State law (California Government Code Section 66006) requires each local agency that imposes AB 1600 development impact fees to prepare an annual report providing specific information about those fees.  The AB 1600 legal requirements stipulate that fees imposed on new development have the proper nexus to any project on which they are imposed.  In addition AB 1600 imposes certain accounting and reporting requirements with respect to the fees collected.  The fees for accounting purposes must be segregated from the General Fund of the City and from other funds or accounts containing fees collected for other improvements. Interest on each development fee fund or account must be credited to the fund or account and used only for the purpose for which fees were collected. 

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