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HomeMy WebLinkAboutResolution 2012-74 - Development Impact Fees - Government Code Section 66001CITY OF PALM DESERT FINANCE DEPARTMENT STAFF REPORT Request: Adoption of Resolution No. 2012- 74 making certain findings pursuant to Government Code Section 66001 relative to the Annual Report of Calculation of Government Code Section 66006, Development Impact Fees for the City of Palm Desert Submitted by: Paul S. Gibson, Finance Director Date: November 15, 2012 Contents: Resolution making certain findings pursuant to Government Code Section 66001 Annual Report of Calculation of Government Code Section 66006 Capital Improvement Program FY 2011-2012 Recommendation By Minute Motion, that the City Council: Receive public testimony on annual report and findings; and 2. Adopt Resolution No. 2012- 74 making certain findings pursuant to California Government Code Section 66001 and 66006. 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. Staff Report Adoption of Resolution relative to Government Code Section 66001 — Development Impact Fees November 15, 2012 Page 2 of 4 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. 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, Coachella Valley Multiple Species Habitat Conservation Plan Fee, 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. The annual report attached hereto reflects the required information to conform to Government Code Sections 66001 and 66006. Originally when the fees were adopted the Ordinance/staff reports contained the necessary Nexus findings to establish each of the fees. The fees are used to assist the City 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 the 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 up to the five year requirement and compares it to the fund balance to verify that the fees were spent within those five years. The Building Industry Association (BIA) has been provided a copy of this report. The following are the fees that exceeded the five-year expenditures test: Drainage Facility Fee, Park and Recreation Fee, Traffic Signalization Fee, Art in Public Places, Child Care Facility and Fire Facility. 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 one to two years dependent on State, local and design issues. Drainage Facility Fee: The Drainage Facility Fee fund balance is $2,335,590 versus the five-year revenue collected of $910,768, and exceeds the five-year test by $1,424,822. 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 a large fund balance to be accumulated prior to implementing the capital budget and must also be timed with other improvements occurring around these capital projects. The future projects scheduled to draw down these funds below the five-year test are the extension of Portola Drainage, Country Club Drive, Fred Waring Drainage and Highway 111 for $2,341,241. Staff Report Adoption of Resolution relative to Government Code Section 66001 — Development Impact Fees November 15, 2012 Page 3 of 4 Park and Recreation Fee: The Park and Recreation Fee fund balance is $1,314,005 versus the five-year revenue collected of $564,621, and exceeds the five-year test by $749,384. We currently have a Committee that recommends the improvements needed for the various parks that the fee is being collected to build. The future projects scheduled to draw down these funds below the five-year test are the Civic Center park improvements, hiking trails modifications, all playground equipment upgrades to comply with new ADA standards, Mid -Valley parkway bike path and the Aquatic Center equipment. The total budgeted for the various projects is $1,204,001 which exceeds the excess five-year fund balance. Traffic Sianalization Fee: The Traffic Signalization fee fund balance is $575,262 versus the five-year revenue collected of $425,452, and exceeds the five-year test by $149,810. The future projects scheduled to draw down these funds below the five-year test are the Fred Waring and San Pasqual modification, Signal coordination, and vehicle speed feedback signs for at total of 956,306. Art in Public Places: The Art in Public Places fund balance is $1,508,341 versus the five-year revenue collected of $1,118,022, and exceeds the five-year test by $390,319. The future projects scheduled to draw down these funds, below the five-year test are the artwork on El Paseo, art purchases, maintenance of art pieces, and administrative costs to oversee projects, for a total of $500,000. Child Care Facility: The Child Care Facility fund balance is $1,510,641 versus the five-year revenue collected of $647,309, and exceeds the five-year test by $863,332. The future projects scheduled to draw down these funds below the five-year test are the purchase of land and creation of a new center for a total of $1,339,650. Fire Facility Fund: The Fire Facility fund balance is $738,963 versus the five-year revenue collected of $372,989, and exceeds the five-year test by $365,974. The future project scheduled to draw down these funds below the five-year test is the construction of a new fire station for which the land has been dedicated next to the UCR campus. The new station is estimated to cost approximately $6,000,000 with roughly 50% of the funds coming from this fee. Staff expects