HomeMy WebLinkAboutRes 2023-064RESOLUTION NO. 2023-064
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, REVIEWING AND ACCEPTING THE ANNUAL
DEVELOPMENT IMPACT FEE DISCLOSURE REPORT FOR THE CITY’S
VARIOUS DEVELOPMENT IMPACT FEES AND MAKING FIVE-YEAR
FINDINGS REGARDING THE CONTINUING NEED FOR UNEXPENDED
BALANCES OF IMPACT FEES AS OF JUNE 30, 2023, PURSUANT TO
CALIFORNIA GOVERNMENT CODE SECTION 66001
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, the City of Palm Desert (“City”) has established, adopted, and
imposed Housing Mitigation Fees, Child Care Facility Fees, New Construction Fees,
Drainage Facility Fees, Park & Recreation Fees, Traffic Signalization Fees, and Fire
Facility Fees (collectively the “Fees”); and
WHEREAS, in accordance with the provisions of AB1600, the City has set up
separate special revenue funds for each type of Fee the City imposes (each a “Fund” and
collectively the “Funds”), crediting earned interest to those Funds, and spending the
accumulated Fees and related interest on appropriate expenditures; and
WHEREAS, the City has made available to the public within one hundred eighty
(180) days following the last day of the fiscal year the annual development impact fee
disclosure report (“Annual Report”) required by AB1600 related to each of the Fees which
also includes the Five-Year Reports with respect to each of the Fees; and
WHEREAS, the City has mailed notice at least fifteen (15) days prior to this
meeting to all interested parties who have requested notice of any meeting relative to the
City’s imposition of the Fees and has held a duly noticed, regularly scheduled public
meeting at which oral and written testimony was received regarding the Annual Report
and the Five-Year Reports at least fifteen (15) days after the City made this information
publicly available; and
WHEREAS, the City Council desires to accept the Annual Report, including the
Five-Year Reports and to make the necessary 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:
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Resolution No. 2023-064 Page 2
Section 1. 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. In accordance with Government Code Section 66006(b), the City
Council has reviewed and approves the Annual Report regarding each of the Fees, which
is attached to this Resolution and is incorporated herein by this reference, and is also
placed on file with the City Clerk. The City Council, based upon the information contained
in the Annual Report and the remaining need for the unexpended Fees, finds as follows:
a. The Annual Report describes the types of Fees contained in each
Fund, including the amount of the Fees, the beginning and ending balances of each Fund
that has been established for each Fee, as well as the amount of Fees collected, and the
interest earned thereon; and
b. The Annual Report identifies each public improvement on which the
Fees were expended, the amount of the expenditures on each improvement, including
the total percentage of the cost of the public improvement that was funded with the Fees;
and
c. Sufficient Fees have not been collected to complete the financing of
the various incomplete public improvements; and
d. There have been no interfund transfers or loans made from any of the
Funds; and
e. There have been no refunds made from the Funds.
Section 3. The City has identified Fees collected from developers that are subject
to AB1600’s requirements. Those funds are:
• Housing Mitigation Fee (Fund 214)
• Child Care Facility Fee (Fund 228)
• New Construction Fee (Fund 231)
• Drainage Facility Fee (Fund 232)
• Park & Recreation Fee (Fund 233)
• Traffic Signalization Fee (Fund 234)
• Fire Facility Fee (Fund 235)
Section 4. In accordance with Government Code Section 66001(d), the City
Council has reviewed the Five-Year Report sections included in the Annual Report for
each of the Funds. The City Council finds, based on the information in the Five-Year
Report sections, as follows:
a. Pursuant to Government Code Subsection 66001(d)(1)(A), the Five-
Year Report identifies the purpose to which all unexpended Fees, whether committed or
uncommitted, will be put; and
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Resolution No. 2023-064 Page 3
b. Pursuant to Government Code Subsection 66001(d)(1)(B), the Five-
Year Report demonstrates, for each Fee, a reasonable relationship between the
unexpended fees contained in each Fund and the purposes to which such Fees will be
put; and
c. Pursuant to Government Code Subsection 66001(d)(1)(C), the Five-
Year Report identifies all sources and amounts of funding anticipated to complete
financing of incomplete improvements or projects for each Fund; and
d. Pursuant to Government Code Subsection 66001(d)(1)(D), the Five-
Year Report identifies the approximate dates upon which the funding for such incomplete
improvements or projects will be deposited in to each Fund; and
e. There remains unexpended Fees in each Fund which are still necessary
to complete the purposes for which the Fees were collected.
