City of Fontana
Annual Report on Development Impact Fees
Fiscal Year Ended June 30, 2022
Background
The Mitigation Fee Act, Government Code Section 66000 et seq., (the “Act”) governs the establishment and administration of development impact fees paid by new development projects for public facilities needed to serve new development. Fees must be separately accounted for and used for the specific purpose for which the fee was imposed. The City’s adopted development impact fees are listed in the attached exhibits. Expenditures are authorized through the annual Operating Budget and the City’s Capital Improvement Program.
Annual Development Fee Reporting
The Act requires that the City prepare an annual review of all development impact fees as defined in the Act and make a public report on the fees available to the public after the end of each fiscal year. Government Code Section 66006(b)(2) requires the report to be placed on an agenda for review at a public meeting not less than 15 days after the report is made available to the public.
The City is also required to adopt by resolution certain findings for any fund accounts which contain unexpended funds as of the fifth fiscal year following the first deposit into those funds (Government Code Section 66001(d)).
The report is organized as follows:
Section 1. A brief description of the purpose of each development impact fee, its authorizing legislation and current amount (Government Code Section 66006(b)(1)(A)).
Section 2. A summary of the beginning fund balance, annual fee revenue collected and interest earned, public improvement expenditures, and the ending fund balance for each fee (Government Code Section 66006(b)(1)(C) and (D)).
Section 3. A five -year history of the beginning fund balance, annual fee revenue collected and interest earned, public improvement expenditures, and the ending fund balance for each fee (Government Code Section 66006(b)(1)(C) and (D)).
Section 4. A listing of projects funded or to be funded with development impact fees.
Section 5. Report of Findings for each fee.
SFDU Retail Office Industrial
620 San Sevaine Flood Control Drainage facility improvements 90-34 $4,405 $4,405 $4,405 $4,405 $4,405 $4,405 621 Upper Etiwanda Flood Control Drainage facility improvements 90-34 $9,790 $9,790 $9,790 $9,790 $9,790 $9,790 SFDU Retail Office Industrial
622 Storm Drainage - Declez North Master interceptor drains & major drainage facilities 2021-094 $23,970 $23,970 $23,970 $23,970 $23,970 $23,970 622 Storm Drainage - Declez South Master interceptor drains & major drainage facilities 2021-094 $28,460 $28,460 $28,460 $28,460 $28,460 $28,460 622 Storm Drainage - Fontana East Master interceptor drains & major drainage facilities 2021-094 $14,594 $14,594 $14,594 $14,594 $14,594 $14,594 622 Storm Drainage - I-10 North Master interceptor drains & major drainage facilities 2021-094 $20,959 $20,959 $20,959 $20,959 $20,959 $20,959 622 Storm Drainage - I-10 South Master interceptor drains & major drainage facilities 2021-094 $5,138 $5,138 $5,138 $5,138 $5,138 $5,138 622 Storm Drainage - I-15 North Master interceptor drains & major drainage facilities 2021-094 $19,599 $19,599 $19,599 $19,599 $19,599 $19,599 622 Storm Drainage - Lower Etiwanda Master interceptor drains & major drainage facilities 2021-094 $8,565 $8,565 $8,565 $8,565 $8,565 $8,565 622 Storm Drainage - Middle Etiwanda Master interceptor drains & major drainage facilities 2021-094 $7,144 $7,144 $7,144 $7,144 $7,144 $7,144 622 Storm Drainage - Project 3-4 Master interceptor drains & major drainage facilities 2021-094 $17,188 $17,188 $17,188 $17,188 $17,188 $17,188 622 Storm Drainage - Upper Etiwanda Master interceptor drains & major drainage facilities 2021-094 $9,266 $9,266 $9,266 $9,266 $9,266 $9,266 SFDU 0-2 3+ Retail Office Industrial
