The Cathedral City Council voted Dec. 10 to accept the Assembly Bill 1600 annual development-fee report for fiscal year 2024–25 and to approve staff’s recommended reallocation of certain fee commitments tied to projects financed through the Statewide Community Infrastructure Program (SKIP) via the California Statewide Communities Development Authority (CSCDA).

Financial summary and administrative fee: Staff reported that the city collected roughly $2.1 million in impact fees during the reporting period and noted that an administrative allocation of 3% will be recognized in the funds to cover program administration, staff time and consultant costs. "The norm is 3 to 6%. We went on the lower end with respect to that 3%," the financial presenter said.

Cove Park and clarity on expenditures: Council raised a question about a line labeled "Cove Park" that showed $184,760 in FY 24–25 expenditures; staff clarified those expenditures were tied to downtown dog-park work and agreed to correct the label and provide a detailed breakdown of the costs for the public record.

SKIP/CSCDA reallocation: Staff explained that two development projects — a 52‑unit project referred to as Asena 52 and a project labeled Nirvana Estates (also called Broadway Cove) — were financed through SKIP/CSCDA bond funding, which creates a look-back and forward spending window for eligible impact-fee expenditures. Using that mechanism, staff proposed reallocating roughly $175,000 of previously incurred expenditures and $383,000 of encumbrances to be charged against SKIP‑generated fee revenue, which would free up discretionary and CIP funds for other city priorities.

Council action: After clarifying an omitted $4,000 invoice that staff said would be covered by contingency, the council approved the recommended reallocations and the annual report by unanimous vote.

Why it matters: The vote reassigns which funds will carry prior expenditures and encumbrances, preserves nonrestricted funding for other projects and confirms the city’s administration of impact fees under AB 1600 and related financing arrangements.