Section 5. These findings are based on the information provided in the City’s
Annual Report, the City’s annual operating budget, and the Capital Improvement Program
for Fiscal Year 2023-2024 to 2027-2028, which each are incorporated herein by this
reference.
Section 6. Pursuant to these findings, and at this time, there shall not be a refund
of any unexpended Fees.
Section 7. If any section, subsection, subdivision, sentence, clause, or phrase in
this Resolution or any part thereof is for any reason held to be unconstitutional, invalid,
or ineffective by any court of competent jurisdiction, such decision shall not affect the
validity or effectiveness of the remaining portions of this Resolution or any part thereof.
The City Council declares that it would have adopted each section irrespective of the fact
that any one or more subsections, subdivisions, sentences, clauses, or phrases be
declared unconstitutional, invalid, or ineffective.
Section 8. This Resolution shall be effective immediately upon its adoption.
ADOPTED ON DECEMBER 14, 2023.
KARINA QUINTANILLA
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
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Resolution No. 2023-064 Page 4
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that
Resolution No. 2023-064 is a full, true, and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Desert on December 14, 2023,
by the following vote:
AYES: HARNIK, KELLY, NESTANDE, TRUBEE, AND QUINTANILLA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
RECUSED: NONE
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
the City of Palm Desert, California, on ______________.
ANTHONY J. MEJIA
CITY CLERK
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12/19/2023
EXHIBIT A
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.
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)
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 incomplete public
improvements, and the amount of reallocation of funds made due to administrative costs of refunding unexpended revenues
exceeding the amount to be refunded.
The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects using existing cash
balances for FY 2023-2024 through 2027-2028
CITY OF PALM DESERT
DEVELOPMENT IMPACT FEE ANNUAL REPORT
FISCAL YEAR 2022-2023
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:
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.
11/29/2023
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Section A– Housing Mitigation Fee (Fund 214)
Brief description of the type of fee in the fund:
Part I – Fund Balance, Revenue, Interest, Expenditures, Ending Balance
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Beginning Balance 2,858,798$ 3,026,646$ 3,489,660$ 3,575,892$ 3,547,149$
Developer Fees 113,651$ 309,046$ 85,098$ 27,247$ 55,521$
Interest Income 66,427$ 65,569$ 25,560$ 18,355$ 89,967$
Gain (Loss) on Fair Value-GASB 31 16,181$ 11,002$ (17,336)$ (68,100)$ 27,622$
196,258$ 385,617$ 93,322$ (22,498)$ 173,109$
HCD Grant
Loan Proceeds -$ 90,000$ -$ 30,000$ 30,000$
Interest on Loan -$ 22,387$ -$ 12,802$ 8,467$
Expenditures (28,411)$ (34,989)$ (7,090)$ (49,048)$ (602,802)$ (a)
Transfers out -$ -$ -$ -$ -$
Ending Fund Balance 3,026,646$ 3,489,660$ 3,575,892$ 3,547,149$ 3,155,924$
(a) FY22-23 Expenditure Details:AMOUNT
HOMEBUYER SUBSIDIES 60,825$
RICHARDS WATSON CVHC LGL SERVICE 31,274$
BEST BEST & KRIEGER LLP 103$
LAWYERS TITLE COMPANY 510,600$
Total :602,802$
Transfers or Loans:
There have been no interfund transfers or loans made from the fund for this reporting period.
Refunds:
There have been no refunds made during this reporting period.
