1 Published, 11/27/2023
City of Foster City/Estero Municipal Improvement District Annual Development Impact Fee and Capacity Fee Report
Fiscal Year Ended June 30, 2023
This report serves as the City of Foster City and the Estero Municipal Improvement District’s (City/District) annual report on development impact fees and housing impact fee revenues and expenditures as required by the Government Code Section 66001- 66013. The City/District currently assesses six development impact and capacity fees – Water Connection Fee, Sewer Connection Fee, Affordable Housing Commercial Linkage Fee, Park Facilities Impact Fee, Public Safety Impact Fee, and Transportation Impact Fee.
Water Connection Fee
Water Connection Fee is a type of capacity fee that public agencies may impose as a condition of development under the authority of California Government Code Section 66000 et seq, the Mitigation Fee Act. The purpose of the fee is to ensure that development pays its fair share of the costs associated with providing system capacity. The connection fee is charged at the time of the building permit is issued, and it is based on the size of the service connection, which is a direct measure of the cost of the facilities and the capacity provided by those facilities. The fees collected will be used to pay for existing and future public facilities that provide water capacity, supply, and infrastructure to serve new connections.
The following table shows the revenues and expenditures activities of water connection fees and the capital projects funded by the fee.
Meter Size Fees
¾ “ $12,075
1 “ $20,166
1 ½” $48,301
2 “ $64,360
3 “ $140,919
4 “ $253,580
6 “ $563,550
8 “ $966,019
Water Connection Fee Schedule
Fiscal Year 2022-2023
2 Published, 11/27/2023
Water Connection Fee
Revenues and Expenditures Schedule
For the Fiscal Years Ended June 30
Projects Funded by Water Connection Fee as of June 30, 2023
As of June 30, 2023, there were no interfund transfers, loans, or refunds made from the fund, and the unexpended fund balance of the water connection is $1,206,901. The fund balance and continued collection of water connection fees will be utilized to fund projects related to the water system improvements and ongoing maintenance of existing facilities. The City/District anticipates funding a part of the water tank improvement project (405- 660) using a portion of the water connection fees in the next fiscal year.
Fiscal Year Ended June 30, 2019 2020 2021 2022 2023
BEGINNING BALANCE $ - $ 180,659 $ - $ 678,698 $ 1,125,686 REVENUES:
Water Connection Fees 211,420 - 977,278 443,541 46,433 Interest Income 2,249 3,221 2,779 3,447 34,782 Total revenues 213,669 3,221 980,057 446,988 81,215 EXPENDITURES:
Capital Projects:
Water System Improvements & Valve
Replacements (CIP#636) 33,010 183,880 159,287 - - Water Tank Improvements Project (CIP#660) - - 142,072 - - Total expenditures 33,010 183,880 301,359 - - REVENUES OVER(UNDER) EXPENDITURES 180,659 (180,659) 678,698 446,988 81,215 ENDING BALANCE $ 180,659 $ - $ 678,698 $ 1,125,686 $ 1,206,901 Project No. Project Name
Total-To-Date
Expenditure
(All Funding Sources)
Total Impact
Fees Used
% of Expenditures
Funded with
Capacity Fee
Project
Completed?
(Y/N)
405-651 Two Natural Gas Powered Engines & Pumps
Replacement
932,253$ 7,630$ 1% Y 405-668 Water Distribution System Master Plan
Study
163,485$ 116,254$ 71% Y 405-636 Water System Improvements & Valve
Replacements
1,398,126$ 376,177$ 27% N - in progress 405-660 Water Tank Improvements Project 370,400$ 142,072$ 38% N - in progress 3 Published, 11/27/2023
Sewer Connection Fee
Sewer Connection Fee is a type of capacity fee that public agencies may impose as a condition of development under the authority of California Government Code Section 66000 et seq, the Mitigation Fee Act. The purpose of the fee is to recover an equitable share of costs for capacity in facilities needed to provide sewer services. New development connecting to the City of Foster City/District’s sewer system is charged at the time of the building permit is issued. The connection fee is based on the reasonable cost of capacity per service connection. The reasonable cost is derived based on the value of facilities that provide capacity for growth. The sewer connection fees are charged based on per Equivalent Dwelling Unit (EDU). Single family and multi family connections are charged per EDU based on the number of dwelling units. Commercial customers are charged per EDU based on their estimated indoor water use and a strength factor for low, medium, and high strength sewer discharge. The fees collected will be used by the City/District to pay for existing and future facilities that provide capacity to serve future connections.
