HomeMy WebLinkAboutRes 2019-90 - Development Impact Fees Annual RprtSTAFF REPORT
CITY OF PALM DESERT
FINANCE DEPARTMENT
MEETING DATE: December 12, 2019
PREPARED BY: Janet M. Moore, Director of Finance
REQUEST: Adopt Resolution No. 2019- 90 making certain findings pursuant
To Government Code Sections 66000-66008 relating to the
Development Impact Fees Annual Report for the fiscal year ended
June 30, 2019.
Recommendation
By Minute Motion:
1. Conduct a public hearing and accept public testimony relating to the
Development Impact Fees' annual report and related findings; and
2. Following public testimony, close the public hearing, and request that the City
Council waive further reading and adopt Resolution No. 2019- 90
accepting the report and making certain findings pursuant to California
Government Code Sections 66000-66008.
Strategic Plan
The City imposes fees on developer projects for the purpose of mitigating the impacts
caused by new development. The City's developer impact fees are collected to defray all
or at least a portion of the cost of public facilities, recreation facilities, parks, infrastructure
(streets, signals, drainage, etc.), affordable housing, fire facilities and childcare facilities.
The purpose for which many of these developer fees are imposed supports not only past
impacts to the City but future impacts that are also consistent with several strategic results
areas including: Land Use, Housing & Open Space; Parks and Recreation; Public Safety
and Emergency Services and Transportation.
Executive Summary
Government Code Section 66006 requires each local agency that imposes development
impact fees to prepare an annual report for these specific fees. The fees, when collected,
must be segregated from the General Fund and accounted for separately from other
impact fees. This is done by placing the fees into their own accounting `fund' and only
expending the fees for the purposes for which the fees were collected. The attached
report, for the fiscal year ending June 30, 2019, includes the beginning (prior year ending)
and current year ending balances for each fund as well as any changes during the year.
December 12, 2019— Staff Report
Development Impact Fee Annual Report
Page 2 of 3
The report also provides the amount of fees collected, interest, other income, and
allowable expenditures for each fund.
The funds and projects have been reviewed for the fiscal year ending June 30, 2019, and
there are no required amounts to refund this year as a result of this review, provided the
City Council makes findings that confirm that the funds are needed to complete
anticipated projects as noted in the Capital Improvement Program budget attached to this
report as well as individual previously approved projects.
Background Analysis
AB 1600 (Statutes of 1998, Mitigation Fee Act), codified as Section 66000 et seq. of the
California Government Code (Code), regulates how public agencies collect, maintain, and
spend impact fees imposed on developers for the purpose of defraying costs of public
facilities. It includes requirements for accounting, spending, and annually reporting the
fees and related interest earnings, and for findings or refunds if fees remain unspent five
or more years after receipt.
Section 66006(b)(1) includes the following specific reporting requirements: for each
separate account or fund established pursuant to the Code, the local agency shall, within
180 days after the last day of each fiscal year, make available to the public the following
information for the fiscal year:
(A) A brief description of the type of fee in the account or fund.
(B) The amount of the fee.
(C) The beginning and ending balance of the account or fund.
(D) The amount of the fees collected and the interest earned.
(E) 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.
(F) An identification of an approximate date by which the construction of a
public improvement will commence, if the local agency determines that
sufficient funds have been collected to complete financing on an incomplete
public improvement.
(G) A 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.
(H) The amount of refunds made pursuant to subdivision (e) of Section 66001
and any allocations pursuant to subdivision (f) of Section 66001. Further,
Section 66006(b)(2) requires that the local agency shall review the
information made available to the public pursuant to Section 66006(b)(1).
December 12, 2019— Staff Report
Development Impact Fee Annual Report
Page 3 of 3
The attached resolution and report (Exhibit A to the resolution) prepared for the fiscal year
ending June 30, 2019, provides the information required by the Code including the
beginning and ending balances by fund as well as any changes during the year. The
report also provides the amount of fees, interest, other income, expenditures, loans and
proposed projects. Based on the findings, there were no required refunds made during
the reported fiscal year.
The City Council is required to review the annual report and make its findings at a publicly
held meeting not less than fifteen days after the information is made available to the
public. This report was filed with the City Clerk's office and available for public review on
November 4, 2019. A draft of the report was also provided to the local Desert Valleys
Builders Association and Riverside BIA.
Fiscal Analysis
There is no fiscal impact from filing the report and its findings.