Part II – Compliance with expending funds within 5 years
Five Year Revenue Test Using First In First Out
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Current 196,258$ 385,617$ 93,322$ (22,498)$ 173,109$
Prior Year (2-Yrs Old)65,574$ 196,258$ 385,617$ 93,322$ (22,498)$
Prior Year (3-Yrs Old)258,212$ 65,574$ 196,258$ 385,617$ 93,322$
Prior Year (4-Yrs Old)273,417$ 258,212$ 65,574$ 196,258$ 385,617$
Prior Year (5-Yrs Old)57,767$ 273,417$ 258,212$ 65,574$ 196,258$
Greater Than 5 Prior FY 1,489,600$ 1,512,378$ 1,778,705$ 1,987,870$ 1,450,642$
Ending Balance 2,340,829$ 2,691,457$ 2,777,689$ 2,706,143$ 2,276,451$
Exclude Loan Proceeds 626,699$ 716,699$ 716,699$ 746,699$ 776,699$ (1)
Exclude Interest on Loan 59,118$ 81,505$ 81,505$ 94,307$ 102,774$ (1)
Exclude HCD grant -$ -$ -$ -$
Ending Balance 3,026,646$ 3,489,660$ 3,575,892$ 3,547,149$ 3,155,924$
Public Improvements to be Constructed:
FY 2023-2024
Budgeted
Expenditure
Future Years
Commitments
Total
Commitments
Funding
Available Date
Sands Apartments 200,000$ -$ 200,000$ July 2023
ARC Village Development (1.84 Acre Affordable Dev)600,000$ -$ 600,000$ July 2023
45653 Portola (2-Single Family Homes Afford. Dev)600,000$ -$ 600,000$ July 2023
Portola Palms MH Park (2-Single Family Homes Afford. Dev)550,000$ -$ 550,000$ July 2023
170 Acre Affordable Dev -$ 600,000$ 600,000$ July 2024
Homebuyer Subsidies (Begin Prog.)249,500$ 636,540$ 886,040$ July 2023
2,199,500$ 1,236,540$ 3,436,040$
Affordable Housing Projects
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; $620/Room Non-Resort.
The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects using existing cash balances for FY
2023-2024 through 2027-2028
(1) Loan proceeds and interest from loans are program funds and are used to fund Homebuyer subsidies for programs meeting the
requirements.
Resolution No. 2023-064 Page 6
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Section A– Housing Mitigation Fee (Fund 214) - continued
Five Year Findings
Purpose of the Fee:
The Relationship Between the Fee and Purpose:
Sources, Amounts, and Dates of Funding Anticipated to Complete Financing:
This fee is being collected for the purpose of subsidizing housing costs as part of the City's program to provide affordable housing for low and
very low income households that have at least one employee working within the jurisdictional boundaries of the City.
Non-residential development within the City boundaries creates employment opportunities. The jobs created also create the need for
additional residential development to locally house the employees that will fill these roles. Affordable housing is a known issue throughout the
nation and the State of California. Therefore, new non-residential development pays a housing mitigation fee to help provide affordable
housing to eligible low income families.
For the FY 2023-24 fiscal year, the city has budgeted for contributions from the Housing Mitigation Fund to fund multiple affordable housing
projects. Included in these projects are the Sands Apartments, the ARC Village Development, homes at 45653 Portola, the Portola Palms
Mobile Home Park, and a collection of subsidies provided through the BEGIN program. Additionally, in future years, the city intends to utilize
these funds in a contribution to a 170-acre affordable housing development.
Resolution No. 2023-064 Page 7
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2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Beginning Balance 1,332,828$ 1,396,599$ 1,479,283$ 1,549,239$ 673,863$
Developer Fees 25,499$ 50,309$ 66,213$ 32,945$ 71,412$
Interest Income 31,126$ 27,992$ 10,992$ 6,823$ 19,416$
Gain (Loss) on Fair Value-GASB 31 7,146$ 4,384$ (7,249)$ (15,143)$ 4,377$
63,771$ 82,685$ 69,956$ 24,624$ 95,204$
Expenditures -$ -$ -$ (900,000)$ $
Transfers out -$ -$ -$ -$ $
-
-
Ending Fund Balance 1,396,599$ 1,479,283$ 1,549,239$ 673,863$ 769,068$
Transfers or Loans:
There have been no interfund transfers or loans made from the fund for this reporting period.
Refunds:
There have been no refunds made during this reporting period.
