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HomeMy WebLinkAboutItem 10e - Annual Development Impact Fee Report FY2024-25 STAFF REPORT ADMINISTRATIVE SERVICES DEPARTMENT DATE: December 16, 2025 TO: Honorable Mayor and City Council FROM: Henry Chen, Administrative Services Director SUBJECT: APPROVE THE ANNUAL DEVELOPMENT IMPACT FEE REPORT FOR FISCAL YEAR 2024-25 PURSUANT TO GOVERNMENT CODE SECTION 66006 CEQA: Not a Project Recommendation: Approve SUMMARY Pursuant to City Council Resolution Nos. 6498, 6602, and 7492, the City has been collecting various impact fees related to Transportation, Park Facilities, and Fire Facilities. Since the City collects these impact fees, annual reports to the City Council and the public are required pursuant to Government Code Section 66006. These fees are intended to provide funding to maintain infrastructure service levels and improvements needed due to growth and development. The City has been complying with all collection and expenditure requirements. It is recommended that the City Council approve the Annual Development Impact Fee Report for Fiscal Year 2024-25 pursuant to Government Code Section 66006. DISCUSSION Impact Fees are collected from new development projects to help offset the increased demand they place on public infrastructure. The City collects Impact Fees for Transportation, Park Facilities, and Fire Facilities purposes. 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 fee information is attached hereto as: Annual Development Impact Fee Report for Fiscal Year 2024-25 December 16, 2025 Page 2 of 3 Exhibit “A”: The Park Facilities Fee Impact Fund currently has a balance of $5,810,284. Additional fund balance will be used in the coming years to continue implementation of the adopted Parks Master Plan, most notably, the completion of new concession buildings at Bonita and Hugo Reid Park. Exhibit “B”: The Transportation Fee Impact Fund currently has a balance of $900,299. Funds are spent regularly from this account for various traffic improvements throughout the City. Current projects include traffic signal improvements at Centennial Way and Baldwin Avenue. Exhibit “C”: The Fire Facilities Fee Impact Fund currently has a balance of $349,958. Funds are spent from this account for capital projects to improve the service capacity of the Fire Department. The Fire Department’s Standards of Cover (SOC) study is currently being conducted to assess risk and future service improvement needs. Once the study is completed, recommendations for future projects to be funded by fire impact fees are expected to be identified. 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. FISCAL IMPACT Funds from Arcadia’s Impact Fee 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 2024-25, all three funds combined added over $1.1 million 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. Annual Development Impact Fee Report for Fiscal Year 2024-25 December 16, 2025 Page 3 of 3 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 2024-25 pursuant to Government Code Section 66006. Attachments: Exhibit “A” Annual Park Facilities Impact Fee Report FY2024-25 Exhibit “B” Annual Transportation Impact Fee Report FY2024-25 Exhibit “C” Annual Fire Facilities Impact Fee Report FY2024-25 1 Exhibit “A” City of Arcadia Annual Park Facilities Impact Fee Report Fiscal Year 2024-25 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 2024-25 $ 9,740,282 488,968$ 419,927$ (5,474,573)$ 635,680$ 5,810,284$ 2023-24 8,517,942 1,814,156 430,654 (1,022,470) - 9,740,282 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 Before 2016 (264,045) 9,308,400 116,309 (2,658,876) (349,833) 6,151,955 Total 19,580,704$ 1,931,594$ (16,565,944)$ 1,127,975$ 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 2020-25 6,267,981 100% Baseball Bleachers 2022-25 518,678 100% Total 16,565,944$ 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 anticipated completion date for Newcastle Park is November 2025. The design and construction for the concession buildings at Hugo Reid and Bonita Parks is anticipated to be completed in 2029. 