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Home My WebLink AboutResolution 2011-86 Annual Report of Calculation of Developer Impact FeesCITY OF PALM DESERT FINANCE DEPARTMENT STAFF REPORT REQUEST: Adopt Resolution No. 2011- 86 making certain findings relative to Government Code Section 66006, the Annual Report of calculation of Development Impact Fees for the City of Palm Desert Date: November 10, 2011 CONTENTS: Resolution making certain findings pursuant to Government Code Section 66001 Annual Report of Calculation of Government Code 66006 Capital Improvement Program 2011-2012 Recommendation: Receive public testimony on annual report and findings; and 2. Waive further reading and adopt Resolution No. 2011-86 relative to the Development Impact Report. Background: Following the passage of Proposition 13 in 1978, many cities began charging fees on new development to fund public improvements and services such as streets, traffic signals, parks, drainage, housing and art in public places. These fees are commonly known as development impact fees. In order to ensure that these fees were spent in a timely manner and on projects for which they were being collected, the State Legislature passed a bill known as AB 1600 (Mitigation Fee Act). This bill applies to developer fees, increased or imposed on or after January 1, 1989. AB 1600 enacts Government Code Sections 66000-66008 that generally contain four requirements: A local jurisdiction must follow the process set forth in the bill and make certain determinations regarding the purpose and use of the fees, and establish a "nexus" or connection between a development project or class of project and the public improvement being financed with the fee. 2. The fee must be segregated from the general fund in order to avoid commingling of public improvement fees and the general fund. 3. If a local jurisdiction has had possession of a developer fee for five years or more and has not committed that money to a project or actually spent that money, then it must make findings describing the continuing need for that money. In addition, an annual report must be made of fees collected, interest earned, projects on which fees were expended, and any transfers or loans from the fee account. This report is to be reviewed by the local agency assessing the fees. Staff Report Adopt a Resolution relative to Annual Report on Development Impact Fees November 10, 2011 Page 2 of 3 4. If a local jurisdiction cannot make the findings required under Paragraph 3, the City must refund the fees collected. The Transportation Uniform Mitigation Fee, Housing Mitigation, New Construction Tax, Drainage Facility, Fringe -toed Lizard, Park & Recreation Fee, Traffic Signalization Fee, Art in Public Places Fee, AIPP Maintenance, Child Care Facility and Fire Facility Fund fees that the City collects qualify as development impact fees. Therefore, these fees must comply with the above -referenced government code sections. Government Code Section 66001 requires the City to make available to the public certain information regarding development impact fees for each fund within 180 days after the end of the each fiscal year. Expenditures of the fees collected must occur within a five-year period. Attached to the staff report is a copy of the annual report reflecting the required information to conform to Government Code Sections 66001 and 66006. Originally when the fees were adopted the ordinance and staff reports contained the necessary Nexus findings to establish each of the fees. The fees are used to assist in handling the increased population affecting Palm Desert on our streets, traffic signals, parks, public facilities like City Hall, housing needs for low-income housing, public art and mitigation fees to protect environmental plants and wildlife due to new development. Each fee is held in a separate fund and the report shows the fees collected and interest earned along with the expenditures paid. Lastly, the report shows the fees collected in the five-year period and compares it to the fund balance to verify that the fees were spent within the designated timeframe. The following are the fees that exceeded the five-year expenditures test: Drainage Facility Fee, Child Care Facility and Fire Facility funds. All of these fees have current capital improvement budgeted projects (copy of capital budgets attached) which would bring the fees under the five-year test and will be spent within a year to two years dependent upon design as well as State and local issues. Drainage Facility Fee: The Drainage Facility Fee fund balance is $4,013,062 versus the five-year revenue collected of $1,266,261. This exceeds the five-year test by $2,746,801. We currently have a drainage facility master plan that indicates the various projects that the fee is being collected to build. Unfortunately, the cost of installation of these projects requires that a large fund balance be accumulated prior to implementing