Part II – Compliance with expending funds within 5 years
Five Year Revenue Test Using First In First Out
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Current 63,771$ 82,685$ 69,956$ 24,624$ 95,204$
Prior Year (2-Yrs Old)59,452$ 63,771$ 82,685$ 69,956$ 24,624$
Prior Year (3-Yrs Old)76,387$ 59,452$ 63,771$ 82,685$ 69,956$
Prior Year (4-Yrs Old)175,924$ 76,387$ 59,452$ 63,771$ 82,685$
Prior Year (5-Yrs Old)29,520$ 175,924$ 76,387$ 59,452$ 63,771$
Greater Than 5 Prior FY 991,545$ 1,021,065$ 1,196,989$ 373,376$ $ 432,828
Ending Balance 1,396,599$ 1,479,283$ 1,549,239$ 673,863$ 769,068$
Public Improvements to be Constructed:
FY 2022-23
Carryover
Projects
Future Years
Commitments
Total
Commitments
% Funded with
Dev. Fee
Funding
Available Date
Child Care Facilities (Hope Lutheran) 684,000$ - 684,000$ 100% June 2024
684,000$ -$ 684,000$
Five Year Findings
Purpose of the Fee:
The Relationship Between the Fee and Purpose:
The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects using existing cash balances for FY
2023-2024 through 2027-2028
Section B – Child Care Facility Fee (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 I – Fund Balance, Revenue, Interest, Expenditures, Ending Balance
In FY 2021-22, the City entered into an operating covenant with Bermuda Dunes Learning Center to use $900,000 to make improvements to
accomodate 150 spaces for toddlers, preschoolers, and elementary-age children at 47549 Highway 74, south of St. Margaret's Episcopal
Church.
This fee is being collected for the purpose of funding new child care homes and centers in order to meet growing demand for child care
generated by employees and commercial uses within the city. It is envisioned that the City will partner with local child care providers and non-
profits to provide funding to increase the supply of child care spaces in the City.
Non-residential development within the City boundaries creates employment opportunities. In order to attract and retain highly skilled workers
and their families, the City must have a variety of quality and affordable child care options. The quality and affordability of child care is a
known issue in the Coachella Valley, as desirable facilities have long wait lists and there are no corporate child care centers in the entire
Coachella Valley. Therefore, new non-residential development pays a child care impact fee to help support the City's effort to provide local
providers and non-profits with funds to help increase the supply of child care spaces in Palm Desert.
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Section B – Child Care Facility Fee (Fund 228) - continued
Sources, Amounts, and Dates of Funding Anticipated to Complete Financing:
The City is retaining developer fees currently held in the Child Care Facility Fund in anticipation of another request for funding by the end of
2024. The City also anticipates a contribution toward the funding of a Child Care Facility for Eisenhower Hospital in FY 2023-24, which will not
be funded through developer fees due to its location, however, because of the hospital's close proximity to Palm Desert and the Palm Desert
residents it serves, it was determined that a contribution toward this facility would be in the City's ongoing effort to enhance child care options.
Resolution No. 2023-064 Page 9
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2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Beginning Balance 1,656,520$ 1,342,716$ 1,530,265$ 1,078,653$ 1,452,348$
Developer Fees 174,981$ 163,899$ 121,565$ 326,092$ 518,442$
Interest Income 27,570$ 28,575$ 5,444$ 2,094$ 43,369$
Gain (Loss) on Fair Value-GASB 31 6,845$ 5,099$ -$ (35,864)$ 9,116$
209,396$ 197,573$ 127,009$ 292,321$ 570,927$
CVAG-Reimbursed CV Link Project 12,083$ 5,141,123$ 1,681,840$ -$
Expenditures -$ (22,107)$ (5,719,744)$ (1,600,466)$ (444,430)$ (a)
Write-off Advance to RDA (523,200)$ -$ -$ -$ -$
Ending Fund Balance 1,342,716$ 1,530,265$ 1,078,653$ 1,452,348$ 1,578,845$
Exclude Advance to RDA write-off:(130,800)$ (130,800)$ (130,800)$ (130,800)$ -$
Ending Balance of available Revenue:1,211,916$ 1,399,465$ 947,853$ 1,321,548$ 1,578,845$
(a) FY22-23 Expenditure Details:AMOUNT
KOA CORPORATION-PD LINK DESIGN 207,045$
CHRISP COMPANY - PD LINK CONSTRUCTION 237,385$
Total :444,430$
Transfers or Loans:
There have been no interfund transfers or loans made from the fund for this reporting period.
Refunds:
There have been no refunds made during this reporting period.
