Developer Fee Consulting Services

In the context of increasing construction costs and a backlog in state funding from the School Facilities Program, school districts have increasingly needed to rely on locally funded financing mechanisms to provide for their facility needs.

K&G Public Finance brings years of experience in assisting school districts on a wide variety of financing solutions, and has taken on a leading voice in addressing the unique funding challenges school districts face in the state of California.

At K&G Public Finance our analyses are backed by a strong understanding of legal precedent in the interpretation of relevant code sections, as well as research of local indicators and development activity. In a state as diverse as California, we believe that there are few one-size-fits-all answers for school districts, which is why we model facilities cost impacts on the basis of local real estate, employment, and demographic trends to derive the nexus between local development and fees.

K&G Public Finance provides developer fee consulting services and expert insight for…

Fee Justification Studies

School districts are authorized to levy school fees in order to offset the impacts to school facilities from new residential and commercial/industrial development. The State Allocation Board adjusts the maximum Level I Fees in even-numbered years.

In order to levy statutory fees (Level I Fees), a school district must prepare and adopt a Fee Justification Study (FJS) pursuant to and in accordance with California State law.

School Facilities Needs Analyses

School districts that meet certain requirements have the option of adopting alternative school fees (also known as Level II and Level III Fees), beyond the Level I Fee, that may be collected from new residential housing to finance new school facilities.

K&G Public Finance assists clients in the determination of eligibility to adopt alternative school fees, and in the preparation of School Facilities Needs Analysis (SFNA). This report serves as the legal basis for justifying the collection of alternative school fees.

Combined Annual and Five-Year Developer Fee Reports

State code prescribes that local agencies collecting fees for development projects must adhere to specific reporting requirements concerning the collection and use of fees within 180 days of the end of every fiscal year following the first deposit of fees.

Additionally, local agencies must fulfill reporting requirements on intended uses of unexpended funds every five years. Clients typically opt to combine annual and five-year reporting requirements into a Combined Annual and Five-Year Developer Fee Report each year; however, reports may also be completed separately.