HomeMy WebLinkAboutRes 2024-088RESOLUTION NO. 2024-088
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, 2024, 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 (Exhibit A - “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. 2024-088 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
b. Pursuant to Government Code Subsection 66001(d)(1)(B), the Five-
Year Report demonstrates, for each Fee, a reasonable relationship between the
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Resolution No. 2024-088 Page 3
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 into 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 2024-2025 to 2028-2029, 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 12, 2024.
__________________________
JAN C. HARNIK
MAYOR
ATTEST:
______________________________
ANTHONY J. MEJIA
CITY CLERK
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Resolution No. 2024-088 Page 4
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify
that Resolution No. 2024-088 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 12, 2024, by the following vote:
AYES:
NOES:
NESTANDE, PRADETTO, TRUBEE, AND HARNIK
NONE
ABSENT: QUINTANILLA
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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12/13/2024
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 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. An
identification of each public improvement identified in a previous report pursuant to clause (i) and whether construction
began on the approximate date noted in the previous report. For a project identified pursuant to clause (ii) for which
construction did not commence by the approximate date provided in the previous report, the reason for the delay and a
revised approximate date that the local agency will commence construction.
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 pursuant to subdivision (e) of Section 66001, the number of persons or entities identified to
receive those refunds, and any allocations pursuant to subdivision (f) of Section 66001.
The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects using existing cash
balances for FY 2024-2025 through 2028-2029
CITY OF PALM DESERT
DEVELOPMENT IMPACT FEE ANNUAL REPORT
FISCAL YEAR 2023-2024
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.
12/5/2024
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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
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Beginning Balance 3,026,646$ 3,489,660$ 3,575,892$ 3,547,149$ 3,155,924$
Developer Fees 309,046$ 85,098$ 27,247$ 55,521$ 31,800$
Interest Income 65,569$ 25,560$ 18,355$ 89,967$ 139,222$
Gain (Loss) on Fair Value-GASB 31 11,002$ (17,336)$ (68,100)$ 27,622$ 29,749$
385,617$ 93,322$ (22,498)$ 173,109$ 200,771$
HCD Grant
Loan Proceeds 90,000$ -$ 30,000$ 30,000$ 30,000$
Interest on Loan 22,387$ -$ 12,802$ 8,467$ 1,000$
Expenditures (34,989)$ (7,090)$ (49,048)$ (602,802)$ (277,592)$ (a)
Transfers out -$ -$ -$ -$ -$
Ending Fund Balance 3,489,660$ 3,575,892$ 3,547,149$ 3,155,924$ 3,110,103$
(a) FY23-24 Expenditure Details:
PROPERTY TAX 4,666$
RICHARDS WATSON CVHC LGL SERVICE 1,238$
BEST BEST & KRIEGER LLP 921$
LAWYERS TITLE COMPANY 194,400$
45653 PORTOLA ABATEMENT & DEMO 76,367$
Total : 277,592$
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
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Current 385,617$ 93,322$ (22,498)$ 173,109$ 200,771$
Prior Year (2-Yrs Old) 196,258$ 385,617$ 93,322$ (22,498)$ 173,109$
Prior Year (3-Yrs Old) 65,574$ 196,258$ 385,617$ 93,322$ (22,498)$
Prior Year (4-Yrs Old) 258,212$ 65,574$ 196,258$ 385,617$ 93,322$
Prior Year (5-Yrs Old) 273,417$ 258,212$ 65,574$ 196,258$ 385,617$
Greater Than 5 Prior FY 1,512,378$ 1,778,705$ 1,987,870$ 1,450,642$ 1,369,308$
Ending Balance 2,691,457$ 2,777,689$ 2,706,143$ 2,276,451$ 2,199,630$
Exclude Loan Proceeds 716,699$ 716,699$ 746,699$ 776,699$ 806,699$ (1)
Exclude Interest on Loan 81,505$ 81,505$ 94,307$ 102,774$ 103,774$ (1)
Exclude HCD grant -$ -$ -$
Ending Balance 3,489,660$ 3,575,892$ 3,547,149$ 3,155,924$ 3,110,103$
Public Improvements to be Constructed:
FY 2024-2025
Budgeted
Expenditure
Future Years
Commitments
Total
Commitments
% Funded
with Dev. Fee
Funding
Available Date
Sands Apartments 200,000$ -$ 200,000$ 100% July 2024
ARC Village Development (1.84 Acre Affordable Dev) 600,000$ -$ 600,000$ 100% July 2024
45653 Portola (2-Single Family Homes Afford. Dev) 600,000$ -$ 600,000$ 100% July 2024
Portola Palms MH Park (2-Single Family Homes Afford. De 550,000$ -$ 550,000$ 100% July 2024
170 Acre Affordable Dev -$ 600,000$ 600,000$ 100% July 2025
Homebuyer Subsidies (Begin Prog.)500,000$ 636,540$ 886,040$ 100% July 2024
2,450,000$ 1,236,540$ 3,436,040$
(1) Loan proceeds and interest from loans are program funds and are used to fund Homebuyer subsidies for programs
meeting the requirements.
