NEWMAN — The Newman City Council on Jan. 13 reviewed its annual Capital Facilities Fees report, a state‑required accounting of how the city collects and spends development impact fees used to build parks, public buildings, storm drains and other infrastructure needed to support growth.
The report, covering the 2024–25 fiscal year, shows the city is holding nearly $8.5 million across four capital funds, even as revenue from new development fell sharply. According to the report, Capital Facilities Fee revenue dropped 44 percent from the previous year, a decline city staff attributed to high interest rates slowing construction activity. Despite the downturn, revenue remains significantly higher than it was five years ago, rising 310 percent since 2020–21.
State law requires cities to publicly disclose the beginning and ending balances of each fund, the amount of fees collected, interest earned, refunds issued, interfund transfers, and the specific projects funded during the year. The report is mandated under Section 66006 of the California Government Code, commonly known as AB 1600.
Newman collects Capital Facilities Fees on new development to help pay for infrastructure needed as the city grows. The four funds include the Park Facility Fee (Fund 16), Public Facility Fees (Fund 40), Supplemental Impact Fees (Fund 41) and the Storm Drain Fee (Fund 42).
As of June 30, 2025, the Park Facility Fee fund held $1.42 million, the Public Facility Fees fund held $5.33 million, the Supplemental Impact Fees fund totaled $1.37 million, and the Storm Drain Fee fund ended the year with $399,785. The Public Facility Fees fund also received a $308,760 grant, the only grant revenue reported this year.
Expenditures were minimal across most funds. Fund 40, which supports police, fire, city hall, traffic improvements and other public facilities, spent about $118,755 on contract services, planning and administrative costs. The other three funds reported no expenditures for the fiscal year.
The city issued no refunds during 2024–25, though staff noted that refunds are not uncommon when projects are canceled or fees are overpaid.
The report also outlines how each fund may be used. Park fees support the acquisition and development of parks; public facility fees fund police, fire, city hall and other civic buildings; supplemental impact fees support sewer, water, planning and downtown improvements; and storm drain fees pay for expansions and upgrades to the city’s drainage system.
City officials noted that if a jurisdiction fails to comply with AB 1600 requirements or no longer needs the fees for their intended purpose, it may be required to refund the money to property owners.
The council accepted the report with no changes. The full document is available to the public as part of the Jan. 13 meeting agenda.
