HomeMy WebLinkAbout01-03-2017 Item 06 FY 2015-16 Annual Report on Development Impact Fees Meeting Date: 1/3/2017
FROM: Xenia Bradford, Interim Director of Finance
Prepared By: Rico Pardo, Accounting Manager/Controller
SUBJECT: FY 2015-16 ANNUAL REPORT ON DEVELOPMENT IMPACT FEES
RECOMMENDATION
1. Review the 2015-16 Fiscal Year Report on Development Impact Fees; and
2. Adopt a Resolution (Attachment A) accepting the report and making findings related to
impact fee balances and in-lieu fees.
DISCUSSION
Staff has prepared this report in compliance with the requirements of AB 1600 and the required
disclosures in the attached report. 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
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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 b e
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
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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 are 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.
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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.
Attachments:
a - DIF Resolution
c - Development Fee Schedule (eff thru 6-30-2016)
b - DIF Annual Report
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R ______
RESOLUTION NO. _____ (2017 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ACCEPTING THE 2015-16 ANNUAL REPORT
ON DEVELOPMENT IMPACT FEES, REAFFIRMING THE NECESSITY
OF DEVELOPMENT IMPACT FEES AND MAKE FINDINGS RELATED
TO IMPACT FEE BALANCES AND IN-LIEU FEES
WHEREAS, within 180 days after the last day of each fiscal year, the City of San Luis
Obispo (“City”) is required to make certain information regarding the City’s development impact
fees publicly available. That information is set forth in Government Code § 66006(b)(1)(A)–(H)
WHEREAS, the City is further required to make certain findings every five years with
respect to the unexpended fund balance of certain development impact fee funds pursuant to
California Government Code section 66001; and
WHEREAS, the information required to be made publicly available pursuant to
Government Code § 66006(b)(1)(A)–(H), including, but not limited to, documents describing
reflecting the balance in each development impact fee fund or account, accrued interest in said
fund or account and the amount of expenditure by public facility for the fiscal year, have been
made available for public review as required by Government Code § 66006(b)(2)
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Recitals. All of the above recitals are true and correct and are incorporated
herein by this reference.
SECTION 2. Acceptance. The 2015-16 Annual Report on Development Impact Fees is
hereby accepted.
SECTION 3. Findings. The following findings are made as required under Government
Code section 66001:
1. The purpose to which each Development Impact Fee is to be put has been identified.
2. There is a continued need for the improvements and that there is a reasonable relationship
between the fee and the impacts for development for which the fees are collected.
3. The sources and amounts of funding anticipated to complete the financing of capital
projects have been identified and will be deposited into the appropriate account upon
receipt or during the normal capital improvement program budget cycle.
4. A copy of the approved resolution shall be forwarded to the Interim Director of Finance
for use in overseeing these monies.
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Resolution No. _____ (2017 Series) Page 2
SECTION 4. These findings are based, in part, on information provided in the
City of San Luis Obispo’s 2015-17 Capital Improvement Plan.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2017.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Carrie Gallagher
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
____________________________________
Carrie Gallagher
City Clerk
