Council accepts annual reports on funds held for future improvements and capital facilities fees

The Modesto City Council unanimously accepted two annual staff reports on Nov. 25 covering funds held for future improvements and the Capital Facilities Fees (CFF) program.

Jessica Hill, director of community and economic development, explained that impact‑fee deposits dating from the early 2000s remain in trust until the adjacent properties develop and that interest accrues on those deposits. Council members asked whether fees are re‑evaluated when construction occurs to account for cost increases; staff said interest accrues while funds are held but additional costs, if higher, would typically be shared with the new development.

Hill also described the CFF program, established in 1987, which collects fees for streets, parks, police, fire and other categories. She noted CFF exemptions for accessory dwelling units and affordable housing projects: in the last fiscal year the city issued 108 ADU permits but only 12 had fees due, and the city exempted about $967,750 for the 7th Street Village affordable project. For a single‑family home, staff noted a reference CFF amount of $18,146.

Council adopted the required resolutions certifying the annual reports and making findings related to fee categories.