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Home My WebLink About12/13/2017 - STAFF REPORTS - 1.R. �VALMS'a iy h � V N a c' btA+eo cQ``F°RN�p CITY COUNCIL STAFF REPORT DATE: December 13, 2017 CONSENT CALENDAR SUBJECT: CITY OF PALM SPRINGS DEVELOPMENT PROJECT FEE REPORT FOR FISCAL YEAR 2016-17 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 2016-17. 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. ITEM NO.� City Council Staff Report December 13, 2017 -- Page 2 Development Project Fee Report for FY 2016-17 (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 2016-17, 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. 4�0& Geoffrey S. Kiehl, Kathleen D. Hart, MMC Director of Finance and Treasurer Interim City Clerk David H. Ready City Manager Attachments: Reports by fund 02 cwar�ewr�rw 4 V no ObC�YY.- Government Code Section 66000 Annual Report Drainage Construction,Fund 135 For Fiscal Year Ended June 30,2017 Description of Fee: Fees assessed on new contruction 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$4,495.76 to$10,059.50 Interfund Transfer or Loan: None. Amount of Refunds: None. Reconciliation of Fund Balance Beginning Fund Balance 1,206,590 Revenues: Developer Fees 302,194 Investment Income 10,774 GASB 31 Mark-to-Market Value of Investments at June 30 (6,872) Expenditures: Capital Projects (58,734) Ending Fund Balance 1,453,952 Less:Committed Fund Balance (892,741) Balance Uncommitted 561,211 Five Year Financial Analysis Fund Balance at June 30 Investment Capital Project Developer Fees Income* Total Revenue Expenditures Committed Uncommitted Total As of 6/30/2012 1,093,734 1,093,734 7/1/12-6/30/13 106,503 (3,718) 102,785 102,768 914,742 179,009 1,093,751 7/1/13-6/30/14 201,604 15,570 217,174 599,670 338,072 373,183 711,255 7/1/14-6/30/15 283,828 5,471 289,299 2,222 685,850 312,482 998,332 7/1/15-6/30/16 204,044 8,317 212,361 4,103 815,247 391,343 1,206,590 7/1/16-6/30/17 302,194 3,902 306,096 58,734 892,741 561,211 1,453,952 * Net of GASB 31 adjustment,Mark to Market Value Of Investments on June 30. 5-Year Test has been met Development Project GC 66000 Reporting FY17(11-28-2017)430 PM;Drainage 135 �i 11/28/2017;4:36 PM GA1110�IM1A �� liL� e Plcc�Jr- Government Code Section 66000 Annual Report Drainage Construction,Fund 13S For Fiscal Year Ended June 30,2017 Capital Project Status Date Commitment for Construction to Capital Project Future Commence If Expenditures Improvements As of Percent of Cost Sufficient Funds Improvement Description 7/1/16-6/30/17 6130/17 Funded with Fee Collected Central Zone Projects-ACBCI Museum Demo 25,434 0 100% FY 2021-2022 Central Zone Projects- Drainage Program 28,825 43,574 100% FY 2017-2018 Eagle Canyon Drainage 1,454 100% FY 2021-2022 East Zone Projects 103,988 100% FY 2021-2022 North Zone Projects 193,919 100% FY 2021-2022 South Zone Projects 13,500 100% FY 2017-2018 Southeast Zone Projects 3,000 100% FY 2021-2022 Storm Drain Line 6A 6,955 100% FY 2021-2022 Storm Drain Line 8 8,808 100% FY 2021-2022 Storm Drain Line 9 100,000 100% FY 2021-2022 Storm Drain Line 20 11,591 100% FY 2021-2022 Storm Drain Line 22 5,482 100% FY 2021-2022 Storm Drain Line 23 61,320 100% FY 2021-2022 Storm Drain Line 41 21,055 100% FY 2021-2022 Tahquitz Creek Projects 59,832 100% FY 2021-2022 Tahquitz Creek Levee 4,475 258,263 100% FY 2017-2018 58,734 892,741 C� Development Project GC 66000 Reporting FY17(11-28-2017)430 PM;Drainage 135 " 11/28/2017;4:36 PM f<N t�l Government Code Section 66000 Annual Report Special Development Fund,Fund 123 For Fiscal Year Ended June 30,2017 Description of Fee: Special building mitigation fees assessed on tracks within Specific Plan I in the South Palm Canyon Area restricted for use in