Belmont is shoring up its own positions toward several bills going through the state Legislature targeting local city fees that could affect the speed of permitting and housing production processes.
The bills are part of a broader effort by legislators to reduce barriers to housing development — though Dane Hutchings, CEO of California Public Policy Group, said it could also have detrimental impacts on smaller jurisdictions like Belmont.
“One of the things that we have seen thematically this year is this notion of affordability, that things are too expensive. And unfortunately, the current rationale in Sacramento is to say the impediments to affordable housing is local, and again, it's a really big push to try to reduce barriers and reduce costs,” Hutchings said.
With property taxes capped, many cities have relied on developer impact fees to fund some city services, ranging from social programs to infrastructure needs. And other fees are also used to recoup costs the city incurs when issuing permits, inspections and reviewing critical documentation.
Like the vast majority of cities in California, Belmont must also approve an additional 1,785 housing units between 2023 and 2031 as part of the state-mandated Regional Housing Needs Allocation cycle.
Reducing local fee revenue could impact the city’s fiscal position in the long term. Sales tax income in the city is trending lower than anticipated, and another key revenue source — property-tax-in-lieu-of-vehicle-license fees — remains precarious this year, contributing to a projected $1.8 million revenue shortfall.
The complicated funding source is related to vehicle license fees paid by residents, which are directed to the state and subsequently reimbursed to cities, typically by the following fiscal year, based on jurisdictions’ nonbasic aid school districts.
However, in recent years, repayment by the state has become tenuous and has been made only after numerous attempts by legislators and local officials.
The council approved a legislative platform supporting bills that help streamline city services, while also opposing measures that might impose “excessive financial burdens on cities,” according to a presentation from the City Council meeting March 11.
“I don’t know a harder working group of individuals that are being absolutely inundated with applications and reviews,” Hutchings said. “When we’re talking about affordability, there are several factors that contribute to affordability, and I would say, frankly, local fees are not the impairment of houses costing a million dollars or more to build in the Bay Area.”
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(650) 344-5200 ext. 102
Daily Journal staff
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(1) comment
I believe that the picture shown is the Burlingame city hall, not the Belmont City Hall.
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