HomeMy WebLinkAbout1YCITY COUNCIL STAFF REPORT
DATE: December 10, 2020 CONSENT CALENDAR
SUBJECT: CITY OF PALM SPRINGS DEVELOPMENT PROJECT FEE REPORT
FOR FISCAL YEAR 2019-20
FROM: David H. Ready, City Manager
BY: Department of Finance and Treasury
SUMMARY
The City is required by Government Code Section 66000 to annually prepare a report
for the proceeding fiscal year concerning the activity of the City's development project
fees. The report must be submitted to the City Council within 180 days of the end of the
fiscal year.
RECOMMENDATION:
Receive and File the City's Development Project Fee Report for Fiscal Year
2019-20.
STAFF ANALYSIS:
In 1987, Government Code Section 66000 became effective with the passage of
Assembly Bill 1600. AB 1600 was enacted to regulate the establishment of any new
development fee or fee increase after January 1, 1989.
A key provision of the legislation, namely, Section 66006 (b) (1) of the Government
Code requires that local agency shall, within 180 days of the close of each fiscal year,
make available to the public the following information for each separate account or fund:
(a) A brief description of the type of fee in the account.
(b) The amount of the fee.
(c) The beginning and ending balance of the account.
(d) The amount of fees collected and interest earned.
2City Council Staff Report December 10, 2020 --Page 2 Development Project Fee Report for FY 2019-20 (e) An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. (f) An identification of an approximate date by which construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete. (g) A description of each interfund transfer or loan made from the account, including the public improvement on which the transferred or loaned fees will be expended. In the case of an interfund loan, an identification of that date on which the loan will be repaid, and the rate of interest the account will receive on the loan. In FY 2019-20, the City has five developer project fees subject to the requirements of Government Code Section 66000 --Drainage Construction, Public Arts, Quimby Act Park, Sewer Connection Fees, and Special Development Fees. Staff has prepared the reports that provide an analysis of each fee. The attached reports have been submitted to the Building Industry Association (BIA) and to the Desert Valleys Builders Association (DVBA) for their review. FISCAL IMPACT: The City must expend or commit developer fees from Drainage Construction Fund, Waste Water Treatment Plant Fund, Quimby Act Park Fund, Public Arts Fund, and Special Development Fund within five years of their receipt and these fees must be accounted for in a separate fund. David H. Ready, Esq. Ph.D, City Manager Attachments: Reports by fund
3Government Code Section 66000 Annual Report Special Development Fund, Fund 123 For Fiscal Year Ended June 30, 2020 Description of Fee: Special Development fees are assessed on new development in the Canyon Area as defined by PSMC Chapter 9.69. Special Development Fees are assessed by type of development in the Canyon Area in proportion to the costs of projects needed to be constructed due to such development for flood control and storm drainage, Road and Bridge, and Fire protection. Funding is ongoing throughout the continued development of the Canyon Area. Specified projects will be commenced when funding is accumulated to fully fund the specific project pursuant to the Canyon Master Plan. Amount of Fee: The fees per dwelling unit or per acre are variable based upon the development and range from $0 to $2,704 per dwelling unit, or $469 to $4,213 per acre. lnterfund Transfer or Loan: None. Amount of Refunds: None. Reconciliation of Fund Balance