Developer Fees: 14- Day Public Notice and Information

Falcon Community:

At our next Board of Trustees Meeting on February 14, 2024, our School Board will be discussing the Developer Justification Study and the possible increase, dismissal, or maintaining of developer fees in Cayucos. During this meeting, there will be a public hearing, seeking public input on this topic. Currently, our Developer Fees are collected at the 2014 rate of $3.36 per square foot for residential builds/remodels in excess of 500 square feet, and .54 for commercial builds.  On January 24, 2024, the State of California raised rates to the follow maximums: $5.17 for residential builds and .84 for commercial/industrial fees. 

Attached is the CESD 14-Day Public Notice of Hearing.

Below are a few facts regarding Developer Fees. For additional information on CESD Developer Fees: Please see this webpage: CLICK HERE.

What are school Developer Fees?

  • Effective January 1, 1987, Assembly Bill 2926, Section 17620 in the California Government Code, authorized school districts to levy school developer fees on new, remodels and additions for residential and commercial/industrial development projects.

  • The legislation provides that no Building Permit may be issued until the school districts certify that any fees due have been paid.

  • School Developer Fees are a one-time fee that is not associated with and will not be added to your property taxes.

Why are these fees deemed necessary in most Districts in California?

  • Additional development projects within the District, whether new residential, commercial/industrial construction or reconstruction involving increases of an assessable area greater than 500 square feet, will increase the need for reconstruction and upgrades of school facilities.

  • Without the addition of new school facilities and/or reconstruction of present school facilities, any further residential and/or commercial/industrial development projects within the District will result in a significant decrease in the quality of education presently offered by the District.

  • Substantial residential development and commercial/industrial development is projected within the district’s boundaries, and the enrollment it would produce will exceed the capacity of the schools within the District.  As a result, conditions of overcrowding will exist and will 

  • impair the normal functioning of the district's educational programs.


What are the revenues collected for?

  • School Developer Fees can only be spent on capacity-enhancing capital facilities.

How are fees collected?

  • Fees are calculated based on new or added square footage from the outside wall dimensions of assessable space. The total is then divided 75% goes to the elementary school district, and 25% goes to Coast Unified School District.