Development Impact Fees Status ReportDATE:
TO:
FROM:
COUNCIL AGENDA REPORT
DECEMBER 8, 2014
MAYOR AND TOWN COUNCIL -
GREG LARSON, TOWN MANAGER
MEETING DATE: 12/16/14
ITEM NO: S
SUBJECT: ACCEPT FY 2013/14 STATUS REPORT ON RECEIPT AND USE OF
DEVELOPMENT IMPACT FEES
RECOMMENDATION:
Accept FY 2013/14 status report on receipt and use of development impact fees.
BACKGROUND:
In order to ensure that mitigation fees associated with development are spent in a timely manner
and on projects for which they were being collected, the State Legislature passed a bill known as
AB 1600 (The Mitigation Fee Act). This bill applies to developer fees which were increased or
imposed on or after January 1, 1989.
The Mitigation Fee Act (California Government Code, § 66000 et seq.) requires local agencies
that impose development impact fees to present an annual, consolidated report showing the
receipt and use of those fees. The Annual Status Report (Attachment 1) must be reviewed by
Council within 180 days after the close of the fiscal year represented.
The Town collects three development impact fees that meet the AB 1600 reporting requirement,
the Traffic Impact Mitigation Fee, Below- Market Priced Housing Program In -Lieu Fees, and the
Construction Activity Impact Fee. Separate balances exist for each of these fees either as
individual accounts or in the case of Traffic Impact Mitigation Fees, separate funds. As of June
30, 2014 all accounts or funds with unspent balances have been credited interest revenue at the
Town's current interest rate earned on its total investment portfolio.
DISCUSSION:
AB 1600 Requires that a status report be prepared annually which must include the following:
• A brief description of the fee and the fund into which the fee was deposited;
PREPARED BY: STEP . C NWAY
Administrative Services and Finance Director
Reviewed by: 1.P Assistant Town Manager fil d�jown Attorney Finance
N:\MGR\AdminWorkFiles\2014 Council Reports\Dec 16 \12 -16 -14 AB 1600 2014 Report.doc
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ACCEPT FY 2013/14 STATUS REPORT ON RECEIPT AND USE OF
DEVELOPMENT IMPACT FEES
DECEMBER 8, 2014
DISCUSSION (cont'd):
• The amount of the fee;
• The associated fund's beginning and ending balances for the fiscal year;
• The total amount of fees collected and interest earned;
• Identification of each public improvement on which impact fees were expended and
amount of expenditure on each improvement, including the total percentage of the cost of
the public improvement that was funded with impact fees;
• Identification of approximate date by which construction of a public improvement will
begin;
• Determination that sufficient funds have been collected to complete financing on an
incomplete public improvement;
• Description of each inter -fund transfer or loan made from the account or fund, including
the public improvement on which the loaned funds will be expended, and in the case of
an inter -fund loan, the date on which the loan will be repaid and the rate of interest that
the account or fund will receive on the loan; and
• Amount of any refunds made due to inability to expend impact fees once a determination
is made that sufficient impact fees have been collected to finance a public improvement,
and the improvement remains incomplete, and the City has not determined an
approximate date by which construction will begin.
This information is presented in the attached FY 2013 /14 Annual Status Report on Receipt and
Use of Development hnpact Fees.
CONCLUSION:
Staff recommends Council receive and file the FY 2013/14 Annual Status Report on Receipt and
Use of Development Impact Fees as required under the Mitigation Fee Act (AB 1600).
ENVIRONMENTAL ASSESSMENT:
The recommended action is not a project defined under CEQA, and no further action is required.
Attachments:
1. FY 2013 /14 Annual Status Report on Receipt and Use of Development Impact Fees.
TOWN OF LOS GATOS
ANNUAL STATUS REPORT ON RECEIPT AND USE OF DEVELOPMENT IMPACT FEES
JUNE 30, 2014
TRAFFIC IMPACT MITIGATION FEES FUND
Beginning FundBalaace (7 /01/2013\
Some of Funds
Fees Collected FY 13/14
$2 ,399,546
923,059
Interest Famed FY 13/14 52,194
Use ofDinds
Capital Outlay :
Wmchester/KnowIcs
W inches ter /Lark intersection
$423,563
21,981
Highway 9/University Intersection 6,588
Project Overhead Business Service Charge 1,679
Total Use of blinds 4453.Rl l
Ending Cash Balance (7/01/2014) Pre -Flnal Audit
$2,920,988
Designated Future Projects:
Per FY 14/15 through 19/20 Capital Improvement Plan:
Winchester lark Intersection hmprovements
237,060
Highway 9/ University Avenue hrguovments
837,122
Los Cams Boulevard /Shannon hnprovements
20,000
Los Gatos Boulevard/lark Avenue Improvements
174,299
BiussomFLll Road/Cherry Avenue Intersection hupvts
500,000
Town Digital Aehal PhotogmphyTopogmphic Map
42,000
Monument Control Network Upgrade
10,000
Intersection Safety and Traffic Flow hmprovements
40,000
Admin istration and Program Support
50,000
Total CB' and Operating Budget Commitments
$1,910,481
Potential Project 13st (Estimates Only) per Unfunded List
Union Avenue Widening
$3,000,000
Los Gatos Boulevard Widening
1,400,000
BlossomFIdl Road Bridge W ideniag
3,500,000
$7 ,900,000
Current Funding Shortfall ($6,889,493)
ATTACHMENT 1
CONSTRUCTION IMPACT ACTIVITY FEE
Beginning FundBalance (7/01/2013\
$0
Source of Funds
Fees Collected FY 13/14
656,881
Interest Famed FY 13/14 (Funds expended upon receipt)
Total Source ofFlmth
$656,881
Use of Funds
Business Services Charge
- Capitaloutlay :
Street Repair and Resurfacing Project FY 13/14 $656,881
Ending Fund Balance (7 /01/2014) Pre -Final Audit $0
Per FY 14/15 through 19/20 Capital Improvement Plan:
Street Repair and Resurfacing Project $2,525,000
Total Projects $2,525,000
Current Funding Shortfall ($2,525,000)
BELOW-MARKET PRICED HOUSING PROGRAM IN-LIEU FEES
Beginning FundBalance (7/01/2013)
Source of Funds
Fees Collected FY 13/14
Return fmm Escrow on Foreclosed Properties 13/14
$1,797,855
469,665
369,683
lutemst Famed FY 13/14 35,187
Total Source of Funds $2,672,390
Use of Funds
StaffAd®inistmtion $13,000
Total Use of Funds $13,000
Ending FundBalunce (7/01 /2014) Pre -Final Audit $2,659,390
Potential Futum Projects
Eareme Low laconic Housing Program $1,100,000
Reacquisition of Distressed/Foreclosed Properties 500,000
Neighborhood Housing ProgmniServices (5 Year Total) 1,100,000
Total Projects $2,700,000
Current Funding Shortfall ($40,610)