The Vacaville City Council voted on March 5, 2024, to reject proposed increases to the Development Impact Fees (DIF) as part of a contentious discussion about urban growth and affordability. This decision highlights ongoing tensions between city leaders, developers, and residents regarding how to fund essential infrastructure without exacerbating housing costs.
City officials agree on the necessity of funding infrastructure—including roads, parks, and public safety services—but diverge sharply on the financial burden. The council’s vote came after several months of opposition from the local development community to the **2025 Vacaville Development Impact Fees Nexus Study**, which aimed to update the fee structure to reflect rising construction costs.
During the meeting, Public Works Director **Brian Oxley** presented the proposal, emphasizing the role of DIF in financing over **300 projects** since the program’s inception in **1992**. Oxley explained that the fees are assessed to developers when they build new housing units, whether single-family or multifamily.
The current update process began in **2024** to reassess the fee levels necessary to support the city’s growing infrastructure needs. Oxley mentioned that the city had conducted eight public meetings and five developer consultations between **April 2025** and **November 2025** to address concerns and gather feedback.
Following feedback from both the council and developers, staff made significant reductions to the proposed fees. They cut the transportation impact fee projects by **$119,212,846**, lowering the maximum allowable transportation DIF to **$21,099** for a residential home of **2,500 square feet**. The parks fee was also reduced from **$9,321** to **$4,921** per equivalent dwelling unit (EDU).
Multiple developers voiced their concerns at the meeting, arguing that increased fees could jeopardize their projects. **Lisa Vorderbrueggen**, a representative from the **Building Industry Association (BIA) Bay Area**, highlighted the potential negative impact of maximum fees on housing economics. She warned that without careful consideration, the proposed increases could act as a de facto moratorium on new housing developments in Vacaville.
Vorderbrueggen acknowledged the city’s responsibility to fund infrastructure but urged the council to incentivize middle-income housing and to grandfather existing projects like Lagoon Valley. She pointed out that housing construction has not kept pace with demand, leading to declining student enrollment as families are priced out of the area.
Oxley reaffirmed the city’s commitment to supporting development while navigating the complexities of funding infrastructure. He stated, “We understand that development is very important to the city.”
Despite the developers’ assertions, Community Development Director **Erin Morris** countered that Vacaville continues to experience significant construction activity. She noted that neighboring **Fairfield** has higher fees but still manages to attract development, suggesting that the proposed increases would not halt progress.
City Manager **Savita Chaudhary** acknowledged the need for a balanced approach, expressing concern that the council has primarily shouldered the burden of compromises during negotiations. “I hear loud and clear it needs to be yes and yes on both sides,” she said. Chaudhary emphasized the importance of partnership and collaboration between the city and the development community.
In a move to extend the discussion on the DIF, Councilmember **Carli** proposed a four-year extension of the fee structure, with a one-year deferral for the first year. This motion passed with a **5-2** vote, despite opposition from Councilmembers Wylie and Chapman. Carli emphasized the unique circumstances surrounding projects like Lagoon Valley, stating that they cannot be treated as ordinary developments.
As the city grapples with the challenges of growth and infrastructure funding, the council’s decision reflects a broader struggle to achieve a balance between fostering development and maintaining housing affordability for current and future residents. The ongoing discussions will likely play a crucial role in shaping Vacaville’s growth trajectory in the coming years.