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City of San Luis ObispoSummary of Local Agency Improvement Fees(AB 1600 Development Impact Fees)Report for Fiscal Year Ended June 30, 2016Transportation Impact Fee (Fund 405)Project Number Project NameProject Amount ExpendedPercent Funded by Impact FeesImpact Fee ExpendituresNon Impact Fee ExpendituresDeveloper Impact Fees CollectedImpact Fee Interest Income Other Income91111 RR SFTY TRL Taft/Pepr12,786$ 100%12,786$ ‐$ 91252 FY Porado Rd Bridge Widen166,552$ 100% 166,552$ ‐$ 91375 Bike Bridge/Phillips127,264$ 100% 127,264$ ‐$ 91420 Transportation Monitoring52,562$ 100%52,562$ ‐$ 99615 Bicycle Projects22,371$ 100%22,371$ ‐$ 99821 Los Osos Valley Road/US101 Interchange 3,422,400$ 100% 3,422,400$ ‐$ Totals 3,803,935$ 3,803,935$ ‐$ 1,356,158$ 107,807$ ‐$ Available Funds as of June 30, 2015 4,378,822$ Available Funds as of June 30, 2016 5,141,253$ Funds Collected in recent year and prior 5 years 5,121,592$ Funds held longer than 5 years 19,661Packet Pg. 836
City of San Luis ObispoDeveloper Impact Fee Compliance 2016Transportation Impact FeeFund 405Fiscal Year Beginning Balance Impact Fees InterestNon AB 1600 InterestRevenue Other AgenciesOther Revenue Transfers InAB 1600 ExpensesOther ExpensesAB 1600 Transfers OutTotal Ending Balance 2008‐09 4,041,419$ 498,385 197,387 668,853 1,829,260 ‐ 3,576,784$ 2009‐10 3,576,784$ 51,942 107,553 399,911 87,221 74,000 864,670 28,700 3,404,041$ 2010‐11 3,404,041$ 889,128 72,051 647,363 671,057 114,698 4,226,828$ 2011‐12 4,226,828$ 414,282 66,373 212,085 780,961 621,064 3,517,543$ 2012‐13 3,517,543$ 221,213 13,190 1,059,704 1,059,188 818,897 2,933,565$ 2013‐14 2,933,565$ 1,002,592 28,352 287,949 421,651 236,955 3,593,852$ 2014‐15 3,593,852$ 898,574 51,872 350,172 63,791 49,388 628,826 ‐ 4,378,822$ 2015‐16 4,378,822$ 1,356,158 107,807 ‐ 381,535 ‐ 320,000 5,141,253$ Aging of Funds HeldCurrent Yr Funds FY 2015‐161 yr old Funds FY 2014‐152 yr old Funds FY 2013‐143 yr old Funds FY 2012‐134 yr old Funds FY 2011‐125 yr old Funds FY 2010‐11Funds attributed to recent 6 yearsIf Number is Positive, then Funds subject to findings or refundTotal Ending Balance1,463,965 950,446 1,030,944 234,403 480,655 961,179 5,121,592 19,661$ 5,141,253$Packet Pg. 846
City of San Luis ObispoSummary of Local Agency Improvement Fees(AB 1600 Development Impact Fees)Report for Fiscal Year Ended June 30, 2016Airport Area Impact Fee (Fund 450)Project Number Project NameProject Amount ExpendedPercent Funded by Impact FeesImpact Fee ExpendituresNon Impact Fee ExpendituresDeveloper Impact Fees CollectedImpact Fee Interest Income0 100% 0 0Totals 0 0 0 134,210$ 8,248$ Available Funds as of June 30, 2015 937,498$ Available Funds as of June 30, 2016 1,079,956$ Funds Collected in recent year and prior 5 years 595,359$ Funds Held Longer than 5 Years 342,139$ Packet Pg. 856
City of San Luis ObispoDeveloper Impact Fee Compliance 2016Airport Area Impact FeeFund 450Fiscal Year Beginning Balance Impact Fees InterestNon AB 1600 InterestRevenue Other AgenciesOther Revenue Transfers InAB 1600 ExpensesDeveloper ReimbAB 1600 Transfers OutTotal Ending Balance 2008‐09 966,198$ ‐ 48,509 20,991 993,716$ 2009‐10 993,716$ 3,599 31,393 ‐ 1,028,708$ 2010‐11 1,028,708$ ‐ 19,147 19,383 1,028,472$ 2011‐12 1,028,472$ 11,280 16,993 35,173 1,021,572$ 2012‐13 1,021,572$ 134,210 8,248 317,712 846,318$ 2013‐14 846,318$ 255,011 3,668 9,845 1,095,152$ 2014‐15 1,095,152$ ‐ 4,344 23,487 937,498$ 2015‐16 937,498$ 134,210 8,248 ‐ 1,079,956$ Calculated fund balance per 6/30/16 T/B >1,079,956$ Aging of Funds HeldCurrent Yr Funds FY 2015‐161 yr old Funds FY 2014‐152 yr old Funds FY 2013‐143 yr old Funds FY 2012‐134 yr old Funds FY 2011‐125 yr old Funds FY 2010‐11Funds attributed to recent 6 yearsIf Number is Positive, then Funds subject to findings or refundTotal Ending Balance142,458 4,344 258,679 142,458 28,273 19,147 595,359 342,139$ 1,079,956$Packet Pg. 866