LEGAL REVIEW DEPT. REVIEW FINANCIAL ASSISTANT
I REVIEW CITY MANAGER
NIA
Robert W. Hargreaves
City Attorney
et M. Moore
Director of Finance
City Manager Lauri Aylaian:/— y
ATTACHMENTS:
et M. Moore
Director of Finance
N/A
Andy Firestine
Assistant City Manager
1. Resolution 2019- 90
2. Development Impact Fees Annual Report for Fiscal Year 2018-2019 (Exhibit
A to the Resolution)
3. Capital Improvement Program Budget for FY 2019-2020 to FY 2023-2024
RESOLUTION NO. 2019- .90
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, MAKING FINDINGS REGARDING THE CONTINUING NEED
FOR UNEXPENDED BALANCES OF IMPACT FEES AS OF JUNE 30, 2019
WHEREAS, Government Code Sections 66000 through 66008 (known as and referenced
to herein as "AB1600") regulate the imposition, collections, maintenance, expenditure and
reporting of impact fees imposed on developers for the purpose of defraying costs of public
facilities; and
WHEREAS, a public hearing on the annual report of development impact fees for the
period ending June 30, 2019 was held by the City Council on December 12. 2019, and the public
testimony, if any, provided therein was duly considered; and
WHEREAS, in accordance with the provisions of AB1600, the City of Palm Desert ("City")
has set up separate special revenue funds for each type of fee the City imposes, crediting earned
interest to those funds, and spending the accumulated fees and related interest on appropriate
expenditures; and
WHEREAS. AB1600 requires the City to make specific findings every five (5) years with
respect to any portion of the fees remaining unexpended or uncommitted after a period of five (5)
years; and
WHEREAS, the City Council desires to make the findings required by law, with respect to
the unexpended fees.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT
RESOLVES, FINDS, DECLARES AND DETERMINES AS FOLLOWS:
Section 1. That the City finds that all of the foregoing recitals are true and correct and
are hereby incorporated and adopted as findings and determinations by the City Council as if fully
set forth herein.
Section 2. That the City has identified impact fees collected from developers that are
subject to AB1600's requirements. Those funds are:
• Housing Mitigation Fee (Fund 214)
• Child Care Facility Fund (Fund 228)
• New Construction Tax Fee (Fund 231)
• Drainage Facility Fee (Fund 232)
• Park & Recreation Fee (Fund 233)
• Traffic Signalization Fee (Fund 234)
• Fire Facility Fund (Fund 235)
Section 3. That pursuant to Section 66006, the City has prepared an annual report for
at least the last five fiscal years, reflecting the beginning and ending balances of each separate
Resolution No. 2019- 90
fund containing impact fees, the amount of fees collected and the interest earned for the year. the
amount of expenditures attached hereto as Exhibit A.
Section 4. That a copy of the annual report has been on file and available for review in
the City Clerk's Office by the public, for at least 15 days prior to action taken herewith.
Section 5. That the City Council hereby makes the findings required by law, with respect
to these unexpended fees, and has: 1) identified the purpose to which the fees are to be put; 2)
demonstrated the relationship between the fees and the purposes for which they are charged: 3)
identified all sources and amounts of funding anticipated, to the extent that they are known, to
complete financing of the improvement.
Section 6. That these findings are based on the information provided in the City of Palm
Desert's Development Impact Fees Annual Report, the City of Palm Desert's annual operating
budget and the Capital Improvement Program for Fiscal Year 2019-2010 to 2023-2024. Which is
incorporated herein by reference.
PASSED, APPROVED AND ADOPTED at the regular meeting of the Palm Desert City
Council held on this 12th day of December, 2019, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
APPROVED AS TO FORM:
MAYOR
ROBERT W. HARGREAVES, CITY ATTORNEY
BEST, BEST & KRIEGER, LLP
Page 2 of 2
EXHIBIT A
CITY OF PALM DESERT
DEVELOPMENT IMPACT FEE ANNUAL REPORT
FISCAL YEAR 2018-19
This report contains certain information required to be filed annually by the City of Palm Desert (the "City") in accordance
with the Mitigation Fee Act, commencing with Section 66000 of the California Government Code. The reporting
requirements set forth in the Mitigation Fee Act (the "Act") are applicable to the impact fees imposed on new development
in the City. The Act requires that a public agency, on an annual basis, make available to the public within 180 days after
the last day of each fiscal year the following information for the past fiscal year:
1) A brief description of the type of fee in the account or fund.
2) The amount of the fee.
3) The beginning and ending balance of each account or fund.
4) The amount of the fees collected and the interest earned.
5) 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.
6) An identification of an approximate date by which the construction of the public improvement(s) will commence if the
County determines that sufficient funds have been collected to complete financing of an incomplete public improvement(s),
and the public improvement(s) remains incomplete.
7) A description of each interfund transfer or loan made from the account or fund, if any, 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 interest rate that the account or fund will receive on the loan.
