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HomeMy WebLinkAboutItem No. 09 AB1600 Annual Reort FY 17-18Text File City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 www.lake-elsinore.org File Number: ID# 17-895 Agenda Date: 11/27/2018 Status: Public HearingVersion: 1 File Type: ReportIn Control: City Council / Successor Agency Agenda Number: 9) Page 1 City of Lake Elsinore Printed on 11/20/2018 REPORT TO CITY COUNCIL To:Honorable Mayor and Members of the City Council From:Grant Yates, City Manager Prepared by: Shannon Buckley, Assistant Administrative Services Director Date:November 27, 2018 Subject AB1600 Annual Report for Fiscal Year 2017-18 Recommendations Receive and file the report. Background The City of Lake Elsinore collects development impact fees for Traffic Infrastructure, City Hall and Public Works Facilities, Community Center Facilities, Lake Side Facilities, Animal Shelter Facilities, Fire Facilities and Library Facilities. The Mitigation Fee Act (AB 1600; Government Code Section 66000 et seq.) sets forth the requirements the City must follow in connection with such development impact fees which are imposed to defray the cost of construction of public facilities related to development projects. In addition, AB 1600 imposes certain accounting and comprehensive annual reporting requirements with respect to the fees collected. For accounting purposes, the development impact fees must be segregated from the general funds 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 that special revenue fund or account and used for the purposes for which the fees were collected. Government Code Section 66006 contains comprehensive annual reporting requirements for development impact fees. This statute requires the City to make the following information available to the public annually for each development impact fee: A brief description of the type of fee in the account. The amount of the fee. The beginning and ending balance of the account for the fiscal year. The amount of fees collected. The interest earned. Identification of each public improvement on which fees from the account were expended, the amount of expenditures on each improvement and an identification of the percentage of the cost of the improvement that is being funded with impact fees. AB1600 Annual Report November 27, 2018 Page 2 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 and the public improvement remains incomplete. Description of each inter-fund transfer or loan made from the account, including the public improvement for which the transferred or loaned fees will be expended. Findings, pursuant to Government Code section 66001(d) with respect to portions of the fee account that are unexpended in the fifth fiscal year following the initial deposit in the account and every five years thereafter. The amount of any refunds made pursuant to statute. Staff has compiled the attached AB 1600 Report for Fiscal Year 2017-18 in accordance with the Fee Mitigation Act. The Report provides an annual accounting of the activity in each of development impact fee special revenue fund for the fiscal year ended June 30, 2018 and a five- year history. The Report also provides a plan for future uses of the unexpended special revenue fund balances. The Report is available on the City’s website and copies were also sent to the Building Industry Association (‘BIA”) and others for review as requested by them. In addition to the development impact fees reported in the attached AB 1600 Report, the City imposes the Western Riverside County Transportation Uniform Mitigation Fee (TUMF) and the local development fee for the Multiple Species Habitat Conservation Plan (MSHCP). These fees are a “pass through” to WRCOG and RCA, respectively, through the City’s participation in these specific regional programs. Evaluation and accounting of these regionally-based fees are outside the scope of the City’s AB 1600 Report. Discussion On June 11, 2002, City Council adopted Ordinance Number 1081, establishing its first AB 1600 development fee for Traffic Infrastructure. Subsequently, the City Council adopted and updated various other development impact fees applicable to new development within the City. The purpose of development impact fees is to finance the design, construction and acquisition of facilities and equipment necessary to accommodate future development within the City. Through the General Plan and fee studies, the City of Lake Elsinore has established the nexus between development, the capital improvements necessary