City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Lisa Roos, City Clerk & Finance Director
Date: 05/09/2023
Subject: Mitigation Impact Fee Loan to Corp Yard AB1600 Fund RECOMMENDED ACTION:
Staff is recommending the City Council approve this resolution lending $5,687,300 from the General Fund Mitigation Impact Fee to the Corporation Yard AB1600 Capital Fund for the construction of the Fleet Maintenance Facility Project.
BACKGROUND:
In December 2022, the City Council awarded the construction contract for the Fleet Maintenance Facility Project in the amount of $13,032,041 with the funding sources and amounts listed below:
Fund Allocation
Corp Yard AB1600 $440,000
Measure K Transit $970,000
ARPA Funds $1,800,000
RDA Bond Proceeds $1,741,000
Sewer Capital Enterprise $800,000
Water Capital Enterprise $800,000
Storm Capital Enterprise $456,500
Corp Yard AB1600 Loan $5,687,300
General Fund – Dept Capital $337,241
DISCUSSION:
This resolution formally approves the loan from the Mitigation Fund to the Corporation Yard AB1600 fund at an annual simple interest rate of 1% to be used for the construction of the Fleet Maintenance Facility. The loan is to be repaid by the revenue generated from development Corp Yard AB1600 fees. The term of this loan is projected to be 23 years, based on an interest rate of 1% and a residential growth rate of 1.5%, which would be around the time the population of Ripon is 23,000.
RESOLUTION NO. 23-21
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RIPON APPROVING A LOAN TO THE CORPORATION
YARD AB1600 FUND FROM THE GENERAL FUND
MITIGATION IMPACT FEE
WHEREAS, a General Fund Mitigation Impact Fee has been imposed on residential development projects and collected through Development Agreements in an effort to mitigate the long-term future impacts of growth; and
WHEREAS, fees collected pursuant to the General Fund Mitigation Impact Fee have been maintained in a separate Mitigation Fund; and
WHEREAS, since the inception of the fund, the practice of the City has been to transfer half of the interest earned each year to the General Fund and the other half remained in the Mitigation Fund to grow the Fund; and
WHEREAS, the City Council has from time to time evaluated options for the use of the Mitigation Fund to mitigate the impacts of growth, which are not otherwise mitigated by new development; and
WHEREAS, the City Council policy for the use of these funds is to (1) transfer interest generated from this fund to the General Fund during an economic downtown and an operational deficit occurs and (2) leverage these funds to advance priority projects through a loan; and WHEREAS, the City Council has approved original funding of $13,032,041 for the Fleet Maintenance Facility Project, of which $5,687,300 was a loan from the General Fund Mitigation Impact Fees to the Corporation Yard AB1600 Capital Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ripon that the City of Ripon does hereby approve lending $5,687,300 from the general fund mitigation impact fee to the Corporation Yard AB1600 capital fund for the construction of the Fleet Maintenance Facility Project at a simple interest rate of 1% per year.
BE IT FURTHER RESOLVED that the loan is to be repaid by fees generated from development Corporation Yard AB1600 fees.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Ripon this 9th day of May, 2023, by the following vote:
RESULT: ADOPTED BY CONSENT VOTE [UNANIMOUS]
MOVER: Leo Zuber, Vice Mayor
SECONDER:Gary Barton, Council Member
AYES: Michael Restuccia, Leo Zuber, Gary Barton
ABSENT: Daniel de Graaf, Dean Uecker
THE CITY OF RIPON,
A Municipal Corporation
By ________________________________
MICHAEL RESTUCCIA, Mayor
ATTEST:
By: ___________________________
LISA ROOS, City Clerk