the fee to reach approximately $3,000,000 in 3 to 5 years, depending on development. The remaining balance of the station cost was originally budgeted from redevelopment funding prior to elimination of redevelopment agencies by the State. This elimination coupled with the housing construction slowdown has forced the City to wait for housing to be built in the north sphere prior to bidding the project. Staff recommends that City Council adopt a resolution finding that the City has complied with the five-year test under Government Code Section 66006. The attached resolution outlines the findings and should be utilized in conjunction with the Annual Report and the Capital Improvement Budget for FY 2011-2012. Staff Report Adoption of Resolution relative to Government Code Section 66001 — Development Impact Fees November 15, 2012 Page 4 of 4 Fiscal Analysis: Since these findings have been made and the City is in compliance with the Code, no refunds are required. There is no fiscal impact associated with the action. Submitted By: Paul S. Gibson Director of Finance/City Treasurer Approval: hlmuth, City Manager Dave Erwin, City Attorney CTTYCOUNCILA�TION APPROVED ' DENM L--' RECEIVED OTHER AYES: ' iril C4 NOES: AkIV ABSENT: ABSTAIN: VERIFIED BY: ' Original on File with City office RESOLUTION NO. 2012- 74 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 file with the City Clerk; and WHEREAS, the City Council has approved a master drainage plan, a general plan for parks and approved 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. 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 2012-2013 and master plans for improvements, which is incorporated herein by reference. RESOLUTION NO. 201274 - PASSED, APPROVED AND ADOPTED at the regular meeting of the Palm Desert City Council held on this 15th day of November, 2012, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA ROBERT A. SPIEGEL, MAYOR 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, 2012 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 Section A — Transportation Uniform Mitigation Fee (T.U.M.F.) The TUMF program is collected by the City and administer by the Coachella Valley Association of Government (CVAG). The City of Palm Desert collects the fee based on a Ordinance adopted by City Council based on type of building usage and vehicles generated by the residential or commercial activity on City streets. The City monthly remits the fee to C.V.A.G. to be disbursed on a regional basis for street widening projects determine yearly by CVAG Capital Project Program Budget. Fee for residential is $1837.44 and all commercial buildings are based on attached formula and data sheet schedule which varies from project to project (per ordinance) Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Fund 610-Trust Beginning Fiscal Year Ending Account Description Fund Balance 2011-12 Fund Balance Revenues & Other Sources: Developer Fee 171,564 Interest Income Contributions Transfers In Total Sources 171,564 Expenditures & Other Uses: Capital Projects (Paid to CVAG) 171,564 Transfers Out Total Uses 171,564 Total Available - 0 - - 0 - - 0 - Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2012 Revenues Collected From FY 2011-2012 171,564 Total Ending Fund Balance - 0 - Result: Five year spent test met in accordance With Government Code 66001 Capital Improvement Projects FY2011-2012 % Complete % Funded with Fee CVAG Payments 171,564 100% 100% Page 2 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. Used to help construct or provide low-income housing assistance with the City of Palm Desert residence. A yearly and five year Low Income Housing Needs Report/Plan is compile to access the needs within the City. 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 Fiscal Year Ending Account Description Fund Balance 2011-12 Fund Balance Revenues & Other Sources: Developer Fee 12,476 Interest Income 21,576 Contributions (State Grant) Neighbor 120,000 Stabilization Program Transfers In Note Rec. Total Sources 154,052 Expenditures & Other Uses: Capital Projects 24,538 Transfers Out to Low -Income Housing Total Uses 24,538 Total Available 2,410,710 129,514 2,540,224 Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2012 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 Revenues Collected From FY 2011-2012 154,052 Total Ending Fund Balance 2,540,224 Result: Five year spent test met in accordance With Government Code 66001 (2 Year Balance) Capital Improvement FY2011-2012 Five Year % Funded with Fee Projects Future Commitments Low Income Housing 24,538 Working on Design & 100% Project (Falcon/ La Land purchase Rocca Apartments) 500,000 Page 3 Section C — New Construction Tax Fee (Fund 231) The New Construction Tax Fee is used for acquisition and development of public facilities like playgrounds, public structures, and street improvements. Yearly the City Council 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 $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 2011-12 Fund Balance Revenues & Other Sources: Developer Fee 117,063 Interest Income 2,321 Prior Yr Adjustment Transfers In from General Fund -LOAN Total Sources 119,384 Expenditures & Other Uses: Capital Projects 51,105 Transfers Out Total Uses 51,105 Total Available 1,124,033 