Part II – Compliance with expending funds within 5 years
Five Year Revenue Test Using First In First Out
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Current 209,396$ 197,573$ (4,193,270)$ (360,292)$ 570,927$ (1)
Prior Year (2-Yrs Old)170,421$ 209,396$ -$ -$ 292,321$
Prior Year (3-Yrs Old)204,788$ 170,421$ -$ -$ 127,009$
Prior Year (4-Yrs Old)228,499$ 204,788$ -$ -$ 197,573$
Prior Year (5-Yrs Old)208,723$ 228,499$ -$ -$ 209,396$
Greater Than 5 Prior FY 190,089$ 376,706$ -$ -$ 181,619$
Ending Balance 1,211,916$ 1,387,383$ (4,193,270)$ (360,292)$ 1,578,845$
CVAG- Reimburse CV Link -$ 12,083$ 5,141,123$ 1,681,840$ -$
Tie to ending balance on Fund Balance 1,211,916$ 1,399,465$ 947,853$ 1,321,548$ 1,578,845$
Note: Not including interest on Advance
Section C – New Construction Fee (Fund 231)
Brief description of the type of fee in the fund:
The New Construction 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 $0.40/sq. ft.
Part I – Fund Balance, Revenue, Interest, Expenditures, Ending Balance
(1) CVAG reimburses 100% of the CV Link project cost, excluding project design. The negative amount shown in FY 20-
21 and FY21-22 is before the CVAG reimbursement received.
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Section C – New Construction Fee (Fund 231) - continued
Public Improvements to be Constructed:
FY 2022-23
Carryover
Projects
Future Years
Commitments
Total
Commitments
Funding
Available
Date
Cooperative
Agreement
-$ 3,500,000$ 3,500,000$ July 2024
CVAG to
reimburse
100% of cost
CV Link Enhancements -$ 500,000$ 500,000$ Sept. 2023
CVAG to
reimburse
95% of cost.
-$ 4,000,000$ 4,000,000$
Five Year Findings
Purpose of the Fee:
The Relationship Between the Fee and Purpose:
Sources, Amounts, and Dates of Funding Anticipated to Complete Financing:
Funds in the New Construction Tax Fund are expected to be fully expended through the completion of the CV Link Hovley
Connectors and CV Link enhancements by the end of FY 2023-24. CV Link Hovley Connectors and CV Link
enhancements also tie into the project known as "PD Link," which is designed to connect the CV Link with restaurants and
attractions specific to the City of Palm Desert.
The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects using existing
cash balances for FY 2023-2024 through 2027-2028
This fee is being collected for the acquisition and development of public facilities like playgrounds, public structures, and
street improvements.
New construction in the City creates a need for additional public facilities, structures, and street improvements. When new
construction occurs, a new construction fee is paid to provide the city with funding to accommodate the addition of more
homes and residents through more public facilities and streets.
CV Link Hovley Connectors
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2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Beginning Balance 1,592,857$ 1,617,655$ 664,009$ 707,674$ 740,536$
Developer Fees 38,855$ 18,020$ 61,455$ 43,295$ 132,022$
Interest 36,315$ 22,881$ 5,247$ 3,800$ 22,836$
Gain (Loss) on Fair Value-GASB 31 8,290$ (2,466)$ (3,563)$ (14,233)$ 4,352$
83,460$ 38,435$ 63,139$ 32,862$ 159,211$
Reimbursed from CVAG -$ -$ -$-$ -$
Reimbursed from RDA -$ -$ -$-$ -$
Expenditures (58,663)$ (992,081)$ (19,474)$ -$ (2,400)$
Transfers out -$ -$ -$-$ -$
Ending Fund Balance 1,617,655$ 664,009$ 707,674$ 740,536$ 897,347$
Transfers or Loans:
There have been no interfund transfers or loans made from the fund for this reporting period.
Refunds:
There have been no refunds made during this reporting period.
Part II – Compliance with expending funds within 5 years
Five Year Revenue Test Using First In First Out
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Current 83,460$ 38,435$ 63,139$ 32,862$ 159,211$
Prior Year (2-Yrs Old)29,182$ 83,460$ 38,435$ 63,139$ 32,862$
Prior Year (3-Yrs Old)48,726$ 29,182$ 83,460$ 38,435$ 63,139$
Prior Year (4-Yrs Old)155,837$ 48,726$ 29,182$ 83,460$ 38,435$
Prior Year (5-Yrs Old)13,372$ 155,837$ 48,726$ 29,182$ 83,460$
Greater Than 5 Prior FY 1,081,608$ 102,898$ 239,262$ 287,988$ $ 317,170
Ending Balance 1,412,185$ 458,539$ 502,204$ 535,066$ 694,276$
Exclude Reimbursement:
Reimbursed from CVAG 105,235$ 105,235$ 105,235$ 105,235$ -$
Reimbursed from RDA 100,235$ 100,235$ 100,235$ 100,235$ -$
Tie to ending balance on Fund Balance 1,617,655$ 664,009$ 707,674$ 740,536$ 694,276$
Public Improvements to be Constructed:
FY 2022-2023
Carryover
Future Years
Commitments
Total
Commitments
% Funded
with Dev.
