City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2024
Stanford Research Park/El Camino Real San Antonio/West Bayshore Area FUND Transportation Impact Fee Transportation Impact Fee Description of the Type of Fee
Amount of the Fee $12.85/sq. ft.; City ceased collecting effective FY 2020$2.65/sq. ft.; City ceased collecting effective FY 2020 Fund Balance July 1, 2023 $1,220,842 $407,697
FY 2024 Activity
Revenues
Interest Earnings 31,614 10,555 Unrealized Gain/(Loss) Investments 22,902 8,869 --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Revenues $54,516 $19,424
Total Expenditures - - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2024 $1,275,358 $427,121
Total Reserves - - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Net Funds Available $1,275,358 $427,121
Traffic impact fees imposed on new non-residential development in the Stanford Research Park/El Camino Real Commercial Service zone to fund improvements at eight identified intersections. (PAMC 16.45)
Traffic impact fees imposed on new non-residential development in the San Antonio/West Bayshore area to fund capacity
improvements at four indentified intersections. (PAMC 16.46) City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2024
Commercial Housing
FUND Impact Fee General Government Facility Development Fee Description of the Type of Fee Fees imposed on commercial and industrial development to offset the demand that new jobs create for low and moderate-income housing in the City. (PAMC 16.65)
Fees imposed on residential and non-residential development to fund facilities associated with municipal administration. (PAMC
16.58)
Amount of the Fee Hotel / Retail / Other Residential: (ADUs under 750 sq. ft are exempt) Non-Residential: $26 per sq. ft. Single family $1,684.20 per unit Multi-family $1.346.36 per unit
Office/R&D: $77 per sq. ft.
Non-Residential:
Commercial $939 per 1,000 sq. ft. or fraction thereof
Industrial $312 per 1,000 sq. ft. or fraction thereof
Office/Institutional $1,256 per 1,000 sq.ft. or fraction thereof Fund Balance July 1, 2023 $27,033,611 $121,165
FY 2024 Activity
Revenues
Fees Collected 438,546 66,695
Interest Earnings 320,494 4,014
Unrealized Gain/(Loss) Investments 56,927 98
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Revenues 815,967 70,807
Expenditures
Salaries and Benefit (11,893) - Liability Insurance (753) - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Expenditures (12,646) - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2024 $27,836,932 $191,972
Reserves
Notes Receivable (see detail below) (23,629,563) - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Reserves (23,629,563) - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Net Funds Available $4,207,369 $191,972
Notes Receivable Detail:
$1,290,000 for 2811 Alma; $4,137,278 for 801 Alma;
$7,700,000 for Buena Vista Mobile Home Park;
$10,502,309 Wilton Court
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2024
FUND Park Development Fee Community Centers Development Fee Description of the Type of Fee
Amount of the Fee Residential: (ADUs under 750 sq ft are exempt) Residential: (ADUs under 750 sq ft are exempt) Single family $65,308.60 per unit Single family $5,047.71 per unit.
Multi-Family $48,302.43 per unit Multi-Family $3,734.03 per unit Non-residential: Non-residential:
Commercial/Industrial $19,150 per net new 1,000 sq ft.Commercial/industrial $1480 per 1,000 sq ft.
Hotel/Motel $3,250 per 1,000 sq ft. Hotel/Motel $252 per 1,000 sq ft.
Fund Balance July 1, 2023 $1,671,754 $771,619
FY 2024 Activity
Revenues
Fees Collected 1,409,596 174,306
Interest Earnings 43,637 14,175
Unrealized Gain/(Loss) Investments 110,640 10,042
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Revenues $1,563,873 $198,523
Expenditures - Operating Transfer to Capital Projects Fund (851,297) - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Expenditures ($851,297) - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2024 $2,384,330 $970,142
Total Reserves - - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Net Funds Available $2,384,330 $970,142
Fees imposed on new residential and non-residential development approved after Jan 28, 2002 to fund acquisition of land and improvements for neighborhood and district parks. (PAMC 16.58) Fees imposed on new residential and non-residential development approved after Jan 28, 2002 to to fund development and
improvements to community centers. (PAMC 16.58)
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2024
Residential Housing
FUND Library Development Fee Impact Fee
Description of the Type of Fee Fees imposed on new residential and non-residentual development approved after January 28, 2002 to fund development and improvements to libraries. (PAMC 16.58)
Fees imposed on all rental residential developments (including mixed-use with rental housing) to offset the demand that the new market-rate rental housing creates for low-income and moderate- income housing in the City. (PAMC 16.65)
Amount of the Fee Residential: (ADUs under 750 sq ft are exempt) Single and Multi-Family: $25 per sq. ft. apartment (rentals) Single family $3,008.38 per unit
Multi-family $2,224.72 per unit
Non-residential:
Commercial/industrial $883 per net new 1,000 sq ft.