the plan area for housing, drainage,fire services and bridges/roads. Amount of Fee: The fees per dwelling unit or per acre are variable based upon the development and range from$2,704 to$3,120 per dwelling unit, or$469 to$4,213 per acre. Interfund Transfer or Loan: None. Amount of Refunds: None. Reconciliation of Fund Balance Beginning Fund Balance 1,832,201 Revenues: Developer Fees 92,873 Investment Income 14,796 GASB 31 Mark-to-Market Value of Investments at June 30 (9,444) Expenditures: Capital Projects - Ending Fund Balance 1,930,426 Less:Committed Fund Balance (1,779,309) Balance Uncommitted 151,117 Five Year Financial Analysis Fund Balance at June 30 Investment Capital Project Developer Fees Income* Total Revenue Expenditures Committed Uncommitted Total As of 6/30/2012 853,541 853,541 7/1/12-6/30/13 445,917 (2,157) 443,760 0 1,097,661 199,640 1,297,301 7/1/13-6/30/14 195,809 18,779 214,588 0 1,389,365 122,524 1,511,889 7/1/14-6/30/15 190,614 11,455 202,069 0 1,579,980 133,978 1,713,958 7/1/15-6/30/16 106,456 11,787 118,243 0 1,686,436 145,765 1,832,201 7/1/16-6/30/17 92,873 5,352 98,225 0 1,779,309 151,117 1,930,426 ` Net of GASB 31 adjustment,Mark to Market Value Of Investments on June 30. 5-Year Test has been met C ) Development Project GC 66000 Reporting FY17(11-28-2017)430 PM;Special Dev 123 C rt 11/28/2017;4:36 PM C�LIiOflMl�f l:V e Plx�JN- Government Code Section 66000 Annual Report Special Development Fund,Fund 123 For Fiscal Year Ended June 30,2017 Capital Project Status Date Commitment for Construction to Capital Project Future Commence If Expenditures Improvements As of Percent of Cost Sufficient Funds Project Description 7/1/16-6/30/17 6/30/17 Funded with Fee Collected Acanto Housing 0 90,480 100% FY 2021-2022 El Porto Housing 0 184,080 100% FY 2021-2022 Monte Serena Drainage 0 48,458 100% FY 2021-2022 Monte Serena Housing 0 308,880 100% FY 2021-2022 Fire Station&Equipment 0 73,628 100% FY 2021-2022 Other Drainage 0 387,715 100% FY 2021-2022 Tract 36723 Housing 0 31,200 100% FY 2021-2022 Bridges/Roads 0 654,868 100% FY 2019-2020 0 1,779,309 C Development Project GC 66000 Reporting FY17(11-28-2017)430 PM;Special Dev 123 cr) 11/28/2017;4:36 PM le ��;;o Government Code Section 66000 Annual Report Wastewater Treatment,Fund 420 For Fiscal Year Ended June 30,2017 Description of Fee: Sewer connection fees Amount of Fee: Residential-$3,000/dwelling unit;Commercial/Industrial-Variable per fixture rate. Interfund Transfer or Loan: None. Amount of Refunds: None. Reconciliation of fund Balance Beginning Fund Balance - Revenues: Sewer Connection Fees 873,452 Investment Income - GA58 31 Mark-to-Market Value of Investments at June 30 - Expenditures: Capital Projects and Maintenance - Applied to PY Qualified Expenditures 873,452 Ending Fund Balance - Less:Committed Fund Balance - Balance Uncommitted - Five Year Financial Analysis Net Qualified Expenditures in Excess Capital Project of Fees to be Recovered Sewer Connection Fee Investment Income Total Revenue Expenditures Committed from Future Fees As of 6/30/2012 4,213,015 7/1/12-6/30/13 589,626 0 589,626 589,626 0 3,623,389 7/1/13-6/30/14 673,754 0 673,754 673,754 0 2,949,635 7/1/14-6/30/15 1,114,692 0 1,114,692 1,114,692 0 1,934,943 7/1/15-6/30/16 877,347 0 877,347 877,347 0 957,596 7/1/16-6/30/17 873,452 0 873,452 873,452 0 84,144 5-Year Test Capital Project Status has been met Date Commitment for Construction to Capital Project Future Commence If Expenditures Improvements As of Percent of Cost Sufficient Funds Improvement Description 7/1/16-6/30/17 6/30/17 Funded with Fee Collected 0 0 0 0 C:) Development Project GC 66000 Reporting FY17(11-28-2017)430 PM;WWf 420 —J 11/28/2017;4:36 PM r<J��H=�tJf IvaaE� Government