1 Published, 11/26/2024
City of Foster City/Estero Municipal Improvement District Annual Development Impact Fee and Capacity Fee Report
Fiscal Year Ended June 30, 2024
The California Mitigation Fee Act (California Government Code Section 66000 et seq.) mandates procedures for administration of impact fee programs, including collection and accounting, reporting, and refunds. Regarding the reporting requirements, the Mitigation Fee Act requires annual reporting to provide information about each impact fee fund under Government Code Section 66006 (b), and a separate five-year reporting to make findings for any fee revenue that remains unexpended under Government Code Section 66001 (d).
This annual development impact fee report meets the City of Foster City and the Estero Municipal Improvement District’s (City/District)’s annual development impact fees reporting requirement.
The City/District currently assesses six development impact 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 “ $12,188
1 “ $20,355
1 ½” $48,753
2 “ $64,965
3 “ $142,240
4 “ $255,959
6 “ $568,837
8 “ $975,081
Water Connection Fee Schedule
Fiscal Year 2023-2024
2 Published, 11/26/2024
Water Connection Fee
Revenues and Expenditures Schedule
For the Fiscal Years Ended June 30
Projects Funded by Water Connection Fee for the Fiscal Year Ended June 30, 2024 In FY 2023-2024, there were no interfund transfers, loans, or refunds made from the fund, and the unexpended fund balance of the water connection is $156,059. 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 has programmed $100,000 in Water Connection Fees toward the completion of a Water Main Condition Assessment in the FY 2024-2025 Capital Improvement Plan budget.
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’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 Fiscal Year Ended June 30, 2020 2021 2022 2023 2024
BEGINNING BALANCE $ 180,659 $ - $ 678,698 $ 1,125,686 $ 1,206,901 REVENUES:
Water Connection Fees - 977,278 443,541 46,433 - Interest Income 3,221 2,779 3,447 34,782 49,158 Total revenues 3,221 980,057 446,988 81,215 49,158 EXPENDITURES:
Capital Projects:Water System Improvements & Valve Replacements (CIP#636) 183,880 159,287 - - - Water Tank Improvements Project (CIP#660) - 142,072 - - 1,100,000 Total expenditures 183,880 301,359 - - 1,100,000 REVENUES OVER(UNDER) EXPENDITURES (180,659) 678,698 446,988 81,215 (1,050,842) ENDING BALANCE $ - $ 678,698 $ 1,125,686 $ 1,206,901 $ 156,059 Project No. Project Name
FY 2023-2024 Total Expenditure (All Funding Sources)
FY2023-2024 Connection Fee Expended
% of Expenditures Funded with Connection Fee
Project Completed? (Y/N)
405-660 Water Tank Improvements Project 1,576,986$ 1,100,000$ 70% N - in progress 3 Published, 11/26/2024
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.
Sewer Connection Fee
Revenues and Expenditures Schedule
For the Fiscal Years Ended June 30
Customer Class Fees UnitSingle Family $8,525.00 Per Dwelling UnitMulti Family $5,328.00 Per Dwelling Unit Commercial $8,525.00 Per Equivalent Dwelling Unit Sewer/Wastewater Connection Fee Schedule Fiscal Year 2023-2024 Fiscal Year Ended June 30, 2020 2021 2022 2023 2024
BEGINNING BALANCE $ - $ - $ 147,971 $ 329,365 $ 347,530 REVENUES:
Sewer Connection Fees - 482,551 180,449 8,120 - Interest Income - 1,234 945 10,046 16,015 Total revenues - 483,785 181,394 18,166 16,015 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 18,166 16,015 ENDING BALANCE $ - $ 147,971 $ 329,365 $ 347,530 $ 363,545 4 Published, 11/26/2024
In FY 2023-2024, there were no projects funded by sewer connection fees, and there were no interfund transfers, loans or refunds made from the fund, and the unexpended fund balance of the sewer connection is $363,545. The fund balance and continued collection of sewer connection fees will be utilized to fund the projects related to the sewer system improvements and ongoing maintenance and operations of existing facilities. The City/District has not programmed any projects funded by sewer connection fees in the FY 2024-2025 Capital Improvement Plan budget.
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 City/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 (including Medical Office) $30Retail (including Restaurant and Services) $5 Industrial (including Research & Development) $30
Hotel (effective starting 8/20/2022) $10
Affordable Housing Commercial Linkage Fee (Nonresidential Development Projects) ScheduleFiscal Year 2023-2024 5 Published, 11/26/2024
Affordable Housing Commercial Linkage Fee
Revenues and Expenditures Schedule
For the Fiscal Years Ended June 30
The above-noted expenditures of $9,909 represent 5% of the total program cost of $187,427 for the administrative-related tasks for city-owned and privately owned Below-Market-Rate (BMR) units. In FY 2023-2024, there were no interfund transfers, loans, or refunds made from the fund, and the unexpended fund balance of the commercial linkage was $5,467,174. 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’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 new development and ensure that new development pays for its share of park and recreational facilities.