City of San Luis ObispoSummary of Local Agency Improvement Fees(AB 1600 Development Impact Fees)Report for Fiscal Year Ended June 30, 2016Los Osos Valley Road Impact Fee (Fund 460)Project Number Project NameProject Amount ExpendedPercent Funded by Impact FeesImpact Fee ExpendituresDeveloper ReimbursementsDeveloper Impact Fees CollectedImpact Fee Interest IncomeOther IncomeNo Funds Expended this Year ‐$ Totals 14,661$ 2,585$ Available Funds as of June 30, 2015 146,724$ Available Funds as of June 30, 2016 163,970$ Fees collected in recent year and prior 5 years 1,865,173$ Funds Held Longer than 5 Years0Packet Pg. 876
City of San Luis ObispoDeveloper Impact Fee Compliance 2016Los Osos Valley Road Impact FeeFund 460Fiscal Year Beginning Balance Impact Fees InterestNon AB 1600 InterestRevenue Other AgenciesOther Revenue Transfers InAB 1600 ExpensesDeveloper ReimbAB 1600 Transfers OutTotal Ending Balance 2008‐09 282,240$ ‐ 48,311 229,058 8,875 92,618$ 2009‐1092,618$ 79,719 15,084 ‐ 4,043 183,378$ 2010‐11 183,378$ 11,166 8,599 ‐ 18,963 184,180$ 2011‐12 184,180$ 1,797,650 18,233 ‐ 1,622,651 1,576 375,836$ 2012‐13 375,836$ ‐ 1,166 49,577 179,809 147,616$ 2013‐14 147,616$ 3,097 7,573 9,979 3,097 145,210$ 2014‐15 145,210$ ‐ 1,514 ‐ 146,724$ 2015‐16 146,724$ 14,661 2,585 ‐ 163,970$ Calculated fund balance per 6‐30‐16 Trial Balance >163,970$ Aging of Funds HeldCurrent Yr Funds FY 2015‐161 yr old Funds FY 2014‐152 yr old Funds FY 2013‐143 yr old Funds FY 2012‐134 yr old Funds FY 2011‐125 yr old Funds FY 2010‐11Funds attributed to recent 5 yearsIf Number is Positive, then Funds subject to findings or refundTotal Ending Balance16,175 1,514 10,670 1,166 1,815,883 19,765 1,865,173 (1,701,203)$ 163,970$ Packet Pg. 886
City of San Luis ObispoSummary of Local Agency Improvement Fees(AB 1600 Development Impact Fees)Report for Fiscal Year Ended June 30, 2016Affordable Housing Inclusionary Impact Fee (Fund 470)Project Number Project NameProject Amount ExpendedPercent Funded by Impact FeesImpact Fee ExpendituresNon Impact Fee ExpendituresDeveloper Fees CollectedImpact Fee Interest Income Other Income90496 SLO County Housing Trust Fund 30,000$ 100% 30,000$ ‐$ 90812 1st Time Homebuyer Program 159,135$ 100% 159,135$ ‐$ 91459 1379 Sydney 95,814$ 100% 95,814$ 91460 860 On the WYE 352,029$ 100% 352,029$ Transfers Out General Fund 62,000$ 100% 62,000$ Totals 698,978$ 698,978$ ‐$ 625,506$ 34,414$ Available Funds as of June 30, 2015 2,366,072$ Available Funds as of June 30, 2016 2,562,826$ Fees and Interest Collected in Prior 5 Years 3,088,405$ Fees Held Longer Than 5 Years 0Packet Pg. 896
City of San Luis ObispoDeveloper Impact Fee Compliance 2016Affordable Housing Inclusionary Impact FeeFund 470Fiscal Year Beginning Balance Impact Fees InterestNon AB 1600 InterestRevenue Other AgenciesOther Revenue Transfers InAB 1600 ExpensesDeveloper ReimbAB 1600 Transfers OutTotal Ending Balance 2007‐08 3,811,662$ 682,418 155,631 630,0004,019,711$ 2008‐09 4,019,711$ 465,726 199,625 1,450 892,462 3,794,050$ 2009‐10 3,794,050$ 0 32,584 270,000 9,000 3,416,692 21,286 667,656$ 2010‐11 667,656$ 332,841 15,988 30,000 3,929 39,8541,010,560$ 2011‐12 1,010,560$ 848,788 21,915 112,696 1,768,567$ 2012‐13 1,768,567$ 182,685 7,417 30,000 1,928,669$ 2013‐14 1,928,669$ 793,655 52,712 30,000 17,000 2,728,036$ 2014‐15 2,728,036$ 159,602 12,882 179,552$ 697,000 17,000 2,366,072$ 2015‐16 2,366,072$ 625,506 34,414 698,978 2,562,826$ Calculated fund balance per 6‐30‐16 trial balance >2,562,826$ Aging of Funds HeldCurrent Yr Funds FY 2015‐161 yr old Funds FY 2014‐152 yr old Funds FY 2013‐143 yr old Funds FY 2012‐134 yr old Funds FY 2011‐125 yr old Funds FY 2010‐11Funds attributed to recent 5 yearsIf Number is Positive, then Funds subject to findings or refundTotal Ending Balance659,920 172,484 846,367 190,102 870,703 348,829 3,088,405 (525,579)$ 2,562,826$Packet Pg. 906
City of San Luis ObispoSummary of Local Agency Improvement Fees(AB 1600 Development Impact Fees)Report for Fiscal Year Ended June 30, 2016
Water Impact Fee (Fund 500)
Project Number Project Name
Project Amount Expended
Percent Funded by Impact Fees Impact Fee Expenditures Developer Reimbursements Developer Fees Collected
Impact Fee Interest Income Other Income
55110 Nacimiento 4,698,580$ 39%1,832,446$ 89350 Water Reuse Project Loan Debt Service 525,457$ 59% 310,020$ 89350 2006 Water Treatment Plant Debt Service 1,032,748$ 29% 299,497$ 89350 2012 Water Refunding Debt Service 568,600$ 23% 130,778$