to mitigate the effects of development, and approved fees to fund the mitigation measures. Impact fees are generally reviewed every five years. City Council has approved an agreement with Wildan Financial Services to prepare an update to the impact fee study and analysis for the City with anticipated completion by December 2018. Development impact fees that are collected are segregated and placed in special revenue funds, which earn interest. Those funds are held for the facilities for which the fees are collected, in accordance with Government Code Section 66006. As of June 30, 2018, the City had 7 separate and distinct fees that are collected pursuant to AB 1600. Following is a summary listing of the fees, along with the balance for each fee account at June 30, 2018: Traffic Infrastructure Fee $ 4,266,286 City Hall and Public Works Facilities Fee 564,499 Community Center Fee - Lake Side Facilities Fee - Animal Shelter Facilities Fee 400 Library Facilities Fee 1,804,775 AB1600 Annual Report November 27, 2018 Page 3 Fire Facilities Fee 1,014 The AB 1600 Report includes a detailed expenditure and revenue report for each development impact fee special revenue fund. The nature of the development impact fee special revenue funds is such that timing of receipt of revenues and construction of the related capital projects rarely coincide. As a practical matter, revenues are collected over time and accumulated until a development related project is needed; in years of construction, accumulated reserves will be used up. In certain instances, the City has constructed projects in advance of collecting sufficient funds through borrowing from other City funds, or by issuing long term external debt. This practice has resulted in certain categories of the AB1600 funds to operate with a deficit balance. In using the expenditure and revenue reports to determine whether the fees have been spent within five years of collection, the total expenditures and transfers-out over the five-year period must be added together, and then that total must be subtracted from the earliest fund balance. In a number of instances, this calculation shows that not only have fees collected five years ago been spent, but depending on the fund, fees collected in ensuing years have also been spent. Although AB1600 requires fees collected from developers be expended or committed within five years, the law, allows exceptions in recognition that some project costs can be of a magnitude that is takes more than five years to accrue adequate funds; or matching funds may not be available within the five-year period. AB 1600 requires the City to make the certain findings as to any unexpended development impact fee funds, whether committed or uncommitted, remaining after the fifth fiscal year following the first deposit and every five years thereafter. All development impact fee categories satisfy the provision of AB1600 that funds be expended within five years. Moreover, the City’s Five Year (2018/19-2021/22) Capital Improvement Program (CIP), adopted on June 26, 2018, provides detail regarding the sources, amounts, and approximate dates of funding anticipated over a five-year period that will be used to complete the financing of future capital projects such that all fund equity balances have been programmed to fund projects. Fiscal Impact Tracking of the fund activities, summarizing the activity for the AB 1600 Report, and preparation of the Report requires accounting and administrative resources. No funds were expended on outside sources to comply with this unfunded State mandate. This is a required reporting and compliance report per the California Government Code 66006. Exhibits Exhibit A - AB1600 Annual Report City of Lake Elsinore Tr aff c I nfro structure F e e Government Code 66000 Calculation Fr 2077-2078 The Tralfic Infrastructure Fee became effective on June 1lth,2002 with the adoption of City Ordinonce #7087. Trafic Infrastructure is considered any rood and highwoy networks, including structures (bridges, tunnels, culverts, retoining walls), signage and markings, electrical systems [street lighting and trafic lights), edge treatments (curbs, sidewalks, landscaping), and specialized facilities such as road maintenance depots and rest areas. The Trafic Infrastructure fee is collected to mitigate the additional trafic burdens created by new development to the City's arterial ond collector street system and is imposed to finance the costs of new ffafic inftastructure. The fees varies depending on development type and