630 Circulation Mitigation Arterial street and interchange improvements 2021-094 $5,895 $3,608 $3,608 $8,850 $7,160 $3,610 SFDU 0-2 3+ Retail Office Industrial
630 Local Transportation Street, sidewalks and pathways 2021-094 $815 $774 $815 $0.223 $0.223 $0.065 630 Local Arterials Local four-lane arterials 2021-094 $456 $433 $456 $0.124 $0.124 $0.036 630 Traffic Signals Local traffic signals 2021-094 $141 $135 $141 $0.039 $0.039 $0.011 631 Fire Assessment Fire protection facilities 2021-094 $380 $360 $380 $0.104 $0.104 $0.030 632 General Government Public facilities 2021-094 $458 $435 $458 $0.125 $0.125 $0.037 633 Landscape Improvements Median landscaping 2021-094 $287 $273 $287 $0.078 $0.078 $0.023 634 Library Cap Improvements Library facilities 2021-094 $102 $97 $102 $0.028 $0.028 $0.008 635 Park Development Park and recreational facilities 2021-094 $6,819 $6,478 $6,819 N/A N/A N/A 636 Police Cap Facilities Police facilities, vehicles and equipment 2021-094 $486 $461 $486 $0.133 $0.133 $0.039 698 Affordable Housing Inclusionary housing 2021-094 $1,388 $677 $677 $1.660 1,15 $0.120 SFDU 0-2 3+ Retail Office Industrial
702 Sewer Capital Sewer connection 2021-094 $902.00 $902.00 $902.00 $902.00 $902.00 $902.00 Brief Description and Amount of Fees
City of Fontana
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2022
Government Code Section 66006(b)(1)(A) and (B)
Fund # Fund Description Fee Description Last Updated Residential Fees per Gross Acre Non-Residential Fees per 1,000 Gross Building SF
Non-Residential Fees per 1,000
Gross Building SF
Fund # Fund Description Fee Description Last Updated
Residential Fees per Net Developable
Acre
Non-Residential Fees per 1,000
Gross Building SF
Fund # Fund Description Fee Description Last Updated Residential Fees per Dwelling Unit Non-Residential Fees per EDU
Fund # Fund Description Fee Description Last Updated Residential Fees per Dwelling Unit Non-Residential Fees per Building SF
Fund # Fund Description Fee Description Last Updated Residential Fees per Dwelling Unit Section 1
Beginning
Balance
Ending
Balance
07/01/21 06/30/22
620 Flood Control - San Sevaine 579,435 977,357 3,324 (96,861) (13,400) 1,449,855 621 Flood Control - Etiwanda 46,973 0 159 0 0 47,132
622 Storm Drain 15,843,084 4,373,223 62,884 (1,207,621) (123,000) 18,948,570 630 Circulation Mitigation 7,696,915 10,055,943 129,083 (821,496) (181,500) 16,878,945 631 Fire Facility 637,971 340,822 2,341 0 (291,749) 689,385 632 Public Facilities 11,327,524 1,025,717 39,091 0 0 12,392,332 633 Median Landscaping 5,582,394 658,150 19,063 (101,908) (46,900) 6,110,798 634 Library Facility 1,020,693 285,160 3,859 (87,070) 0 1,222,642 635 Park Development 5,120,626 2,299,536 19,519 (1,452,261) (219,300) 5,768,120 636 Police Facilities 3,582,959 640,651 12,511 (521,396) (4,600) 3,710,125 698 Affordable Housing 5,656,571 1,497,365 13,790 (1,546,090) 0 5,621,635 702 Sewer Connection 2,457,842 336,864 2,305 510,640 (602,191) (9,100) 2,696,361 TOTALS 59,552,987 22,490,787 307,929 510,640 (6,436,893) (889,549) 75,535,901 City of Fontana