Code Section 66000 Annual Report Quimby Act Fees,Fund 152 For Fiscal Year Ended June 30,2017 Description of Fee: Developer fees assessed in lieu of dedicated land as a condition of the approval of a tentative or parcel subdivision map. Fee restriced for park or recreation purpose. Amount of Fee:Based on number of bedrooms per residential dwelling unit ranging from$750 to$1,500 Interfund Transfer or Loan: None. Amount of Refunds: None. Reconciliation of Fund Balance Beginning Fund Balance 2,324,446 Revenues: Quimby Act Fees 611,509 Investment Income 23,026 GASB 31 Mark-to-Market Value of Investments attune 30 (14,961) Expenditures: Capital Projects (38,894) Endin Fund Balance 2,905,126 Less:Committed Fund Balance 2,474,983) Balance Uncommitted 430,143 Five Year Financial Analysis Fund Balance attune 30 Investment Capital Project Quimby Act Fees Income* Total Revenue Expenditures Committed Uncommitted Total As of 6/30/2012 2,679,239 2,679,239 7/1/12-6/30/13 293,225 (7,501) 285,724 1,139,352 769,293 1,056,318 1,825,611 7/1/13-6/30/14 472,507 30,954 503,461 508,641 636,555 1,183,876 1,820,431 7/1/14-6/30/15 432,976 15,897 448,873 254,853 738,609 1,275,842 2,014,451 7/1/15-6/30/16 317,355 16,773 334,128 24,133 1,051,000 1,273,446 2,324,446 7/1/16-6/30/17 611,509 8,065 619,574 38,894 2,474,983 430,143 2,905,126 • Net of GASB 31 adjustment,Mark to Market Value Of Investments on June 5-Year Test has been met Capital Project Status Date Commitment for Construction to Capital Project Future Commence If Expenditures Improvements As of Percent of Cost Sufficient Funds Improvement Description 7/1/16-6/30/17 6/30/17 Funded with Fee Collected Visitor Center Parcel 19,894 69,506 100% July 2017 Event Center Construction 0 100% Dec 2019 Downtown Project Park 19,000 2,405,478 100% 38,894 2,474,984 00 Development Project GC 66000 Reporting FY17(11-28-2017)430 PM;Quimby Act 152 11/28/2017;4:36 PM e�ua 4V Mpac.�Mw.- Govemment Code Section 66000 Annual Report Public Arts,Fund 150 For Fiscal Year Ended June 30,2017 Description of Fee: Special building development fees assessed on tracks within Specific Plan I in the South Palm Canyon Area. Amount of Fee: Commercial/Industrial-1/2%based on value;Residential-1/4%based on value. Interfund Transfer or Loan: None. Amount of Refunds: None. Reconciliation of Fund Balance Beginning Fund Balance 360,417 Revenues: Developer Fees 301,958 Other Income 3,840 Investment Income 3,432 Expenditures: Operating Expenses (183,453) Endin Fund Balance 486,194 Less:Committed Fund Balance - Balance Uncommitted 486,194 Five Year Financial Analysis Fund Balance atJune 30 Investment Collections Income* Total Revenue Expenditures Committed Uncommitted Total As of 6/30/2012 365,655 365,655 7/1/12-6/30/13 151,592 5,162 156,754 192,808 0 329,601 329,601 7/1/13-6/30/14 180,441 5,091 185,532 316,788 0 198,345 198,345 7/1/14-6/30/15 250,454 1,409 251,863 210,210 0 239,998 239,998 7/1/15-6/30/16 332,968 4,267 337,235 216,816 0 360,417 360,417 7/1/16-6/30/17 301,947 7,283 309,230 183,453 0 486,194 486,194 * Includes contributions from non-government sources 5-Year Test has been met Development Project GC 66000 Reporting FY17(11-28-2017)430 PM;Arts 150 11/28/2017;4:36 PM Government Code Section 66000 Annual Report Public Arts,Fund 150 For Fiscal Year Ended June 30,2017 Expenditures Expenditures Percent of Cost Project Description 7/1/16-6/30/17 Funded with Fee Insurance 793 100% Art Show Awards&Supplies 17,581 100% Misc Artwork Maintenance 26,531 100% Palm Springs Art Museum Sponsorship 50,000 100% Salaries&Administrative Costs 88,348 100% Educational Outreach 200 100% 183,453 Fes+ O Development Project GC 66000 Reporting FY17(11-28-2017)430 PM;Arts 150 11/28/2017;4:36 PM