Beginning Fund Balance 2,061,696 Revenues: Developer Fees 29,754 Investment Income 36,155 GASB 31 Mark-to-Market Value of Investments at June 30 Expenditures: Capital Projects Ending Fund Balance {55,093) 2,072,512 Less: Committed Fund Balance {1,632,059) 440,453 Balance Uncommitted Five Year Financial Analysis Beginning Balance Developer Fees Investment Income* Total Revenue Capital Project Expenditures Committed Uncommitted Transfers Out Total 7/1/15 -6/30/16 7/1/16 -6/30/17 7/1/17 -6/30/18 7/1/18 -6/30/19 7/1/19 -6/30/20 1,713,958 1,832,201 1,930,426 1,971,568 2,061,696 106,456 92,873 36,816 27,898 29,754 11,787 5,352 4,326 62,729 36,155 118,243 98,225 41,142 90,628 65,909 1,686,436 145,765 1,832,201 1,779,309 151,117 1,930,426 1,779,309 192,259 1,971,568 500 55,093 1,778,809 1,632,059 282,887 440,453 2,061,696 2,072,512 Five Year Revenue Test Using First In First Out 7/1/15 -6/30/16 7/1/16 -6/30/17 7/1/17 -6/30/18 7/1/18 -6/30/19 7/1/19 -6/30/20 Current 118,243 98,225 41,142 90,628 65,909 Prior Year (2-Years) 202,069 118,243 98,225 41,142 90,628 PriorYear(3-Years) 214,588 202,069 118,243 98,225 41,142 Prior Year (4-Years) 443,760 214,588 202,069 118,243 98,225 Prior Year (5-Years) 561,745 443,760 214,588 202,069 118,243 Prior Years (>5-Years) 291,796 853,541 1,297,301 1,511,889 1,713,458 (1) Balance 1,832,201 1,930,426 1,971,568 2,062,196 2,127,605 Capital Project Expenditures (500) {55,093) Ending Balance 1,832,201 1,930,426 1,971,568 2,061,696 2,072,512 (1) The housing mitigation fees being held beyond the five years as described by AB 1600. This fee is being collected to finance drainage and flood control facilities, fire services, bridges and roads, needed due to new development within the canyon area. Page 1 of 8 SPECIAL DEVELOPMENT FUND 123
4Capital Projects Project Description Acanto Housing El Porto Housing Monte Sereno Drainage Monte Sereno Housing Fire Station & Equipment Other Drainage Tract 36723 Housing Bridges/Roads Expenditures 7 /1 /19 -6/30/20 55,093 55,093 Future Improvements as of 06/30/20 90,480 184,080 48,458 308,880 73,628 240,465 31,200 654,868 1,632,059 % of Cost Funded with Fee 100% 100% 100% 100% 100% 100% 100% 100% Anticipated Project Expenditures If Sufficient Funds Collected FY 2021-2022 FY 2021-2022 FY 2021-2022 FY 2021-2022 FY 2021-2022 FY 2021-2022 FY 2021-2022 FY 2021-2022 Fund 123 Description of Expenditure Expenditures City Project 06-18, S Palm Appraisal Services for APN 513-460-033 6,750 Canyon Bridge Rehabilitation Appraisal Services for APN 513-460-033 15,000 _____ ......,_ _________________________ _ Easement Legal and Plat for APN 513-460-033 2,500 Appraisal Services for APN 513-460-033 6,000 Engineering Design Services 20,843 Lot Line for APN 513-460-033 4,000 Total Expenditures 55,093 Page 2 of 8 SPECIAL DEVELOPMENT FUND 123
5Government Code Section 66000 Annual Report Drainage Construction, Fund 135 For Fiscal Year Ended June 30, 2020 Descroiption of Fee: Drainage fees are assessed on new construction for the purpose of building and maintaining a drainage and flood control system within the City. Amount of Fee: Per acre fee based on region ranging from $4,213.00 to $10,311.99 lnterfund Transfer or Loan: None. Amount of Refunds: None. Reconciliation of Fund Balance Beginning Fund Balance Revenues: Developer Fees Investment Income 1,340,433 205,279 23,262 GASB 31 Mark-to-Market Value of Investments at June 30 Expenditures: Capital Projects Ending Fund Balance Less: Committed Fund Balance Balance Uncommitted Five Year Financial Analysis Beginning Balance Developer Fees Investment Income* Total Revenue Capital Project Expenditures Committed Uncommitted Transfers Out Total (226,146) 