Fiscal Year Ended June 30, 2021 2022 2023 2024
BEGINNING BALANCE $ - $ 568,915 $ 571,506 $ 588,599 REVENUES:
Commercial Linkage Fees 567,683 - - 4,789,410 Interest Income 1,232 2,591 17,093 99,074 Total revenues 568,915 2,591 17,093 4,888,484 EXPENDITURES:
Housing Projects Expenditures - - - 9,909 Total expenditures - - - 9,909 REVENUES OVER(UNDER) EXPENDITURES 568,915 2,591 17,093 4,878,575 ENDING BALANCE $ 568,915 $ 571,506 $ 588,599 $ 5,467,174 6 Published, 11/26/2024
The following table shows the revenues and expenditures activities of parks facilities impact fee.
Park Facilities Impact Fee
Revenues and Expenditures Schedule
For the Fiscal Years Ended June 30
In FY 2023-2024, there were no projects funded by park facilities impact fees, and there were no interfund transfers, loans, or refunds made from the fund, and the unexpended fund balance of the park facility impact fee was $568,798. The fund balance and continued collection of park facility impact fees will be utilized to fund the projects related to the expansion of park capacity in Foster City as allowed by law. The City/District has programmed $560,300 in park facility impact fees toward the Recreation Center Rebuild Project in the FY 2024-2025 Capital Improvement Plan budget.
Single Family Residential $14,926
Multifamily Residential $11,639
Office $6.24
Retail $2.35
Industrial $3.51
Hotel $2.14
Parks Facilities Impact Fee Schedule
Fiscal Year 2023-2024
(effective starting 8/20/2022)
Residential Development Projects (per unit)
Non-Residential Development Projects (per Sq. Ft.)
Fiscal Year Ended June 30, 2024
BEGINNING BALANCE $ -
REVENUES:
Park Facilities Impact Fees 560,361
Interest Income 8,437
Total revenues 568,798
EXPENDITURES:
Park Facilities Expenditures -
Total expenditures -
REVENUES OVER(UNDER) EXPENDITURES 568,798
ENDING BALANCE $ 568,798
7 Published, 11/26/2024
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 safety 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.
The following table shows the revenues and expenditures activities of public safety impact fee.
Public Safety Impact Fee
Revenues and Expenditures Schedule
For the Fiscal Years Ended June 30
In FY 2023-2024, there were no projects funded by public safety impact fees, and there were no interfund transfers, loans, or refunds made from the fund, and the unexpended fund balance of Single Family Residential $1,594
Multifamily Residential $1,243
Office $1.14
Retail $0.64
Industrial $0.38
Hotel $0.23
Public Safety Impact Fee ScheduleFiscal Year 2023-2024
(effective starting 8/20/2022)
Residential Development Projects (per unit)
Non-Residential Development Projects (per Sq. Ft.)
Fiscal Year Ended June 30, 2024
BEGINNING BALANCE $ -
REVENUES:
Public Safety Impact Fees 60,666
Interest Income 914
Total revenues 61,580
EXPENDITURES:
Public Safety Expenditures -
Total expenditures -
REVENUES OVER(UNDER) EXPENDITURES 61,580
ENDING BALANCE $ 61,580
8 Published, 11/26/2024
the public safety impact fee was $61,580. The fund balance and continued collection of public safety impact fee will be used to fund police capital facilities and equipment and vehicles necessary to accommodate growth. The City/District has not programmed any projects funded by the public safety impact fee in the FY 2024-2025 budget.
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.
The following table shows the revenues and expenditures activities of transportation impact fee.
Transportation Impact Fee
Revenues and Expenditures Schedule
For the Fiscal Years Ended June 30
Single Family Residential $2,123
Multifamily Residential $1,656
Office $3.62
Retail $2.01
Industrial $1.19
Hotel $0.72
Transportation Impact Fee ScheduleFiscal Year 2023-2024 (effective starting 8/20/2022)
Residential Development Projects (per unit)
Non-Residential Development Projects (per Sq. Ft.)
Fiscal Year Ended June 30, 2024
BEGINNING BALANCE $ -
REVENUES:
Transportation Impact Fees 189,980
Interest Income 2,860
Total revenues 192,840
EXPENDITURES:
Transportation Expenditures -
Total expenditures -
REVENUES OVER(UNDER) EXPENDITURES 192,840
ENDING BALANCE $ 192,840
9 Published, 11/26/2024
In FY 2023-2024, there were no projects funded by transportation impact fees, and there were no interfund transfers, loans, or refunds made from the fund, and the unexpended fund balance of the transportation impact fee was $192,840. The fund balance and continued collection of transportation impact fee will be used to fund transportation system capacity as allowed by law.
The City/District has not programmed any projects funded by transportation impact fees in the FY 2024-2025 Capital Improvement Plan budget.