Fee
Funding
Available
Date
236,862$ 263,138$ 500,000$ 23% Nov. 2023
236,862$ 263,138$ 500,000$
Section 29 and Gerald Ford Drive Regional
Detention Basin
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 $1,000. The map is available in the Public Works Department upon request.
Part I – Fund Balance, Revenue, Interest, Expenditures, Ending Balance
The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects using existing cash
balances for FY 2023-2024 through 2027-2028
Resolution No. 2023-064 Page 12
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Section D – Drainage Facility Fee (Fund 232) - continued
Five Year Findings
Purpose of the Fee:
The Relationship Between the Fee and Purpose:
Sources, Amounts, and Dates of Funding Anticipated to Complete Financing:
Project Funding Sources Funding %
Section 29 and Gerald Ford Drive Regional Detention Basin Drainage Fees 23%
BAD Fees 77%
Expected Funding
June 2024
This fee is being collected for the purpose of ensuring developments within the city are properly connected to drainage and in
compliance with the City's drainage master plan. The cost of drainage installation projects requires fund balances to be
accumulated prior to implementing the capital budget and must also be timed with other improvements occurring around these
capital projects.
To protect homes and businesses from potential flooding, the City has established a master drainage plan that is updated for
new development. Additional non-residential development within the City boundaries creates employment opportunities, which
in turn creates a need for additional housing and businesses in the City. When new homes or businesses are created, the City
must adjust its master drainage plan and add in new areas that may not have been a drainage concern in the past. Therefore,
new non-residential development pays a drainage facility fee to support the additional drainage needs caused by added
employment, housing and business.
Resolution No. 2023-064 Page 13
DocuSign Envelope ID: 8C39035E-2942-4BEC-B541-7C7606CFBFB2
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Beginning Balance 1,416,407$ 1,662,454$ 1,588,447$ 1,599,065$ 1,708,631$
Developer Fees 247,187$ 4,453$ 10,443$ 133,411$ 70,597$
Refund Developer Fees -$ -$ -$ -$ -$
Interest 36,237$ 32,590$ 11,526$ 8,620$ 48,195$
Gain (Loss) on Fair Value-GASB 31 8,485$ 4,058$ (8,102)$ (32,465)$ 11,599$
291,909$ 41,101$ 13,867$ 109,566$ 130,391$
Expenditures (45,862)$ (115,108)$ (3,249)$ -$ (208,754)$
Transfers out -$ -$ -$ -$ -$
Ending Fund Balance 1,662,454$ 1,588,447$ 1,599,065$ 1,708,631$ 1,630,268$
Exclude Insurance reimb:
Insurance reimb. playground (33,570)$ (33,570)$ (33,570)$ (33,570)$ (33,570)$
Reimburse playground equipment (164,713)$ (164,713)$ (164,713)$ (164,713)$ (164,713)$
Insurance reimb. damage (159,113)$ (159,113)$ (159,113)$ (159,113)$ (159,113)$
SARDA reimb shade structure (15,896)$ (15,896)$ (15,896)$ (15,896)$ (15,896)$
Ending Balance 1,289,162$ 1,215,155$ 1,225,773$ 1,335,339$ 1,256,976$
Transfers or Loans:
There have been no interfund transfers or loans made from the fund for this reporting period.
Refunds:
There have been no refunds made during this reporting period.