the capital budget and must also be timed with other improvements taking place around these capital projects. Future projects scheduled to draw down these funds below the five-year test is the extension of Portola Drainage, Country Club Drive, Frank Sinatra and Highway 111 for $6,788,993. Child Care Facility Fee: The Child Care Facility Fee fund balance is $1,489,707 versus the five-year revenue collected of $1,387,045. This exceeds the five-year test by $102,662. Staff is working with both Y.M.C.A. and College of the Desert to determine a workable site location to add a new child care facility within Palm Desert. Staff Report Adopt a Resolution relative to Annual November 10, 2011 Page 3 of 3 Fire Facility Fee: Report on Development Impact Fees The Fire Facility fee fund balance is $697,485 versus the five-year revenue collected of $567,120. This exceeds the five-year test by $130,365. Staff has located and acquired the land and has a preliminary site design to construct a new fire station. A new facility will not be added until the housing market and north portion of the City demonstrate a need for this station. Funds were budgeted for the new station through the Redevelopment Agency; however, all projects are on hold until the State lawsuit is settled. Staff recommends that City Council adopt a resolution to make the findings that we have complied with the five-year test under Government Code Section 66006. Attached is the resolution making the findings along with the Annual Report and a copy of the Capital Improvement Budget for FY 2011-2012. Fiscal Impact There is no fiscal impact associated with resolution adoption. Should the five-year deadline not be met, refunds would be due to a number of developers. Since these findings have been made and the City is in compliance with the Code, no refunds are required. Building Industry Association (BIA) has been provided a copy of this report. Su i ted By: Paul S. Gibson Director of Finance/City Treasurer David J. Erwin City Attorney Approval: � — n M. Wohlmuth Manager C1TVS4UNCILAPT10N APPROVED DENTED RECIJIVED-OTHER�� MEETI G DAT AYES: /n NOES: 0 IC ABSENT: 7 ABSTAIN: VERIFIED BY: Original on File with City Jerk's Office RESOLUTION NO. 2011- $6- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, TO MAKE CERTAIN FINDINGS PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 66001 WHEREAS, the City of Palm Desert is required to make certain findings every five years with respect to the unexpended fund balance of certain development fee funds pursuant to California Government Code Section 66001; and WHEREAS, the information to make the required findings can be found in the Annual Report Calculation, in the 2011-2012 Capital Improvement Program, the original ordinance adopting the fees filed with the City Clerk; and WHEREAS, the City Council has approved a master drainage plan, a general plan for parks and a regional traffic signal plan that demonstrates the purpose of the fee being charged; and WHEREAS, these findings need to be made in conjunction with the public information required in Code Section 66006. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: 1. That the above recitations are true and correct. 2. That the following findings are made as required under the Government Code Section 66006: a. That the purpose to which the developer fee is to be put has been identified. b. That a reasonable relationship has been demonstrated between the fee and the purpose for which it is charged. c. That all sources and amounts of funding anticipated to complete financing on incomplete improvements have been identified. d. That the approximate dates on which the funding referred to above is expected to be deposited into the appropriate fund have been designated. Page 1 of 2 Resolution No. 2011- 86 3. That these findings are based on information provided in the City of Palm Desert Annual Development Impact Report, Operating Budget and Capital Improvement Program 2011-2012 and master plans for improvements, which is incorporated herein by reference. PASSED, APPROVED AND ADOPTED at the regular meeting of the Palm Desert City Council held on this 10th day of November 2011, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: JEAN M. BENSON, MAYOR RACHELLE KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 2 of 2 Annual Report of Calculation of Government Code 66006 Development Impact Fees for the City of Palm Desert for Fiscal Year ending June 30, 2011 Government Code Section 66006 requires local agencies to submit annual and five-year compliance reports detailing the status of development impact fees. The annual report must be made available to the public and presented to the public agency (City Council) at least fifteen days after it is made available to the public. This report summarizes the following information for each of the development fee programs: 1. A brief description of the fee program. 2. Schedule of fees. 3. Beginning and ending balances of the fee program. 