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 2024-25 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 $1,983 per PM Peak House vehicle trip Beginning and Ending Balances of the Fund and Amount of Fees Collected and Interests Earned Fiscal Year Beginning Fund Balance Fees Collected Interest Earned Expenditures * Other Revenues * Ending Balance 2024-25 789,105$ 126,771$ 44,795$ (60,372)$ -$ 900,299$ 2023-24 (85,024) 974,000 15,880 (115,751) - 789,105 2022-23 1,293,061 121,931 36,737 (1,536,753) - (85,024) 2021-22 1,558,251 146,497 (22,166) (389,521) - 1,293,061 2020-21 1,795,980 230,538 6,371 (474,638) - 1,558,251 2019-20 2,574,037 155,861 75,033 (1,008,951) - 1,795,980 2018-19 2,955,109 517,563 101,503 (1,000,138) - 2,574,037 2017-18 3,047,631 196,819 17,163 (306,504) - 2,955,109 2016-17 1,977,886 1,553,561 12,414 (496,230) - 3,047,631 2015-16 1,672,533 335,883 21,746 (52,276) - 1,977,886 Before 2015 417,289 2,836,283 106,303 (1,687,342) - 1,672,533 Total 7,195,707$ 415,779$ (7,128,476)$ -$ * The Impact Fee Fund recorded certain grant revenues from other agencies which paid for some of the project expenditures. For the report to reflect only the activities related to the impact fees, a total of $3,075,631 was removed from both the expenditure and other revenues column. An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees 2 Project Years Amount % Funded by Fees Sunset Blvd. Widening 2008 240,289 61.67% Santa Anita Intersection Improvement 2008-12 440,205 20.15% Huntington Drive Capacity Improvement 2012-15 694,368 33.27% Duarte Road Intersection Widening 2012-17 539,725 98.22% Transportation Impact Fee Study 2012-17 68,124 100.00% Land Acquisition 2015-16 144,239 10.00% Various Miscellanrous Traffic Signal Improvements 2017-24 979,275 100.00% Duarte and Lovell Traffic Signalization 2018-19 343,381 100.00% Huntington Arterial Rehabilitation 2018-21 751,677 38.00% Santa Anita Corridor Traffic Signalization 2018-23 981,804 57.90% Huntington Drive and Second Ave 2019 150,000 100.00% Sunset and Fairview Traffic Signalization 2019-20 425,861 100.00% Baldwin Ave Traffic Signal Fiber Optic Extension 2020-22 290,051 100.00% Colorado Street - Complete Streets 2020-24 500,745 100.00% Traffic Signal Fiber Optics Network Extension 2021-25 319,114 100.00% Arterial Rehabilitation - Live Oak (Santa Anita to East City Limits)2022 159,000 14.79% Arterial Rehabilitation - Huntington Dr (Santa Clara to 5th)2022 1,583 100.00% Traffic Center Upgrades 2023-25 49,578 100.00% Emergency Vehicle Preemption Signal Improvements 2023-24 49,457 100.00% Total 7,128,476$ 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 Traffic Signal Improvements - Baldwin Ave June 2026 Traffic Signal Improvements - Centennial Way Summer 2027 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 “C” City of Arcadia Annual Fire Facilities Development Impact Fee Report Fiscal Year 2024-25 This annual report section has been prepared pursuant to the requirements of Government Code Section 66006. Description of Fees Pursuant to Resolution No. 7492, the Fire Protection Facilities Development Impact Fee is collected to ensure that new development pays its fair share of capital and infrastructure costs associated with increased demand for fire services from the new developments. Amount of Fees $0.35 per square feet for residential dwelling units $1.91 per square feet for commercial units $2.92 per square feet for office units $1.04 per square feet for industrial units 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 2024-25 $ 310,486 61,167$ 18,045$ (39,740)$ -$ 349,958$ 2023-24 - 310,714 5,272 (5,500) - 310,486 Total 371,881$ 23,317$ (45,240)$ -$ 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 Fire Training Facility 2023-24 5,500$ 100% Fire Station Remodel 2024-25 13,740 100% Signal Preemption Project 2024-25 26,000 100% Total 45,240$ 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. 2 The Fire Department is currently conducting a Standards of Cover (SOC) analysis to assess risk and future service improvement needs. Once that study is complete, we anticipate having recommendations for future projects to be funded by the fire impact fees. 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 allocations pursuant to subdivision (f) of Section 66001. There were no refunds nor allocations for some other purpose for which fees were collected.