The Cupertino Union School District Board of Trustees unanimously approved an increase in developer fees during its March 12 meeting, adopting a resolution to raise the district’s Level 1 school facilities fees for residential and commercial and industrial development.
Residential developer fees will rise to $5.38 per square foot, while commercial and industrial fees will increase to $0.87 per square foot. The increase follows a statewide adjustment approved by the State Allocation Board in January and a district analysis of school facility needs. The fees are intended to help fund the construction and modernization of school facilities needed to accommodate growth stemming from new development within the district.
The district’s 2024 Level 1 Developer Fee Impact Study found that existing and projected development continues to generate demand for additional classroom and support space. District officials said in an email that the assumptions and data used in the study remain valid.
According to district documents, the fees are used to fund construction, reconstruction and modernization of school facilities, as well as related costs such as planning, engineering and infrastructure. The district plans to use the fees for projects listed in its 2020 master plan.
Revenue from the fees varies based on the pace of development. The district collected $1,177,780 in the 2023-2024 fiscal year and $1,151,214 in 2024-2025. As of the 2025-2026 fiscal year to date, the district has collected $726,625.
School impact fees in the district were first established in 1987 and are shared with the Fremont Union High School District under a 60-40 agreement. Cupertino Union receives 60% of the collected fees.
Resolution No. 25-26-18 outlines the district’s authority under state law to levy the fees and requires that funds be deposited into a separate capital facilities account and used solely for school facility-related purposes. The district will conduct periodic reviews to ensure compliance with state requirements for the use and reporting of collected fees.
The fee increase will take effect 60 days after approval, in accordance with the resolution.
The board’s hearing included a brief period for public comment, lasting about a minute, with no speakers.