Part II – Compliance with expending funds within 5 years
Five Year Revenue Test Using First In First Out
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Current 291,909$ 41,101$ 13,867$ 109,566$ 130,391$
Prior Year (2-Yrs Old)34,936$ 291,909$ 41,101$ 13,867$ 109,566$
Prior Year (3-Yrs Old)322,198$ 34,936$ 291,909$ 41,101$ 13,867$
Prior Year (4-Yrs Old)309,926$ 322,198$ 34,936$ 291,909$ 41,101$
Prior Year (5-Yrs Old)84,574$ 309,926$ 322,198$ 34,936$ 291,909$
Greater Than 5 Prior FY 245,618$ 215,084$ 521,761$ 843,959$ $ 670,141
Ending Balance 1,289,162$ 1,215,155$ 1,225,773$ 1,335,339$ 1,256,975$
Public Improvements to be Constructed:
% Funded with
Dev. Fee
Funding
Available Date
North Sphere Community Park 5% July 2025
North Sphere Regional Sports Park 2% April 2026
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 I – Fund Balance, Revenue, Interest, Expenditures, Ending Balance
The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects using existing cash
balances for FY 2023-2024 through 2027-2028
Resolution No. 2023-064 Page 14
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Section E– Park & Recreation Fee (Fund 233) - continued
Five Year Findings
Purpose of the Fee:
The Relationship Between the Fee and Purpose:
Sources, Amounts, and Dates of Funding Anticipated to Complete Financing:
When new development occurs within the City boundaries, there becomes a need to support new homes and residents with
additional park and recreational activities. Therefore, new residential developments must pay a Park & Recreation Fee,
which may be used to create new areas for playgrounds, playfields, gardens, pedestrian or bicycle paths or areas of
particular natural beauty, including canyons, hilltops and wooded areas to be developed in their natural state.
Funding sources for the North Sphere Community Park and the North Sphere Regional Sports Park are still being
researched and determined while both parks are in the design phase. The current 5-year CIP anticipates the Community
Park will cost approximately $10,150,000 and the Regional Park will cost approximately $30,000,000. The City expects to
fully expend the accumulation of Park & Recreation Fees to supplement the completion of these parks.
This fee is being collected for the purpose of developing new parks or recreational facilities to serve the community. With
the expansion of the North Sphere of the city over the last five years, funds are being accumulated to help support the
building of both a North Palm Desert Community Park and a Regional Sports Park.
Resolution No. 2023-064 Page 15
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2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Beginning Balance $ 410,318 $ 496,178 $ 417,052 $ 436,491 $ 438,750
Developer Fees 91,274$ 29,677$ 18,467$ 8,400$ 70,931$
Interest Income 9,965$ 9,682$ 3,062$ 2,259$ 13,140$
Gain (Loss) on Fair Value-GASB 31 2,537$ 765$ (2,090)$ (8,400)$ 2,713$
103,775$ 40,124$ 19,439$ 2,259$ 86,784$
Expenditures (17,915)$ (119,250)$ -$ -$ -$
Transfers out -$-$ -$ -$ -$
Ending Fund Balance 496,178$ 417,052$ 436,491$ 438,750$ 525,534$
Transfers or Loans:
There have been no interfund transfers or loans made from the fund for this reporting period.
Refunds:
There have been no refunds made during this reporting period.
Part II – Compliance with expending funds within 5 years
Five Year Revenue Test Using First In First Out
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Current 103,775$ 40,124$ 19,439$ 2,259$ 86,784$
Prior Year (2-Yrs Old)21,424$ 103,775$ 40,124$ 19,439$ 2,259$
Prior Year (3-Yrs Old)38,654$ 21,424$ 103,775$ 40,124$ 19,439$
Prior Year (4-Yrs Old)103,710$ 38,654$ 21,424$ 103,775$ 40,124$
Prior Year (5-Yrs Old)17,722$ 103,710$ 38,654$ 21,424$ 103,775$
Greater Than 5 Prior FY 210,893$ 109,365$ 213,075$ 251,729$ $ 273,153
Ending Balance 496,178$ 417,052$ 436,491$ 438,750$ 525,534$
Public Improvements to be Constructed:
FY 2022-2023
Carryover
Projects
Future Years
Commitments
Total
Commitments
% Funded with
Dev. Fee
Funding
Available Date
225,000$ 235,075$ 460,075$ 47% June 2024
225,000$ 235,075$ 460,075$
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 $500 per acre.