Fiscal Year Ended June 30, 2022
Fund Balances, Fees Collected, Interest Earned, and Project Expenditures Government Code Section 66006(b)(1)(C) and (D)
Annual Report
Development Impact Fees
Cost
AllocationFund DescriptionFund Fees
Collected
Interest
Earned
Other
Revenues
Capital
Expenditures
Section 2
Fee Type 2021/22 2020/21 2019/20 2018/19 2017/18
Flood Control - San Sevaine (620)
Beginning balance 579,435 461,015 364,953 367,042 427,838 Revenue 977,357 216,918 186,943 84,164 36,357
Interest 3,324 1,880 15,862 19,395 4,902
Other revenue
Capital (96,861) (86,578) (92,743) (92,748) (88,555)
Cost allocation (13,400) (13,800) (14,000) (12,900) (13,500) Ending balance 1,449,855 579,435 461,015 364,953 367,042 Flood Control - Etiwanda (621)
Beginning balance 46,973 46,925 45,840 44,339 44,167
Revenue 0 0 0 0 0
Interest 159 48 1,085 1,501 172
Other revenue
Capital
Cost allocation
PPA - fees owed to County
Ending balance 47,132 46,973 46,925 45,840 44,339
Storm Drain (622)
Beginning balance 15,843,084 14,963,962 13,634,637 13,996,233 14,883,896 Revenue 4,373,223 3,529,070 2,440,966 2,001,556 3,440,409 Interest 62,884 22,156 389,307 485,316 68,478
Other revenue
Capital (1,207,621) (2,381,903) (1,011,048) (2,347,468) (3,896,450) Cost allocation (123,000) (290,200) (489,900) (501,000) (500,100) Ending balance 18,948,570 15,843,084 14,963,962 13,634,637 13,996,233 Circulation Mitigation (630)
Beginning balance 7,696,915 102,964 (3,481,614) (10,281,237) (17,703,078) Revenue 10,055,943 8,680,924 5,049,189 7,147,782 8,319,008 Interest 129,083 64,926 563,486 777,028 171,515
Other revenue
Capital (821,496) (1,024,499)
(1,953,097) (1,030,387) (582,082)
Cost allocation (181,500) (127,400) (75,000) (94,800) (486,600) Ending balance 16,878,945 7,696,915 102,964 (3,481,614) (10,281,237) Government Code Section 66006(b)(1)(C) and (D)
Annual Report
Development Impact Fees
City of Fontana
Fiscal Year Ended June 30, 2022
Fund Balances, Fees Collected, Interest Earned, and Project Expenditures - Five Year History Section 3
Fee Type 2021/22 2020/21 2019/20 2018/19 2017/18
Government Code Section 66006(b)(1)(C) and (D)
Annual Report
Development Impact Fees
City of Fontana
Fiscal Year Ended June 30, 2022
Fund Balances, Fees Collected, Interest Earned, and Project Expenditures - Five Year History Fire Facility (631)
Beginning balance 637,971 719,932 856,721 757,475 681,581 Revenue 340,822 235,012 155,707 383,204 374,921
Interest 2,341 655 16,863 24,203 2,246
Other revenue
Capital 0 0 (309,359) (308,161) (301,273)
Cost allocation (291,749) (317,628) 0 0 0
Ending balance 689,385 637,971 719,932 856,721 757,475
Public Facilities (632)
Beginning balance 11,327,524 10,110,789 9,127,783 7,335,477 5,859,593 Revenue 1,025,717 1,202,606 757,037 1,536,608 1,448,836 Interest 39,091 14,729 225,969 260,171 27,048
Other revenue
Capital 0 0 0 (4,473) 0
Cost allocation 0 (600) 0 0 0
Ending balance 12,392,332 11,327,524 10,110,789 9,127,783 7,335,477 Median Landscaping (633)
Beginning balance 5,582,394 5,809,267 5,612,257 4,263,188 3,018,876 Revenue 658,150 536,533 454,735 1,263,373 1,266,082
Interest 19,063 6,607 133,565 153,935 7,845
Other revenue
Capital (101,908) (760,214) (386,590) (64,939) (26,815) Cost allocation (46,900) (9,800) (4,700) (3,300) (2,800) Ending balance 6,110,798 5,582,394 5,809,267 5,612,257 4,263,188 Library Facility (634)