Hotel/Motel $150 per net new 1,000 sq ft.
Fund Balance July 1, 2023 $944,041 $1,050,978
FY 2024 Activity
Revenues
Fees Collected 82,859 54,475
Interest Earnings 15,708 28,118
Unrealized Gain/(Loss) Investments 32,246 21,463
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Revenues $130,813 $104,056
Expenditures
Operating Transfer to Capital Projects Fund (457,017) - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Expenditures (457,017.00) - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2024 $617,837 $1,155,034
Total Reserves - - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Net Funds Available $617,837 $1,155,034
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2024
Charleston-Arastradero Corridor Citywide Transportation FUND Pedestrian and Bicyclist Safety Impact Fee Impact fee Description of the Type of Fee Fees collected from new development and redevelopmentTransportation impact fees imposed on new development in within the Charleston-Arastradero Corridor to provide forall parts of the City to fund congestion reduction projects. pedestrian and bicyclist safety improvements. (PAMC 16.60)(PAMC 16.59) Amount of the Fee Residential: $1,684 per residential unit Commercial: $0.49 per sq ft (ADUs exempt)
$9,754.23 each; per net new PM peak hour trip
Fund Balance July 1, 2023 $1,172 $1,622,961
FY 2024 Activity
Revenues
Fees Collected 14,891 567,097 Interest Earnings 194 42,465 Unrealized Gain/(Loss) Investments 996 45,995 --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Revenues $16,081 $655,557
Expenditures
Operating Transfer to Capital Projects Fund - (395,000) --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Expenditures - ($395,000)--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2024 $17,253 $1,883,518
Total Reserves - - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Net Funds Available $17,253 $1,883,518
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2024
University Avenue Non-residential Development
FUND Public Safety Facility Development Fee Parking In-Lieu Fee Description of the Type of Fee Fees imposed on residential and non-residential development to fund police and fire facilities, including fire apparatus and vehicles. (PAMC 16.58)
Fees collected from non-residential development within the University Ave. Parking Assessment District area in lieu of providing the required off-street parking spaces. (PAMC 16.57)
Amount of the Fee Residential: $130,823.17 per space
Single family $1,336.38 per unit
Multi-family $1,069.91 per unit
Non-residential:
Commercial $746 per 1,000 sq ft. or fraction thereof
Industrial $249 per 1,000 sq. ft. or fraction thereof
Office/Institutional $996 per 1,000 sq ft or fraction thereof.
Fund Balance July 1, 2023 $95,093 $15,664,946
FY 2024 Activity
Revenues
Fees Collected 52,982
Interest Earnings 3,159 349,058
Unrealized Gain/(Loss) Investments 53 (47,054)
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Revenues $56,194 $302,004
Expenditures
General Expense - (727,298) Operating Transfer to Capital Projects Fund - (50,000) --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Expenditures - (777,298.00) --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2024 $151,287 $15,189,652
Total Reserves - - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Net Funds Available $151,287 $15,189,652
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2024
Residential Housing In-Lieu Fee Parkland Dedication Fee
FUND (INFORMATION ONLY) (INFORMATION ONLY)
Description of the Type of Fee This fee is not subject to AB1600 reporting requirements and is included only for information purposes. Fees collected from ownership residential developments of three or more units(including mixed used with ownership in housing) in-lieu of providing the required below-market rate unit(s) to low and moderate income households. (PAMC 16.65)
This fee is not subject to AB1600 reporting requirements and is inlcuded only for information purposes. Fees on parkland dedication imposed on new residential and non-residential development. (PAMC 21.50; Gov. Code Sec. 66477 and 66479) Amount of the Fee Single-family $96 per sq. ft. single-family detached; $64 per sq. ft. single-family attached. Multi-family $64 per sq. ft. condos.
