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HomeMy WebLinkAboutItem No. 31 - AB1600 Annual Report for FY 2020-21City Council Agenda Report City of Lake Elsinore 130 South Main Street Lake Elsinore, CA 92530 www.lake-elsinore.org File Number: ID# 21-451 Agenda Date: 12/14/2021 Status: Approval FinalVersion: 1 File Type: Council Public Hearing In Control: City Council / Successor Agency Agenda Number: 31) AB1600 Annual Report for Fiscal Year 2020-21 Receive and file. Page 1 City of Lake Elsinore Printed on 12/14/2021 REPORT TO CITY COUNCIL To: Honorable Mayor and Members of the City Council From: Jason Simpson, City Manager Prepared by: Shannon Buckley, Director of Administrative Services Date: December 14, 2021 Subject AB1600 Annual Report for Fiscal Year 2020-21 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. Also, AB 1600 imposes certain accounting and comprehensive annual reporting requirements for the fees collected. For accounting purposes, the development impact fees must be segregated from the general funds of the City and 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 dollar amount of fees collected.  The interest earned.  Identification of each public improvement on which fees from the account were expended, the dollar 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 December 14, 2021 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, under Government Code section 66001(d) for 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 according to the statute. Staff has compiled the attached AB 1600 Report for Fiscal Year 2020-21 in accordance with the Fee Mitigation Act. The Report provides an annual accounting of the activity in each development impact fee special revenue fund for the fiscal year ended June 30, 2021, 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 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. 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, per Government Code Section 66006. As of June 30, 2021, the City had seven separate and distinct fees that are collected under AB 1600. Following is a summary listing of the fees, along with the balance for each fee account at June 30, 2021: AB1600 Annual Report December 14, 2021 Page 3 Development Impact Fee: Ending Balance @ 6/30/21 Traffic Infrastructure Fee 542,107.11$ City Hall and Public Works Facilities Fees - Community Center Facilities Fees - Lake Side Facilities Fees 13,909.95 Animal Shelter Facilities Fees 26.74 Library Mitigation Fees 1,279,228.54 Fire Facilities Fees 285,804.24 Total 2,121,076.58$ The AB1600 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 the 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 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 years must be added together, and then that total must be subtracted from the earliest fund balance. In several 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 to be expended or committed within five years, the law allows exceptions in recognition that some project costs can be of a magnitude that takes more than five years to accrue adequate funds; or matching funds may not be available within the five years. AB 1600 requires the City to make 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. The AB1600 excludes fees collected under development agreements adopted according to (Section 65864) from the definition of “fees” so it has been generally accepted that only fees collected as a condition of development for the cost of public facilities are subject to the AB1600 requirements. However, the development agreement statutes require “for any development agreement entered into on or after January 1, 2004, a city, county, or city and counts shall comply with Section 66006 for any fee it receives or cost it recovers.” The following development agreements fall under this provision (see Exhibit B).  Village at Lakeshore (aka Westlake) – Pay $500/unit Development Agreement Fee and $2.00/square foot Affordable Housing In-Lieu Fee in addition to fees covered in the AB1600 report.  