The following table shows the revenues and expenditures activities of sewer connection fees and the capital projects funded by the fee.
Customer Class Fees Unit
Single Family $8,444.80 Per Dwelling Unit
Multi Family $5,275.90 Per Dwelling Unit
Commercial $8,444.80 Per Equivalent Dwelling Unit
Sewer/Wastewater Connection Fee Schedule
Fiscal Year 2022-2023
4 Published, 11/27/2023
Sewer Connection Fee
Revenues and Expenditures Schedule
For the Fiscal Years Ended June 30
Projects Funded by Sewer Connection Fee as of June 30, 2023
As of June 30, 2023, there were no interfund transfers, loans or refunds made from the fund, and the unexpended fund balance of the sewer connection is $338,429. The fund balance and continued collection of sewer connection fee s will be utilized to fund the projects related to the sewer system improvements and ongoing maintenance and operations of existing facilities. The Fiscal Year Ended June 30, 2020 2021 2022 2023
BEGINNING BALANCE $ - $ - $ 147,971 $ 329,365 REVENUES:
Sewer Connection Fees - 482,551 180,449 8,120 Interest Income - 1,234 945 945 Total revenues - 483,785 181,394 9,065 EXPENDITURES:
Capital Projects:
Sewer System Rehab-Force Main, Gravity
Mains & Manholes 2011/2012 (CIP#611) - 146,590 - - Sanitary Sewer Lift Station Improvement
Project Phase 5 (CIP#626) - 83,089 - - Lift Station 59 Effluent Line Improvements
(CIP#695) - 49,773 - - Sanitary Sewer System Improvements
(CIP#696) - 56,362 - - Total expenditures - 335,814 - - REVENUES OVER(UNDER) EXPENDITURES - 147,971 181,394 9,065 ENDING BALANCE $ - $ 147,971 $ 329,365 $ 338,429 Project No. Project Name
Total-To-Date
Expenditure
(All Funding Sources)
Total Impact
Fees Used
% of Expenditures
Funded with
Capacity Fee
Project
Completed?
(Y/N)
455-611 Sewer System Rehab-Force Main, Gravity
Mains & Manholes 2011/2012 (CIP#611)
1,199,170$ 146,590$ 12% Y
455-626 Sanitary Sewer Lift Station Improvement
Project Phase 5 (CIP#626)
7,673,868$ 453,293$ 6% N - in progress 455-695 Lift Station 59 Effluent Line Improvements
(CIP#695)
75,805$ 49,773$ 66% N - in progress 455-696 Sanitary Sewer System Improvements
(CIP#696)
56,362$ 56,362$ 100% N - in progress 5 Published, 11/27/2023
City/District does not anticipate undertaking any projects funded by sewer connection fees in the next fiscal year.
Affordable Housing Commercial Linkage Fee
Affordable Housing Commercial Linkage Fee is the fee paid by developers of commercial development projects to mitigate the impacts that such developments have on the demand for affordable housing in the C ity/District. The purpose of the affordable housing linkage fee is to enhance the public welfare by imposing a fee whereby developers of commercial development projects will mitigate the impacts of their projects on the need for affordable housing by contribution to the supply of housing for households with very low, low, and moderate incomes.
The affordable housing fund will provide benefits to the community from new commercial development in the form of affordable housing, thereby helping to meet the needs of all socio- economic elements of the community as provided in the housing element.