68,279 1,192,312 Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2012 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 Revenues Collected From FY 2011-2012 119,384 Total Ending Fund Balance 1,192,312* Result: Five year spent test met in accordance With Government Code 66001. (5 Year Balance includes General Fund loan Capital Improvement FY2011-2012 Five Year % Funded with Fee Projects Future Commitments ADA Retrofit 10,850 100% Parking Lot 40,255 100% *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 Section D — Drainage Facility Fee (Fund 232) The Drainage Facility Fee is used for planned local drainage created by the development and adjoining streets to the project. The City has adopted a master drainage plan which gets modify 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 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 with the public works department upon request. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Account Description Beginning Fund Balance Fiscal Year 2011-12 Ending Fund Balance Revenues & Other Sources: Developer Fee Interest Income Contributions fm CVAG 2,200 12,336 25,175 Total Sources 39,711 Expenditures & Other Uses: Capital Projects 1,717,183 Total Uses 1,717,183 Total Available 4,013,062 1,677,472 2,335,590 Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2012 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 Revenues Collected From FY 2011-2012 39,711 Total=$910,768 Total Ending Fund Balance 2,335,590-910,768=1,424,822 Result: Five year spent test over the limit by $1,424,822 however, City has Budgeted capital projects ($2,341,241) well above the excess that will be completed within 24 months from 6/30/12 which will comply with Government Code 66001. Capital Improvement FY2011-2012 Five Year % Funded with Fee Projects Future Commitments Fred WaringDrainage 385,084 Bid 100% North Sphere - Drainage (ADA) 360,000 -Design 100% Country Club Drive 50,350 1,496,157 -Const. 100% Frank Sinatra/Portola 1,666,833 100% Hwy 111 Non -State 100,000 -Design 100% Total=2,341,241 Page 5 Section E — Fringe Toed Lizard Fee / Wildlife Mitigation (MSHCP) This fee is collected in connection with environmental endanger plants & wildlife agreements with State and Federal environmental agencies. The fee is collected and placed into trust and remitted monthly to Center for Natural Lands Management to be used to acquire open space land to preserve for various plants and wildlife preserves. The new fee is $1284 per acre. Part 1 — Fund Balance, Revenue, Interest, Expenditures, Ending Balance Beginning Fiscal Year Ending Account Description Fund Balance 2011-12 Fund Balance Revenues & Other Sources: Developer Fee 65,017 Interest Income Contributions Transfers In Total Sources 65,017 Expenditures & Other Uses: Capital Projects 65,017 (paid to CV Conservation) Transfers In Total Uses 65,017 Total Available - 0 - - 0 - - 0 - Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2012 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 - Revenues Collected From FY 2011-2012 - 0 - Total Ending Fund Balance - 0 - Result: Five year spent test met in accordance With Government Code 66001 Capital Improvement FY2011-2012 Five Year % Funded with Fee Projects Future Commitments Payment to C. V. 65,017 -0- 100% Conservation Comm. Page 6 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 the city residents. 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 only charged to residential properties based on the following formula: Number of units x 2.292 (people per household) x 5 acres divided by 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 2011-12 Fund Balance Revenues & Other Sources: Developer Fee Interest Income 6,167 Contributions (Insurance Settlement) Transfers In Total Sources 6,167 Expenditures & Other Uses: Capital Projects 87,355 Transfers In Total Uses 87,355 Total Available 1,395,193 (81,188) 1,314,005, Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2012 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 Revenues Collected From FY 2011-2012 6,167 Total = 564,621 Total Ending Fund Balance 1,314,005-564,621=$749,384 Result: Five year spent test over the limit by $749,384 however, City has Budgeted capital projects ($1,204,001) well above the excess that will be completed within 24 months from 6/30/12 which will comply with Government Code 66001 Capital Improvement Projects FY2011-2012 Five Year % Funded (Completed in FY or Future Projects) Future with Fee Commitments *Civic Center Amphitheater & Park Improvements 11,518 283,123 -Const 50% New Community Center Design 50% Hiking Trail Park Improvements (Various Parks) 100% All Playground Upgrade to meet new ADA 6,474 920,878 Bids 25% Mid Valley Parkway Bike path 50% Aquatic Center 69,252 78,977 Encumb 100% Page 7 Section G — Traffic Signalization Fee (Fund 234) The fee is used for acquisition and development of the regional traffic signals within the City created by increase 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, E ding Balance Beginning Fiscal Year Ending Account Description Fund Balance 2011-12 Fund Balance Revenues & Other Sources: Developer Fee 7,738 Interest Income 2,297 Contributions -State Grant 38,248 Reimbursement fm Other Govt 15,299 Total Sources 63,584 Expenditures & Other Uses: Capital Projects 25,605 Transfers Out (Traffic Signal payout of Measure A Fund — Reimb for Traf Sig. Total Uses 25,605 Total Available 537,283 37,979 575,262 Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2012 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 Revenues Collected From FY 2011-2012 37,979 Total = 425,452 5 Yr Rev. Total Ending Fund Balance Result: Five year spent test over the limit by 575,262 — 425,452=$149,810 $149,810 however, City has Budgeted capital projects ($956,306) well above the excess that will be completed within 24 months from 6/30/12 which will comply with Government Code 66001 Capital Improvement FY2011-2012 Five Year % Funded with Fee Projects Future Commitments Frank Sinatra & GF 1,937 100% Portola & Frank 400 100% Fred Waring Mod 7,118 276,306 100% Signal Coordination 16,150 240,000 100% Accessible Ped. 300,000 100% Vehicle Speed Feedb 140,000 100% Page 8 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 2011-12 Fund Balance Revenues & Other Sources: Developer Fee 144,110 Interest Income 6,842 Contributions 216 Total Sources 151,168 Expenditures & Other Uses: Capital Projects/Administration of Project 356,481 Transfers Out — AIPP Maint Fund per Ord -0- Total Uses 356,481 Total Available 1,713,654 205,313 1,508,341 Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2012 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 Revenues Collected From FY 2011-2012 161,168 Total = 1,118,022 Total Ending Fund Balance 1,508,341-1,118,022 = $390,319 Result: Five year spent test over the limit by $390,319 however, City has Budgeted capital projects ($500,000) well above the excess that will be completed within 24 months from 6/30/12 which will comply with Government Code 66001 Capital Improvement FY2011-2012 Future Commitments % Funded with Fee Administration 283,716 300,000 60% Prof. Arch itectu re/Eng 4,795 100% Art Work —El Paseo 50,000 100% Art 16,845 100,000 100% /Placement/Purchase 51,123 50,000 100% AIPP Maint of ART Page 9 Section I — A.I.P.P. Maintenance Fund (Fund 240) A portion of the Art in Public Places fee is used to cover the yearly maintenance of all the art placed within the City on public places. The City of Palm Desert placed General Fund cash within the fund of a sum of $300,000 to be used as a loan to have sufficient funds 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 2011-12 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 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2012 Loan From General Fund — Transfer In Revenues Collected From FY 2011-2012 Total Ending Fund Balance -0- Result: Five year spent test met in accordance With Government Code 66001 Capital Improvement Projects FY2011-2012 Five Year Future Commitments % Funded with Fee Maintenance of Art -0- 100% Page 10 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 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 2011-12 Fund Balance Revenues & Other Sources: Developer Fee 20,557 Interest Income 6,297 Contributions Transfers In Total Sources 26,854 Expenditures & Other Uses: Design, Construction & Equip 5,920 (Wallaroo) Transfers Out Total Uses 5,920 Total Available 1,489,707 20,934 1,510,641 Part II — Compliance with expending funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2012 Loan From General Fund — Transfer In 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 Revenues Collected From FY 2011-2012 26,854 Total = $647,309 Total Ending Fund Balance 1,510,641-647,309= $863,332 Result: Five year spent test over the limit by $863,332 however, City has Budgeted capital projects ($1,339,650) well above the excess that will be completed within 24 months from 6/30/12 which will comply with Government Code 66001 Capital Improvement FY2011-2012 Five Year % Funded with Fee Projects Future Commitments Land 1,339,650 (Land & Design 100% Purchase(Spanish) 5,920 of New Facility) Bermuda Dunes Portola Attempting to locate land and facility to acquire. Page 11 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 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. 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 2011-12 Fund Balance Revenues & Other Sources: Developer Fee 38,447 Interest Income 3,031 Contributions Transfers In Total Sources 41,478 Expenditures & Other Uses: Design, Construction & Equipment -0- Total Uses - Total Available 697,485 41,478 738,963 Part II — Com liance with expendinq funds within 5 Years Five Year Revenue Test Using First In First Out Method Unspent Funds Represents Ending Fund Balance June 30, 2012 Loan From General Fund —Transfer In 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 Revenues Collected From FY 2011-2012 41,478 Total = 372,989 Total Ending Fund Balance 738,963 — 372,989 = 365,974 Result: Five year spent test over the limit by $365,974 however, City has Budgeted capital projects ($6,000,000) well above the excess that will be completed within 24 months from 6/30/12 which will comply with Government Code 66001 Capital Improvement FY2011-2012 Five Year % Funded with Fee Projects Future Commitments New Fire Station - 0 - 6,000,000 Upon 50% Housing built in North Sphere Land acquired, preliminary design complete, awaiting development prior to building facility. City budget could not support new facility. Page 12