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; $620/Room Non-Resort.
The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects using existing cash
balances for FY 2024-2025 through 2028-2029
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Section A– Housing Mitigation Fee (Fund 214) - continued
Five Year Findings
Purpose of the Fee:
The Relationship Between the Fee and Purpose:
Sources, Amounts, and Dates of Funding Anticipated to Complete Financing:
For the FY 2024-25 fiscal year, the city has budgeted for contributions from the Housing Mitigation Fund to fund multiple
affordable housing projects. Included in these projects are the Sands Apartments, the ARC Village Development, homes at
45653 Portola, the Portola Palms Mobile Home Park, and a collection of subsidies provided through the BEGIN program.
Additionally, in future years, the city intends to utilize these funds in a contribution to a 170-acre affordable housing
development.
This fee is being collected for the purpose of subsidizing housing costs as part of the City's program to provide affordable
housing for low and very low income households that have at least one employee working within the jurisdictional boundaries
of the City.
Non-residential development within the City boundaries creates employment opportunities. The jobs created also create the
need for additional residential development to locally house the employees that will fill these roles. Affordable housing is a
known issue throughout the nation and the State of California. Therefore, new non-residential development pays a housing
mitigation fee to help provide affordable housing to eligible low income families.
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Section B – Child Care Facility Fee (Fund 228)
Brief description of the type of fee in the fund:
Part 1 – Fund Balance, Revenue, Interest, Expenditures, Ending Balance
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Beginning Balance 1,396,599$ 1,479,283$ 1,549,239$ 673,863$ 769,068$
Developer Fees 50,309$ 66,213$ 32,945$ 71,412$ 54,200$
Interest Income 27,992$ 10,992$ 6,823$ 19,416$ 37,307$
Gain (Loss) on Fair Value-GASB 31 4,384$ (7,249)$ (15,143)$ 4,377$ 6,347$
82,685$ 69,956$ 24,624$ 95,204$ 97,854$
Expenditures -$ -$ (900,000)$ -$ -$
Transfers out -$ -$ -$ -$ -$
Ending Fund Balance 1,479,283$ 1,549,239$ 673,863$ 769,068$ 866,922$
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
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Current 82,685$ 69,956$ 24,624$ 95,204$ 97,854$
Prior Year (2-Yrs Old) 63,771$ 82,685$ 69,956$ 24,624$ 95,204$
Prior Year (3-Yrs Old) 59,452$ 63,771$ 82,685$ 69,956$ 24,624$
Prior Year (4-Yrs Old) 76,387$ 59,452$ 63,771$ 82,685$ 69,956$
Prior Year (5-Yrs Old) 175,924$ 76,387$ 59,452$ 63,771$ 82,685$
Greater Than 5 Prior FY 1,021,065$ 1,196,989$ 373,376$ 432,828$ 496,599$
Ending Balance 1,479,283$ 1,549,239$ 673,863$ 769,068$ 866,922$
Public Improvements to be Constructed:
Future Years
Commitments
Total
Commitments
% Funded with
Dev. Fee
Funding
Available Date
Wallaroo Childcare Center 866,922$ 1,000,000$ 100% July 2024
866,922$ 1,000,000$
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 2024-2025 through 2028-2029
The Child Care Facility Fee provides new and increased child care facilities and centers in order to mitigate the increased
demand for child care caused by non-residential development in the City. As non-residential development increases and jobs
are created, the employees of the non-residential development create an increased need for local child care options in the
City. The funds are used to construct new local facilities and equipment related to providing local and safe child care within
the City.
