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HomeMy WebLinkAboutCC RES 2018-94RESOLUTION NO. 2018- 94 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, 2018 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, 2018 was held by the City Council on December 13, 2018, 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. 2018- 94 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 2018-2019 to 2022-2023. Which is incorporated herein by reference. PASSED, APPROVED AND ADOPTED at the regular meeting of the Palm Desert City Council held on this 13th day of December, 2018, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: BARNIK, JONATHAN, BELLY, NESTANDE, and WEBER NONE NONE NONE RACIIELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA APPROVED AS TO FORM: OBERT A REAVES, CITY ATTORNEY BEST, BEST & KRIEGER, LLP - Z w c— SUSAN MARIE WEBER, MAYOR Page 2 of 2 RESOLUTION NO. 2018-94 EXHIBIT A CITY OF PALM DESERT DEVELOPMENT IMPACT FEE ANNUAL REPORT FISCAL YEAR 2017-18 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) %No The City's Five Year Capital Improvement Program Budget is attached as a reference to future projects using existing cash balances for FY 2018-2019 through 2022-2023 RESOLUTION NO. 2018-94 Section A- Housing Mitigation Fee (Fund 214) Brief description of the tvpe 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 Beginning Balance Developer Fees Interest Income HCD Grant Loan Proceed Interest on Loan 2013-2014 $ 2,485,768 $ 53,954 $ 9,739 $ 63,693 2014-2015 2015-2016 2016-2017 2,423,612 $ 2,256,769 $ 2,530,186 $ 50,210 $ 258,339 $ 242,858 $ 7,557 $ 15,078 $ 15,354 $ 57,767 $ 273,417 $ 258,212 $ $ 120,000 $ 15,390 Expenditures $ (125,849) $ Transfers out Ending Fund Balance $ 2,423,612 $ (360,000) $ $ 2,256,769 $ 2,530,186 $ Part II - Compliance with expending funds within 5 years Five Year Revenue Test Usina 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 Exclude Loan Proceed Exclude Interest on Loan Exclude HCD grant Ending Balance 2014-2015 $ 57,767 $ 63,693 $ 53,898 $ 22,914 $ 29,872 $ 1,438,174 $ 1,666,318 $ 540,000 $ 50,451 2013-2014 63,693 53,898 22,914 29,872 108,811 1,689,363 1,968,551 420,000 35,061 $ 2,423,612 Capital Projects FY 2018-2019 36 Unit project ARC Village $ 250,000 Sands 80/20 Project 10 Acre Affordable Dev sub Parksite 200 units subsidy Homebuyer Subsidies $ 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 60,000 $ Future Years Commitments 180,000 1,000,000 1,000,000 240,000 Total Commitments $ 250,000 $ 180,000 $ 1,000,000 $ 1,000,000 $ 300,000 100% $ 2,730,000 $ 60,000 $ $ 8,667 (60,000) $ 2,797,065 $ 2016-2017 $ 258,212 $ 273,417 $ • 57,767 $ 63,693 $ 53,898 $ 1,430,960 $ 2,137,947 $ 600,000 $ 59,118 $ 2,797,065 % Funded with Dev. Fee 100% 100% 2017-2018 2,797,065 30,975 34,599 65,574 26,699 (30,540) (a) 2,858,798 2017-2018 $ 65,574 $ 258,212 $ 273,417 $ 57,767 $ 63,693 (1) $ 1,454,318 (1) $ 2,172,981 $ 626,699 $ 59,118 $ 2,858,798 Funding Available Date On going Notes: (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) FY17-18 Expenditures Details: Homebuyer Subsidies Richards, Watson Legal Fees Amount $ 30,000 $ 540 $ 30,540 3 3 3 RESOLUTION NO. 2018-94 '" 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 Beginning Balance Developer Fees Interest Income Expenditures Transfers out Ending Fund Balance 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 $ 1,462,409 $ 1,491,545 $ 1,021,065 $ 