What development impact fees apply to a new home in Banning?

Banning’s current schedule sets seven single-family development impact fees by square footage, plus a water facilities fee based on meter size.

The schedule applies to new development. It does not establish a charge for a particular home or say that a buyer pays these fees at closing. This is general information and not legal advice.

What did Banning change in 2026?

Banning adopted new and amended development impact fees in February 2026, replacing the fees adopted under Resolution 2019-112.

The City of Banning’s 2026 Development Impact Fee Update covers fees related to electric, fire, general facilities, parks, police, traffic, wastewater and water. The page links the January 2026 Development Impact Fee Study, Ordinance 1616 and Resolution 2026-24.

Resolution 2026-24 approved the January 2026 study and adopted the revised schedule on February 10, 2026. The city’s Development Impact Fees chapter had originally been established through Ordinance 1551 on September 24, 2019.

Ordinance 1616 amended Banning Municipal Code Chapter 15.68 and added a section for electric facilities development impact fees. The ordinance text states that it was introduced February 10, adopted February 24 and would take effect thirty days after adoption. The copy of the ordinance posted on the city’s page leaves its vote lines blank, so the February 24 adoption date is the one printed in the ordinance text.

The adopted schedule lists March 12, 2026 as the effective date for the fire, police, parkland and parks, general facilities, wastewater, traffic and water fees. The electric fee became effective March 26, 2026.

How much are the single-family fees per square foot?

The seven adopted single-family charges add to $15.80 per square foot before the separate water facilities fee and any separately collected program charges.

Resolution 2026-24, Exhibit A, lists these single-family amounts:

• Police: $0.90 per square foot
• Fire protection: $1.26 per square foot
• Parkland and parks: $3.80 per square foot
• General city facilities: $1.23 per square foot
• Wastewater: $6.39 per square foot
• Traffic impact: $1.23 per square foot
• Electric: $0.99 per square foot

That $15.80 figure is the arithmetic sum of the seven adopted per-square-foot lines. It is not an all-in fee quote for a particular house. Water uses a different calculation, and two county-wide programs are outside this schedule.

The adopted multi-family schedule also uses square footage. Its rates are $1.57 for police, $2.19 for fire, $6.59 for parks, $2.13 for general facilities, $4.33 for wastewater, $1.03 for traffic and $0.93 for electric, all per square foot.

Why does the city use square footage?

Banning uses square footage because its study says state law AB 602 calls for residential fees to be calculated by proportional square footage rather than per dwelling unit.

That approach applies to both single-family and multi-family residential development in the study. As a result, the adopted schedule does not present one fixed development impact fee for every new house. The relevant per-square-foot lines depend on the residential category and the home’s square footage.

How is the water facilities fee calculated?

The water facilities fee is based on water meter size, not the home’s square footage.

The adopted schedule lists these amounts:

• Three-quarter-inch meter: $11,251
• One-inch meter: $18,751
• One-and-one-half-inch meter: $37,503
• Two-inch meter: $60,004
• Three-inch meter: $112,508

The city sources supplied for this schedule do not establish which meter size a particular home receives. Ask the city which meter size applies before using this table for a property-specific review.

The meter-based charge is separate from the seven per-square-foot lines. Questions about the local water source are covered separately in Where does Banning’s tap water come from?.

What is the electric development impact fee?

Banning’s new electric development impact fee is $0.99 per square foot for single-family development and $0.93 per square foot for multi-family development.

Ordinance 1616 added the electric fee to Chapter 15.68. The January 2026 study says Banning had completed a September 2025 cost-of-service and rate study for its electric operations. It identifies $24,475,000 in electric capital costs for 2025 through 2040.

The study also says none of the jurisdictions it surveyed assessed an electric-specific impact fee. That statement is limited to the study’s surveyed jurisdictions and should not be read as a claim about every California city.

The development impact fee documents do not say that this fee changes household electric rates or electric bills. For information about the utility itself and solar net metering, see Banning’s electric utility and home solar.

When are the fees due, and which schedule applies?

The payment trigger depends on the particular fee language, so a buyer should ask who pays each charge and when.

Resolution 2026-24 says the fees are due under Government Code Section 66007 upon issuance of the certificate of occupancy. Several residential fee sections in the ordinance say a lump-sum payment is due when the first dwelling in the development or development phase receives its final building inspection, or when a certificate of occupancy is issued, whichever occurs first. The electric section uses the certificate-of-occupancy date.

The sources do not say that the buyer necessarily pays, and they do not place payment at closing. A buyer should confirm with the builder or the city who pays each charge for the specific purchase.

For a pending project, the fee in effect when payment becomes due generally applies. A project with vested rights through a vesting tentative subdivision map instead pays the fee in effect when those rights vested, plus an inflation adjustment. Resolution 2026-24 says the fees may be adjusted each July 1 according to the change in the Engineering News-Record Construction Cost Index.

We were helping a buyer compare a new Banning home with an older resale when he asked why the builder’s closing estimate included several city fees. He had assumed the advertised price covered every development-related cost. We reviewed which impact fees applied to the new construction and whether the builder or buyer was responsible for each charge.

Are any projects exempt, and can a fee be challenged?

Some accessory dwelling units, second units and residential work may be exempted, while developers have written adjustment and appeal procedures.

The ordinance includes accessory dwelling units and second units, as defined in Banning Municipal Code Section 17.04.070, among uses that may be exempted. It also includes residential work that does not increase the number of permanent housing units. The wording is “may be exempted,” so the ordinance does not support treating every listed project as automatically exempt.

A developer may request a fee adjustment or land-use-category adjustment in writing from the city manager before the building permit is issued. The city manager decides within thirty calendar days. That decision may be appealed to the City Council within fifteen calendar days after notice is mailed.

Those are developer rights. The documents also state that payment starts a ninety-day protest period under the Government Code Section 66020 notice procedure.

What charges are outside this schedule?

The adopted development impact fee schedule excludes charges collected under two separate county-wide programs.

Resolution 2026-24 says its fees do not include charges under Banning Municipal Code Chapter 15.72, the Western Riverside County Multiple Species Habitat Conservation Plan, or Chapter 15.76, the Western Riverside County Transportation Uniform Mitigation Fee Program. Their amounts are not stated here.

The resolution also says Banning’s traffic impact fee does not duplicate the Western Riverside County Transportation Uniform Mitigation Fee because the city fee covers intersections and other improvements outside that program.

Other homeownership charges can have different rules and timing. Read about Mello-Roos and the California supplemental property tax bill separately rather than treating either as part of this development impact fee schedule.

The short version

Banning’s adopted 2026 schedule charges seven single-family development impact fees totaling $15.80 per square foot, with water charged separately by meter size.

Most of the revised fees became effective March 12, 2026, and the electric fee became effective March 26. The exact payment trigger varies in the ordinance language, and the sources do not say that a buyer pays at closing. Ask which fee schedule applies, who will pay each charge, which water meter size the city has assigned and whether separate program charges apply.

The city’s page and documents were read on November 4, 2026, and the sources read do not say whether any later schedule or annual inflation adjustment has been applied, so check the city’s Development Impact Fee Update page before relying on these figures.

To put the fee questions in context with your property’s estimated value, use the home value tool.