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 2025. The City is currently working with developers to rehabilitate the site previously known as the
Wallaroo Childcare Center, and intends to utilize these funds for the project.
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Section C – New Construction Fee (Fund 231)
Brief description of the type of fee in the fund:
Part 1 – Fund Balance, Revenue, Interest, Expenditures, Ending Balance
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Beginning Balance 1,342,716$ 1,530,265$ 1,078,653$ 1,452,348$ 1,578,845$
Developer Fees 163,899$ 121,565$ 326,092$ 518,442$ 265,447$
Interest Income 28,575$ 5,444$ 2,094$ 43,369$ 81,048$
Gain (Loss) on Fair Value-GASB 31 5,099$ -$ (35,864)$ 9,116$ 14,199$
197,573$ 127,009$ 292,321$ 570,927$ 360,694$
CVAG-Reimbursed CV Link Project 12,083$ 5,141,123$ 1,681,840$ -$ -$
Expenditures (22,107)$ (5,719,744)$ (1,600,466)$ (444,430)$ (5,911)$ (a)
Write-off Advance to RDA -$ -$ -$ -$ -$
Ending Fund Balance 1,530,265$ 1,078,653$ 1,452,348$ 1,578,845$ 1,933,628$
Exclude Advance to RDA write-off: (130,800)$ (130,800)$ (130,800)$ -$ -$
Ending Balance of available Revenue:1,399,465$ 947,853$ 1,321,548$ 1,578,845$ 1,933,628$
(a) FY23-24 Expenditure Details: AMOUNT
AMERICAN ASPHALT - CV LINK IMPROVEMENTS 5,911$
Total : 5,911$
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
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Current 197,573$ (4,193,270)$ (360,292)$ 570,927$ 360,694$ (1)
Prior Year (2-Yrs Old) 209,396$ -$ -$ 292,321$ 570,927$
Prior Year (3-Yrs Old) 170,421$ -$ -$ 127,009$ 292,321$
Prior Year (4-Yrs Old) 204,788$ -$ -$ 197,573$ 127,009$
Prior Year (5-Yrs Old) 228,499$ -$ -$ 209,396$ 197,573$
Greater Than 5 Prior FY 376,706$ -$ -$ 181,619$ 385,104$
Ending Balance 1,387,383$ (4,193,270)$ (360,292)$ 1,578,845$ 1,933,628$
CVAG- Reimburse CV Link 12,083$ 5,141,123$ 1,681,840$ -$ -$
Tie to ending balance on Fund Balance 1,399,465$ 947,853$ 1,321,548$ 1,578,845$ 1,933,628$
Note: Not include interest on Advance
The New Construction Fee is used for acquisition and development of public facilities like 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 $0.40/sq. ft.
(1) CVAG reimburses 100% of the CV Link project cost, excluding project design. The negative amount
shown in FY 20-21 and FY21-22 is before the CVAG reimbursement received.