8) The amount of refunds made due to sufficient funds being collected to complete financing on incompete public
improvements, and the amount of reallacation fo funds made due to adminstratvie costs of refunding unexpended
revenues exceeding the amount to be refunded.
The Development fee programs included in this report are the following:
Section A — Housing Mitigation Fee (Fund 214)
Section B — Child Care Facility Fund (Fund 228)
Section C — New Construction Tax Fee (Fund 231)
Section D — Drainage Facility Fee (Fund 232)
Section E — Park & Recreation Fee (Fund 233)
Section F — Traffic Signalization Fee (Fund 234)
Section G — Fire Facility Fund (Fund 235)
The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects using existing
cash balances for FY 2020-2021 through 2024-2025
Section A- Housing Mitigation Fee (Fund 214)
Brief description of the tvoe of fee in the fund:
The Housing Mitigation Fee is used to mitigate the low-income housing impacts caused by commercial and industrial
development. The fee is used to help construct or provide low-income housing assistance to employees, working within the
juridictional boundaries of the city, with affordable housing. The fee is based on: $1/sq. ft. - Commercial: $0.33/sq. ft. -
Industrial; $0.40/sq. ft. - Professional; $1,000/room - Resort Hotel; $620/Room Non -Resort.
Part 1 - Fund Balance, Revenue, Interest, Expenditures, Ending Balance
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
Beginning Balance $ 2,423,612 $ 2,256,769 $ 2.530,186 $ 2,797,065 $ 2,858,798
Developer Fees
Interest Income
Gain (Loss) on Fair Value
HCD Grant
Loan Proceed
Interest on Loan
Expenditures
Transfers out
Ending Fund Balance
$ 120,000
$ 50,210 $ 258,339 $ 242,858 $ 30,975 $ 113,651
$ 7,557 $ 15,078 $ 15,354 $ 34,599 $ 66,427
$ 16,181
$ 57,767 $ 273,417 $ 258,212 $ 65,574 $ 196,258
$ 26,699
$ 15,390
$ 60,000
$ 8,667
$ (360,000) $ $ (30,540) $
$ 2.256.769 $ 2,530,186 $ 2,797,065 $ 2,858,798 $ 3,026,646
Part II - Compliance with expending funds within 5 years
Five Year Revenue Test
Current
Prior Year (2-Yrs Old)
Prior Year (3-Yrs Old)
Prior Year (4-Yrs Old)
Prior Year (5-Yrs Old)
Greater Than 5 Prior FY
Ending Balance
Exclude Loan Proceed
Exclude Interest on Loan
Exclude HCD grant
Ending Balance
Using First In First Out
2014-2015
$ 57,767 $
$ 63,693 $
$ 53,898 $
$ 22,914 $
$ 29,872 $
$ 1,438,174 $
$ 1,666,318 $
$ 540.000 $
$ 50,451 $
2015-2016
273,417
57,767
63,693
53,898
22.914
1,468,046
1,939,735
540,000
50.451
$ 2,256,769 $ 2,530,186
Future Years
Affordable Projects FY 2019-2020 Commitments
36 Unit ARC Village $ 250,000
Merle Street -Self Help $ 250,000
San Pasqual Project $ 750,000
Sands 80/20 Project $ 180,000
10 Acre Affordable Dev sub $ 1,000,000
Parksite 200 units subsidy $ 1,000,000
Homebuyer Subsidies $ 60,000 $ 240,000
$ (60,000)
2016-2017
$ 258,212
$ 273,417
$ 57,767
$ 63,693
$ 53,898
$ 1,430,960
$ 2,137,947
$ 600,000
$ 59,118
(28,411) (a)
2017-2018 2018-2019
$ 65,574 $ 196,258
$ 258,212 $ 65,574
$ 273,417 $ 258,212
$ 57,767 $ 273,417
$ 63,693 $ 57.767
$ 1,454,318 $ 1,489,600 (1)
$ 2,172,981 $ 2,340,829
$ 626,699 $ 626,699
$ 59,118 $ 59,118
$ 2,797,065 $ 2,858,798 $ 3.026,646
Total
Commitments
$ 250,000
$ 250,000
$ 750,000
$ 180,000
$ 1,000,000
$ 1,000,000
$ 300,000
$ 3,730,000
Funded with
Dev. Fee
TBD
TBD
TBD
TBD
TBD
100%
Funding Available
Date
On going
On going
(1) The Housing Mitigation Fees being held beyond the five years as described by AB1600. This fee is being collected for
the purpose of subsidizing housing cost as part of the City's program to provide affordable housing for low and very low income
households that have at least one employee working within the jurisdictional boundaries of the City.
