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HomeMy WebLinkAboutItem 11h - Annual Development Impact Fee Report DATE: November 21, 2023 TO: Honorable Mayor and City Council FROM: Hue Quach, Administrative Services Director By: Henry Chen, Financial Services Manager/City Treasurer SUBJECT: APPROVE THE ANNUAL DEVELOPMENT IMPACT FEE REPORT FOR FISCAL YEAR 2022-23 PURSUANT TO GOVERNMENT CODE SECTION 66006 CEQA: Not a Project Recommendation: Approve SUMMARY Pursuant to Resolution Nos. 6498 and 6602, the City has been collecting Transportation Impact Fees and Park Facilities Impact Fees and, as such, is required to report certain information to the City Council and public annually pursuant to Government Code Section 66006. These fees are intended to provide funding for the City to maintain infrastructure services levels and improvements needed because of growth from development. The City has been complying with all collection and expenditure requirements. It is recommended the City Council approve the Annual Development Impact Fee Report for Fiscal Year 2022-23 pursuant to Government Code Section 66006. DISCUSSION The City collects Impact Fees for Transportation and Park Facilities purposes, which are fees associated with development projects. Government Code Section 66006 requires the City to prepare an annual report that describes certain information about the fees such as the amount of fees collected, public improvements for which the fees were expended, fund balance, and other information. This information is attached hereto: Exhibit “A”: The Park Facilities Fee Impact Fund currently has a balance of $8,517,942. Additional fund balance will be used in the coming years to continue implementation of the adopted Parks Master Plan, most notably, the completion of the renovations at Newcastle Park and new concession and bleachers at Bonita Park. Annual Development Impact Fee Report for Fiscal Year 2022-23 November 21, 2023 Page 2 of 2 Exhibit “B”: The Transportation Fee Impact Fund currently has a balance of ($85,023). Funds are spent regularly from this account for various traffic improvements throughout the City. Staff are aware of the deficit fund balance and anticipate future revenues will cure the deficit. In the meantime, potential projects will be planned and funded accordingly. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), under Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. FISCAL IMPACT Funds from these accounts make significant community improvement projects possible. Due to the variability of development activity in the community, the amount of revenue tends to vary substantially in any given year. In Fiscal Year 2022-23, both funds combined added over $890,000 in new revenue, including interest earned. Without these funds, the City would need to find other sources of revenue to offset the impacts caused by new development. RECOMMENDATION It is recommended that the City Council determine that this action is not a project under the California Environmental Quality Act (“CEQA”); and approve the Annual Development Impact Fee Report for Fiscal Year 2022-23 pursuant to Government Code Section 66006. Attachments: Exhibit “A” Annual Park Facilities Impact Fee Report Fiscal Year 2022-23 Exhibit “B” Annual Transportation Impact Fee Report Fiscal Year 2022-23 1 Exhibit “A” City of Arcadia Annual Park Facilities Impact Fee Report Fiscal Year 2022-23 This annual report section has been prepared pursuant to the requirements of Government Code Section 66006. Description of Fees Pursuant to Resolution No. 6602, the Park Facilities Fee is collected to ensure that new development pays its fair share of costs associated with building new park facilities and infrastructure. Amount of Fees $2.85 per square feet for single family projects $3.73 per square feet for multi-family projects Beginning and Ending Balances of the Fund and Amount of Fees Collected and Interests Earned Fiscal Year Beginning Fund Balance Fees Collected Interest Earned Expenditures Other Ending Balance 2022-23 $ 7,826,989 550,784$ 185,932$ (45,763)$ -$ 8,517,942$ 2021-22 7,421,829 570,486 (123,464) (41,862) - 7,826,989 2020-21 6,200,930 622,346 39,183 (278,380) 837,750 7,421,829 2019-20 11,841,628 883,959 281,397 (6,810,432) 4,378 6,200,930 2018-19 10,905,784 593,808 395,942 (53,906) - 11,841,628 2017-18 9,962,795 916,233 53,122 (26,366) - 10,905,784 2016-17 8,237,966 1,734,923 42,361 (52,455) - 9,962,795 2015-16 6,151,955 2,096,641 90,231 (100,861) - 8,237,966 2014-15 4,147,454 1,996,015 44,305 (35,819) - 6,151,955 2013-14 2,613,371 2,091,202 29,202 (1,087,003) 500,682 4,147,454 Before 2013 (264,045) 5,221,183 42,802 (1,536,054) (850,515) 2,613,371 Total 17,277,580$ 1,081,013$ (10,068,901)$ 492,295$ An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees Project Years Amount % Funded by Fees Museum Education Center 2008, 2014 