1,342,828 (499,624) 843,204 7/1/15 -6/30/16 7/1/16 -6/30/17 7/1/17 -6/30/18 7/1/18 -6/30/19 7/1/19 -6/30/20 998,332 1,206,590 1,453,953 1,501,957 1,340,433 204,044 302,194 283,323 188,574 205,279 8,317 3,902 3,575 44,581 23,262 212,361 306,096 286,898 233,155 228,541 4,103 58,734 238,894 394,679 226, 146 815,250 892,743 773,950 515,770 499,624 391,340 561,210 728,007 824,663 843,204 1,206,590 1,453,953 1,501,957 1,340,433 1,342,828 Five Year Revenue Test Using First In First Out Current Prior Year (2-Years) Prior Year (3-Years) Prior Year (4-Years) Prior Year (5-Years) Prior Years (>5-Years) Balance 7/1/15 -6/30/16 7/1/16 -6/30/17 7/1/17 -6/30/18 7/1/18 -6/30/19 7/1/19 -6/30/20 212,361 306,096 286,898 233,155 228,541 289,299 212,361 306,096 286,898 233,155 217,174 289,299 212,361 306,096 286,898 102,785 217,174 289,299 212,361 306,096 71,470 102,785 217,174 289,299 212,361 317,604 384,971 429,023 407,303 301,923 (1) 1,210,693 1,512,686 1,740,851 1,735,112 1,568,974 Capital Project Expenditures (4,103) (58,734) (238,894) (394,679) (226,146) Ending Balance 1,206,590 1,453,953 1,501,957 1,340,433 1,342,828 ( 1 ) The Drainage Fees are being held beyond the five years as described by AB1600. This fee is being collected for the construction of drainage in the drainage map zones and therefore must be retained until enough fees have been collected to start construction of the project. Page 3 of 8 DRAINAGE FEES FUND 135
6Cae/tal Projects Expenditures Improvements Funded with Anticipated Project Expenditures lmerovement Descrietion 7 /1 /19 -6/30/20 as of 06/30/2 O Fee If Sufficient Funds Collected Future Zone Projects 1,019,155 100% FY 2020-2021 North Zone Projects 168,321 39,133 100% FY 2020-2021 Storm Drain Line 6A 6,956 100% FY 2020-2021 Central Zone Projects- Drainage Prg 4,863 100% Tahquitz Creek Project 79,832 100% FY 2020-2021 Storm Drain Line 9 100,000 100% FY 2020-2021 South Zone Projects 47,531 100% Storm Drain Line 23 61,321 100% FY 2020-2021 East Zone Projects 10,000 100% FY 2020-2021 Southeast Drainage 6,000 100% FY 2020-2021 Drain Line 1 18,977 100% FY 2020-2021 Tahquitz Creek Levee Cert 5,431 100% 1,455 100% FY 2020-2021 226,146 1,342,829 Page 4 of 8 DRAINAGE FEES FUND 135
7Government Code Section 66000 Annual Report Public Arts, Fund 150 For Fiscal Year Ended June 30, 2020 Description of Fee: Development fees are assessed on new and re-construction, in lieu of providing public art, pursuant to PSMC Chapter 3.37 to develop and maintain a visual arts program, to add to the economic viability of the community, and to enhance the environment and unique character of the City for the acquisition and maintenance of quality works of public art. Amount of Fee: Commercial/Industrial -1/2% based on value; Residential -1/4% based on value lnterfund Transfer or Loan: None. Amount of Refunds: None. Reconciliation of Fund Balance Beginning Fund Balance Revenues: Developer Fees Investment Income 556,107 293,063 10,894 GASB 31 Mark-to-Market Value of Investments at June 30 Expenditures: Capital Projects Ending Fund Balance Less: Committed Fund Balance Balance Uncommitted Five Year Financial Analysis Beginning Balance Developer Fees Investment Income* Total Revenue Capital Project Expenditures Committed Uncommitted Transfers Out Total (240,200) 619,864 (619,864) 7/1/15 -6/30/16 7/1/16 -6/30/17 7/1/17 -6/30/18 7/1/18 -6/30/19 7/1/19 -6/30/20 360,418 480,836 606,612 532,310 556,107 332,968 301,958 212,003 227,464 293,063 4,267 7,272 8,738 8,184 10,894 337,235 309,230 220,741 235,648 303,957 216,817 183,454 295,043 211,851 240,200 190,180 394,193 358,696 380,595 619,864 290,656 212,419 173,614 175,512 480,836 606,612 532,310 556,107 