Sports Complex – Pay only fees covered in the AB1600 report.  Laing (aka Summerly) – Pay $4,500/unit for Development Agreement Fee which is credited against the cost of the golf course and other improvements and $1.30/sf Summerly Traffic Impact Fee in addition to fees covered in the AB1600 report.  Mohr Affinity - Paid Initial Development Agreement Fee $50,000; Pay $2.50/sf Commercial Development Agreement Fee AB1600 Annual Report December 14, 2021 Page 4  Alberhill Villages – Paid Initial Development Agreement Fee $100,000; Pay Development Agreement Fee (subject to annual adjustment and subject to limited exemptions) $4,500/Single Family unit, $3,200/Multi-Family unit; $2,500/Mixed Use unit; $1.00/sf Commercial/Retail/lndustrial Building and Private lnstitutional/Places of Worship (non- sanctuary); Pay $2.00/sf Alberhill Park Fee in addition to fees covered in the AB1600 report. All development impact fee categories satisfy the provision of AB1600 that funds be expended within five years. Moreover, the City’s Five Year (2021/22-2025/26) Capital Improvement Program (CIP), adopted on June 22, 2021, provides detail regarding the sources, amounts, and approximate dates of funding anticipated over a five-year period that will be used to complete the financing of future capital projects such that all fund equity balances have been programmed to fund projects. Fiscal Impact Tracking of the fund activities, summarizing the activity for the AB 1600 Report, and preparation of the Report requires accounting and administrative resources. No funds were expended on outside sources to comply with this unfunded State mandate. This is a required reporting and compliance report per the California Government Code 66006. Exhibits Exhibit A – AB1600 Annual Report Exhibit B – Development Agreement Annual Report City of Lake Elsinore Traffic Infrastructure Fee Government Code 66000 Calculation FY 2020-2021 The fee is based upon the attached formula and data sheet and varies from project to project. Beginning Ending Account Description Fund Balance FY 2020-2021 Fund Balance Revenues & Other SourcesDeveloper Impact Fees 515,029$ Investment Earnings 5,296 Total Sources 520,325$ Expenditures & Other Uses 913,221 Total Uses 913,221$ Total Available 935,003$ (392,896)$ 542,107$ Five Year Test Using First In First Out Method Unspent Funds Represent Ending Fund Balance June 30, 2021Revenues Collected from 2020 21,782$ Revenues Collected from 2021 520,325 Total Ending Fund Balance 542,107$ Capital Improvement Facilities Capital Improvement Facilities Actual Expenses FY 2020-2021 % Complete % funded with feeAnnual Citywide Intersection Signal Upgrades - Z10052 55,677 25%28%Citywide Sidewalk Survey Program - Z10067 88,958 50%51%Citywide Sign Inventory - Z10068 13,586 25%27%I-15/Railroad Canyon Ultimate Interchange - 4227 755,000$ 65%9% Total Capital Improvement Facilities Actual Expenses 913,221$ Anticipated Future Projects FY 2021-2022 % funded with feeAnnual Citywide Intersection Signal Upgrades - Z10052 201,000 100%I-15/Railroad Canyon Ultimate Interchange - 4227 434,217 3%Citywide Sidewalk Survey Program - Z10067 250,000 100%Citywide Sign Inventory - Z10068 140,309 100% Total Anticipated Future Projects 1,025,526$ The Traffic Infrastructure Fee became effective on June 11th, 2002 with the adoption of City Ordinance #1081. Traffic Infrastructure is considered any road and highway networks, including structures (bridges, tunnels, culverts, retaining walls), signage and markings, electrical systems (street lighting and traffic lights), edge treatments (curbs, sidewalks, landscaping), and specialized facilities such as road maintenance depots and rest areas. The Traffic Infrastructure fee is collected to mitigate the additional traffic burdens created by new development to the City's arterial and collector street system and is imposed to finance the costs of new traffic infrastructure. The fees varies 