City of Fontana
Annual Report on Development Impact Fees
Fiscal Year Ended June 30, 2023
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 2022-065 $27,182 $27,182 $27,182 $27,182 $27,182 $27,182 622 Storm Drainage - Declez South Master interceptor drains & major drainage facilities 2022-065 $32,274 $32,274 $32,274 $32,274 $32,274 $32,274 622 Storm Drainage - Fontana East Master interceptor drains & major drainage facilities 2022-065 $16,550 $16,550 $16,550 $16,550 $16,550 $16,550 622 Storm Drainage - I-10 North Master interceptor drains & major drainage facilities 2022-065 $23,768 $23,768 $23,768 $23,768 $23,768 $23,768 622 Storm Drainage - I-10 South Master interceptor drains & major drainage facilities 2022-065 $5,827 $5,827 $5,827 $5,827 $5,827 $5,827 622 Storm Drainage - I-15 North Master interceptor drains & major drainage facilities 2022-065 $22,226 $22,226 $22,226 $22,226 $22,226 $22,226 622 Storm Drainage - Lower Etiwanda Master interceptor drains & major drainage facilities 2022-065 $9,713 $9,713 $9,713 $9,713 $9,713 $9,713 622 Storm Drainage - Middle Etiwanda Master interceptor drains & major drainage facilities 2022-065 $8,102 $8,102 $8,102 $8,102 $8,102 $8,102 622 Storm Drainage - Project 3-4 Master interceptor drains & major drainage facilities 2022-065 $19,492 $19,492 $19,492 $19,492 $19,492 $19,492 622 Storm Drainage - Upper Etiwanda Master interceptor drains & major drainage facilities 2022-065 $10,508 $10,508 $10,508 $10,508 $10,508 $10,508 SFDU 0-2 3+ Retail Office Industrial
630 Circulation Mitigation Arterial street and interchange improvements 2022-065 $6,685 $4,092 $4,092 $10,030 $8,120 $4,090 SFDU 0-2 3+ Retail Office Industrial
630 Local Transportation Street, sidewalks and pathways 2022-065 $925 $878 $925 $0.253 $0.253 $0.073 630 Local Arterials Local four-lane arterials 2022-065 $518 $492 $518 $0.141 $0.141 $0.041 630 Traffic Signals Local traffic signals 2022-065 $160 $154 $160 $0.044 $0.044 $0.013 631 Fire Assessment Fire protection facilities 2022-065 $431 $409 $431 $0.118 $0.118 $0.034 632 General Government Public facilities 2022-065 $520 $494 $520 $0.142 $0.142 $0.042 633 Landscape Improvements Median landscaping 2022-065 $326 $310 $326 $0.089 $0.089 $0.026 634 Library Cap Improvements Library facilities 2022-065 $116 $110 $116 $0.031 $0.031 $0.009 635 Park Development Park and recreational facilities 2022-065 $7,733 $7,347 $7,733 N/A N/A N/A 636 Police Cap Facilities Police facilities, vehicles and equipment 2022-065 $552 $523 $552 $0.150 $0.150 $0.044 698 Affordable Housing Inclusionary housing 2022-065 $1,574 $768 $768 $1.880 $1.310 $0.150 SFDU 0-2 3+ Retail Office Industrial
702 Sewer Capital Sewer connection 2022-065 $1,023.00 $1,023.00 $1,023.00 $1,023.00 $1,023.00 $1,023.00 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 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 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
Brief Description and Amount of Fees
City of Fontana
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2023
Section 1
Beginning
Balance
Ending
Balance
07/01/22 06/30/23
620 Flood Control - San Sevaine 1,403,656 626,722 2,714 (87,935) (13,670) 1,931,487 621 Flood Control - Etiwanda 45,557 0 358 0 0 45,915