(a) FY18-19 Expenditures Details: AMOUNT
Richards, Watson Legal Fees
$ 28,411
(Self -Help) $ 28,411
Section B - Child Care Facility Fund 228
Brief description of the type of fee in the fund:
The City of Palm Desert is interested in providing funding, through impact fees for new child care homes and centers, in order to
meet some of the child care demand generated by employees and commercial uses in the City. A nexus study was prepared and
approved by the City Council in August 2005. Annually, the City considers projects and any applicable budget requests to use
these funds to create new facilities and equipment.
Part 1 - Fund Balance, Revenue, Interest, Expenditures, Ending Balance
2014-2015 2015-2016 2016-2017
Beginning Balance $ 1,491,545 $ 1,021,065 $ 1,196,989 $
Developer Fees
Interest Income
Gain (Loss) on Fair Value
Expenditures
Transfers out
Ending Fund Balance
$ 25,483 $
$ 4,037 $
168,940 $ 69,482 $
6,984 $ 6,904 $
$ 29,520 $ 175,924 $ 76,387 $
2017-2018 2018-2019
1,273,376 $ 1,332.828
43,649 $ 25.499
15,803 $ 31,126
$ 7,146
59,452 $ 63,771
$ (500,000) $
$ 1,021,065 $ 1,196,989 $ 1,273,376 $ 1,332,828
Part II - Compliance with expending funds within 5 years
Five Year Revenue Test Usinq First
Current
Prior Year (2-Yrs Old)
Prior Year (3-Yrs Old)
Prior Year (4-Yrs Old)
Prior Year (5-Yrs Old)
Greater Than 5 Prior FY
Ending Balance
In First Out
2014-2015
$ 29,520
$ 29,136
$ 20,847
$ 26,854
$ 29.846
$ 884,862
$ 1,021,065
FY 2018-19
Carryover
Projects
$ 1,396,599
2015-2016 2016-2017 2017-2018
$ 175,924 $ 76,387 $ 59,452 $
$ 29,520 $ 175,924 $ 76,387 $
$ 29,136 $ 29,520 $ 175,924 $
$ 20,847 $ 29,136 $ 29,520 $
$ 26,854 $ 20,847 $ 29,136 $
$ 914,708 $ 941,562 $ 962,409 $
$ 1,196,989 $ 1,273,376 $ 1,332,828 $
2018-2019
63,771
59,452
76,387
175,924
29,520
991,545 (1 )
1,396,599
FY 2019-20 Total % Funded with Funding Available
Commitments Commitments Dev. Fee Date
Child Care Facilities - expand licensed
day-care offerings in Freedom Park $ 1,275,000 $ 255,000 $ 1,530,000 TBD
(1) The Child Care Facilities Fee being held beyond the five -years as described by AB1600. This fee is being
collected for land acquisition and development of a new child care facilities and therefore must be retained until
enough fees have been collected to start the project
On going
Section C - New Construction Tax Fee (Fund 231)
Brief description of the type of fee in the fund
The New Construction Tax Fee is used for acquisition and development of public facilities like playgrounds. public structures, and
street improvements. Annually the City Council approves a five year Capital Improvement Program budget that reflects current
projects along with future committed projects utilizing these fees. The fee is based on: Industrial Buildings $0 05/sq. ft.;
Residential units $0 40/sq. ft.; all other development $0.40/sq ft
Part 1 - Fund Balance, Revenue, Interest, Expenditures, Ending Balance
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
Beginning Balance $ 1.170,905 $ 1.286,666 $ 1,318.647 $ 1.486,099 $ 1,656,520
Developer Fees $ 206.206 $ 223,743 S 199,849 $ 158,147 $ 174,981
Interest Income $ 2 517 S 4,756 S 4,939 $ 12,274 $ 27,570
Gain (Loss) on Fair Value $ 6,845
$ 208,723 S 228,499 $ 204,788 $ 170,421 $ 209,396
Expenditures $ (92,962) $ (196,517) $ (37,337) $ - $ -
Ending Fund Balance $ 1.286,666 $ 1,318.647 $ 1,486.099 $ 1,656,520 $ 1 865,916
Exclude Advance to RDA $ (654,000) $ (654,000) $ (654,000) S (654.000) $ (654,000)
Ending Balance of available Revenue: $ 632,666 $ 664,647 $ 832,099 S 1,002,520 $ 1,211,916
Note Not include interest on Advance
Part II - Compliance with expending funds within 5 years
Five Year Revenue Test Usina First In First Out
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
Current $ 208.723 $ 228,499 S 204,788 $ 170,421 $ 209,396
Prior Year (2-Yrs Old) $ 285.337 S 208,723 S 228,499 $ 204,788 $ 170.421
Prior Year (3-Yrs Old) $ 138.606 $ 227,426 $ 208,723 $ 228,499 $ 204.788
Prior Year (4-Yrs Old) $ 190,089 $ 208,723 $ 228,499
Prior Year (5-Yrs Old) $ 190,089 $ 208,723
Greater Than 5 Prior FY $ 190,089 (1)
Ending Balance $ 632,666 S 664,647 S 832,099 S 1,002,520 $ 1,211,916
CV Link Spur Phase 1 and 2
Total % Funded with Funding
FY 2019-20 Commitments Dev. Fee Available Date
$ 1,200.000 $ 1.200.000 TBD On going
$ 1,200,000
City of Palm Desert advanced $654,000 to the former Redevelopment Agency in 1986. If the advance is approved for repayment
to the City, the repayment will be in accordance with the dissolution law.