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Section C – New Construction Fee (Fund 231) - continued
Public Improvements to be Constructed:
Future Years
Commitments
Total
Commitments
% Funded with
Dev. Fee
Funding
Available
Date
Cooperative
Agreement
3,500,000$ 3,500,000$ 55% July 2024
CVAG to
reimburse
100% of cost
3,500,000$ 3,500,000$
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 by the end of FY 2026-27. 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 2024-2025 through 2028-2029
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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Section D – Drainage Facility Fee (Fund 232)
Brief description of the type of fee in the fund:
Part 1 – Fund Balance, Revenue, Interest, Expenditures, Ending Balance
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Beginning Balance 1,617,655$ 664,009$ 707,674$ 740,536$ 897,347$
Developer Fees 18,020$ 61,455$ 43,295$ 132,022$ 54,470$
Interest 22,881$ 5,247$ 3,800$ 22,836$ 40,473$
Gain (Loss) on Fair Value-GASB 31 (2,466)$ (3,563)$ (14,233)$ 4,352$ 7,499$
38,435$ 63,139$ 32,862$ 159,211$ 102,442$
Reimbursed from CVAG -$ -$ -$ -$ -$
Reimbursed from RDA -$ -$ -$ -$ -$
Expenditures (992,081)$ (19,474)$ -$ (2,400)$ (147,724)$ (a)
Transfers out -$ -$ -$ -$ -$
Ending Fund Balance 664,009$ 707,674$ 740,536$ 897,347$ 852,065$
(a) FY23-24 Expenditure Details: AMOUNT
ANSER ADVISORY 53,790$
TERRA NOVA PLANNING & RESEARCH 999$
STORM WATER APPLICATION 1,097$
HR GREEN 65,067$
EARTH SYSTEMS 8,720$
MICHAEL BAKER INT 18,051$
Total : 147,724$
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
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Current 38,435$ 63,139$ 32,862$ 159,211$ 102,442$
Prior Year (2-Yrs Old) 83,460$ 38,435$ 63,139$ 32,862$ 159,211$
Prior Year (3-Yrs Old) 29,182$ 83,460$ 38,435$ 63,139$ 32,862$
Prior Year (4-Yrs Old) 48,726$ 29,182$ 83,460$ 38,435$ 63,139$
Prior Year (5-Yrs Old) 155,837$ 48,726$ 29,182$ 83,460$ 38,435$
Greater Than 5 Prior FY 102,898$ 239,262$ 287,988$ 314,770$ 250,507$
Ending Balance 458,539$ 502,204$ 535,066$ 691,876$ 646,595$
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 664,009$ 707,674$ 740,536$ 691,876$ 852,065$
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 per acre; Zone 2 is $1,500; Zone 3 is $1,000; Zone 4 is $1,000. The
map is available in the Public Works Department upon request.
Docusign Envelope ID: 3F35C9CD-C30E-40D1-B92E-96EB6A27BB61
Public Improvements to be Constructed:
Future Years
Commitments
Total
Commitments
% Funded
with Dev.
Fee
Funding
Available
Date
-$ 2,559$ 23% July 2024
849,506$ 849,506$ 39% July 2025
849,506$ 852,065$
Section 29 and Gerald Ford Drive Regional
Detention Basin
The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects using
existing cash balances for FY 2024-2025 through 2028-2029
North Sphere Retention Basin
Docusign Envelope ID: 3F35C9CD-C30E-40D1-B92E-96EB6A27BB61
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 & Gerald Ford Regional Detention Basin Drainage Fees 100%
North Sphere Detention Basin Drainage Fees 100% July 2025
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.