Beginning balance 1,020,693 475,855 248,297 1,540,128 1,349,342 Revenue 285,160 567,217 328,919 325,570 274,470
Interest 3,859 2,321 9,639 40,187 4,337
Other revenue
Capital
(87,070) 0 (100,000) (1,653,088) (88,021)
Cost allocation 0 (24,700) (11,000) (4,500) 0
Ending balance 1,222,642 1,020,693 475,855 248,297 1,540,128 Section 3
Fee Type 2021/22 2020/21 2019/20 2018/19 2017/18
Government Code Section 66006(b)(1)(C) and (D)
Annual Report
Development Impact Fees
City of Fontana
Fiscal Year Ended June 30, 2022
Fund Balances, Fees Collected, Interest Earned, and Project Expenditures - Five Year History Park Development (635)
Beginning balance 5,120,626 5,533,262 6,366,089 5,666,657 7,492,576 Revenue 2,299,536 1,645,189 1,274,558 1,846,002 1,540,875 Interest 19,519 4,200 148,523 202,231 37,364
Other revenue
Capital (1,452,261) (1,906,824) (1,827,208) (1,220,901) (3,372,058) Cost allocation (219,300) (155,200) (428,700) (127,900) (32,100) Ending balance 5,768,120 5,120,626 5,533,262 6,366,089 5,666,657 Police Facilities (636)
Beginning balance 3,582,959 2,907,816 2,509,702 1,929,674 1,684,357 Revenue 640,651 767,821 418,738 664,646 603,263
Interest 12,511 5,343 63,840 70,807 5,986
Other revenue
Capital (521,396) (80,321) (39,064) (145,925) (363,932) Cost allocation (4,600) (17,700) (45,400) (9,500) 0
Ending balance 3,710,125 3,582,959 2,907,816 2,509,702 1,929,674 Affordable Housing (698)
Beginning balance 5,656,571 4,772,171 3,974,083 3,221,282 2,489,821 Revenue 1,497,365 876,809 710,496 639,198 724,205
Interest 13,790 7,591 87,592 113,603 7,256
Other revenue
Capital (1,546,090) 0 0 0 0
Cost allocation 0 0 0 0 0
Ending balance 5,621,635 5,656,571 4,772,171 3,974,083 3,221,282 Sewer Connection (702)
Beginning balance 2,457,842 2,242,168 2,099,980 1,726,495 1,482,070 Revenue 336,864 325,729 281,127 501,363 361,600
Interest 2,305 3,774 10,159 6,023 0
Other revenue 510,640 509,039 506,564 516,974 522,434
Loan proceeds
Loan repayment (416,115) (416,115) (416,115) (416,115) (416,115) Capital (186,076) (198,753) (213,647) (227,160) (213,194) Cost allocation (9,100) (8,000) (25,900) (7,600) (10,300) Ending balance 2,696,361 2,457,842 2,242,168 2,099,980 1,726,495 Section 3
Flood Control - San Sevaine (620) 0
See Findings
Flood Control - Etiwanda (621) 0
See Findings
Storm Drain (622) 5,804,815
0001 DUNCAN SD: I 15 - CITRUS 2023 2,950 2,950 2,950 0 100% 3346 LIME AVENUE BASIN 2022 50,000 50,000 872 49,128 100% 3347 SULTANA @ MILLER BASIN 2022 100,000 100,000 872 99,128 100% 3361 CYPRESS STORM DRAIN 2022 16,356,715 8,116,715 2,460,156 5,656,559 50% Circulation (630) 26,006,416
Due to other funds for project funding 18,370,049
0002 W LIBERTY PARKWAY/ MILLER TS 2022 829,884 44,884 0 44,884 5% 3281 SIERRA: FOOTHILL - BASELINE 2022 19,093,064 6,128,874 1,074,687 5,054,187 32% 3333 FOOTHILL: HEMLOCK - ALMERIA 2024 13,209,000 619,530 612,515 7,015 5% 3350 ETIWANDA/SLOVER 2022 13,151,299 3,146,196 660,379 2,485,817 24% 3378 SIERRA: SUMMIT TO I15 ROW 2021 400,000 128,400 83,936 44,464 32% Fire Facility (631) 23,125,000
Due to Bondholders 23,125,000
Public Facilities (632) 0
Projects
Government Code Section 66006(b)(1)(E)
City of Fontana
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2022
Project # Project % From Dev
Impact Fees
Expended
Development
Impact Fees
Budgeted
Development
Impact Fees
Project
Completion
Total Project
Cost
Pending DIF
Expenditures
Section 4