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 from project to project. Result: Five Year Spent Test was met in accordance with Government Code 66001. City of Lake Elsinore City Hall and Public Works Facilities Fees Government Code 66000 Calculation FY 2020-2021 The fee is based upon the attached formula and data sheet and varies from project to project. Beginning Ending Account Description Fund Balance FY 2020-2021 Fund Balance Revenues & Other SourcesDeveloper Impact Fees 64,060$ Investment Earnings - Contributions - From Other Funds 22,556 Total Sources 86,616$ Expenditures & Other Uses 86,616 Total Uses 86,616$ Total Available -$ -$ -$ Five Year Test Using First In First Out Method Unspent Funds Represent Ending Fund Balance June 30, 2021 Revenues Collected from 2021 - Total Ending Fund Balance -$ Capital Improvement Facilities Capital Improvement Facilities Actual Expenses FY 2020-2021 % Complete % funded with feeCultural Center 2nd Floor Renovations - Z20011 86,616 100%22% Total Capital Improvement Facilities Actual Expenses 86,616$ Anticipated Future Projects FY 2021-2022 % funded with fee- 0% Total Anticipated Future Projects -$ The City Hall and Public Works Facilities Fee became effective on August 23rd, 2005 with the adoption of City Ordinance #1153. City Hall and Public Works Facilities serve both homes and businesses citywide. 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 finance 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 from project to project. Result: Five Year Spent Test was met in accordance with Government Code 66001. City of Lake Elsinore Community Center Facilities Fees Government Code 66000 Calculation FY 2020-2021 The fee is based upon the attached formula and data sheet and varies from project to project. Beginning Ending Account Description Fund Balance FY 2020-2021 Fund Balance Revenues & Other SourcesDeveloper Impact Fees 40,316$ Investment Earnings - Contributions - From Other Funds 19,137 Total Sources 59,453$ Expenditures & Other Uses 59,453 Total Uses 59,453$ Total Available -$ -$ -$ Five Year Test Using First In First Out Method Unspent Funds Represent Ending Fund Balance June 30, 2021 Revenues Collected from 2021 -$ Total Ending Fund Balance -$ Capital Improvement Facilities Capital Improvement Facilities Actual Expenses FY 2020-2021 % Complete % funded with feeCultural Center 2nd Floor Renovations - Z20011 59,453$ 100%15% Total Capital Improvement Facilities Actual Expenses 59,453$ Anticipated Future Projects FY 2021-2022 % funded with fee-$ 0% Total Anticipated Future Projects -$ The Community Center Facilities Fee became effective on August 23rd, 2005 with the adoption of City 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 Facilities fee is collected to mitigate the additional burdens created by new development for City community 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 of the certificate of occupancy. The fee is based on the attached formula and data sheet and varies from project to project. Result: Five Year Spent Test was met in accordance with Government Code 66001. City of Lake Elsinore Lake Side Facilities Fees Government Code 66000 Calculation FY 2020-2021 The fee is based upon the attached formula and data sheet and varies from project to project. Beginning Ending Account Description Fund Balance FY 2020-2021 Fund Balance Revenues & Other SourcesDeveloper Impact Fees 58,150$ Investment Earnings 41 Total Sources 58,191$ Expenditures & Other Uses 124,359 Total Uses 124,359$ Total Available 80,078$ (66,168)$ 13,910$ Five Year Test Using First In First Out Method Unspent Funds Represent Ending Fund Balance June 30, 2021 Revenues Collected from 2021 13,910$ Total Ending Fund Balance 13,910$ Capital Improvement Facilities Capital Improvement Facilities Actual Expenses FY 2020-2021 % Complete % funded with feeCitywide Park Improvements - Z40023 124,359$ 55%4% Total Capital Improvement Facilities Actual Expenses 124,359$ Anticipated Future Projects FY 2021-2022 % funded with feeBoat Dock Additions - Z401034 61,100$ 5%12% Total Anticipated Future Projects 61,100$ The Lake Side Facilities Fee became effective on August 23rd, 2005 with the adoption of City Ordinance #1153. Lake Side Facilities will primarily serve residents in the City by providing recreation at 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 finance the costs of new lake side 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 from project to project. Result: Five Year Spent Test was met in accordance with Government Code 66001. City of Lake Elsinore Animal Shelter Facilities Fees Government Code 66000 Calculation FY 2020-2021 The fee is based upon the attached formula and data sheet and varies from project to project. Beginning Ending Account Description Fund Balance FY 2020-2021 Fund Balance Revenues & Other SourcesDeveloper Impact Fees 25,654$ Investment Earnings 86 Contributions - From Other Funds 4 Total Sources 25,743$ Expenditures & Other Uses 25,580 Total Uses 25,580$ Total Available (137)$ 163$ 27$ Five Year Test Using First In First Out Method Unspent Funds Represent Ending Fund Balance June 30, 2021 Revenues Collected from 2021 27 Total Ending Fund Balance 27$ Capital Improvement Facilities Capital Improvement Facilities Actual Expenses FY 2020-2021 % Complete % funded with feeNew Animal Shelter 1,903,625$ 100%100% Total Capital Improvement Facilities Actual Expenses 1,903,625$ Anticipated Future Projects FY 2021-2022 % funded with feeNew Animal Shelter 2,081,930$ 100% Total Anticipated Future Projects 2,081,930$ The Animal Shelter Facilities Fee became effective on August 23rd, 2005 with the adoption of City 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 development for City animal facilities and is imposed to finance the costs of new animal 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 from project to project. Result: Five Year Spent Test was met in accordance with Government Code 66001. Note: The City is advancing funds to pay for the proportionate share of construction of the new Animal Shelter facility, since no funding is available in this DIF fund. City of Lake Elsinore Library Mitigation Fees Government Code 66000 Calculation FY 2020-2021 The fee is based upon the attached formula and data sheet and varies from project to project. Beginning Ending Account Description Fund Balance FY 2020-2021 Fund Balance Revenues & Other SourcesDeveloper Impact Fees 52,200$ Investment Earnings 5,491 Total Sources 57,691$ Expenditures & Other Uses 38,274 Total Uses 38,274$ Total Available 1,259,812$ 19,416$ 1,279,229$ Five Year Test Using First In First Out Method Unspent Funds Represent Ending Fund Balance June 30, 2021Revenues Collected from 2007 107,212 Revenues Collected from 2008 81,752 Revenues Collected from 2009 50,693 Revenues Collected from 2010 59,383 Revenues Collected from 2011 74,372 Revenues Collected from 2012 49,143 Revenues Collected from 2013 86,794 Revenues Collected from 2014 111,426 Revenues Collected from 2015 73,385 Revenues Collected from 2016 98,605 Revenues Collected from 2017 115,284 Revenues Collected from 2018 88,741 Revenues Collected from 2019 105,722 Revenues Collected from 2020 119,025 Revenues Collected from 2021 57,691 Total Ending Fund Balance 1,279,228$ Capital Improvement Facilities Capital Improvement Facilities Actual Expenses FY 2020-2021 % Complete % funded with feeAnnual Library Book Purchase 38,274$ 100%100% Total Capital Improvement Facilities Actual Expenses 38,274$ Anticipated Future Projects FY 2021-2022 % funded with feeCity Library - Z20003 1,357,573$ 15%54% Total Anticipated Future Projects 1,357,573$ The Library Mitigation Fee became effective on June 25th, 1977 with the adoption of City Ordinance #573.1 (C) (1-6) and City Ordinance #764.1 in 1986. Library Facilities are considered libraries that meet the Riverside City/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 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 from project