1,196,989 $ 1,273,376 23,373 5,763 29,136 25,483 $ 168,940 $ 69,482 43,649.00 4,037 $ 6,984 $ 6,904 $ 15,803 29,520 $ 175,924 $ 76,387 $ 59,452 $ $ (500,000) $ 1,491,545 $ 1,021,065 Part II - Compliance with expending funds within 5 years Five Year Revenue Test Usina First Current ,.... Prior Year (2-Yrs Old) Prior Year (3-Yrs Old) Prior Year (4-Yrs Old) b., Prior Year (5-Yrs Old) Greater Than 5 Prior FY Ending Balance Capital Projects In First Out 2013-2014 $ 29,136 $ 20,847 $ 26,854 $ 29,846 $ 120,213 $ 1,264,649 $ 1,491,545 2014-2015 $ 29,520 $ 29,136 $ 20,847 $ 26,854 $ 29,846 $ 884,862 $ 1,021,065 $ $ $ $ 1,196,989 $ 1,273,376 $ 1,332,828 2015-2016 $ 175,924 $ 29,520 $ 29,136 $ 20,847 $ 26,854 $ 914,708 $ 1,196,989 $ 2016-2017 76,387 175,924 29,520 29,136 20,847 941,562 1,273,376 2017-2018 59,452 76,387 175,924 29,520 29,136 962,409 $ 1,332,828 FY 2017-18 Future Years Total % Funded with Funding Carryover Projects Commitments Commitments Dev. Fee Available Date Child Care Facilities - expand licensed day-care offerings in Freedom Park $ 1,079,440 $ 195,560 $ 1,275,000 100% On going Notes: (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. RESOLUTION NO. 2018-94 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 such public facilities like parks, playgrounds, and public structures. 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 2013-2014 2014-2015 2015-2016 2016-2017 Beginning Balance $ 929,654 $ 1,170,905 $ 1,286,666 $ 1,318,647 $ Developer Fees $ 283,530 $ 206,206 $ 223,743 $ 199,849 $ Interest Income $ 1,807 $ 2,517 $ 4,756 $ 4,939 $ MISC. $ 285,337 $ 208,723 $ 228,499 $ 204,788 $ Expenditures $ (44,086) $ (92,962) $ (196,517) $ (37,337) $ Ending Fund Balance $ 1,170,905 $ 1,286,666 $ 1,318,647 $ 1,486,099 $ Exclude Advance to RDA: $ (654,000) $ (654,000) $ (654,000) $ (654,000) $ Ending Balance of available Revenu $ 516,905 $ 632,666 $ 664,647 $ 832,099 $ Advance Part II - Compliance with expending funds within 5 years Five Year Revenue Test Usina 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 Notes: 2013-2014 2014-2015 $ 285,337 $ 208,723 $ 191,033 $ 285,337 $ 40,535 $ 138,606 2015-2016 $ 228,499 $ 208,723 $ 227,426 $ 516,905 $ 632,666 $ $ $ $ $ 2017-2018 1,486,099 158,147 12,274 170,421 1,656,520 (654,000) 1,002,520 2016-2017 2017-2018 204,788 $ 170,421 228,499 $ 204,788 208,723 $ 228,499 190,089 $ 208,723 $ 198,639 664,647 $ 832,099 $ 1,011,070 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. 3 3 3 rrr RESOLUTION'::NO. 2018-94 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 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 Beginning Balance $ 2,230,150 $ 1,910,752 $ 1,924,124 $ 2,079,961 $ 1,997,999 Developer Fees $ 12,740 $ 7,020 $ 143,080 $ 37,030 $ 7,330 Interest $ 8,573 $ 6,352 $ 12,757 $ 11,695 $ 21,852 $ 21,313 Reimbursed from CVAG Reimbursed from RDA $ 13,372 $ 155,837 $ 48,725 $ 29,182 Expenditures $ (340,711) $ Transfers out Ending Fund Balance $ 1,910,752 $ 1,924,124 $ 2,079,961 $ Part II - Compliance with expending funds within 5 years Five Year Revenue Test Usina First In First Out $ $ (130,687) $ (434,324) (a) 1,997,999 $ 1,592,857 2013-2014 2014-2015 2015-2016 2016-2017 Current $ 21,313 $ 13,372 $ 155,837 $ 48,725 $ Prior Year (2-Yrs Old) $ 17,307 $ 21,313 $ 13,372 $ 155,837 $ Prior Year (3-Yrs Old) $ 39,711 $ 17,307 $ 21,313 $ 13,372 $ Prior Year (4-Yrs Old) $ 44,922 $ 39,711 $ 17,307 $ 21,313 $ Prior Year (5-Yrs Old) $ 