The following table shows the revenues and expenditures activities of commercial linkage fees.
Category Fee per Square Foot of Net New Gross Floor Area (effective starting 8/20/2022)
Office, and Medical Office $30.00
Retail, Restaurant, and Services $5.00
Industrial, and Research & Development $30.00
Hotel $10.00
Affordable Housing Commercial Linkage Fee (Nonresidential Development Projects) Schedule Fiscal Year 2022-2023
6 Published, 11/27/2023
Commercial Linkage Fee
Revenues and Expenditures Schedule
For the Fiscal Year Ended June 30, 2023
As of June 30, 2023, there were no interfund transfers, loans, or refunds made from the fund, and the unexpended fund balance of the commercial linkage was $588,599. The fund balance and continued collection of commercial linkage fees will be used to provide housing affordable to very low income, lower income, and moderate-income households in the City, consistent with the goals and policies contained in the City/District’s housing element and the purposes for which the fees were collected.
Park Facilities Impact Fee
The park facilities impact fee is a type of development fee that public agencies may impose as a condition of development under the authority of California Government Code Section 66000 et seq, the Mitigation Fee Act. The purpose of the fee is to fund the creation and improvement of Park Facilities, including, but not limited to, the planning, designing, developing, and improving of existing and newly acquired Park Facilities related to n ew development and ensure that new development pays for its share of park and recreational facilities.
Fiscal Year Ended June 30, 2021 2022 2023
BEGINNING BALANCE $ - $ 568,915 $571,506 REVENUES:
Commercial Linkage Fees 567,683 - - Interest Income 1,232 2,591 17,093 Total revenues 568,915 2,591 17,093 EXPENDITURES:
Housing Projects Expenditures - - - Total expenditures - - - REVENUES OVER(UNDER) EXPENDITURES 568,915 2,591 17,093 ENDING BALANCE $ 568,915 $ 571,506 $588,599 7 Published, 11/27/2023
Parks Facilities Impact Fee Schedule
Fiscal Year 2022-2023
(effective starting 8/20/2022)
Residential Development Projects (per unit)
Single Family Residential $14,926
Multifamily Residential $11,639
Non-Residential Development Projects (per Sq. Ft.)
Office $6.24
Retail $2.35
Industrial $3.51
Hotel $2.14
In FY2022-2023, there were no parks facilities impact fees collected.
Public Safety Impact Fee
The public safety impact fee is a type of development fee that public agencies may impose as a condition of development under the authority of California Government Code Section 66000 et seq, the Mitigation Fee Act. The purpose of the fee is to fund public sa fety facilities by providing adequate levels of police and fire facility improvements, vehicles, and other equipment necessary for adequate police and fire service provision related to new development.
Public Safety Impact Fee Schedule
Fiscal Year 2022-2023
(effective starting 8/20/2022)
Residential Development Projects (per unit)
Single Family Residential $1,594
Multifamily Residential $1,243
Non-Residential Development Projects (per Sq. Ft.)
Office $1.14
Retail $0.64
Industrial $0.38
Hotel $0.23
In FY2022-2023, there were no public safety impact fees collected.
8 Published, 11/27/2023
Transportation Impact Fee
The transportation impact fee is a type of development fee that public agencies may impose as a condition of development under the authority of California Government Code Section 66000 et seq, the Mitigation Fee Act. The purpose of the fee is to fund the planning, design, development, and construction of Transportation Facilities related to New Development and ensure that New Development pays for its fair share of Transportation Facilities.
Transportation Impact Fee Schedule
Fiscal Year 2022-2023
(effective starting 8/20/2022)
Residential Development Projects (per unit)
Single Family Residential $2,123
Multifamily Residential $1,656
Non-Residential Development Projects (per Sq. Ft.)
Office $3.62
Retail $2.01
Industrial $1.19
Hotel $0.72
In FY2022-2023, there were no transportation impact fees collected.