619,864 Five Year Revenue Test Using First In First Out Current Prior Year (2-Years) Prior Year (3-Years) Prior Year (4-Years) Prior Year (5-Years) Prior Years (>5-Years) Balance Capital Project Expenditures Ending Balance 7/1/15 -6/30/16 7/1/16 -6/30/17 7/1/17 -6/30/18 7/1/18 -6/30/19 7/1/19 -6/30/20 337,235 251,863 185,532 156,754 151,595 5,802,933 6,885,912 (6,405,077) 480,835 309,230 337,235 251,863 185,532 156,754 5,954,528 7,195,142 (6,588,531) 606,611 Page 5 of 8 220,741 309,230 337,235 251,863 185,532 6,111,282 7,415,883 (6,883,574) 532,309 235,648 220,741 309,230 337,235 251,863 6,296,814 7,651,531 {7,095,425) 556,106 303,957 235,648 220,741 309,230 337,235 6,548,677 7,955,488 {7,335,625) 619,863 PUBLIC ART FUND 150
8Public Art Expenditures Future % of Cost Expenditures Improvements Funded with Anticipated Project Expenditures Project Descrietion 7 /1 /19 -6/30/20 as of 06/30/20 Fee If Sufficient Funds Collected Insurance 2,302 0% FY 2020-2021 Administrative Costs 100% FY 2020-2021 Art Show Awards & Supplies 350 0% FY 2020-2021 Contractual Services 51,000 100% Specialized Equipment 118 0% FY 2020-2021 Acquisitions 82,153 100% FY 2020-2021 Misc. Artwork Maintenance 33,664 88% Palm Springs Art Museum Sponsorship 50,000 0% FY 2020-2021 Administrative Costs 15,901 0% FY 2020-2021 Maintenance 499,591 100% FY 2021-2022 216,817 499,591 Page 6 of 8 PUBLIC ART FUND 150
9Government Code Section 66000 Annual Report Quimby Act Fees, Fund 152 For Fiscal Year Ended June 30, 2020 Description of Fee: Quimby fees are assessed on new residential construction for the purpose of funding public park acquisition and capital improvements to park facilities. The City has a Parks and Recreation Master Plan and the General Plan contains standards for parks and recreational facilities to be acquired. Amount of Fee: Based on number of bedrooms per residential dwelling unit ranging from $750 to $1,500 lnterfund Transfer or Loan: None. Amount of Refunds: None. Reconciliation of Fund Balance Beginning Fund Balance Revenues: Developer Fees Investment Income 4,362,731 577,622 81,573 GASB 31 Mark-to-Market Value of Investments at June 30 Expenditures: Capital Projects Ending Fund Balance Less: Committed Fund Balance Balance Uncommitted Five Year Financial Analysis Beginning Balance Developer Fees Investment Income* Total Revenue Capital Project Expenditures Committed Uncommitted Transfers Out Total (1,251,719) 3,770,207 (3,610,955) 159,252 7/1/15 -6/30/16 7/1/16 -6/30/17 7/1/17 -6/30/18 7/1/18 -6/30/19 7/1/19 -6/30/20 2,385,728 2,630,515 3,141,747 3,525,098 4,362,731 317,355 611,509 485,161 807,973 577,622 16,773 8,065 5,647 119,002 81,573 334,128 619,574 490,808 926,975 659,195 89,341 108,342 107,457 89,342 1,251,719 985,792 2,405,536 2,990,496 3,498,374 3,610,955 1,644,723 736,211 534,602 864,357 159,252 2,630,515 3,141,747 3,525,098 4,362,731 3,770,207 Five Year Revenue Test Using First In First Out 7 /1 /15 -6/30/16 7 /1 /16 -6/30/17 7 /1 /17 -6/30/18 7 /1 /18 -6/30/19 7 /1 /19 -6/30/20 Current 334,128 619,574 490,808 926,975 659,195 Prior Year (2-Years) 448,873 334,128 619,574 490,808 926,975 Prior Year (3-Years) 503,461 448,873 334,128 619,574 490,808 Prior Year (4-Years) 285,724 503,461 448,873 334,128 619,574 Prior Year (5-Years) 247,273 285,724 503,461 448,873 334,128 Prior Years (>5-Years) 900,397 1,058,329 1,235,711 1,631,715 1,991,246 Balance 2,719,856 3,250,089 3,632,555 4,452,073 5,021,926 Caeital Project Exeenditures {89,341} {108,342} {107,457} {89,342} {1,251,719} Ending Balance 2,630,515 3,141,747 3,525,098 4,362,731 3,770,207 (1) Quimby fees being held beyond the five years as described by AB 1600. These fees are assessed in