622 Storm Drain 18,253,547 3,178,479 121,550 (669,467) (125,460) 20,758,650 630 Circulation Mitigation 15,444,197 9,796,269 231,173 (3,485,004) (185,130) 21,801,505 631 Fire Facility 666,331 256,594 6,354 0 (322,890) 606,389 632 Public Facilities 11,982,002 374,013 89,241 0 0 12,445,256 633 Median Landscaping 5,900,772 229,569 50,551 (306,174) (47,840) 5,826,878 634 Library Facility 1,179,839 104,438 11,812 (113,459) 0 1,182,630 635 Park Development 18,195,031 3,466,764 142,775 (1,261,439) (223,690) 20,319,441 636 Police Facilities 3,582,441 412,280 25,073 (302,278) (4,690) 3,712,826 698 Affordable Housing 5,470,320 2,411,904 22,377 (552,687) 0 7,351,914 702 Sewer Connection 2,674,884 811,632 49,523 504,743 (709,564) (9,280) 3,321,938 TOTALS 84,798,578 21,668,664 753,500 504,743 (7,488,006) (932,650) 99,304,829 Cost
AllocationFund DescriptionFund Fees
Collected
Interest
Earned
Other
Revenues
Capital
Expenditures
City of Fontana
Fiscal Year Ended June 30, 2023
Fund Balances, Fees Collected, Interest Earned, and Project Expenditures Government Code Section 66006(b)(1)(C) and (D)
Annual Report
Development Impact Fees
Section 2
Fee Type 2022/23 2021/22 2020/21 2019/20 2018/19
Flood Control - San Sevaine (620)
Beginning balance 1,403,656 579,435 461,015 364,953 367,042 Revenue 626,722 977,357 216,918 186,943 84,164
Interest 2,714 (42,875) 1,880 15,862 19,395
Other revenue
Capital (87,935) (96,861) (86,578) (92,743) (92,748)
Cost allocation (13,670) (13,400) (13,800) (14,000) (12,900) Ending balance 1,931,487 1,403,656 579,435 461,015 364,953 Flood Control - Etiwanda (621)
Beginning balance 45,557 46,973 46,925 45,840 44,339
Revenue 0 0 0 0 0
Interest 358 (1,416) 48 1,085 1,501
Other revenue
Capital
Cost allocation
PPA - fees owed to County
Ending balance 45,915 45,557 46,973 46,925 45,840
Storm Drain (622)
Beginning balance 18,253,547 15,843,084 14,963,962 13,634,637 13,996,233 Revenue 3,178,479 4,373,223 3,529,070 2,440,966 2,001,556 Interest 121,550 (634,878) 22,156 389,307 485,316
Other revenue
Capital (669,467) (1,204,881) (2,381,903) (1,011,048) (2,347,468) Cost allocation (125,460) (123,000) (290,200) (489,900) (501,000) Ending balance 20,758,650 18,253,547 15,843,084 14,963,962 13,634,637 Circulation Mitigation (630)
Beginning balance 15,444,197 7,696,915 102,964 (3,481,614) (10,281,237) Revenue 9,796,269 10,055,943 8,680,924 5,049,189 7,147,782 Interest 231,173 (1,309,715) 64,926 563,486 777,028
Other revenue
Capital (3,485,004) (817,446) (1,024,499) (1,953,097) (1,030,387) Cost allocation (185,130) (181,500) (127,400) (75,000) (94,800) Ending balance 21,801,505 15,444,197 7,696,915 102,964 (3,481,614) Government Code Section 66006(b)(1)(C) and (D)
Annual Report
Development Impact Fees
City of Fontana
Fiscal Year Ended June 30, 2023
Fund Balances, Fees Collected, Interest Earned, and Project Expenditures - Five Year History Section 3
Fee Type 2022/23 2021/22 2020/21 2019/20 2018/19
Government Code Section 66006(b)(1)(C) and (D)
Annual Report
Development Impact Fees
City of Fontana
Fiscal Year Ended June 30, 2023
Fund Balances, Fees Collected, Interest Earned, and Project Expenditures - Five Year History Fire Facility (631)
Beginning balance 666,331 637,971 719,932 856,721 757,475 Revenue 256,594 340,822 235,012 155,707 383,204
Interest 6,354 (20,713) 655 16,863 24,203
Other revenue
Capital 0 0 0 (309,359) (308,161)
Cost allocation (322,890) (291,749) (317,628) 0 0
Ending balance 606,389 666,331 637,971 719,932 856,721
Public Facilities (632)
Beginning balance 11,982,002 11,327,524 10,110,789 9,127,783 7,335,477 Revenue 374,013 1,025,717 1,202,606 757,037 1,536,608
Interest 89,241 (371,240) 14,729 225,969 260,171
Other revenue
Capital 0 0 0 0 (4,473)
Cost allocation 0 0 (600) 0 0