(1) The New Construction Fee being held beyond the five -years as described by AB1600. This fee is being
collected for land acquisition and/or development of recreational facilities and therefore must be retained until
enough fees have been collected to start the project
Section D - Drainage Facility Fee (Fund 232)
Brief description of the type of fee in the fund:
The Drainage Facility Fee is used for the drainage needs created by the development and adjoining streets to a project
The City has adopted a master drainage plan which gets modified as new development occurs. In addition, the City's
Capital Improvement Program budget includes both current and future projects planned for use of the fees connected to
the various development projects. Fees are based on which drainage map zone they reside within: Zone 1 fee is $4,000;
Zone 2 is $1,000; Zone 3 is $1,000; Zone 4 is $1,000. The map is available in the Public Works Department upon request.
Part 1 - Fund Balance, Revenue, Interest, Expenditures, Ending Balance
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
Beginning Balance $ 1,910,752 $ 1,924,124 $ 2.079,961 $ 1,997,999 $ 1,592,857
Developer Fees $ 7,020 $ 143,080 $ 37,030 $ 7,330 $ 38,855
Interest $ 6,352 $ 12,757 $ 11,695 $ 21,852 $ 36,315
Gain (Loss) on Fair Value $ 8,290
$ 13,372 $ 155,837 $ 48,725 $ 29,182 $ 83,460
Reimbursed from CVAG
Reimbursed from RDA
Expenditures
Transfers out
Ending Fund Balance
$ (130,687) $ (434,324) $ (58,663) (a)
$ 1,924,124 $ 2,079,961 $
Part II - Compliance with expending funds within 5 years
Five Year Revenue Test Using First In First Out
Current
Prior Year (2-Yrs Old)
Prior Year (3-Yrs Old)
Prior Year (4-Yrs Old)
Prior Year (5-Yrs Old)
Greater Than 5 Prior FY
Ending Balance
Reimbursed from CVAG
Reimbursed from RDA
Tie to ending balance
Ending Balance
2014-2015
$ 13,372
$ 21,313
$ 17,307
$ 39,711
$ 44,922
$ 1,582,029
$ 1,718,654
$ 105,235
$ 100,235
$ 1,924,124
Install Storm Drain (CC Drive - Tamarisk)
San Pablo, Hwy 111 to Mag Falls Install
2015-2016
$ 155,837
$ 13,372
$ 21,313
$ 17,307
$ 39,711
$ 1,626,951
$ 1,874,491
$ 105,235
$ 100,235
$ 2,079,961
1,997,999 $ 1,592,857 $ 1,617,655
2016-2017
$ 48,725
$ 155,837
$ 13,372
$ 21,313
$ 17,307
$ 1.535,975
$ 1,792,529
$ 105,235
$ 100,235
$ 1.997,999
FY 2018-2019 Total
Carryover Commitments
$ 450,001 $ 450,001
$ 1,011,555 $ 1,011,555
$ 1,461,556
2017-2018
$ 29.182
$ 48,726
$ 155,837
$ 13,372
$ 21,313
$ 1,118,957
$ 1,387,387
$ 105,235
$ 100,235
$ 1,592,857
% Funded with
Dev. Fee
100%
100%
2018-2019
$ 83,460
$ 29,182
$ 48,726
$ 155.837
$ 13.372
$ 1,081,608 (1 )
$ 1,412,185
$ 105,235
$ 100.235
$ 1.617,655
Funding
Available Date
On going
On going
(1) The Drainage Fees are being held beyond the five years as described by AB1600. This fee is being collected for the
construction of drainage in the drainage map zones and therefore must be retained until enough fees have been collected
to start construction of the project.
(a) FY18-19 Expenditures Details:
Storm drain improvement -Engineer
Deep Canyon storm drainage
AMOUNT
$ 53,020
$ 5,642
$ 58,662
Section E- Park & Recreation Fee (Fund 233)
Brief description of the type of fee in the fund:
The fee is used to acquire land, construct parks, recreational areas, open space, and other public facilities for the city
residents. Annually the City Council adopts a Capital Improvement Program Budget detailing the current and future projects
necessary for use of the fee. The fee is charged to residential properties based on the following formula: Number of units x
2.292 (people per household) x 5 acres divided by 1,000 population x land market value per acre.