Expected Funding
July 2024
Docusign Envelope ID: 3F35C9CD-C30E-40D1-B92E-96EB6A27BB61
Section E– Park & Recreation Fee (Fund 233)
Brief description of the type of fee in the fund:
Part 1 – Fund Balance, Revenue, Interest, Expenditures, Ending Balance
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Beginning Balance 1,662,454$ 1,588,447$ 1,599,065$ 1,708,631$ 1,630,268$
Developer Fees 4,453$ 10,443$ 133,411$ 70,597$ 427,547$
Refund Developer Fees -$ -$ -$ -$
Interest 32,590$ 11,526$ 8,620$ 48,195$ 76,130$
Gain (Loss) on Fair Value-GASB 31 4,058$ (8,102)$ (32,465)$ 11,599$ 15,917$
41,101$ 13,867$ 109,566$ 130,391$ 519,594$
Expenditures (115,108)$ (3,249)$ -$ (208,754)$ (360,272)$ (a)
Transfers out -$ -$ -$ -$ -$
Ending Fund Balance 1,588,447$ 1,599,065$ 1,708,631$ 1,630,268$ 1,789,591$
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 1,215,155$ 1,225,773$ 1,335,339$ 1,256,976$ 1,416,299$
(a) FY23-24 Expenditure Details: AMOUNT
INTERWEST CONSULTING 360,272$
Total : 360,272$
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
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Current 41,101$ 13,867$ 109,566$ 130,391$ 519,594$
Prior Year (2-Yrs Old) 291,909$ 41,101$ 13,867$ 109,566$ 130,391$
Prior Year (3-Yrs Old) 34,936$ 291,909$ 41,101$ 13,867$ 109,566$
Prior Year (4-Yrs Old) 322,198$ 34,936$ 291,909$ 41,101$ 13,867$
Prior Year (5-Yrs Old) 309,926$ 322,198$ 34,936$ 291,909$ 41,101$
Greater Than 5 Prior FY 215,084$ 521,761$ 843,959$ 670,141$ 601,779$
Ending Balance 1,215,155$ 1,225,773$ 1,335,339$ 1,256,975$ 1,416,299$
Public Improvements to be Constructed:
FY 2022-23
Carryover
Projects
Future Years
Commitments
Total
Commitments
% Funded with
Dev. Fee
Funding
Available Date
North Sphere Community Park 358,043 358,043 4% July 2025
North Sphere Regional Sports Park 1,058,255 1,058,255 4% April 2026
1,416,298$ 1,416,298$
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.
The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects
using existing cash balances for FY 2024-2025 through 2028-2029
Docusign Envelope ID: 3F35C9CD-C30E-40D1-B92E-96EB6A27BB61
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.
Docusign Envelope ID: 3F35C9CD-C30E-40D1-B92E-96EB6A27BB61
Section F – Traffic Signalization Fee (Fund 234)
Brief description of the type of fee in the fund:
Part 1 – Fund Balance, Revenue, Interest, Expenditures, Ending Balance
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Beginning Balance $ 496,178 $ 417,052 $ 436,491 $ 438,750 $ 525,534
Developer Fees 29,677$ 18,467$ 8,400$ 70,931$ 50,640$
Interest Income 9,682$ 3,062$ 2,259$ 13,140$ 25,751$
Gain (Loss) on Fair Value-GASB 31 765$ (2,090)$ (8,400)$ 2,713$ 4,291$
40,124$ 19,439$ 2,259$ 86,784$ 80,682$
Expenditures (119,250)$ -$ -$ -$ -$
Transfers out -$ -$ -$ -$ -$
Ending Fund Balance 417,052$ 436,491$ 438,750$ 525,534$ 606,216$
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
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Current 40,124$ 19,439$ 2,259$ 86,784$ 80,682$
Prior Year (2-Yrs Old) 103,775$ 40,124$ 19,439$ 2,259$ 86,784$
Prior Year (3-Yrs Old) 21,424$ 103,775$ 40,124$ 19,439$ 2,259$
Prior Year (4-Yrs Old) 38,654$ 21,424$ 103,775$ 40,124$ 19,439$
Prior Year (5-Yrs Old) 103,710$ 38,654$ 21,424$ 103,775$ 40,124$
Greater Than 5 Prior FY 109,365$ 213,075$ 251,729$ 273,153$ 376,928$
Ending Balance 417,052$ 436,491$ 438,750$ 525,534$ 606,216$
Public Improvements to be Constructed:
Future Years
Commitments
Total
Commitments
% Funded with
Dev. Fee
Funding
Available Date
-$ 460,075$ 31% July 2024
500,000$ 500,000$ 29% July 2025
500,000$ 960,075$
Market Place Drive and Cook Street Signal
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 $500 per
acre.