Single Family: $76,029.40 per unit; Multi-Family: $54,472.24 per unit. This applies only to residential projects that require a subdivision or parcel map. Land dedication is required for subdivisions resulting in more than 50 parcels. Parkland Dedication Fee -Land: Single Family: 531 sq. ft. per unit; Multi-Family: 366 sq. ft. per unit. When parkland dedication applies, park impact fees do not apply.
Fund Balance July 1, 2023 $29,320,569 $2,240,408
FY 2024 Activity
Revenues
Fees Collected 164,834 1,453,944
Interest Earnings 214,508 81,285
Unrealized Gain/(Loss) Investments 265,714 75,368
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Revenues $645,056 $1,610,597
Expenditures
Salaries and Benefit (11,892.84) - Liability Insurance (752.76) - Contract Service/General Expense (79,195.93) - Operating Transfer to Capital Projects Fund - (250,000) --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Expenditures (91,842) ($250,000) --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2024 $29,873,783 $3,601,005
Reserves
Reserve for Encumbrances & Reappropriations (99,082) - Reserve for Notes Receivable (28,258,078) - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Reserves ($28,357,160) - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Net Funds Available $1,516,623 $3,601,005
$375,000 for 3053 Emerson; $3,504,850 for Tree House Apts.; $3,000,000 Grant Ave; $747,734 for Sheridan Apts. $2,285,026 for 801 Alma; $842,338 for Palo Alto Housing Project; $600,000 for 2811-2825 Alma St.; $203,561 for Colorado Park Housing; $149,968 for El Dorado Palace; $6,800,000 for Buena Vista Mobile Home Park; $8,249,601 for Wilton Ct.; $1,500,000 for 525 E. Charleston Rd.
Residential Housing In-Lieu Fund, Notes Receivable Detail:
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2024
Public Art In-Lieu Fee
FUND (INFORMATION ONLY) Water Connection/Capacity Fees
Description of the Type of Fee This fee is not subject to AB1600 reporting requirements and is included only for information purposes. The Public Art In-Lieu fee is used to fund public art for private developments that elect not to provide public art onsite. The fee is imposed on new commercial developments and mixed-use projects that (i) have a floor area of 10,000 sq. ft. or more, and (ii) have a construction value of $200,000, or more, exclusive of costs for architecture, design, engineering, and required studies, as well as all new residential projects of five or more units. (PAMC 16.61)
Water connection and capacity fees are imposed on new
development and redevelopment to buy into existing water distribution system and to recover the proportionate cost of system improvements required to serve the new customers of increased loads of existing customers. These are one-time fees paid before water services are upgraded or installed. Capacity fees recieved are used exclusively for water capital improvement projects. (Gov. Code Sec. 66013)
Amount of the Fee 1% of first $128.06 million construction valuation and 0.9% of construction valuation for valuation in excess of $128.06 million Water Capacity Fees: 5/8 in., 3/4 in E-Meter. $3,750, 1 in. E-Meter $6,250, 1 1/2 in. E-Meter $18,850, 2 in. E-Meter $31,250, 4 in.
Compound Meter by est. $125/FU (min. 5,000 FU) , 6 in. Compound Meter by est. $125/FU (min. 7,000 FU)
Fire Service Capacity Fees: 2 in. $750, 4 in. $8,425, 6 in. $18,250, 8 in. $30,950, 10 in. $48,110
Fund Balance July 1, 2023 $2,091,434 - FY 2024 Activity
Revenues
Fees Collected 244,528
Connection Fees Collected 1,661,229
Capacity Fees Collected 254,925
Interest Earnings 55,253 - Unrealized Gain/(Loss) Investments 36,328 - Transfers in from other funds 184,000 - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Revenues $520,109 $1,916,154
Expenditures
Salaries and benefits (293,728) - Contract Services/Other (64,103) (1,916,154.00) Liability Insurance (3,767) - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Expenditures ($361,598) ($1,916,154)
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Ending Balance June 30, 2024 $2,249,945 - Reserves
Encumbrances & Reappropriations (5,294) - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Total Reserves (5,294) - --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Net Funds Available $2,244,651 - City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2024
FUND Wastewater Connection/Capacity Fees
Description of the Type of Fee Wastewater connection and capacity fees are imposed on new development and redevlopment to buy into the existing wastewater collection systems and to recover the proportionate cost of system improvements required to serve the new customers of increased loads of existing customers. These are one-time fees paid before the wastewater services are upgraded or installed. Capacity fees recieved are used exclusively for sanitary sewer capital improvement projects. (Gov. Code Sec. 66013)
Amount of the Fee Sewer Capacity Charges: 4 in. connection with 5/8 in Water Meter (WM) $5,250, 4 in connection. with 1-in WM $10,500, 4 or 6 in. connection with 1-1/2 in WM $31,668, 6 in. connection with 2 in.
