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CITY OF WILDOMAR
CITY COUNCIL REGULAR MEETING

PUBLIC HEARING
Agenda Staff Report # 2.2
Meeting Date: October 14, 2026
 
 
SUBJECT:

Public Hearing for Adoption of New Stephen's Kangaroo Rat Fee Schedule and Ordinance

 
SUBMITTED BY:
Adam Jantz, Finance Manager
 
PREPARED BY:
Adam Jantz, Finance Manager
 
ACTION:

Adopt the first reading of an Ordinance entitled:


ORDINANCE NO. ____

AN ORDINANCE OF THE CITY OF WILDOMAR AMENDING TITLE 3, CHAPTER 3.43 WHICH ESTABLISHES THE RIVERSIDE COUNTY STEPHENS' KANGAROO RAT HABITAT CONSERVATION PLAN FEE ASSESSMENT AREA AND MITIGATION FEES


SUMMARY:

Public Hearing for Revised Fee Schedule for Stephens' Kangaroo Rat Mitigation Fee.

 
BACKGROUND:

The Stephens’ Kangaroo Rat Habitat Conservation Plan (“SKR HCP”) was established to provide for the long-term conservation of the Stephens’ kangaroo rat while allowing development within the Plan Area to proceed. The Riverside County Habitat Conservation Agency (“RCHCA”) administers the SKR HCP. The City of Wildomar is located within the SKR HCP Fee Area and collects the applicable mitigation fee from development subject to the program. Fee revenues are remitted to RCHCA and are used for implementation of the SKR HCP, including reserve management, biological monitoring, administration, and other conservation activities.

 

The existing SKR mitigation fee structure has remained unchanged since 1996. To evaluate the ongoing cost of implementing the SKR HCP and determine the appropriate contribution from new development, RCHCA retained Economic & Planning Systems, Inc. (“EPS”) to prepare the 2026 Stephens’ Kangaroo Rat Habitat Conservation Plan Nexus Study (“2026 Nexus Study”). The RCHCA Board of Directors adopted the 2026 Nexus Study on July 9, 2026. The study was prepared pursuant to the Mitigation Fee Act (Government Code §§ 66000 et seq.) and documents the purpose and use of the fee, the relationship between new development and the need for continued HCP implementation, and the proportional relationship between the fee and the impacts attributable to new development.

 
DISCUSSION:

The 2026 Nexus Study estimates that RCHCA requires approximately $1.9 million annually, in 2025 dollars, to meet its ongoing obligations under the SKR HCP. After accounting for approximately $300,000 in annual non-fee revenues, the study identifies approximately $1.6 million in annual funding that must be generated through mitigation fees. Based on forecasted average development of approximately 1,770 acres per year within the Plan Area, the study calculates a required mitigation fee of $900 per gross acre for development subject to the standard per-acre fee, and $500 per gross acre for agricultural developments. The proposed fees remain below the amount that would have resulted if the existing fees had been adjusted annually for inflation since 1996. The single family residential fee for individual parcels is proposed to remain unchanged.

 

Based on the 2026 Nexus Study, the proposed updated fee schedule is:
          (1) Individual Single-Family Home Construction (Single Parcel): $250 flat fee
          (2) Agricultural Development: $500 per gross acre
          (3) All Other Development: $900 per gross acre

 

The $250 fee applies only to construction of a single-family residence on a single legally created lot where the building permit is issued to an individual property owner and the project is not part of a subdivision, tract development, or coordinated multi-unit residential development. Agricultural development would be assessed at $500 per gross acre. All other development would be assessed at $900 per gross acre. The Nexus Study also provides that qualifying nonprofit development projects may receive a fee reduction of up to 75 percent when the implementing jurisdiction makes the required findings and identifies other funding sufficient to avoid a shortfall in implementation of the SKR HCP.

 

The revised fee schedule shall go into effect January 17th, 2026.

 
ACCOUNT CODE:

100-0000-2293

 
FISCAL IMPACT:

Fees related to the Habitat Conservation Program are calculated and collected by the City and remitted to the RCHCA on a monthly basis. The City does not receive any portion of the fees. Therefore, adoption of the updated fee will not generate any General Fund revenue. However, the City will continue to incur routine administrative costs associated with calculating, collecting, and remitting the fee.

 
ATTACHMENTS:
Ordinance_SKR Fee.docx
2026 Stephen's Kangaroo Rate Nexus Study.pdf
SKR Code Update Redline.pdf
Stephens' Kangaroo Rat Fee Update Presentation.pdf