HomeMy WebLinkAbout01-03-2017 Final Annual Report on Development Impact Fees (AB1600)City of San Luis Obispo This report as required by AB 1600 identifies the amount of each fee collected, the disbursements made from each fee type and the amount of interest apportioned to each fee balance during the 2015-16 fiscal year. Also, a report has been prepared that reflects, for each fee type, the aging of the balance held by the City. This report has been available for public inspection prior to tonight’s meeting in the Finance Department. Notice was posted on the City Clerk’s bulletin board in front of City Hall on December 13, 2016. The schedules referred to above provide a breakdown of the individual fee balances on hand as of June 30, 2016 based on unaudited information. The statutes specify that this report shall include the following information: 1. The amount of each fee. 2. The amount of developer fees disbursed on each project for the year just ended. 3. The amount of developer fees collected for the year just ended. 4. The amount of interest earned by the developer fees for the year just ended. 5. Any other income received that is related to the projects, if applicable. 6. The beginning and ending fund balance for each development fee account. 7. The total cost of projects undertaken during the last year and the percentage of the project cost paid out of developer fees. 8. The identification of an approximate date by which the 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. 9. The amount and purpose of all interfund transfers during the last year. 10. The following is a brief description of the purpose of the fee and the nature of projects funded in the current year. Transportation Impact Fee This impact fee was established for the expansion of transportation facilities and travel lanes within the City. There were six active projects funded by this fee during the most recent fiscal year. Los Osos Valley Road/US 101 Interchange – The largest of the six projects partially funded by impact fees was the Los Osos Valley Road/US 101 Interchange Project. $3,422,400 was expended during the 2015-16 fiscal year for the project. Major construction on the project is now complete however expenditures on the project will continue into FY 2017 as additional items remain to complete – such as landscaping improvements. Railroad Safety Trail, Taft to Pepper – $12,786 was expended during the 2015-16 fiscal year for the project. Prado Road Bridge Widening – $166,552 was expended during the 2015-16 fiscal year for the project. Bike Bridge/Phillips - $127,264 was expended during the 2015-16 fiscal year for the project. Transportation Monitoring - $52,562 was expended during the 2015-16 fiscal year for the project.
As of June 30, 2016, $5,141,253 in funds were available for projects and $19,661 were held longer than five years. Margarita Area Impact Fee This impact fee was established for the expansion of transportation facilities in and around the Margarita area. As of June 30, 2016, $43,215 was collected in Margarita Area Specific Plan (MASP) transportation fees. Airport Area Impact Fee This impact fee was established for the expansion of transportation facilities in and around the airport area. The only project funded during the fiscal year from these fees was the Airport Area Specific Plan (AASP) design services. As of June 30, 2016, $1,079,956 in funds were available for projects and $342,139 in Airport Area Impact Fees have been held longer than five years and the collected funds are not sufficient to initiate and complete projects identified in the AASP fee program and therefore need to be retained until adequate funding is available to fund needed improvements. Specifically, there are not funds available to commence projects identified in the AASP program, such as the financing of full improvements on Tank Farm Road. The City has commenced advance development work on upgrading and replacing the Santa Fe Bridge located south of Tank Farm Road and will be programming much of this available funding for environmental and design of that project Los Osos Valley Road Impact Fee This impact fee was established for the expansion of capacity for Los Osos Valley Road. The only project funded during the fiscal year from these fees was for design services of the Los Osos Valley Road and Highway 101 Interchange Improvements. In addition, the City recorded a liability for the reimbursement owed to a developer for an amount equal to the impact fees collected for the year. The City has an existing reimbursement agreement with Costco for improvements already constructed at the Los Osos Valley Road (LOVR) interchange. As of June 30, 2016, $163,970 in funds were available to reimburse Costco for this prior work. Staff has determined that $75,000 of this amount needs to be retained for specific work at the interchange and the remaining $88,970 can be reimbursed to Costco at this time. Water Impact Fees This fee was established for the expansion and improvement of facilities used for water supply, water treatment and water distribution The fees are used for debt service for the following projects: 1. Nacimiento Pipeline 2. Water Reuse Project Loan 3. 2006 Water Treatment Plant Debt Service 4. 2012 Water Refunding Debt Service Fees collected and retained were used for debt service to pay for new development’s fair share for upgrades to the water treatment plant, the recycled water system, as well as the pipeline serving the City from Nacimiento Lake. In fiscal year 2015-16, $1,542,268 was collected in impact fees, while $2,572,741 was expended.
As of June 30, 2016, the fund shows a negative balance of ($874,873) after taking into account last year’s balance, fees collected and expenses and the negative balance will be addressed as new development pays impact fees during subsequent years. No funds were held longer than five years as payments are for debt service which is expensed upon receipt. Sewer Impact Fee This impact fee was established for the expansion and improvement of facilities used for sewer collection and sewer treatment. The fees were used for the following projects: 1. Calle Joaquin Lift Station 2. Margarita Lift Station 3. Water Resource Recovery Facility (WRRF) Upgrade 4. Tank Farm Lift Station As of June 30, 2016, available funds are ($2,489,438). As future development occurs and, in turn, future impact fees are collected, more funds will become available to fund future projects and offset the negative balance. This reflects the fact that improvements were needed for the orderly development of the City and the negative balance will adjust with future impact fee payments. Affordable Housing Inclusionary Fees This impact fee was established for funding affordable housing inclusionary programs in the City and is also not an impact fee as defined by AB 1600. There were four expenditures for the fiscal year in this account. The first was a contribution to the San Luis Obispo County Housing Trust Fund which was authorized by the City Council for an amount of $30,000. The second expenditure was an operating transfer to the City’s General Fund for staff salaries related to administration and oversight of all housing programs. Third was a $95,814 award to the Housing Authority of San Luis Obispo for rehabilitation of a single family transitional dwelling unit, and last was the re-use of $159,135 towards down payment assistance loans for income eligible first time homebuyers purchasing homes. As of June 30, 2016, $2,562,826 in funds were available for affordable housing projects and no funds were held longer than five years. CONCURRENCES The Public Works and Utilities Departments concur with the recommendations contained within this report. FISCAL IMPACT This report recommends making the findings called for in the resolution in order to allow the impact be retained by the City to fund identified projects. The in-lieu fees which have balances are not subject to the same finding requirement to allow their retention, but staff has included a finding in the resolution affirming the need for retention of these monies.
ALTERNATIVE Council could choose not to make the findings called for in this report. This report is required by State law.