Agenda Item
City Council
Item #: 3.11. 12/12/2023 File #: 23-0794
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Trang Nguyen, Finance Director
1. SUBJECT
Submittal of annual financial reports for development impact fees for Fiscal Year 2022-2023.
2. SUMMARY
In accordance with Section 66006 of California Government Code, the City is required to annually report on the status of Development Impact Fees, including the collection of revenue and expenditures of these funds. This report summarizes the required financial information for Fiscal Year 2022-2023. All reported funds are in compliance and no refunds are required.
3. RECOMMENDED ACTION
Receive and file the annual financial reports relating to Transportation System Improvement Program Fees, Park Infill Fees, Fire Protection Facility Fees, Police Facility Development Fees, and Library Facilities Development Fees.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community
a: Expend fiscal resources responsibly.
6. DISCUSSION AND BACKGROUND
The California Government Code Sections 66000 through 66006 contain certain procedural requirements that apply to the collection of development impact fees and the expenditure of these revenues. Section 66006 of the California Government Code specifies accountability and annual reporting requirements pertaining to development impact fees. SB 1693 modified this government code section as of January 1, 1997. The report must include a description of the fee type in the account, the amount of the fee, beginning and ending balances, fee and interest income, expenditures by improvement, a description of interfund loans or transfers, including purpose, interest rate and term, and any refunds. The report must also determine whether funds are available to construct improvements while also identifying construction dates for projects with adequate funding.
This report presents a review only of the development impact fee activity, by account, for the fiscal year. It does not include any recommendations for any fee changes. However, any fee changes that City of Orange Printed on 12/6/2023Page 1 of 2
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Item #: 3.11. 12/12/2023 File #: 23-0794
have occurred during the year have been incorporated into this report.
This report analyzes unexpended revenues, i.e. fund balances, to determine if more than the prior five years of collections have been exceeded. If the analysis shows that the balance on hand exceeds five years of collections less costs of projects identified in the 5-year Capital Improvement Program (CIP) Budget, then per the California Government Code Section 66001 (d), the City is required to refund the “excess”.
The report must be made available within 180 days after the end of the current fiscal year and it must be reviewed at the next regularly scheduled public meeting, but not less than 15 days after the information becomes available.
All reported funds, which include fees for Transportation System Improvement Program, Park Infill, Fire Protection Facilities, Police Facilities Development, and Library Facilities Development, are in compliance and no refunds are required.
7. ATTACHMENTS
· Attachment A - Annual Report for Transportation System Improvement Program Fees · Attachment B - Annual Report for Park Infill Fees
· Attachment C - Annual Report for Fire Protection Facility Fees · Attachment D - Annual Report for Police Facility Development Fees · Attachment E - Annual Report for Library Facilities Development Fees City of Orange Printed on 12/6/2023Page 2 of 2
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