a written request for such notice with the city clerk at least 14 days prior to the date of such hearing. In addition, any data, reports or other information used in determining and calculating the amount of such fees shall be made available in the office of the city clerk at least ten days prior to the date of such hearing.

Following the adoption of a city council resolution which establishes, increases or decreases the amount of the transportation facility fees, storm drainage facility fees, park facility fees or building and equipment fees authorized by this chapter, such fees shall not become effective until the sixty-first day following the date of such resolution, all as provided for by Section 66017 of the Government Code.

(Ord. 1956 §1 (part))

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3.85.125 Disposition of unappropriated development impact fee revenues.

A. Report of Finance Director. Commencing with the fifth fiscal year following the first year of receipt of any revenues from transportation facility fees, storm drainage facility fees, park facility fees and building and equipment fees assessed and levied pursuant to the provisions of this chapter or any other chapter of this code, and in each fiscal year thereafter, the finance director shall provide the city council with a report which sees forth the total amount of all such fee revenues that were received and deposited in all of the various funds hereinafter provided by this chapter in each fiscal year prior to the date of such report but which remain unappropriated as of the date of the report; provided, however, that the finance director will not be required to make such report in any year in which there were no unappropriated fee revenues in any such fund which were received and deposited in the fund more than 5 years prior to the date of the report.

B. Action by the City Council. Commencing with the fifth fiscal year following the first year of receipt of any revenues from transportation facility fees, storm drainage facility fees, park facility fees and building and equipment fees assessed and levied pursuant to the provisions of this chapter or any other chapter of this code, and in each fiscal year thereafter, the city council, following receipt of the finance director's report, shall take one of the following actions required by Section 66001 of the Government Code with respect to any unappropriated fee revenues in the various funds hereinafter provided for by this chapter which were received and deposited in such fund 5 or more years prior to the date of such report:

  1. Appropriate all or any part of such unappropriated fee revenues for the construction, installation and/or acquisition of the facilities, buildings or equipment for which the fees were imposed;

  2. Make a finding with respect to all or any part of such unappropriated fee revenues which identifies the purpose to which the revenues are to be put and which demonstrates a reasonable relationship between the fees from which the revenues are derived and the purpose for which they were imposed; or

  3. Provide for the refund of all or any part of such unappropriated fee revenues, together with any interest accrued thereon, to the current owner of any property for which fees were paid; provided, however, that if the administrative costs of refunding such fee revenues exceed the amount to be refunded, the city council, after considering the matter at a public hearing, notice of which is given in the manner provided for by Section 66001 (e) of Government Code, may appropriate such revenues for any other facility or improvement for which development fees are charged or otherwise imposed pursuant to this chapter or any other chapter of this code and which the council determines will benefit the properties for which such development impact fees were charged or otherwise imposed.

(Ord. 1956 §1 (part), Ord. 2113 §1)

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3.85.130 Other public facility requirements.

The provisions of this chapter shall not release any owner of residential or nonresidential property located within the city from the obligation of complying with any public facility improvement requirements which are imposed pursuant to the other provisions of this code at the time of approval of a tentative map, tentative parcel map, certificate of compliance, building permit or other land use entitlement provided for by this code.

(Ord. 1956 §1 (part))

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3.85.135 Reduction and increase of impact fees.

In determining the development impact fees to be assessed and levied upon the owner of residential or nonresidential property pursuant to the provisions of this chapter, the following fee reductions shall apply:

A. For useable area that is uncovered or open, in order to acknowledge this area's seasonal use, the owner shall be assessed fifty percent (50%) of the base development impact fees per square foot for this area;

B. Where a single-family residential unit includes an Accessory Dwelling Unit (ADU), the ADU shall be assessed fifty percent (50%) of the development impact fees, so long as the ADU utilizes the same sewer lateral as the primary residence of the property; and

C. In acknowledgement that the number of bedrooms in a new residence correlates to household size, and therefore to impacts on City infrastructure and facilities, and, similarly, that the number of bathrooms in a residence directly correlates to the number of drainage fixtures, which corresponds to impacts on the City's sanitary sewer infrastructure, the following fee reductions and increases are applied:

  1. Single Family Dwelling Units:

i. Units that have two (2) or less bedrooms and two (2) or less bathrooms will receive a thirty percent (30%) reduction in the base impact fee

ii. Units with four (4) or more bedrooms and three (3) or more bathrooms will pay a thirty percent (30%) increase from the base impact fee

  1. Multi-Family Dwelling Units:

i. Units that have one (1) or less bedrooms and one and half (1.5) or less bathrooms will receive a thirty percent (30%) reduction in the base impact fee

ii. Units with four (4) bedrooms and bathrooms that range between two (2) and four (4), will pay a thirty percent (30%) increase from the base impact fee

iii. Units with five (5) or more bedrooms that also have more than four (4) bathrooms will pay a sixty percent (60%) increase from the base impact fee

(Ord. 2521 §1)

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