is collected for each building payable upon the issuance ofthe certificate ofoccupancy. The fee is based on the attached formula and data sheet and varies from project to project The fee is based upon the attached formula and data sheet and varies from project to projecL Account Description Beginning Fund Balance FY 2077-2078 Ending Fund Balance Revenues & 0ther Sources Investment Earnings Developer Impact Fees $ 19,603 464,040 Total Sources $ 483,643 Expenditures & Other Uses 463,294 Total Uses $ 463,294 Total Available $ 4,245,937 $ 20,349 $ 4,266,296 Year Test First In First Out Method Funds Fund Balance lune 30,2078 $ 428,232 390,190 99,725 272,041, 144,922 222,2t4 38L,912 432,575 587,256 830,L76 483,643 _!_!?!6,286 Revenues Collected from 2008 Revenues Collected from 2009 Revenues Collected from 2010 Revenues Collected from 2011 Revenues Collected from 2012 Revenues Collected from 2013 Revenues Collected from 2014 Revenues Collected from 2015 Revenues Collected from 2016 Revenues Collected from 2017 Revenues Collected from 2018 Total Ending Fund Balance Five Year Spent Test was met in accordance with Government Code 66001. The City makes a finding that it will and./ or construction of major arterial aand collector street system in accordance with the Fiscal Year TO|B-ZOZT pital Improvement as noted below. Fy 2017-2018 o/o Complete o/o funded with Lakeshore Drive Parking Lot - 210027 Camino Del Norte Improvements - 210030 Purchase of vacant land for future projects/mitigation Annual Citywide Intersection Signal Upgrad es - 270052 Camino Del Norte Improvements - 210030 Traffic Signal Installation @ Grand/Riverside - 4392 Total Anticipated Fudtre Projects S 3,972,228 Total Capital Improvement Facilities Actual Expenses -E-RW 122,499 89,498 251,297 FY 2018-2019 201,000 3,566,039 205,189 City oflake Elsinore City Hall and Public Works Facilities Fees Government Code 66000 Calculation FY 2017-2018 The City Hall and Public Works Facilities Fee became effective on August 23rd,2005 with the adoption of CiSt Ordinance #1L53. City Hall and Public Works Facilities serve both homes and businesses ciWide. The City Hall and Public Works Facilities fee is collected to mitigate the additional burdens created by new development for city hall and public works facilities and is imposed to fnance the costs of new city hall and public works facilities. The fee varied depending on development type and is collected for each building payable upon the issuance of the certificate of occupancy. The fee is based on the attached formula and data sheet and varies ftom project to projecL The fee is based upon the ottached formula and data sheet and varies from project to projecL Account Description Beginning Fund Balance FY 2077-2078 Ending Fund Balance Revenues & Other Sources Interest income Developer fees $ 3,281 79,934 Total Sources s 83,21s Expenditures & Other Uses 772,059 Total Uses $ 772,059 Total Availoble $ 7,253,343 $ t688,844)$564,499 Five Year Test Using First ln First Out Method Funds Represent Ending Fund Balance June 30,2078 $ 73,738 238,671 L68,936 83,274 $ 564,499 Result: Five Year Spent Test was met in accordance with Government Code 66001. The City makes a finding that it plans to construct a new Civic Center and expand the Public Works Corporation Yard in the east part of the City within the next 5 Currently, the City has design plans for construction on that site. The expected cost for this proiect is approximately million. Revenues Collected from 2015 Revenues Collected from 2015 Revenues Collected fr om 2OL7 Revenues Collected from 2018 Total Ending Fund Balance ' apital lmprovement Facilities Facilities Actuol Building Facilities Renovation - 220005 Cultural Center 2nd Floor Renovations - 220011 City Parking Facility -220017 City Hall Expansion & Renovations - 220018 Launch Pointe Rehabilitation - 240007 Cultural Center 2nd Floor Renovations - 220011 ciry Parking Facility - 220017 Total Anticipated Future Projects FY2017-2018 % $ 2?,051 21,977 525,t64 56,610 141,,257 148,900 927,050 $ 1,07s,950 o/o with L4o/o LLo/o 680/o 14o/o 7o/o with 50o/o 71o/o 95o/o 260/o B5o/o 950/o 73o/o Total Capital Improvement Facilities Actual Expenses -@ Future FY 2078-2079 o/o City oflake Elsinore CommuniQt Center Facilities Fees Government Code 66000 Calculation FY 2017-2018 The Community Center Facilities Fee became effective on August 23rd, 2005 with the adoption of Ciry Ordinance #1153. Community Center Facilities will primarily serve residents in the City by providing space and facilities for recreation and similar programs. The Community Center Facilitiesfee is collected to mitigate the additional burdens created by new development for City communi| center facilities and is imposed to finance the costs of new community center facilities. The fee varied depending on development type and is collected for each building payable upon the issuance ofthe certificate of occupancy. The fee is based on the attached formula and data sheet and varies from project to projecL The fee is based upon the attached formula and data sheet and variesfrom project to project. 