Projects
Government Code Section 66006(b)(1)(E)
City of Fontana
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2022
Project # Project % From Dev
Impact Fees
Expended
Development
Impact Fees
Budgeted
Development
Impact Fees
Project
Completion
Total Project
Cost
Pending DIF
Expenditures
Median Landscaping (633) 4,482,689
0004 SIERRA CREST LANDSCAPE PROJECT 2021 682,998 682,998 682,998 0 100% 0020 JURUPA AVE. LANDSCAPE MEDIAN 2024 2,890,000 2,890,000 174,092 2,715,908 100% 3361 CYPRESS STORM DRAIN 2022 16,356,715 1,900,000 133,219 1,766,781 12% Library Facility (634) 312,930
Due to General Fund 100,000
0034 LEWIS LIBRARY WALL 2022 300,000 300,000 87,070 212,930 100% Park Development (635) 2,373,513
0003 SOUTHRIDGE DOG PARK 2023 47,515 47,515 47,515 0 100% 0010 McDERMOTT PARKING LOT 2022 2,500,000 520,000 20,000 500,000 21% 0019 SOUTHRIDGE DOG PARK 2023 607,025 107,025 25,057 81,968 18% 4250 SOUTH FONTANA SPORTS PARK 2023 19,087,150 2,330,000 1,207,761 1,122,239 12% 4249 CENTRAL CITY PARK 2022 12,808,230 4,082,733 3,413,427 669,306 32% Police Facilities (636) 1,123,366
0021 PD FENCE ON SIVILLE AVE 2022 431,000 431,000 27,097 403,903 100% 2029 POL LOBBY/MTG ROOM REMODEL 2022 335,830 302,410 78,422 223,988 90% 2040 CAPTAIN OFFICES REMODEL 2022 806,500 806,500 575,935 230,565 100% 4328 EOC POLICE LOBBY REMODEL 2022 2,310,790 300,000 35,091 264,909 13% Affordable Housing (698) 0
Sewer Connection (702) 2,891,914
Due to State Revolving loan for San Bernardino Trunk Sewer 2,891,914 Section 4
City of Fontana
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2022
Report of Findings
(Government Code Section 66001(d))
Section 5
San Sevaine Flood Control – Fund 620
The purpose of the fee, the relationship between the fee and the purpose, the sources of anticipated funding and the approximate dates on which funding is expected are set forth in the City’s most recent Capital Improvement Plan for Fiscal Years 20 21/2022 – 2027/2028, which is incorporated herein by reference. The San Sevaine Flood Control fee is a “pass -through” fee to the San Bernardino County Flood Control District (SBCFCD). The SBCFCD determines the project priorit ies and project expenditures and by agreement the SBCFCD will request a draw of funds on a project priority basis.
Fees are currently being accumulated and are on reserve for these SBCFCD projects.
Upper Etiwanda Flood Control – Fund 621
The purpose of t he fee, the relationship between the fee and the purpose, the sources of anticipated funding and the approximate dates on which funding is expected are set forth in the City’s most recent Capital Improvement Plan for Fiscal Years 20 21/2022 – 2027/2028, whi ch is incorporated herein by reference. The Upper Etiwanda Flood Control fee is a “pass-through” fee to the San Bernardino County Flood Control District (SBCFCD). The SBCFCD determines the project priorities and project expenditures and by agreement the SBCFCD will request a draw of funds on a project priority basis.
Fees are currently being accumulated and are on reserve for these SBCFCD projects.
Storm Drainage – Fund 622
The purpose of the fee, the relationship between the fee and the purpose, the sources of anticipated funding and the approximate dates on which funding is expected are set forth in the City’s most recent Capital Improvement Plan for Fiscal Years 20 21/2022 – 2027/2028, which is incorporated herein by reference.