Totals 6,825,384$ 2,572,741$ 1,542,268$ -$
Available Funds as of June 30, 2015 155,600$
Available Funds as of June 30, 2016 (874,873)$
Fees collected in recent year and prior 5 years 8,048,670$
Funds Held Longer than 5 Years 0
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City of San Luis ObispoDeveloper Impact Fee Compliance 2016Water Impact Fee
Fund 500
Fiscal Year Beginning Balance Impact Fees Interest
Non AB 1600 Interest
Revenue Other Agencies Other Revenue Transfers In
AB 1600 Expenses Developer Reimb
AB 1600 Transfers Out
Total Ending Balance 2008-09 4,426,570$ 777,892 256,300 895,190 122,259 4,687,831$ 2009-10 4,687,831$ 462,231 210,300 970,096 14,918 4,405,184$ 2010-11 4,405,184$ 699,399 104,800 803,305 59,772 4,465,850$ 2011-12 4,465,850$ 643,160 109,029 703,006 - 4,515,033$ 2012-13 4,515,033$ 1,625,113 26,300 3,906,320 41,330 2,301,456$ 2013-14 2,301,456$ 819,477 5,650 2,865,321 - 261,262$ 2014-15 261,262$ 2,471,502 1,972 280,830 - 2,453,906$ 2015-16 155,600$ 1,542,268 - 2,572,741 - (874,873)$
Aging of Funds Held
Current Year FY 2015-16
1 yr old Funds FY 2014-15
2 yr old Funds FY 2013-14
3 yr old Funds FY 2012-13
4 yr old Funds FY 2011-12
5 yr old Funds FY 2010-11
Funds attributed to recent 5 years
If Number is Positive, then Funds subject to findings or refund
Total Ending Balance
1,542,268 2,473,474 825,127 1,651,413 752,189 804,199 8,048,670 (8,923,543)$ (874,873)$
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City of San Luis ObispoSummary of Local Agency Improvement Fees(AB 1600 Development Impact Fees)Report for Fiscal Year Ended June 30, 2016
Sewer Impact Fee (Fund 520)
Project Number Project Name
Project Amount Expended
Percent Funded by Impact Fees Impact Fee Expenditures Developer Reimb Developer Fees Collected
Impact Fee Interest Income Other Income
91118 Calle Joaquin Lift Station 76,309$ 28.0%21,367$
91214 Margarita Lift Station 71,981$ 51.0%36,710$
91219 WRRF Upgrade 2,296,138$ 20.5% 470,708$
89351 Tank Farm Lift Station Debt Service 1,391,944$ 58.0% 807,327$
Totals 3,836,372$ 1,336,113$ 674,831$ 658
Available Funds as of June 30, 2015 (2,464,295)$
Available Funds as of June 30, 2016 (2,489,438)$
Fees collected in recent year and prior 5 years 2,768,933$
Funds held longer than 5 years 0
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City of San Luis ObispoDeveloper Impact Fee Compliance 2016Sewer Impact Fee
Fund 520
Fiscal Year Beginning Balance Impact Fees Interest
Non AB 1600 Interest
Revenue Other Agencies Other Revenue Transfers In
AB 1600 Expenses Developer Reimb AB 1600 Transfers Out
Total Ending Balance 2008-09 1,229,684$ 205,929 35,700 528,164 49,055 992,204$ 2009-10 992,204$ 102,301 8,600 854,235 3,733 252,603$ 2010-11 252,603$ 166,937 - 849,584 14,956 (415,088)$ 2011-12 (415,088)$ 141,234 - 655,355 - (929,209)$ 2012-13 (929,209)$ 355,395 - 1,308,687 9,430 (1,891,931)$ 2013-14 (1,891,931)$ 268,132 - 608,432 - (2,232,231)$ 2014-15 (2,232,231)$ 1,160,654 1,092 1,393,810 - (2,464,295)$ 2015-16 (2,464,295)$ 674,831 658 700,632 - (2,489,438)$
Aging of Funds Held
Current Yr Funds FY 2015-16
1 yr old Funds FY 2014-15
2 yr old Funds FY 2013-14
3 yr old Funds FY 2012-13
4 yr old Funds FY 2011-12
5 yr old Funds FY 2010-11
Funds attributed to recent 6 years
If Number is Positive, then Funds subject to findings or refund Total Ending Balance
675,489 1,161,746 268,132 355,395 141,234 166,937 2,768,933 (5,258,371)$ (2,489,438)$
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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.
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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.
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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.
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ALTERNATIVE Council could choose not to make the findings called for in this report. This report is required by State law.
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