proportion to new residential development in the City to ensure the expansion of park and recreational facilities to meet the needs of the rising population caused by the new residential development. Capital Projects Project Description Transfers Out -Restrooms@ Desert Highland Park Downtown Park Future Expenditures Improvements 7/1/19 -6/30/20 as of 06/30/20 1,251,719 1,251,719 250,000 3,360,955 3,610,955 % of Cost Funded with Anticipated Project Expenditures Fee If Sufficient Funds Collected 100% FY21 100% Under construction (1) Page 7 of 8 QUIMBY FEES FUND 152
10Government Code Section 66000 Annual Report Wastewater Treatment, Fund 420 For Fiscal Year Ended June 30, 2020 Description of Fee: Sewer connection fees are assessed to recover the costs of wastewater infrastructure needed to serve new development, as well as the costs for increasing capacity of existing facilities to serve growth. Amount of Fee: Residential -$3,000 / dwelling unit; Commercial Industrial -Variable per fixture rate lnterfund Transfer or Loan: None. Amount of Refunds: None. Reconciliation of Fund Balance Beginning Fund Balance Revenues: Developer Fees Investment Income 6,049,531 608,185 38,556 GASB 31 Mark-to-Market Value of Investments at June 30 Expenditures: Capital Projects Ending Fund Balance Less: Committed Fund Balance Balance Uncommitted Five Year Financial Analysis Beginning Balance Developer Fees Investment Income* Total Revenue Capital Project Expenditures Committed Uncommitted Total (45,739) 6,650,533 (826,321) 5,824,212 7/1/15 -6/30/16 7/1/16 -6/30/17 7/1/17 -6/30/18 7/1/18-6/30/19 7/1/19-6/30/20 3,927,566 4,814,285 5,612,335 5,845,742 6,049,531 877,347 873,452 747,011 947,157 608,185 11,210 4,989 6,456 51,358 38,556 888,557 878,441 753,467 998,516 646,741 1,838 80,392 520,060 794,726 45,739 4,000,000 4,989,264 4,461,206 5,271,478 826,321 814,285 623,071 1,384,536 778,053 5,824,212 4,814,285 5,612,335 5,845,742 6,049,531 6,650,533 Five Year Revenue Test Using First In First Out 7/1/15 -6/30/16 7/1/16 -6/30/17 7/1/17 -6/30/18 7/1/18 -6/30/19 7/1/19 -6/30/20 Current 888,557 878,441 753,467 998,516 646,741 PriorYear(2-Years) 1,114,692 888,557 878,441 753,467 998,516 PriorYear(3-Years) 673,754 1,114,692 888,557 878,441 753,467 Prior Year (4-Years) 589,626 673,754 1,114,692 888,557 878,441 Prior Year (5-Years) 561,719 589,626 673,754 1,114,692 888,557 Prior Years (>5-Years) 987,775 1,547,656 2,056,891 2,210,585 2,530,550 (1) Balance 4,816,123 5,692,727 6,365,802 6,844,257 6,696,272 Capital Project Expenditures (1,838) (80,392) (520,060) (794,726) (45,739) Ending Balance 4,814,285 5,612,335 5,845,742 6,049,531 6,650,533 ( 1 ) The Sewer Connection Fees are being held beyond the five years as described by AB1600. This fee is being collected to recover the costs of wastewater infrastructure needed to serve new development, as well as the costs for increasing capacity of existing facilities to serve growth. The City adopted a 20-Year Capital Repair and Rehabilitation Plan ("CIP"), on April 21, 2010, identifying $67,000,000, in infrustructure repairs, replacement, of rehabilitation; and therefore these fees must be retained until enough fees have been collected to construct the project. Project Description Tahquitz CreeK Levee Cert Sewer System Repairs WWTP Upgrade Project Solar PV System WWTP CIP & Rate Study Expenditures 7/1/19 -6/30/20 1,291 285 159 39,531 4,473 45,739 Future Improvements as of 06/30/20 156,254 16,325 11,198,125 69,153 292,338 11,732,195 Page 8 of 8 % of Cost Funded with Anticipated Project Expenditures Fee If Sufficient Funds Collected 100% on going 100% FY 2021 /2022 0% on going 100% FY 2021/2022 SEWER CONNECTION FEES FUND 420