Ending balance 12,445,256 11,982,002 11,327,524 10,110,789 9,127,783 Median Landscaping (633)
Beginning balance 5,900,772 5,582,394 5,809,267 5,612,257 4,263,188 Revenue 229,569 658,150 536,533 454,735 1,263,373
Interest 50,551 (184,480) 6,607 133,565 153,935
Other revenue
Capital (306,174) (108,392) (760,214) (386,590) (64,939) Cost allocation (47,840) (46,900) (9,800) (4,700) (3,300) Ending balance 5,826,878 5,900,772 5,582,394 5,809,267 5,612,257 Library Facility (634)
Beginning balance 1,179,839 1,020,693 475,855 248,297 1,540,128 Revenue 104,438 285,160 567,217 328,919 325,570
Interest 11,812 (38,944) 2,321 9,639 40,187
Other revenue
Capital (113,459) (87,070) 0 (100,000) (1,653,088)
Cost allocation 0 0 (24,700) (11,000) (4,500)
Ending balance 1,182,630 1,179,839 1,020,693 475,855 248,297 Section 3
Fee Type 2022/23 2021/22 2020/21 2019/20 2018/19
Government Code Section 66006(b)(1)(C) and (D)
Annual Report
Development Impact Fees
City of Fontana
Fiscal Year Ended June 30, 2023
Fund Balances, Fees Collected, Interest Earned, and Project Expenditures - Five Year History Park Development (635)
Beginning balance 18,195,031 5,120,626 5,533,262 6,366,089 5,666,657 Revenue 3,466,764 15,299,536 1,645,189 1,274,558 1,846,002 Interest 142,775 (553,613) 4,200 148,523 202,231
Other revenue
Capital (1,261,439) (1,452,218) (1,906,824) (1,827,208) (1,220,901) Cost allocation (223,690) (219,300) (155,200) (428,700) (127,900) Ending balance 20,319,441 18,195,031 5,120,626 5,533,262 6,366,089 Police Facilities (636)
Beginning balance 3,582,441 3,582,959 2,907,816 2,509,702 1,929,674 Revenue 412,280 640,651 767,821 418,738 664,646
Interest 25,073 (115,173) 5,343 63,840 70,807
Other revenue
Capital (302,278) (521,396) (80,321) (39,064) (145,925) Cost allocation (4,690) (4,600) (17,700) (45,400) (9,500) Ending balance 3,712,826 3,582,441 3,582,959 2,907,816 2,509,702 Affordable Housing (698)
Beginning balance 5,470,320 5,656,571 4,772,171 3,974,083 3,221,282 Revenue 2,411,904 1,497,365 876,809 710,496 639,198
Interest 22,377 (137,525) 7,591 87,592 113,603
Other revenue
Capital (552,687) (1,546,090) 0 0 0
Cost allocation 0 0 0 0 0
Ending balance 7,351,914 5,470,320 5,656,571 4,772,171 3,974,083 Sewer Connection (702)
Beginning balance 2,674,884 2,457,842 2,242,168 2,099,980 1,726,495 Revenue 811,632 336,864 325,729 281,127 501,363
Interest 49,523 (35,784) 3,774 10,159 6,023
Other revenue 504,743 510,640 509,039 506,564 516,974
Loan proceeds
Loan repayment (416,115) (416,115) (416,115) (416,115) (416,115) Capital (293,449) (169,463) (198,753) (213,647) (227,160) Cost allocation (9,280) (9,100) (8,000) (25,900) (7,600) Ending balance 3,321,938 2,674,884 2,457,842 2,242,168 2,099,980 Section 3
Flood Control - San Sevaine (620) 0
Due to County Flood Control
See Findings
Flood Control - Etiwanda (621) 0
See Findings
Storm Drain (622) 6,074,061
0063 COURTPLACE 2024 500,000 500,000 0 500,000 100%
3361 CYPRESS STORM DRAIN 2023 16,356,715 8,117,000 2,542,939 5,574,061 50% Circulation (630) 33,962,206
Due to other funds for project funding 18,370,049