Part I – Fund Balance, Revenue, Interest, Expenditures, Ending Balance
The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects using existing cash
balances for FY 2023-2024 through 2027-2028
Market Place Drive and Cook Street
Signal
Resolution No. 2023-064 Page 16
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Section F – Traffic Signalization Fee (Fund 234) - continued
Five Year Findings
Purpose of the Fee:
The Relationship Between the Fee and Purpose:
Sources, Amounts, and Dates of Funding Anticipated to Complete Financing:
Project Funding Sources Funding %
Market Place Drive and Cook Street Signal Traffic Signal Fees 47%
Measure A 53%
As development in the city expands, more people drive on City streets, which can lead to traffic congestion or necessitate
changes in traffic signaling and patterns. As a result, developers are required to pay a traffic signalization fee. This fee is
used to add new traffic signals or intersection projects to accomodate the increased traffic flow caused by development.
This fee is being collected for the purpose of the construction or reimbursement of intersection of signalization projects
within the City. Funds have accumulated in this fund over the last five years in order to pay for projects of significant cost.
The process for addition of a new traffic signal at Market Place Drive and Cook Street began in May 2023 and is expected
to expend the majority of accumulated fund balance during FY 2023-24.
Expected Funding
June 2024
Resolution No. 2023-064 Page 17
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2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Beginning Balance 1,108,171$ 1,153,479$ 1,212,787$ 1,261,388$ 1,368,086$
Developer Fees 13,655$ 32,713$ 45,624$ 125,925$ 297,648$
Interest Income 25,750$ 23,043$ 8,943$ 6,708$ 40,590$
Gain (Loss) on Fair Value-GASB 31 5,903$ 3,552$ (5,966)$ (25,936)$ 8,599$
45,308$ 59,308$ 48,601$ 106,698$ 346,837$
Expenditures -$ -$ -$ -$ (134,222)$
Transfers out -$ -$ -$ -$ -$
Ending Fund Balance 1,153,479$ 1,212,787$ 1,261,388$ 1,368,086$ 1,580,701$
Transfers or Loans:
There have been no interfund transfers or loans made from the fund for this reporting period.
Refunds:
There have been no refunds made during this reporting period.
Part II – Compliance with expending funds within 5 years
Five Year Revenue Test Using First In First Out
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
Current 45,308$ 59,308$ 48,601$ 106,698$ 346,837$
Prior Year (2-Yrs Old)35,084$ 45,308$ 59,308$ 48,601$ 106,698$
Prior Year (3-Yrs Old)41,063$ 35,084$ 45,308$ 59,308$ 48,601$
Prior Year (4-Yrs Old)53,168$ 41,063$ 35,084$ 45,308$ 59,308$
Prior Year (5-Yrs Old)43,193$ 53,168$ 41,063$ 35,084$ 45,308$
Greater Than 5 Prior FY 935,663$ 978,856$ 1,032,023$ 1,073,086$ $ 1,108,170
Ending Balance 1,153,479$ 1,212,787$ 1,261,388$ 1,368,086$ 1,714,922$
Public Improvements to be Constructed:
FY 2022-23
Carryover
Projects
Future Years
Commitments
Total
Commitments
% Funded with
Dev. Fee
Funding
Available Date
North Sphere Fire Station 1,151,512$ 645,600$ 1,797,112$ 10% Late 2026
Five Year Findings
Purpose of the Fee:
The Relationship Between the Fee and Purpose:
Section G – Fire Facility Fee (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 $0.20 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 I – Fund Balance, Revenue, Interest, Expenditures, Ending Balance
This fee is being collected for the development of a new Fire Station and equipment in order to meet some of the new
commercial and residential development in the North Sphere of the City. The North Sphere Fire Station is currently going
through the study and design phase through March 2024, and is expected to go into construction in late 2026.
Residential and commercial development in the Northern Sphere of the city has necessitated the addition of a new fire station
to support emergency response for the City. When additional development expands the population of an area or changes the
distribution of the population, emergency responders must cover a wider variety of territory and responses. The addition of a
new fire station allows for fast response times and adequate emergency coverage in all areas of the City.
The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects using existing cash
balances for FY 2023-2024 through 2027-2028
Resolution No. 2023-064 Page 18
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Section G – Fire Facility Fee (235) - continued
Sources, Amounts, and Dates of Funding Anticipated to Complete Financing:
Funding sources for the North Sphere Fire Station are still being explored while the project is in the study and design phase. It
is expected that the existing accumulation of developer fees will be fully utilized upon station construction, along with other
funding sources that have yet to be determined. The total cost of the fire station is currently approximately $18.6 million.
Resolution No. 2023-064 Page 19
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