4ccount Description Beginning Fund Balance FY 2017-2018 Ending Fund Bolonce Revenues & Other Sources Interest income Developer fees $ 9sB 49,050 Total Sources $50,008 Expenditures & Other Uses 5t5,732 Total Uses $ 575,732 Total Available $ 465,724 $ (465,724)$ Year Test First ln First Out Method Funds Represent Ending Fund Balonce June 30,2078 $ Total Ending Fund Balance Result: Five Year Spent Test was met in accordance with Government Code 66001. The City makes a finding that it plans to begin the anticipated future projects in accordance with the Fiscal Year 2018-2022 Capital Improvement as noted below. FY 2017-2078 %o Complete o/o funded with Cultural Center 2nd Floor Renovations - 220011 Launch Pointe Rehabilitation - 240007 Total Capital Improvement Facilities Actual Expenses Cultural Center 2nd Floor Renovations - 220011 TotalAnticipatedFudtreProjects $ 76,640 260/o 73o/o 4o/o 4o/o City oflake Elsinore Lake Side Facilities Fees G ov ernment Code 6 60 0 0 Calculotion FY 2017-2018 TheLakeSideFacilitiesFeebecameeffectiveonAugust23rd,2005withtheadoptionofCityOrdinance#1153. Lake Side Facilities will primarily serve residents in the City by providing recreation ot the lake. The Lake Side Facilities fee is collected to mitigate the additional burdens created by new development for City lake side facilities and is imposed to finonce the costs ofnew lake side facilities. The fee varied depending on development type and is collected for each building payable upon the issuance of the cercificate of occupancy. The fee is based on the attached formula and data sheet and varies from project to project. The fee is based upon the attached formula and dato sheet ond varies from project to projecL Account Description Beginning Fund Balance FY 2017-2018 Ending Fund Balance Revenues & Other Sources Interest income Developer fees $ 7,702 70,tLo Total Sources $ 77,872 Expenditures & Other Uses 787,113 Total Uses $ 787,773 Total Avoilable $ 775,307 $ (775,307)$ Year Test First ln First Out Method Funds Represent Ending Fund Balance June 30,2078 $ Total Ending Fund Balance Five Year Spent Test was met in accordance with Government Code 66001. The City makes a finding that it ans to begin the anticipated future projects in accordance with the Fiscal Year 2078-2022 Capital Improvement as noted below. Fy 2077-2078 o/o Complete o/o fundedwith Launch Pointe Rehabilitation - 240007 La Laguna Marina -240014 Total Capital Improvement Facilities Actual Expenses Launch Pointe Rehabilitation - 240007 Total Anticipated Future Proiects _!_18?,r13_ FY 2018-2079 City ofLake Elsinore Animal Shelter Facilities Fees G overnment Co de 6 6 OO O C alculation FY 2017-2018 The Animal Shelter Facilities Fee became effective on August 23rd,2005 with the adoption ofCity Ordinance #1153. Animal Shelter Facilities will primarily serve residents in the City by providing animal control and adoption services. The Animal Shelter Facilities fee is collected to mitigate the additional burdens created by new developmentfor Ciy animal facilities and is imposed to finance the costs of new animal facilities. The fee varied depending on development Qpe and is collected for each building payable upon the issuance of the cercificate of occupancy. The fee is based on the attached formula and data sheet and varies from project to projecL The fee is based upon the attached formula and data sheet and varies from project to projecL Account Description Beginning Fund Balance FY 2017-2018 Ending Fund Balance Revenues & Other Sources Interest income Developer fees $ 1,404 37,320 Total Sources $ 32,724 Expenditures & Other Uses 75,204 Total Uses $75,204 Total Available $42,880 $ (42,480)$400 Five Year Test Using First ln First Out Method FundsRepresentEnding Fund Balance June 30,2078 Revenues Collected from 2018 400 Total Ending Fund Balance $ 4OO Five Year Spent Test was met in accordance with Government Code 66001. I mprovement Facilities Facilities Actual FY 2077-2078 o/o Complete o/o