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Council approved fee adjustments to align with future City development needs
On Tuesday, November 26, at the regular City Council meeting, the Council moved to introduce updated fees. Following on Monday, Dec. 2, the Council unanimously adopted the City’s proposed fee adjustment. The fee adjustment will modify public facility fees (development impact fees), inclusionary housing in-lieu fees and user fees (administrative fees) to maintain the City’s competitiveness and preserve high-quality community resources for residents and businesses to enjoy within San Marcos.
The fee adjustment will take effect on March 3, 2025. Development impact and inclusionary housing in-lieu fees are largely paid by developers. Any project application submitted after March 3, 2025, will be subject to the new development impact fees and updated inclusionary housing in-lieu fees. Current active project applications will remain subject to current fees until March 2027. Administrative fees are largely paid by developers and only affect residents if they are seeking a permit to build or rebuild a home. Developers and residents who’ve paid their project administrative fees before March 3, 2025, will not be subject to the fee adjustment.
Development impact fees will be the following amounts:
- $6.70 per square foot for a single-family home
- $7.64 per square foot for multi-family
- $10.52 per square foot for office
- $10.93 per square foot for commercial
- $6.73 per square foot for industrial
Inclusionary housing in-lieu fees will be $15 per square foot for residential space. Approximately 186 administrative fees will see an increase across applications that are associated with permitting, inspections, entitlements and other building related regulations. New administrative fee schedules will be posted to the City website in advance of the effective date currently anticipated early in the new year.
The City conducted a fee study for each fee type – development impact, inclusionary housing in-lieu and administrative fees – to assure the fees support the City’s key objectives for growth. These fee adjustments were considered together to ensure future development in San Marcos continues to sustain the quality of life expected in the community.
To receive more information about the fee adjustment, visit san-marcos.net/fees and sign up to receive e-news alert by selecting “fee adjustment updates." For questions, please contact communication@san-marcos.net.