Part 1 - Fund Balance, Revenue, Interest, Expenditures, Ending Balance
2014-2015 2015-2016 2016-2017
Beginning Balance $ 1,205,130 $ 1,103,892 $ 1,305,355 $
Developer Fees $ 80,679 $ 302,145 $ 314,438 $
Refund Developer Fees $
Interest $ 3,895 $ 7,781 $ 7,761 $
Gain (Loss) on Fair Value
$ 84.574 $ 309,926 $ 322,199 $
Insurance reimb. playground
SARDA reimb shade structure $ 15,896
Expenditures $ (185,812) $ (108,463) $ (195,279) $
Transfers out
Ending Fund Balance $ 1,103,892 $ 1,305,355 $ 1,448,171 $
Exclude Insurance reimb:
Insurance reimb. playground
Reimburse playground equipment
Insurance reimb. damage
SARDA reimb shade structure
Ending Balance
$ (33,570) $
$ (164,713) $
$ (159,113) $
$ 746,496 $
Part II - Compliance with expending funds within 5 years
Five Year Revenue Test
Current
Prior Year (2-Yrs Old)
Prior Year (3-Yrs Old)
Prior Year (4-Yrs Old)
Prior Year (5-Yrs Old)
Greater Than 5 Prior FY
Ending Balance
Usina First In First Out
2014-2015
$ 84,574
$ 188,365
$ 35.477
$ 6,168
$ 78,073
$ 353,839
$ 746,496
2017-2018 2018-2019
1,448,171 $ 1,416.407
24,179 $ 247,187
(7,125) $
17,882 $ 36,237
$ 8,485
34,936 $ 291,909
(66,700) $
(45,862) (a)
1,416,407 $ 1,662,454
(33,570) $ (33,570) $ (33,570) $ (33,570)
(164,713) $ (164,713) $ (164,713) $ (164,713)
(159,113) $ (159,113) $ (159,113) $ (159.113)
$ (15,896) $ (15.896) $ (15,896)
947,959 $ 1,074,879 $ 1,043,115 $ 1,289,162
2015-2016 2016-2017
$ 309,926 $ 322,199
$ 84,574 $ 309,926
$ 188,365 $ 84,574
$ 35,477 $ 188,365
$ 6,168 $ 35,477
$ 323,449 $ 134,338
$ 947.959 $ 1,074,879
Carryovers FY
2018-2019 FY 2019-2020
Skate Park Conversion and Pickleball
Lighting Improvements $
Installation of Outdoor Fitness Facilities
San Pablo Street Park Improvements
Portola Park (North Sphere)
243,300
$ 155,060
Future Years
Commitments
100,000 $ 150,000
$ 1,000,000
(1) The Park & Recreation Fee being held beyond the five years as described by AB1600.
2017-2018
$ 34,936
$ 322.198
$ 309.926
$ 84,574
$ 188,365
$ 103,116
$ 1,043,115
Total
Commitments
$ 243,300
$ 250,000
$ 155,060
$ 1,000,000
$ 1,648,360
This fee is being collected for the purpose of
2018-2019
$ 291,909
$ 34,936
$ 322,198
$ 309,926
$ 84,574
$ 245,618 (1 )
$ 1,289,162
% Funded with Funding
Dev. Fee Available Date
developing new or rehabilitation of existing park or recreational facilities to serve the community.
(a) FY18-19 Expenditures Details:
Freedom Park LED lighting, shade structure, landscape architecture
AMOUNT
45,862
45,862
100%
100%
100%
100%
On going
On going
On going
On going
Section F - Traffic Signalization Fee (Fund 234)
Brief description of the type of fee in the fund:
The fee is used for acquisition and development of the regional traffic signals within the City created by increased traffic load added by the
development. Yearly, the City Council adopts a five-year Capital Improvement Plan detailing the current and future projects necessary for
use of the fee. The fee is charged based on the type of building constructed, which is: Residential $ 50 per unit; Commercial $500 per
1,000 sq. ft.; Industrial $500 per acre.