0002 W LIBERTY PARKWAY/MILLER TS 2023 829,884 44,884 0 44,884 5.41% 0003 FONTANA SRTS GAP CLOSURE 2023 3,745,000 45,912 0 45,912 1.23% 0039 CITRUS AVE WIDENING AT SR-210 2024 620,000 199,020 7,570 191,450 32.10% 0042 WESTGATE AT CHERRY & VICTORIA AVE 2024 4,040,000 1,251,900 0 1,251,900 30.99% 3058 I-10 CEDAR INTERCHANGE 2023 2,000,000 2,000,000 486,020 1,513,980 100.00% 3087 I-10 CHERRY INTERCHANGE 2023 10,226,733 9,859,500 9,553,068 306,432 96.41% 3088 I-10 CITRUS INTERCHANGE 2023 26,350,374 17,124,401 16,395,578 728,823 64.99% 3281 SIERRA: FOOTHILL - BASELINE 2023 19,843,064 6,369,624 3,834,386 2,535,238 32% 3323 I-15 BASELINE INTERCHANGE 2023 6,028,000 6,028,000 0 6,028,000 100% 3333 FOOTHILL: HEMLOCK - ALMERIA 2024 2,230,000 715,830 251,177 464,653 32% 3339 ALDER - LOCUST RAMONA SRTS 2023 5,406,660 350,160 0 350,160 6% 3350 ETIWANDA/SLOVER 2023 13,147,629 3,146,196 1,059,935 2,086,261 24% 3378 SIERRA: SUMMIT TO I15 ROW 2023 400,000 128,400 83,936 44,464 32% Fire Facility (631) 4,752,110
Due to Bondholders 4,752,110
Project # Project % From Dev
Impact Fees
Expended
Development
Impact Fees
Budgeted
Development
Impact Fees
Project
Completion
Total Project
Cost
Pending DIF
Expenditures
Projects
Government Code Section 66006(b)(1)(E)
City of Fontana
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2023
Section 4
Project # Project % From Dev
Impact Fees
Expended
Development
Impact Fees
Budgeted
Development
Impact Fees
Project
Completion
Total Project
Cost
Pending DIF
Expenditures
Projects
Government Code Section 66006(b)(1)(E)
City of Fontana
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2023
Public Facilities (632) 0
Median Landscaping (633) 6,091,289
0020 JURUPA AVE. LANDSCAPE MEDIAN 2024 6,790,000 4,690,000 338,599 4,351,401 69% 3361 CYPRESS STORM DRAIN 2023 16,356,715 1,900,000 160,111 1,739,889 12% Library Facility (634) 199,472
Due to General Fund 100,000
0034 LEWIS LIBRARY WALL 2023 300,000 300,000 200,528 99,472 100% Park Development (635) 6,965,183
0010 McDERMOTT PARKING LOT 2023 520,000 520,000 210 519,790 100% 0045 MILLER PARK FENCE 2024 900,000 900,000 728 899,272 100% 0058 MARTIN TUDOR PARK DESIGN 2024 50,000 50,000 0 50,000 100% 3345 SAN SEVAINE PH I 2025 11,712,146 5,000,000 0 5,000,000 43% 0008 SOUTHRIDGE DOG PARK EAST 2024 250,000 250,000 2,000 248,000 100% 0009 SOUTHRIDGE DOG PARK WEST 2024 250,000 250,000 2,000 248,000 100% 4241 SPORTS PARK 2024 1,818,171 496 375 121 0%
Police Facilities (636) 225,154
0021 PD FENCE ON SEVILLE AVE 2023 530,342 24,342 24,342 0 5% 2029 POL BUILDING IMPROVEMENTS 2023 336,000 302,000 261,000 41,000 90% 2040 CAPTAIN OFFICES REMODEL 2023 807,000 714,000 551,151 162,849 88% 4328 EOC POLICE LOBBY REMODEL 2023 2,342,740 300,000 278,696 21,304 13% Affordable Housing (698) 2,446,167
0007 AHT ACQ/REHAB/RENTAL 2024 4,483,141 4,483,141 2,036,974 2,446,167 100% Sewer Connection (702) 2,463,562
Due to State Revolving loan for San Bernardino Trunk Sewer 2,463,562 Section 4
City of Fontana
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2023
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 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.
Upper Etiwanda Flood Control – Fund 621
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, 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, 2023
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 Public 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 Novem ber 2021 through the issuance of the City’s 2021A Lease Revenue 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 2022/23 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 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.
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 Improvement 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, 2023
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 Improvement 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.