984,884$ 49% City Hall Soccer Field 2010-2012 1,275,111 100% Wilderness Park Restroom 2013 148,482 100% City Park Improvements 2013-14 62,931 100% Community Center Backup Generator 2014 154,250 100% Recreation and Parks Master Plan 2014-18 212,900 100% Eisenhower Park 2019-21 6,940,727 100% Newcastle Park 2020-23 288,313 100% Baseball Bleachers 2022-23 1,303 100% Total 10,068,901$ 2 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, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete. The City has budgeted $520,000 for baseball bleacher replacements, $2,410,000 for Bonita Park concession building and $100,000 for a walking trail at the County Park in FY 2023-24. The anticipated completion date for the bleachers will be September 2024 and early 2026 for the Bonita Park concession building. Currently, there is no estimated completion date for the walking trail at the county park. The newly anticipated completion date for Newcastle Park is December 2024. Description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan. There were no interfund transfers or loans. Amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocations pursuant to subdivision (f) of Section 66001. There were no refunds nor allocations for some other purpose for which fees were collected. 1 Exhibit “B” City of Arcadia Annual Transportation Impact Fee Report Fiscal Year 2022-23 This annual report section has been prepared pursuant to the requirements of Government Code Section 66006. Description of Fees Pursuant to Resolution No. 7151, the Transportation Impact Fee is collected to help pay for needed traffic improvements to maintain certain intersections at a Level of Service “D” or better. Amount of Fees $1,983 per PM Peak House vehicle trip Beginning and Ending Balances of the Fund and Amount of Fees Collected and Interests Earned Fiscal Year Beginning Fund Balance Fees Collected Interest Earned Expenditures Other Ending Balance 2022-23 1,293,062$ 121,931$ 36,737$ (1,536,753)$ -$ (85,023)$ 2021-22 1,558,252 146,497 (22,166) (389,521) - 1,293,062 2020-21 1,795,981 230,538 6,371 (655,121) 180,483 1,558,252 2019-20 2,574,038 155,861 75,033 (1,280,422) 271,471 1,795,981 2018-19 2,955,110 517,563 101,503 (1,066,970) 66,832 2,574,038 2017-18 3,047,632 196,819 17,163 (456,785) 150,281 2,955,110 2016-17 1,977,887 1,553,561 12,414 (496,230) - 3,047,632 2015-16 1,672,534 335,883 21,746 (69,759) 17,483 1,977,887 2014-15 1,907,326 372,853 18,975 (920,723) 294,103 1,672,534 2013-14 852,100 1,148,032 (3,707) (94,751) 5,652 1,907,326 Before 2013 417,289 1,315,398 91,035 (3,033,646) 2,062,024 852,100 Total 6,094,936$ 355,104$ (10,000,681)$ 3,048,329$ An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees 2 Project Years Amount % Funded by Fees Sunset Blvd. Widening 2008 240,289 61.67% Santa Anita Intersection Improvement 2008-12 1,972,009 90.28% Huntington Drive Capacity Improvement 2012-15 1,524,342 73.04% Duarte Road Intersection Widening 2012-17 539,725 98.22% Transportation Impact Fee Study 2012-17 68,124 100.00% Land Acquisition 2015-16 144,239 10.00% Various Miscellanrous Traffic Signal Improvements 2017-23 932,738 100.00% Duarte and Lovell Traffic Signalization 2018-19 343,381 100.00% Huntington Arterial Rehabilitation 2018-21 751,677 38.00% Santa Anita Corridor Traffic Signalization 2018-23 1,695,657 100.00% Huntington Drive and Second Ave 2019 150,000 100.00% Sunset and Fairview Traffic Signalization 2019-20 425,861 100.00% Baldwin Ave Traffic Signal Fiber Optic Extension 2020-22 290,051 100.00% Colorado Street - Complete Streets 2020-23 465,232 100.00% Traffic Signal Fiber Optics Network Extension 2021-23 245,451 100.00% Arterial Rehabilitation - Live Oak (Santa Anita to East City Limits)2022 159,000 14.79% Arterial Rehabilitation - Huntington Dr (Santa Clara to 5th)2022 1,583 100.00% Traffic Center Upgrades 2023 19,865 100.00% Emergency Vehicle Preemption Signal Improvements 2023 31,457 100.00% Total 10,000,681$ 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, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete. The City utilizes the impact fees to fund various traffic signalization improvements and arterial rehabilitation projects on an annual basis. The projects that remain incomplete at the end of the fiscal year and their anticipated completion dates are as follows: Project Estimated Completion Various Miscellaneous Traffic Signal Improvements June 2024 Traffic Signal Fiber Optics Network Extension September 2024 Colorado Street - Complete Streets December 2023 Traffic Center Upgrades June 2024 Description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan. There were no interfund transfers or loans. Amount of refunds made pursuant to subdivision (e) of Section 66001 and any allocations pursuant to subdivision (f) of Section 66001. There were no refunds nor allocations for some other purpose for which fees were collected.