06 Attachment 1 - FY2223 Annual Status Report on Receipt and Use of Development Impact FeesATTACHMENT 1
TOWN OF LOS GATOS
ANNUAL STATUS REPORT ON RECEIPT AND USE OF DEVELOPMENT IMPACT FEES
JUNE 30, 2023
Traffic Impact Mitigation Fee:
The Traffic Impact Mitigation Fee assures that each new development or expansion of use pays
its fair share of the transportation improvements needed to accommodate the cumulative
traffic impacts. The fee, $1,104 per new average daily trip generated, is paid in full to the Town
Building Department prior to issuance of the building permit for new development or
expansion of use. The collected fee is held in the Traffic Mitigation Fee Fund. The Traffic
Mitigation Fund should be used solely to fund transportation improvement projects related to
mitigating the impacts of new development. The funds cannot be used for routine repair or
maintenance.
Beginning Cash Balance (07/01/2022)2,094,740
Source of Funds
Fees Collected FY 22/23 9,582
Interest Earned FY 22/23 25,509
Total Source of Funds $2,129,831
Use of Funds
Capital Outlay:
Traffic Signal Modernization (42% of the Project's Estimated Life-Time Cost)90,088.34
Hwy 17 Capacity Improvement (41% of the Project's Estimated Life-Time Cost)600,000.00
Traffic Mitigation - Admin Support (100% of FY 2022/23 Expenditures)10,000
Total Use of Funds $700,088
Expenses Incurred in FY 2021/22 , Paid in July of FY 2022/23 (193,307)
Expenses Incurred in FY 2022/23, Paid in July of FY 2023/24 6,521
Ending Cash Balance (6/30/2023) Pre-Final Audit $1,242,956
Designated Future Projects:
Per FY 23/24 through 27/28 Capital Improvement Plan:
Shannon Road Pedestrian and Bikeway Improvements (6% of Total Project Costs)$133,380
Traffic Signal Modernization (42% of the Project Estimated Life-Time Cost)196,238
Town-wide Speed Study 80,000
Total CIP and Operating Budget Commitments $196,238
Potential Project List (Estimates Only)
Shannon Road Stabilization Project (Future Project - Pending Funding)$2,900,000
Kennedy Road Sidewalk and Bikelanes (Future Project- Pending Funding)$1,300,000
Total Potential Project List $4,200,000
Total Designated and Unfunded Projects $4,396,238
Current Funding Shortfall ($3,153,282)
TRAFFIC IMPACT MITIGATION FEES FUND
TOWN OF LOS GATOS
ANNUAL STATUS REPORT ON RECEIPT AND USE OF DEVELOPMENT IMPACT FEES JUNE 30, 2023 (Continued)
Construction Impact Activity Fee:
Construction Impact Activity Fee is assessed on construction projects based on the square foot
size of the project at a rate of $1.43 per square foot. These fees are intended to recover the
damage caused to Town streets by construction traffic. The collected fee is held in the General
Fund Appropriated Reserves.
Beginning Cash Balance (07/01/2022)$0
Source of Funds
Fees Collected FY 22/23 181,533
Interest Earned FY 22/23 (Funds expended upon receipt)-
Total Source of Funds $181,533
Use of Funds
Business Services Charge
Capital Outlay:
Street Repair and Resurfacing Project FY 22/23 (FY 2022/23 Fees Collected Cover 6.0% of FY
2022/23 Expenditures)3,028,769
Total Use of Funds 3,028,769
Ending Cash Balance (6/30/2023) Pre-Final Audit ($2,847,236)
Designated Future Projects
Per FY 23/24 through 27/28 Capital Improvement Plan:
Street Repair and Resurfacing Project $7,583,197
Total Designated Future Projects $7,583,197
Current Funding Shortfall ($10,430,433)
CONSTRUCTION IMPACT ACTIVITY FEE
TOWN OF LOS GATOS
ANNUAL STATUS REPORT ON RECEIPT AND USE OF DEVELOPMENT IMPACT FEES JUNE 30, 2023 (Continued)
Below-Market Priced (BMP) Housing Program In-Lieu Fee:
BMP In-Lieu Fees are collected from residential development projects with five (5) or more
units when the construction of the BMP unit is impractical or there are unusual circumstances
that make the construction of the unit inconsistent with Town policy. The required in-lieu fee is
to be paid to the Town prior to issuance of the certificate of occupancy. The BMP In-Lieu Fee is
equal to the amount of six (6) percent of the building permit valuation for the entire project.
The collected fees are held in the General Fund BMP Housing liability account and are restricted
to be used solely for BMP Housing Program activities.
Beginning Cash Balance (07/01/2022)3,698,538
Source of Funds
Fees Collected FY 22/23 186,634
Interest Earned FY 22/23 41,276
Total Source of Funds 3,926,448
Use of Funds
Program Operating Expense (100% of FY 2022/23 Expenditures)182,168
Staff Administration (100% of FY 2022/23 Expenditures)23,000
Total Use of Funds 205,168
Ending Cash Balance (6/30/2023) Pre-Final Audit 3,721,280
Unavailable Source
Land Held for Resale 344,338
Total Cash Balance and Unavailable Source 4,065,618
Potential Future Projects
Low and Moderate Income Housing (Future Project - Pending Funding)3,000,000
Reacquisition of Distressed/Foreclosed Properties (Future Project - Pending Funding)700,000
Hello Housing and House Keys Program Services (Future Project - Pending Funding -5 Year Total)600,000
Total Potential Future Projects 4,300,000
Current Funding Shortfall (234,382)
BELOW-MARKET PRICED HOUSING PROGRAM IN-LIEU FEES
TOWN OF LOS GATOS
ANNUAL STATUS REPORT ON RECEIPT AND USE OF DEVELOPMENT IMPACT FEES JUNE 30, 2023 (Continued) Public Art Fee:
Los Gatos Public Art Fees are collected In lieu of installation of on-site public art, the developer
may elect to make a monetary contribution to the Los Gatos Public Arts Fund. The amount of
the contribution shall be the cost of the public art. A developer who elects to satisfy the
requirements of this Chapter through a contribution to the Fund must complete the payment
in-lieu prior to the issuance of any building permit for the development project. The Los Gatos
Public Art Funds may be used for the following purposes, including: acquisition, placement,
maintenance, and promotion of temporary and permanent art and art programs, including
visual or performing arts, as approved by the Arts and Culture Commission, on or in Town
owned, public property throughout the Town. Art works acquired through the Public Art Fund
shall be owned by the Town of Los Gatos and generally made accessible to the public. As of to
date there is no Public Art fee collected yet.
Other Required Disclosures:
As required by law, no inter-fund (loans/transfers) were made doing the reporting period and
no refund were necessary as all fees collected have a current funding short fall status as
presented in the Annual Status Report.