Part 1 - Fund Balance, Revenue, Interest, Expenditures, Ending Balance
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
Beginning Balance $ 307,428 $ 247,310 S 351,020 $ 389,674 S 410.318
Developer Fees
Interest Income
Gain (Loss) on Fair Value
S 16,688 $ 101,711 $ 36,566 S 16,512 $ 91,274
$ 1,034 $ 1,999 S 2,088 $ 4,912 $ 9,965
$ 2,537
$ 17,722 $ 103,710 $ 38,654 $ 21,424 $ 103,775
Expenditures $ (77,840) $ - $ - $ (780) $ (17,915) (a)
Transfers out
Ending Fund Balance $ 247,310 S 351,020 $ 389,674 $ 410,318 $ 496,178
Part II - Compliance with expending funds within 5 years
Five Year Revenue Test Using First In First Out
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
Current $ 17,722 $ 103,710 S 38,654 $ 21,424 $ 103,775
Prior Year (2-Yrs Old) $ 133,378 $ 17,722 $ 103,710 $ 38,654 $ 21,424
Prior Year (3-Yrs Old) $ 96,210 $ 133,378 $ 17,722 S 103.710 $ 38,654
Prior Year (4-Yrs Old) $ 96,210 $ 133,378 $ 17,722 S 103,710
Prior Year (5-Yrs Old) S 96,210 $ 228,808 $ 17,722
Greater Than 5 Prior FY $ 210,893 (1)
Ending Balance $ 247,310 $ 351,020 $ 389,674 $ 410,318 $ 496,178
Carryovers Future Years Total % Funded with Funding
FY 2018-19 Commitments Commitments Dev. Fee Available Date
Pedestrian Traffic Signal $ 75,000 $ 75,000 100% On going
Traffic Signal - El Paseo at San Luis Rey Ave. S 136,305 $ 136,305 100% On going
$ 211.305
(a) FY17-18 Expenditures Details:
Traffic Signal -El Paseo at San Luis Rey
(1) The Traffic Signalization Fee being held beyond the five -years as described by AB1600. The use of the fee is
contingent on development growth and will be used to install develop regional traffic signals as the traffic load increases.
Amount
$ 17,915
S 17,915
Section G - Fire Facility Fund (235)
Brief description of the type of fee in the fund:
The City of Palm Desert is interested in providing funding, through impact fees for a new Fire Station and equipment, in order to
meet some of the new commercial and residential development in the northern half of the City. A Nexus study was prepared and
approved by City Council in June 2006. The fee is calculated as follows: Commercial development rate is $0.22 per square foot,
industrial/office rate is S0.20 per square foot, and residential development would be based on a $2,262 per acre depending on
density of units built or $709 per single residence. Annually. the City will adopt a budget to use these funds to create new facilities
and equipment.
Part 1 - Fund Balance, Revenue, Interest, Expenditures, Ending Balance
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
Beginning Balance S 828,093 $ 935,663 $ 978,856 $ 1,032,024 S 1,073,087 $ 1,108,171
Developer Fees $ 104,243 $ 40,023 $ 46,779 $ 35,141 S 21,766 S 13,655
Interest Income S 3,327 $ 3,170 $ 6,389 $ 5.922 $ 13,318 $ 25,750
Gain (Loss) on Fair Value S 5,903
$ 107,570 $ 43,193 $ 53,168 $ 41,063 $ 35,084 $ 45,308
Expenditures $ - $ - $ - $ - $ - S
Transfers out
Ending Fund Balance $ 935,663 $ 978,856 $ 1,032,024 $ 1,073,087 $ 1,108,171 S 1,153,479
Part II - Compliance with expending funds within 5 years
Five Year Revenue Test Using First In First Out
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
Current S 107.570 S 43,193 $ 53,168 $ 41,063 $ 35,084 $ 45,308
Prior Year (2-Yrs Old) S 89.129 S 107,570 $ 43,193 $ 53,168 $ 41,063 S 35,084
Prior Year (3-Yrs Old) S 41,479 S 89,129 $ 107,570 $ 43,193 $ 53,168 S 41,063
Prior Year (4-Yrs Old) S 52,924 S 41,479 $ 89,129 $ 107,570 $ 43,193 $ 53,168
Prior Year (5-Yrs Old) S 29,955 $ 52,924 $ 41,479 $ 89,129 $ 107,570 $ 43,193
Greater Than 5 Prior FY S 614.606 S 644,561 $ 697,485 $ 738,964 $ 828,093 $ 935,663 (1 )
Ending Balance S 935,663 S 978,856 $ 1,032,024 $ 1,073,087 $ 1,108,171 S 1,153,479
FY 2018-2019
Carryover Future Years Total % Funded with Funding
Projects Commitments Commitments Dev. Fee Available Date
North Sphere Fire Station S 1,000.171 S 75,000 $ 1,075,171 30% On going
Noted:
(1) The Fire Facilities Fee being held beyond the five years as described by AB1600. This fee
is being collected for the purpose of construction of a new North Sphere Fire Station necessary to
serve the growing population within the North sphere of Palm Desert and therefore must be
retained until enough fees have been collected to start contruction of the project.
(2 )North Sphere Fire Station is expected to cost S10,680.000..