141,697 $ 44,922 $ 39,711 $ 17,307 $ Greater Than 5 Prior FY $ 1,440,332 $ 1,582,029 $ 1,626,951 $ 1,535,975 $ Ending Balance $ 1,705,282 $ 1,718,654 $ 1,874,491 $ 1,792,529 $ 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 $ 1,910,752 $ 1,924,124 $ 2,079,961 $ 1,997,999 $ Ending Balance Capital Projects Carryover Total Projects FY 2018-2019 Commitments Gerald Line 36Ford Drive Drainage Project cost est. $4.4 million, will use this fund if there is any $ White Stone Lane Drainga $ 80,000 $ 80,000 Line 4 Drainage Preliminary Engineering $ 450,000 $ 450,000 Deep Canyon Storm Drain Extension, south of Hwy 111 $ 1,500,000 $ 1,500,000 $ 2,030,000 2017-2018 29,182 48,726.00 155, 837.07 13,372.00 21,313.00 (1 ) 1,118, 958 (1 ) 1,387,388 105,235 100,235 1,592,858 % Funded with Available Dev. Fee Date 12% On going 100% On going 100% On going 100% On going Notes: (1) The Drainage Fees are being held beyond the five years as described by A61600. 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) FY17-18 Expenditures Details: Line 4 Drainage Preliminary Engineering Mountain View Drainage Improvements Bursera and Thrush Drainage Improvements Deep Canyon Storm Drain Extension, south of Hwy 111 Amount $ 91,082 $ 242,815 $ 1,620 $ 98,807 $ 434,324 RESOLUTION NO. 2018-94 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 2013-2014 2014-2015 Beginning Balance $ 1,205,130 $ Developer Fees $ 183,614 $ 80,679 $ Refund Developer Fees Interest $ 4,751 $ 3,895 $ $ 1,188,167 $ 188,365 $ 84,574 $ Insurance reimb. playground SARDA reimb shade structure Expenditures $ (171,402) $ Transfers out Ending Fund Balance $ 1,205,130 $ Exclude Insurance reimb: Insurance reimb. playground $ (33,570) $ Reimburse playground equipment $ (164,713) $ Insurance reimb. damage $ (159,113) $ SARDA reimb shade structure Ending Balance $ 847,734 $ Part II - Compliance with expending funds within 5 years Five Year Revenue Test Usina First In First Out 2013-2014 Current $ 188,365 Prior Year (2-Yrs Old) $ 35,477 Prior Year (3-Yrs Old) $ 6,168 Prior Year (4-Yrs Old) $ 78,073 Prior Year (5-Yrs Old) $ 42,757 Greater Than 5 Prior FY $ 496,894 $ 847,734 2015-2016 2016-2017 1,103,892 $ 1,305,355 $ 302,145 $ 314,438 $ $ 7,781 $ 7,761 $ 309,926 $ 322,199 $ $ 15,896 (185,812) $ (108,463) $ (195,279) $ (66,700) (a) 1,103,892 $ 1,305,355 $ 1,448,171 $ 1,416,407 2017-2018 1,448,171 24,179 (7,125) 17,882 34,936 (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) 746,496 $ 947,959 $ 1,074,879 $ 1,043,115 2014-2015 $ 84,574 $ 188,365 $ 35,477 $ 6,168 $ 78,073 $ 353,839 $ 746,496 FY 2017-18 Capital Projects Carryover Projects Pickleball Lighting Installation $ 100,000 Pavilion Lighting Improve (prev skate park) $ Planter Upgrade (more planters) $ 75,000 $ No Sphere Regional 20 +/- acre Park (2) 2015-2016 $ 309,926 $ 84,574 $ 188,365 $ 35,477 $ 6,168 $ 323,449 $ 947,959 Future Years FY 2018-2019 Commitments 25,000 50,000 $ 150,000 $ 1,000,000 Notes: (1) The Park & Recreation Fee being held beyond the five years as described by AB1600. (2 ) This fee is being collected for the purpose of development of the 20 +/- acre regional park located in the City and additional recreational facilities to serve the community. The total estimated cost is in excess of $8 (a) FY17-18 Expenditures Details: Comm Garden Planter Upgrade Skate Park Conversion to Pavilion 3 3 2016-2017 2017-2018 $ 322,199 $ 34,936 $ 309,926 $ 322,198 $ 84,574 $ 309,926 $ 188,365 $ 84,574 $ 35,477 $ 188,365 (1 ) $ 134,338 $ 103,115 (1 ) $ 1,074,879 $ 1,043,114 Funding Total % Funded with Available Commitments Dev. Fee Date $ 100,000 100% On going $ 25,000 100% On going $ 275,000 100% On going $ 1,000,000 100% On going $ 1,400,000 north sphere of the million. Amount 62,000 4,700 66,700 3 RESOLUTION NO. 2018-94 ..w Section F - Traffic Signalization Fee (Fund 234) Brief description of the type of fee in the fund: Ill■r 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 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 Beginning Balance $ 552,772 $ 307,428 $ 247,310 $ 351,020 $ 389,674 1^ her Developer Fees $ 131,617 $ 16,688 $ 101,711 $ 36,566 $ 16,512 Interest Income $ 1,761 $ 1,034 $ 1,999 $ 2,088 $ 4,912 Intergov't revenue and Misc. $ 133,378 $ 17,722 $ 103,710 $ 38,654 $ 21,424 Expenditures $ (378,722) $ (77,840) $ $ $ (780) (a) Transfers out Ending Fund Balance $ 307,428 $ 247,310 $ 351,020 $ 389,674 $ 410,318 Part II - Compliance with expending funds within 5 years Five Year Revenue Test Usina First In First Out 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 Current $ 133,378 $ 17,722 $ 103,710 $ 38,654 $ 21,424 Prior Year (2-Yrs Old) $ 163,472 $ 133,378 $ 17,722 $ 103,710 $ 38,654 Prior Year (3-Yrs Old) $ 10,578 $ 96,210 $ 133,378 $ 17,722 $ 103,710 Prior Year (4-Yrs Old) $ 96,210 $ 133,378 $ 17,722 Prior Year (5-Yrs Old) $ 96,210 $ 228,808 Greater Than 5 Prior FY Ending Balance $ 307,428 $ 247,310 $ 351,020 $ 389,674 $ 410,318 Capital Projects Funding FY 2016-17 Future Years Total % Funded with Available Carryover Projects FY 2017-2018 Commitments Commitments Dev. Fee Date Traffic Signal Hardware Upgrade $ 50,000 $ 25,000 $ 75,000 100% On going Traffic Signal Modification - El Paseo at San Luis Rey Aver $ 150,000 $ 150,000 100% On going $ 225,000 (a) FY17-18 Expenditures Details: Advantec Consulting Engineers Amount I $ 780 I $ 780 j RESOLUTION NO. 2018-94 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 $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 1 - Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Balance Developer Fees Interest Income 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 $ 828,093 $ 935,663 $ 978,856 $ 1,032,024 $ 1,073,087 $ 104,243 $ 40,023 $ 46,779 $ 35,141 $ $ 3,327 $ 3,170 $ 6,389 $ 5,922 $ $ 107,570 $ 43,193 $ 53,168 $ 41,063 $ Expenditures $ $ Transfers out Ending Fund Balance $ 935,663 $ 978,856 $ 1,032,024 $ Part II - Compliance with expending funds within 5 years Five Year Revenue Test Usina First In First Out 2013-2014 Current $ 107,570 Prior Year (2-Yrs Old) $ 89,129 Prior Year (3-Yrs Old) $ 41,479 Prior Year (4-Yrs Old) $ 52,924 Prior Year (5-Yrs Old) $ 29,955 Greater Than 5 Prior FY $ 614,606 Ending Balance $ 935,663 Capital Projects 2014-2015 $ 43,193 $ 107,570 $ 89,129 $ 41,479 $ 52,924 $ 644,561 $ 978,856 21,766 13,318 35,084 1,073,087 $ 1,108,171 2015-2016 2016-2017 $ 53,168 $ 41,063 $ $ 43,193 $ 53,168 $ $ 107,570 $ 43,193 $ $ 89,129 $ 107,570 $ $ 41,479 $ 89,129 $ $ 697,485 $ 738,964 $ $ 1,032,024 $ 1,073,087 $ FY 2016-17 Future Years Total Carryover Projects Commitments Commitments North Sphere Fire Station(2) $ 1,000,171 $ 75,000 $ 1,075,171 2017-2018 35,084 41,063 53,168 43,193 107,570 (1 ) 828,093 (1 ) 1,108,171 % Funded with Funding Dev. Fee Available Date 30% On going Notes: (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 estimated to cost $10,680,000. 3 3