WM $52,500, 6 in. and larger connection with 4 in. or larger WM by est. at $210/FU
Fund Balance July 1, 2023 - FY 2024 Activity
Revenues
Connection Fees Collected 476,333
Capacity Fees Collected 15,750
------------------------------------------------------------------------------------------- Total Revenues $492,083
Expenditures
Contract Services/Other (492,083) ------------------------------------------------------------------------------------------- Total Expenditures ($492,083)
------------------------------------------------------------------------------------------- Ending Balance June 30, 2024 - Total Reserves - ------------------------------------------------------------------------------------------- Net Funds Available $0
Fund Name Project
FY 2024
Expenditures
Total Project
Cost
% of Total
Project
Cost
Construction Start
Date
Stanford Research Park/El Camino Real Transportation Impact FeePage Mill Road/El Camino Real Intersection Improvements None N/A N/A Mid-2025 San Antonio/West Bayshore Area Transportation Impact Fee San Antonio/Charleston Road Intersection Improvements None N/A N/A 2026 Commercial Housing Impact Fee Affordable Housing Development Projects 12,646$ N/A N/A N/A General Government Facility Development Impact Fee PE-15001 New Public Safety Building None 118,602,789$ N/A February 2021 Community Facilities Parks Development Impact Fee PE-08001 Rinconada Park Improvements 46,367$ 10,176,326$ 0.5% Summer 2019 PF-23001 Roth Building Rehabilitation Phase 1 350,000$ 11,367,366$ 3.1% Summer 2023 PG-18001- Dog Park Installation and Renovation 294,500$ 338,904$ 86.9% Recurring PG-19000- Park Restroom Installation 160,430$ 2,003,799$ 8.0% Recurring Community Center Impact Fee PE-24001 Electrification of City Facilities None 1,799,238$ N/A N/A PF-02022 Facility Interior Finishes Replacement None 1,069,488$ N/A N/A Community Facilities Library Developers Impact Fee LB-21000 Library Automated Material Handling (AMH) 157,017$ 1,898,292$ 8.3% February 2025 PF-23001 Roth Building Rehabilitation Phase 1 300,000$ 11,367,366$ 2.6% Summer 2023 Residential Housing Impact Fee Affordable Housing Development Projects None N/A N/A N/A Charleston-Arastradero Corridor Pedestrian & Bicyclist Safety Impact FeePL-04010 - Bike Ped Implementation Plan None N/A N/A N/A Citywide Transportation Impact Fee PL-05030 Traffic Signal and ITS Upgrades 395,000$ ongoing N/A ongoing Public Safety Facility Development Impact Fee PE-18004 Fire Station 4 Replacement None 18,255,946$ N/A Spring 2022 University Ave Non Residential Development Parking In-Lieu FeeRefund paid to Hamilton and High LLC 727,298$ N/A N/A N/A PE-15007 New Downtown Parking Garage 50,000$ 5,398,000$ 0.9% Summer 2026 Residential Housing In-Lieu Fee Affordable Housing Development Projects 91,842$ N/A, ongoing N/A N/A Parks Dedication Fund PE-24004- Rinconada Pool Family Changing Room 250,000$ 1,397,698$ 17.9% November 2025 PE-18006- Byxbee Park Completion None 3,699,189$ N/A Fall 2024 Public Art In-Lieu Fee
Public Art Program (acquisition of new artwork, repair and maintenance, conservation and insurance, project management, and program administration)
361,598$ N/A N/A N/A
Water Fund Capacity Fees WS-80013 Customer Connection, Annual 1,229,105 $ N/A N/A Recurring WS-15002 Water Main Replacement Project 29 681,678$ 9,500,000$ 7.2% Winter 2022 WS-16001 Water Main Replacement Project #30 5,371 $ 9,804,371$ 0.1% Fall 2025 Wastewater Fund Capacity Fees WC-19001 Sewer Sanitary Rehabilitation Project 31 492,083 $ $9,500,000 5.2% July 2023 City of Palo Alto
FY 2024 Use of Fees Summary