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1
2019 BOARD OF DIRECTORS
PRESIDENT
Deborah McGarrey
Southern California Gas Compan
I" VICE PRESIDENT
Toni Dubose
Dubose Design Group, inc.
SECRETARY/TREASURER
Joe Frayes
First Bank
DICE PRESIDENT
OFASSOCIATES
Alan Levin
Allan Levin & Associates
PAST PRESIDENT
Fred Bell
Nobel! Energy 5nlutivnnc
CHIEF EXECUTIVE OFFICER
Gretchen G.itierrez
DIRECTORS
Brian Benedetti
Brian Benedetti Construe[ion
Mark Benedetti
BMC Select Build
Dede Cailanan
North American fitle
Margaret Drury
Margaret Drury Construction
Mario Gonzales
GFIA Companies
Todd Hooks
Agua Caliente Band or
Cahuilla Indians
Trevor Keruptun
AudioV isions
Taylor Libolt- Varner
MSA Consulting
Dave Lippert
Lippert Construction, Inc
Paul Mahoney
PMA Advertising
d; uce Maize
Rilington Group
Russ Martin
Mission Springs Water
District
,lim Murdock
PIRCH
Dan Olivier
Nethery Mueller Olivier
Alan Pace
Perm Geotechnical
John Powell. Jr.
Coachella Valley Water District
Pedro Rincon
Osborne Rincon
Jeff Wattenbarger
Wattenbarger Construction
S‘ I
BA
desert valleys builders association
November 19, 2019
City of Palm Desert
Janet Moore, Director of Finance
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Re: AB 1600 Annual Report
Dear Ms. Moore,
RECEIVED
NOV 2 1 2019
Finance Department
CITY OF P.'• LM DESERT
Thank you for providing the Desert Valleys Builders Association (DVBA)
with the City of Palm Desert's Development Impact Fee Annual Report,
Fiscal Year 2018-19.
Upon completing our review, the DVBA is satisfied that the City has
successfully met its annual reporting obligations pursuant to the Mitigation
Fee Act.
Respectfully;
i � F
1C'
Gretchen Gutierrez
Chi Executiv Officer
75100 Mediterranean • Palm Desert • CA 9221 1
(760) 776-7001 office • (760) 776-7002 fax
www.thedvba.arg
Klassen, Rachelle
From: Moore, Janet
Sent: Tuesday, October 29, 2019 11:27 AM
To: Klassen, Rachelle
Subject: FW: Draft AB 1600 Report
Attachments: 2019 Dev Impact Fee Report for FY18-19.pdf; BIA-Riv C-G.C. 66000 Notice
Request-2019.pdf
FYI
Janet Moore
Director of Finance
City of Palm Desert
(760) 346-0611 Ext. 327
imooreOatvofoalmdesert.ora
From: Moore, Janet
Sent: Tuesday, October 29, 2019 11:26 AM
To: 'Clint Lorimore' <clint.lorimore@gmail.com>
Subject: FW: Draft AB 1600 Report
Good Morning Mr. Lorimore,
We will be taking the 2018-19 Development Impact Fee Report to the City Council on December
12th. While this is not a request for new or additional fees, the report is required to be filed annually
with the legislative body and we are providing this report for your review well in advance of its
presentation for approval.
In accordance with your request received in December of 2018, here is the draft AB 1600 report. The
report is still in draft form and may be updated prior to the meeting.
Please let me know if you have any questions.
Janet Moore
Director of Finance
Ph: 760.346.0611 Extension: 327
imoore@cifvofoalmdesert.ora
www.cityofpalmdesert.org '
1
Klassen, Rachelle
From: Moore, Janet
Sent: Tuesday, October 29, 2019 11:26 AM
To: Klassen, Rachelle
Subject: FW: Draft AB 1600 Report
Attachments: 2019 Dev Impact Fee Report for FY18-19.pdf
FYI
Janet Moore
Director of Finance
City of Palm Desert
(760) 346-0611 Ext. 327
imooreOcitvofoalmdesert.ora
From: Moore, Janet
Sent: Tuesday, October 29, 2019 11:11 AM
To: 'gg@thedvba.org' <gg@thedvba.org>; 'james@thedvba.org' <james@thedvba.org>
Subject: Draft AB 1600 Report
Good Morning Gretchen and James,
We will be taking the 2018-19 Development Impact Fee Report to the City Council on December
12th.
Here is the draft AB 1600 report. The report is still in draft form and may be updated prior to the
meeting.
Please let me know if you have any questions.
Janet Moore
Director of Finance
Ph: 760.346.0611 Extension: 327
imoore@citvofoalmdesert.orq
CITY OF PALM JES=
www.cityofpalmdesert.org 00
i