4. Amount of fees collected and the interest earned. 5. Disbursement information and percentage funded by fees, including operating transfers. 6. Five year compliance testing of unexpended fees and future capital project commitments to expend the funds. The fee programs included in this report are the following: Section A — Transportation Uniform Mitigation Fee Section B — Housing Mitigation Fee Section C — New Construction Tax Fee Section D — Drainage Facility Fee Section E — Fringe -toed Lizard Fee/ MSHCP Section F — Park & Recreation Fee Section G — Traffic Signalization Fee Section H —Art In Public Places Fee Section I—A.I.P.P. Maintenance Fund Section J — Child Care Facility Fund Section K — Fire Facility Fund Page 1 of 12 Section A — Transportation Uniform Mitigation Fee (T.U.M.F.) The TUMF program is collected by the City and administered by the Coachella Valley Association of Governments (CVAG). The City of Palm Desert collects the fee based on an ordinance adopted by City Council based on type of building usage and vehicles generated by the residential or commercial activity on city streets. The fee is remitted to CVAG on a monthly basis to be disbursed regionally for street widening projects determined yearly through the CVAG Capital Project Program Budget. The fee for residential building is $1,837.44, and all commercial buildings are based on the attached formula and data sheet schedule which varies from project to project (per the established ordinance). Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Fiscal Year Ending Account Description Fund Balance 2010-11 Fund Balance Revenues & Other Sources: Developer Fee $269,770 Interest Income Contributions Transfers In Total Sources 269,770 Expenditures & Other Uses: Capital Projects (Paid to CVAG) 269,770 Transfers Out Total Uses 269,770 Total Available - 0 - - 0 - - 0 - Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2011 Revenues Collected from FY 2010-2011 269,770 Total Ending Fund Balance - 0 - Result: Five-year spent test met in accordance With Government Code Section 66001 Capital Improvement Projects FY 2010-2011 % Complete % Funded with Fee CVAG Payments 269,770 100% 100% Page 2 of 12 Section B— Housing Mitigation Fee (Fund 214) The Housing Mitigation Fee is used to mitigate the low-income housing impacts caused by commercial and industrial development through constructing or providing low-income housing assistance to Palm Desert residents. An annual and five-year Low-income Housing Needs Report/Plan is compiled to assess the needs within the city. The fee is based on $1/sq. ft. — Commercial; $0.33/sq. ft. — Industrial; $0.40/sq. ft. — Professional; $1,000/room — Resort Hotel; and $620/Room Non -resort. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Fiscal Year Ending Account Description Fund Balance 2010-11 Fund Balance Revenues & Other Sources: Developer Fee 15,759 Interest Income 32,406 Contributions (State Grant) Neighbor 325,531 Stabilization Program 210,000 Transfers In Note Receivable Total Sources 583,696 Expenditures & Other Uses: Capital Projects 302,088 Transfers Out to Low -Income Housing Total Uses 302,088 Total Available 2,129,102 281,605 2,410,710 Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2011 Revenues Collected from FY 2006-2007 1,064,110 Revenues Collected from FY 2007-2008 1,214,744 Revenues Collected from FY 2008-2009 2,309,418 Revenues Collected from FY 2009-2010 175,553 Revenues Collected from FY 2010-2011 583,696 Total Ending Fund Balance 2,410,710 Result: Five-year spent test met in accordance with Government Code Section 66001 (Two-year balance Capital Improvement FY 2010-2011 Five-year % Funded with Fee Projects Future Commitments Low -Income Housing 302,088 Working on Design & 100% Project (Falcon/La Land Purchase Rocca Apartments) 500,000 Page 3 of 12 Section C — New Construction Tax Fee (Fund 231) The New Construction Tax Fee is used for acquisition and development of public facilities such as playgrounds, public structures, and street improvements. The City Council annually approves a five-year Capital Improvement Budget that reflects current projects along with future committed projects utilizing these fees. The fee for Industrial Buildings is $0.05/sq. ft.; Residential units' fee is $0.40/sq. ft.; all other development $0.40/sq. ft. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Fiscal Year Ending Account Description Fund Balance 2010-11 Fund Balance Revenues & Other Sources: Developer Fee 129,262 Interest Income 19,549 Prior Yr Adjustment Transfers In from General Fund -LOAN Total Sources 148,811 Expenditures & Other Uses: Capital Projects 147,151 Transfers Out Total Uses 147,151 Total Available 1,122,373 1,660 1,124,033 Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2011 Revenues Collected from FY 2006-2007 597,098 Revenues Collected from FY 2007-2008 344,582 Revenues Collected from FY 2008-2009 398,829 Revenues Collected from FY 2009-2010 112,873 Revenues Collected from FY 2010-2011 148,811 Total Ending Fund Balance 1,124,033 Result: Five-year spent test met in accordance with Government Code 66001 (Two-year balance) Capital Improvement FY 2010-2011 Five-year % Funded with Fee Projects Future Commitments ADA Retrofit 89,151 100% Parking Lot 58,000 100% *Repayment of General 433,650 100% Fund 350,000 100% Sheriff Substation 70,000 100% PS Art Museum 100,000 20% ADA Curb Page 4 of 12 Section D — Drainage Facility Fee (Fund 232) The Drainage Facility Fee is used for planned local drainage created by a development and adjoining streets to the project. The City has adopted a master drainage plan which is modified as new development occurs. In addition, the five-year City Capital Improvement Budget includes both current and future projects planned for use of the fees connected to the various development projects. Fees are based upon the drainage map zone within which they are located: 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 through the Public Works Department upon request. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Account Description Beginning Fund Balance Fiscal Year 2010-11 Ending Fund Balance Revenues & Other Sources: Developer Fee Interest Income Contributions from CVAG 7,050 37,872 205,470 Total Sources 250,392 Expenditures & Other Uses: Capital Projects 1,668,228 Total Uses 1,668,228 Total Available 5,430,898 1,417,836 4,013,062 Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2011 Revenues Collected from FY 2006-2007 395,204 Revenues Collected from FY 2007-2008 310,925 Revenues Collected from FY 2008-2009 168,043 Revenues Collected from FY 2009-2010 141,697 Revenues Collected from FY 2010-2011 250,392 Total=1,266,261 Total Ending Fund Balance 4,013,062-1,266,261=2,746,801 Result: Five-year spent test is over the limit by $2,746,801. However, City has budgeted capital projects ($4,936,811) well above the excess that will be completed within 24 months from 6130/11 which will comply with Government Code 66001. Capital Improvement FY 2010-2011 Five-year % Funded with Fee Projects Future Commitments Portola Ave Drainage 100% North Sphere - Drainage (ADA) 1,852,188 100% Country Club Drive 210,470 1,741,605 -Const. 100% Frank Sinatra/Portola 1,457,758 3,095,200 -Const. 100% Hwy 111 Non -State 100,000 -Design 100% Page 5 of 12 Section E — Fringe -toed Lizard Fee / Wildlife Mitigation (MSHCP) This fee is collected in connection with environmental agreements relative to endangered plants and wildlife with State and Federal environmental agencies. The fee is collected, placed into a Trust, and remitted monthly to the Center for Natural Lands Management to be used to acquire open space land for various plants and wildlife preserves. The new fee is $1,284 per acre. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Fiscal Year Ending Account Description Fund Balance 2009-10 Fund Balance Revenues & Other Sources: Developer Fee 82,870 Interest Income Contributions Transfers In Total Sources 82,870 Expenditures & Other Uses: Capital Projects 82,870 (paid to CV Conservation) Transfers In Total Uses 82,870 Total Available - 0 - - 0 - - 0 - Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2011 Revenues Collected from FY 2006-2007 - 0 - Revenues Collected from FY 2007-2008 - 0 - Revenues Collected from FY 2008-2009 - 0 - Revenues Collected from FY 2009-2010 - 0 - Revenues Collected from FY 2010-2011 - 0 - Total Ending Fund Balance - 0 - Result: Five-year spent test met in accordance With Government Code Section 66001 Capital Improvement FY 2010-2011 Five-year % Funded with Fee Projects Future Commitments Payment to Coachella 82,870 -0- 100% Valley Conservation Committee Page 6 of 12 Section F — Park & Recreation Fee (Fund 233) The fee is used to acquire land, construct parks and recreational areas, open space, and other public facilities for city residents. The City Council annually adopts a five-year Capital Improvement Plan detailing the current and future projects necessary for use of the fee. The fee is only charged to residential properties based on the following formula: Number of units x 2.292 (people per household) x 5 acres 1000 (population) x land market value per acre. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Fiscal Year Ending Account Description Fund Balance 2010-11 Fund Balance Revenues & Other Sources: Developer Fee 67,305 Interest Income 10,768 Contributions (Insurance Settlement) Transfers In Total Sources 78,073 Expenditures & Other Uses: Capital Projects 437,933 Transfers In Total Uses 437,933 Total Available 1,755,053 359,860 1,395,193 Part II — rmmnlinnr_p with Fxnendinn Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2011 Revenues Collected from FY 2006-2007 1,896,904 Revenues Collected from FY 2007-2008 210,664 Revenues Collected from FY 2008-2009 226,960 Revenues Collected from FY 2009-2010 42.757 Revenues Collected from FY 2010-2011 78,073 Total Ending Fund Balance 1,395,193 Result: Five-year spent test met in accordance With Government Code 66001 1 Years) Capital Improvement Projects FY 2010- Five-year % Funded 2011 Future with Fee Commitments *Civic Center Amphitheater & Park Improvements 170,601 209,860 100% New Community Center Design 50% Hiking Trail 25% Park Improvements (various parks) 880,000 50% All Playground Upgrade to meet new ADA Mid Valley Parkway bike path 267,332 Aquatic Center Page 7 of 12 Section G — Traffic Signalization Fee (Fund 234) The fee is used for acquisition and development of the regional traffic signals in Palm Desert created by increase traffic load added by the development. The City Council annually 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 as follows: Residential $50 per unit; Commercial $500 per 1,000 sq. ft.; Industrial $500 per acre. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Fiscal Year Ending Account Description Fund Balance 2010-11 Fund Balance Revenues & Other Sources: Developer Fee 6,484 Interest Income 4,425 Contributions 129,587 Transfers In Total Sources 140,496 Expenditures & Other Uses: Capital Projects 328,463 Transfers Out (Traffic Signal payout of Measure A Fund — Reimbursement for Traffic Signals Total Uses 328,463 Total Available 725,250 187,967 537,283 Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2011 Revenues Collected from FY 2006-2007 374,812 Revenues Collected from FY 2007-2008 137,663 Revenues Collected from FY 2008-2009 70,972 Revenues Collected from FY 2009-2010 38,342 Revenues Collected from FY 2010-2011 140,496 Total Ending Fund Balance Result: Five-year spent test met in accordance 537,283 With Government Code 66001 (3 1/2 Years) Capital Improvement FY 2010-2011 Five-year % Funded with Fee Projects Future Commitments Frank Sinatra 237,352 100% Fred Waring Modification 1,171 100% Signal Coordination 89,940 783,426 100% Page 8 of 12 Section H — Art In Public Places Fee (Fund 436) The fee is used to acquire, develop, install and maintain artwork to be displayed in the city (City owned land), the administration of the program and community public art education programs. The City has an Art in Public Places committee that meets monthly to decide both location and type of art that will be placed throughout the City. Developers may choose to place and develop art within their project site without paying a fee to the City. Yearly the City Council adopts a five- year Capital Improvement Plan and administration plan detailing the current and future projects necessary for use of the fee. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Fiscal Year Ending Account Description Fund Balance 2010-11 Fund Balance Revenues & Other Sources: Developer Fee 38,068 Interest Income 14,856 Contributions 133 Total Sources 53,273 Expenditures & Other Uses: Capital Projects/Administration of Project 438,175 Transfers Out — AIPP Maint Fund per Ord -0- Total Uses 438,175 Total Available 2,098,556 (384,902) 1,713,654 Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2011 Revenues Collected from FY 2006-2007 923,567 Revenues Collected from FY 2007-2008 412,842 Revenues Collected from FY 2008-2009 378,299 Revenues Collected from FY 2009-2010 122,440 Revenues Collected from FY 2010-2011 53,273 Total Ending Fund Balance 1,71.3.654 Result: Five-year spent test met in accordance With Government Code 66001 (3 Years Capital Improvement FY 2010-2011 Future Commitments % Funded with Fee Administration 277,769 60% Prof. Arch itectu re/Eng 4,848 100% Art Work —El Paseo 57,425 100% Art/Placement/Purchase 55,256 100,000 100% AIPP Maintenance 1% 42,877 100% Page 9 of 12 Section I — A.I.P.P. Maintenance Fund (Fund 240) A portion of the Art in Public Places fee is used to cover the annual maintenance of all art placed in Palm Desert public locations. The City of Palm Desert placed General Fund cash within the fund in the amount of $300,000 to be used as a loan in order to have funds available to adequately maintain the Artwork until sufficient funds are collected to cover the yearly costs. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Fiscal Year Ending Account Description Fund Balance 2010-11 Fund Balance Revenues & Other Sources: Developer Fee Interest Income Contributions (Damage Restitution) Transfers In -0- Total Sources -0- Expenditures & Other Uses: Maintenance of Art Work -0- Transfers Out Total Uses -0- Total Available -0- -0- -0- Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2011 Loan from General Fund — Transfer In $300,000 Loan from General Fund Revenues Collected from FY 2010-2011 Total Ending Fund Balance -0- Result: Five-year spent test met in accordance With Government Code 66001 Capital Improvement Projects FY 2010-2011 Five-year Future Commitments % Funded with Fee Maintenance of Art -0- 100% Page 10 of 12 Section J — Child Care Facility Fund 228 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 City Council in August 2005. Yearly, the City adopts a budget to use these funds to create new facilities and equipment. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Fiscal Year Ending Account Description Fund Balance 2010-11 Fund Balance Revenues & Other Sources: Developer Fee 19,232 Interest Income 10,613 Contributions Transfers In Total Sources 29,845 Expenditures & Other Uses: Design, Construction & Equip 105,818 (Wallaroo) Transfers Out Total Uses 105,818 Total Available 1,565,680 (75,973) 1,489,707 Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2011 Loan from General Fund — Transfer In Revenues Collected from FY 2006-2007 766,590 Revenues Collected from FY 2007-2008 257,680 Revenues Collected from FY 2008-2009 212,717 Revenues Collected from FY 2009-2010 120,213 Revenues Collected from FY 2010-2011 29,845 Total Ending Fund Balance 1,489,707 Result: Five-year spent test met in accordance With Government Code 66001 Five ears Capital Improvement FY 2010-2011 Five-year % Funded with Fee Projects Future Commitments Land Purchase(Spanish) 100,923 1,340,000 (Land & New Fac) 100% Wallaroo Center 4,895 Attempting to locate land and facility to acquire. Page 11 of 12 Section K — Fire Facility Fund (235) The City of Palm Desert is interested in providing funding, through impact fees, for new Fire Station and equipment in order to meet the needs of 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 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. Yearly, 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 Fiscal Year Ending Account Description Fund Balance 2010-11 Fund Balance Revenues & Other Sources: Developer Fee 48,460 Interest Income 4,465 Contributions Transfers In Total Sources 52,925 Expenditures & Other Uses: Design, Construction & Equipment -0- Total Uses - Total Available 644,560 52,925 697,485 Part II — Compliance with Expending Funds within Five Years Five-year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2011 Loan from General Fund — Transfer In Revenues Collected from FY 2006-2007 235,604 Revenues Collected from FY 2007-2008 118,306 Revenues Collected from FY 2008-2009 130,326 Revenues Collected from FY 2009-2010 29,954 Revenues Collected from FY 2010-2011 52,925 Total Ending Fund Balance 697,486 Result: Five-year spent test met in accordance With Government Code 66001 (Five-year balance) Capital Improvement FY 2010-2011 Five-year % Funded with Fee Projects Future Commitments New Fire Station - 0 - 3,504,271 50% Land Purchase 100% Land acquired, preliminary design complete, awaiting development prior to building facility. City budget could not support new facility. Page 12 of 12 Martinez, Gloria From: Moeller, Charlene [CMOELLER@palmspri.gannett.com] Sent: Wednesday, October 12, 2011 2:32 PM To: Martinez, Gloria Subject: RE: Legal Notice - PH 11/10/2011 Developer Impact Fee Annual Report Ad received and will publish on date(s) requested. Charlene Moeller I Media Sales Legal Notice Coordinator The Desert Sun Media Group 750 N. Gene Autry Trail, Palm Springs, CA 92262 t 760.778.4578 1 f 760.778.4731 legals a thedesertsun.com dIwlegals(cthedesertsun.com The Coachella Valley's #1 Source in News & Advertising! www.in}des rt.corn (Witter acebook This email and any files transmitted with it are confidential and intended for the individual to whom they are addressed. If you have received this email in error, please notify the sender and delete the message frorn your system From: qmartinez cit of a�lmdesert.org [mailtogmartinez @city almdesert.oral Sent: Wednesday, October 12, 2011 2:31 PM To: tds-legals Cc: norte a(a)cit ofi)almdesert.org Subject: Legal Notice - PH 11/10/2011 Developer Impact Fee Annual Report Charlene, Please disregard the previous request in reference to Developer Impact Fee. The Public Hearing date changed therefore the publication dates did as well. The new notice is attached and below are the new publication dates. PLEASE PUBLISH THE FOLLOWING: NOTICE OF PUBLIC HEARING Public Hearing Relative to Annual Report of Developer Impact Fee TWICE IN THE DESERT SUN Thursday, October 27, 2011 Thursday, November 3, 2011 If you have any questions or require additional information, please call. LEGAL NOTICE CITY OF PALM DESERT PUBLIC HEARING RELATIVE TO ANNUAL REPORT OF DEVELOPER IMPACT FEE NOTICE IS HEREBY GIVEN that a Public Hearing will be held before the Palm Desert City Council to consider filing a report and resolution on developer impact fees as of June 30, 2011. SAID PUBLIC HEARING will be held on Thursday, November 10, 2011, 4:00 p.m. in the Council Chamber of the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert. All citizens are invited to present oral or written comments relative to the proposed impact fee report. Any citizen unable to attend may submit written comments to the City Clerk prior to the Public Hearing. Copies of the report may be reviewed at the Civic Center, Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m. RA HELLE D. KLASSE , CITY CLERK CITY OF PALM DESERT, CALIFORNIA (760) 346-0611 October 12, 2011