The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects using
existing cash balances for FY 2024-2025 through 2028-2029
Traffic Signals Cabinet Upgrades
Docusign Envelope ID: 3F35C9CD-C30E-40D1-B92E-96EB6A27BB61
Section F – Traffic Signalization Fee (Fund 234) - continued
Five Year Findings
Purpose of the Fee:
The Relationship Between the Fee and Purpose:
Sources, Amounts, and Dates of Funding Anticipated to Complete Financing:
Project Funding Sources Funding %
Market Place Drive and Cook Street Signal Traffic Signal Fees 31%
Measure A 69%
Traffic Signal Fees 29%
Measure A 71%
Traffic Signals Cabinet Upgrades July 2025
July 2024
As development in the city expands, more people drive on City streets, which can lead to traffic congestion or
necessitate changes in traffic signaling and patterns. As a result, developers are required to pay a traffic
signalization fee. This fee is used to add new traffic signals or intersection projects to accomodate the increased
traffic flow caused by development.
This fee is being collected for the purpose of the construction or reimbursement of intersection of signalization
projects within the City. Funds have accumulated in this fund over the last five years in order to pay for projects of
significant cost. The process for addition of a new traffic signal at Market Place Drive and Cook Street began in May
2023 and is expected to expend the majority of accumulated fund balance during FY 2024-25.
Expected Funding
Docusign Envelope ID: 3F35C9CD-C30E-40D1-B92E-96EB6A27BB61
Section G – Fire Facility Fee (235)
Brief description of the type of fee in the fund:
Part 1 – Fund Balance, Revenue, Interest, Expenditures, Ending Balance
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Beginning Balance 1,153,479$ 1,212,787$ 1,261,388$ 1,368,086$ 1,580,701$
Developer Fees 32,713$ 45,624$ 125,925$ 297,648$ 166,938$
Interest Income 23,043$ 8,943$ 6,708$ 40,590$ 73,534$
Gain (Loss) on Fair Value-GASB 31 3,552$ (5,966)$ (25,936)$ 8,599$ 13,313$
59,308$ 48,601$ 106,698$ 346,837$ 253,785$
Expenditures -$ -$ -$ (134,222)$ (622,933)$ (a)
Transfers out -$ -$ -$ -$ -$
Ending Fund Balance 1,212,787$ 1,261,388$ 1,368,086$ 1,580,701$ 1,211,552$
(a) FY23-24 Expenditure Details: AMOUNT
PBK ARCHITECTS 358,501$
ANSER ADVISORY 16,810$
FRAZER LTD 75,694$
COPD 5,276$
ERSC 166,652$
Total : 622,933$
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
2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Current 59,308$ 48,601$ 106,698$ 346,837$ 253,785$
Prior Year (2-Yrs Old) 45,308$ 59,308$ 48,601$ 106,698$ 346,837$
Prior Year (3-Yrs Old) 35,084$ 45,308$ 59,308$ 48,601$ 106,698$
Prior Year (4-Yrs Old) 41,063$ 35,084$ 45,308$ 59,308$ 48,601$
Prior Year (5-Yrs Old) 53,168$ 41,063$ 35,084$ 45,308$ 59,308$
Greater Than 5 Prior FY 978,856$ 1,032,023$ 1,073,086$ 973,948$ 396,324$
Ending Balance 1,212,787$ 1,261,388$ 1,368,086$ 1,580,700$ 1,211,552$
Public Improvements to be Constructed:
Future Years
Commitments
Total
Commitments
% Funded with
Dev. Fee
Funding
Available Date
North Sphere Fire Station -$ 663,629$ 7% Late 2026
Five Year Findings
Purpose of the Fee:
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. 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.
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.
The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects
using existing cash balances for FY 2024-2025 through 2028-2029
Docusign Envelope ID: 3F35C9CD-C30E-40D1-B92E-96EB6A27BB61
The Relationship Between the Fee and Purpose:
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.
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.
Docusign Envelope ID: 3F35C9CD-C30E-40D1-B92E-96EB6A27BB61