Circulation Mitigation – Fund 630
The purpose of the fee, the relationship between the fee and the purpose, the sources of anticipated funding and the approximate dates on which funding is expected are set forth in the City’s most recent Capital Improvement Plan for Fiscal Years 2021/2022 – 2027/2028, which is incorporated herein by reference. Many of the projects funded with these fees are subject to a Measure I Agreement which identifies the City’s DIF share.
In order to move projects forward, funds have been borrowed from ot her sources. All circulation mitigation fees collected are obligated to repay those other sources.
City of Fontana
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2022
Report of Findings
(Government Code Section 66001(d))
Section 5
Fire Facility – Fund 631
The purpose of the fee, the relationship between the fee and the purpose, the sources of anticipated funding and the approximate dates on which funding is expected are set forth in the City’s most recent Capital Improvement Plan for Fiscal Years 20 21/2022 – 2027/2028, which is incorporated herein by reference. In order to fund the construction of Fire Station No. 71, the Fontana P ublic Financing Authority issued Taxable Recovery Zone Economic Development Bonds on December 8, 2010, in the amount of $5,420,000. These bonds were refinanced in October 2021 through the issuance of the City’s 2021A Lease Reven ue Bonds in the amount of $ 23,125,000 which will also fund Fire Stations No. 80 and 81 as well as the Fire Protection District Training Facility.
Bond debt service for Fiscal Year 202 2/23 is $1,395,400. Fire facility fees as available will be used to service this debt obligation, with any shortfall to be paid by the Fontana Fire Protection District.
Public Facilities – Fund 632
The purpose of the fee, the relationship between the fee and the purpose, the sources of anticipated funding and the approximate dates on which funding i s expected are set forth in the City’s most recent Capital Improvement Plan for Fiscal Years 20 21/2022 – 2027/2028, which is incorporated herein by reference.
Median Landscaping – Fund 633
The purpose of the fee, the relationship between the fee an d the purpose, the sources of anticipated funding and the approximate dates on which funding is expected are set forth in the City’s most recent Capital Improvement Plan for Fiscal Years 20 21/2022 – 2027/2028, which is incorporated herein by reference.
Library Facility – Fund 634
The purpose of the fee, the relationship between the fee and the purpose, the sources of anticipated funding and the approximate dates on which funding is expected are set forth in the City’s most recent Capital Improvement Plan f or Fiscal Years 20 21/2022 – 2027/2028, which is incorporated herein by reference.
Park Development – Fund 635
The purpose of the fee, the relationship between the fee and the purpose, the sources of anticipated funding and the approximate dates on which funding is expected are set forth in the City’s most recent Capital Improv ement Plan for Fiscal Years 20 21/2022 – 2027/2028, which is incorporated herein by reference.
City of Fontana
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2022
Report of Findings
(Government Code Section 66001(d))
Section 5
Police Facilities – Fund 636
The purpose of the fee, the relationship between the fee and the purpose, the sources of anticipated funding and the approximate dates on which funding is expected are set forth in the City’s most recent Capital Improvement Plan for Fiscal Years 20 21/2022 – 2027/2028, which is incorporated herein by reference.
Affordable Housing – Fund 698
The purpose of the fee, the relationship between the fee and the purpose, the sources of anticipated funding and the approximate dates on which funding is expected are set forth in the City’s most recent Capital Improvement Plan f or Fiscal Years 20 21/2022 – 2027/2028, which is incorporated herein by reference.
Sewer Connection – Fund 702
The purpose of the fee, the relationship between the fee and the purpose, the sources of anticipated funding and the approximate dates on which funding is expected are set forth in the City’s most recent Capital I mprovement Plan for Fiscal Years 20 21/2022 – 2027/2028, which is incorporated herein by reference. In order to fund the San Bernardino Trunk Sewer project, $8,322,304 was borrowed from t he State Revolving Loan Fund. The loan repayment is equal to $416,115 per year. Sewer connection fees are obligated for one-half of this annual repayment amount.