HomeMy WebLinkAboutItem No. 32 - AB1600 Annual Report for Fiscal Year 2022-2332)AB1600 Annual Report for Fiscal Year 2022-23
Receive and file the AB 1600 Annual Report and adopt the findings therein.
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REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Shannon Buckley, Assistant City Manager
Date:January 9, 2024
Subject:AB1600 Annual Report for Fiscal Year 2022-23
Recommendation
Receive and file the AB 1600 Annual Report and adopt the findings therein.
Background
The City of Lake Elsinore collects development impact fees for Traffic Infrastructure, City Hall and
Public Works Facilities, Community Center Facilities, Lakeside Facilities, Animal Shelter
Facilities, Fire Facilities, Library Facilities and Drainage 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.
AB 1600 Report FY 2022-23
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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.
•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 2022-23 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 ending June 30, 2023, 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”) along with SCE and the Gas Co. for review as requested by them.
Notice of the public hearing was posted at City Hall and published in the Press-Enterprise to
further invite public comment.
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.
AB 1600 Report FY 2022-23
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Discussion
On June 27, 1989, City Council adopted Ordinance Number 860, establishing its first AB 1600
development fee for Library Facilities. 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.
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, 2023, the City had eight 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 on June 30, 2023:
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. No inter-fund transfers or loans have been made from capital accounts and no refunds
have been made.
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.
AB 1600 Report FY 2022-23
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However, the development agreement statutes require “for any development agreement entered
into on or after January 1, 2004, a city, county, or city and county shall comply with Section 66006
for any fee it receives or cost it recovers.” The following six 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 the 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
•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.
•Tri Pointe Homes (Canyon Hills Estates) – Pay $5,500/dwelling unit Development
Agreement 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 (2023/24-2027/28) Capital Improvement Program
(CIP), adopted on June 27, 2023, 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.
Attachments
Attachment 1 - AB1600 Annual Report
Attachment 2 - Development Agreement Annual Report
Attachment 3 - Development Impact & Mitigation Fee Schedule
Attachment 4 – Proof of Publication / Public Notice
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 COMPLETE
$500 DAG Fee per unit YES, COVERED IN THE AB1600 REPORT.
2020-2021 169 169 84,500$ 545,602$
Affordable Housing Fee ($2 per sq ft)
169 169 84,500$ -$ N/A N/A
LAING-CP ("SUMMERLY") (RESIDENTIAL)PROJECT COMPLETE
Description: $4,500 DAG fee per unit for
extraordinary infrastructure
2010-2011 7 31,500$
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 115 517,500
2021-2022 126 567,000
SUBTOTAL 1,668 1,668 7,506,000$
STIF - Summerly Traffic Impact Fee ($1.30 per sq ft)
2017-2018 1,582,388.91$
2018-2019 437,323.20
2019-2020 662,677.06
2020-2021 559,799.20
2021-2022 (109,564.63)
Interest Earnings Accumulated 193,414.59
SUBTOTAL 3,326,038.33$
1,668 1,668 7,506,000$ N/A N/A 3,326,038.33$
CANYON HILLS ESTATES (RESIDENTIAL)PROJECT NOT STARTED
$5,500 DAG FEE 132 - 0 YES, COVERED IN THE AB1600 REPORT.
ALBERHILL VILLAGES (RESIDENTIAL)PROJECT NOT STARTED
Alberhill Park Fee - SINGLE FAMILY (SFR)2,724 - -$ 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 STARTED
Description: 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.
NOPH 1-9-24 Development Impact Fees - Page 1 of 1
The Press-Enterprise
3512 14 Street
Riverside, California 92501
(951) 368-9229
City of Lake Elsinore
130 South Main Street
Lake Elsinore, California 92530
Publication: The Press-Enterprise
PROOF OF PUBLICATION OF
Ad Desc: 0011637827
FILE NO. 0011637827
PROOF OF PUBLICATION
I am a citizen of the United States. I am over the age of
eighteen years and not party to or interested in the above-
entitled matter. I am an authorized representative of THE
PRESS-ENTERPRISE, a newspaper of general circulation,
printed and published daily in the County of Riverside, and
which newspaper has been adjudicated a newspaper of
general circulation by the Superior Court of the County of
Riverside, State of California, under date of April 25, 1952,
Case Number 54446, under date of March 29, 1957, Case
Number 65673, under date of August 25, 1995, Case Number
267864, and under date of September 16, 2013, Case Number
RIC 1309013; that the notice, of which the annexed is a
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dates, to wit:
12/22/2023
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foregoing is true and correct.
Date: December 22, 2023.
At: Riverside, California
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