to project. Result: 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 Program. The expected cost for this project is approximately $8 million. City of Lake Elsinore Fire Facilities Fees Government Code 66000 Calculation FY 2020-2021 The fee is based upon the attached formula and data sheet and varies from project to project. Beginning Ending Account Description Fund Balance FY 2020-2021 Fund Balance Revenues & Other SourcesDeveloper Impact Fees 102,450$ Investment Earnings 1,221 Total Sources 103,671$ Expenditures & Other Uses - Total Uses -$ Total Available 182,133$ 103,671$ 285,804$ Five Year Test Using First In First Out Method Unspent Funds Represent Ending Fund Balance June 30, 2021 Revenues Collected from 2020 182,133$ Revenues Collected from 2021 103,671 Total Ending Fund Balance 285,804$ Capital Improvement Facilities Capital Improvement Facilities Actual Expenses FY 2020-2021 % Complete % funded with fee-$ Total Capital Improvement Facilities Actual Expenses -$ Anticipated Future Projects FY 2021-2022 % funded with fee-$ 0% Total Anticipated Future Projects -$ The Fire Facilities Fee became effective on June 13th, 2006 with the adoption of City Ordinance #1181. Fire Facilities 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 fire, paramedic 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 attached formula and data sheet and varies from project to project. Result: Five Year Spent Test was met in accordance with Government Code 66001. Note: The City is advancing funds to pay for the proportionate share of the purchase of a new Ladder Truck, since no funding is available in this DIF fund. DEVELOPMENT AGREEMENTS - POST JANUARY 1, 2004 CITY OF LAKE ELSINORE, CALIFORNIA DEVELOPMENT AGREEMENT - POST JANUARY 1, 2004 FEES SUBJECT TO SECTION 66006 DEVELOPMENT AGREEMENT PROJECT STATUS TOTAL UNITS UNITS TO DATE DAG FEE AFFORDABLE HOUSING IN-LIEU FEE ALBERHILL PARK FEE SUMMERLY TRAFFIC IMPACT FEE ("STIF")EXISTING DIF FEES PER ORDINANCE VILLAGES AT LAKESHORE ("WESTLAKE") (RESIDENTIAL) PROJECT IN PROGRESS$500 DAG Fee per unit 79,000$ YES, COVERED IN THE AB1600 REPORT.Affordable Housing Fee ($2 per sq ft)807,614$ 169 106 79,000$ 807,614$ N/A N/A LAING-CP ("SUMMERLY") (RESIDENTIAL)PROJECT IN PROGRESSDescription: $4,500 DAG fee per unit for extraordinary infrastructure 2010-2011 7 31,500$ 2011-2012 77 346,500 2012-2013 181 814,500 2013-2014 115 517,500 2014-2015 138 621,000 2015-2016 183 823,500 2016-2017 227 1,021,500 2017-2018 209 940,500 2018-2019 264 1,188,000 2019-2020 26 117,000 2020-2021 241 1,084,500 SUBTOTAL 1,668 1,668 7,506,000$ STIF - Summerly Traffic Impact Fee ($1.30 per sq ft)2017-2018 1,583,379.40$ 2018-2019 393,313.70 2019-2020 634,125.70 2020-2021 625,043.97 Interest Earnings Accumulated 172,539.73 SUBTOTAL 3,408,402.50$ 1,668 1,668 7,506,000$ N/A N/A 3,408,402.50$ ALBERHILL VILLAGES (RESIDENTIAL)PROJECT NOT STARTEDAlberhill Park Fee - SINGLE FAMILY (SFR)2,724 - -$ YES, COVERED IN THE AB1600 REPORT.Alberhill Park Fee - MULTI-FAMILY (MFR)3,420 - - Alberhill Park Fee - MIXED USE DWELLING 1,880 - - 8,024 - N/A N/A -$ N/A MOHR AFFINITY (OUTLET MALL PADS - FUTURE)PROJECT NOT STARTED -$ -$ 50,000$ -$ -$ -$ YES, COVERED IN THE AB1600 REPORT.-$ -$ 50,000$ -$ -$ -$ SPORTS COMPLEX (COMMERCIAL)PROJECT NOT STARTEDDescription: Pays Impact Fees per City Ordinances for Development Impact Fees. As such, these are covered in the AB1600 Annual Report.YES, COVERED IN THE AB1600 REPORT.N/A N/A N/A N/A N/A -$ Paid Initial Development Agreement Fee $50,000; Pay $2.50/sf Commercial Development Agreement Fee Alberhill Villages – Paid Initial Development Agreement Fee $100,000; Pay Development Agreement Fee (subject to annual adjustment and subject to limited exemptions) $4,500/Single Family unit, $3,200/Multi-Family unit; $2,500/Mixed Use unit; $1.00/sf Commercia/Retail/lndustrial Building and Private lnstitutional/Places of Worship (non-sanctuary); Pay $2.00/sf Alberhill Park Fee in addition to fees covered in the AB1600 report.