fundedwith New Animal Shelter $ 932,676 l00o/o l|Oo/o Total Capital ImprovementFacilities Actual Expenses -T@ Future FY 2018-2019$ meso o/s funded with New Animal Shelter L00o/o TotalAnticipatedFutureProjects S 229,950 Note: The City is to pay for the proportionate share of construction of the new Animal Shelter facili4t, no fundins is available in this DIF City oflake Elsinore Libr ary lt4itig ation F ee s G overnment Co de 6 60 0 0 Calculation FY 2017-2018 The Library Mitigation Fee became effective on June 25th, 1977 with the adoption of City Ordinance #573.1 (C) (1-6) and City Ordinance #764.7 in 1986. Library Facilities are considered libraries that meet the Riverside CiA/County Library Standards that will primarily serve residents in the City by providing the physical facilities necessary to support library. The Library Mitigation fee is collected for future construction of library improvements to assure the necessary library facilities are provided to the community. The fee varied depending on development Ape and is collected for each building payoble upon the issuance ofthe certificote ofoccupancy. The fee is based on the attochedformula and dota sheet and vories ftom project to projecL The fee is based upon the attoched formula and data sheet and variesfrom project to project. Account Description Beginning Fund Balonce FY 2017-2018 Ending Fund Balance Revenues & Other Sources Interest income Developer fees $ 7,890 BO,B5O Totol Sources $ 88,740 \xpenditures & Other Uses 39,998 Total Uses $ 39,998 Totol Available $ 7,756,033 $ 48,742 $ 7,804,775 ve Year Test First ln First Out Method Funds Represent Ending Fund Balance June 30,2078 $ 99,389 107,100 t7l,B54 371,920 t64,934 81,752 50,693 59,383 74,372 49,t43 86,794 7',J.1,426 73,385 98,605 tts,2B4 88,747 Revenues Collected from 2003 Revenues Collected from 2004 Revenues Collected from 2005 Revenues Collected from 2006 Revenues Collected from 2007 Revenues Collected from 2008 Revenues Collected from 2009 Revenues Collected from 2010 Revenues Collected from 2011 Revenues Collected fr om 2072 Revenues Collected from 2013 Revenues Collected from 201 4 Revenues Collected from 2015 Revenues Collected from 20L6 Revenues Collected from 2OL7 Revenues Collected from 2018 Totol Ending Fund Balonce 7,804,775 Five Year Spent Test was met in accordance with Government Code 66001. The City makes a finding that it will begin the acquisition and design phase to construct a new Library within the next 5 years in accordance with the Fiscal Year 2018-2022 Capital Improvement 'am. The expected cost for this is approximately $B million. C a p ital lm provement Fa ci liti es Facilities Actual FY 2077-2078 o/o Complete %o funded with Annual Library Book Purchase $ 39,998 700o/o 700o/o Total Capital Improvement Facilities Actual Expenses $ 39,998 Future FY 2018-2019 $ L?43-?s3 o/o funded with City Library - Z2OOO3 Total Anticipated Fufitre Projects $ 1,743,753 22o/o City oflake Elsinore Fire Facilities Fees Government Code 66000 Calculation FY 2077-2018 TheFireFacilitiesFeebecameeffectiveonJunel3th,2006withtheadoptionofCityOrdinance#7787. FireFacilities are considered fire stations and similar public safety facilities that will primarily serve residents in the City by providing the physical facilities necessary to support frre, paromedic and emergency response programs. The Fire Facilities fee is collected to mitigate the additional burdens created by new development for City fire facilities and is imposed to finance the costs of new fire facilities. The fee varied depending on development type and is collected for each building payable upon the issuance of the certificate of occupancy. The fee is based on the ottoched formula and data sheet and varies from project to project. The fee is based upon the attached formula and data sheet and varies from project to project. Account Description Beginning Fund Balance FY 2017-2018 Ending Fund Balance Revenues & Other Sources Interest income Developer fees $ 618 82,L62 Total Sources $ 82,780 Expenditures & Other Uses 94,533 Totol Uses $94,533 Total Availoble $ 72,767 $ (17,753)$ 7,074 First ln First Out Method Revenues Collected from 2018 Total Ending Fund Balance I m prov em en t F a ci I i ti e s Facilities Actual FV 2017-2018 o/o with Rosetta Canyon Fire Station #97 Ladder Truck l00o/o L00o/o Total Capital ImprovementFacilities Actual Expenses $ 94,533 Future FY 2018-2019 $ 1sl8ss with Rosetta Canyon Fire Station #97 Ladder Truck l00o/o Total Anticipated Future Projects $ is available in this DIF fund.