Susana Alcala Wood, City Attorney Jorge Oseguera, City Auditor Mindy Cuppy, City Clerk Howard Chan, City Manager John Colville, City Treasurer City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-00354 March 1, 2022 Consent Item 11
Title: Department of Utilities Annual Development Fee Report for Fiscal Year 2020/21 Location: Citywide
Recommendation: Receive and file the Department of Utilities Annual Development Fee Report for Fiscal Year 2020/21.
Contact: Bill Busath, Director (916) 808-1434, [email protected]; Chuong (Ryan) Pham, Business Services Manager, (916) 808-8995, [email protected]; Jackie Rice, Supervising Financial Analyst (916) 808-1462, [email protected]; Linh Tuyen, Senior Accountant Auditor (916) 808-5988, [email protected], Department of Utilities
Presenter: None.
Attachments:
1-Description/Analysis
2- DOU Development Fee Report for Fiscal Year 2020/21
File ID: 2022-00354 Consent Item 11
March 1, 2022
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City of Sacramento
Description/Analysis
Issue Detail: The DOU Development Fee Report is established under Sacramento City Code Section 13.04.820. Under the Mitigation Fee Act, Government Code section 66013 and City Code Section 13.04.820 and 13.08.480 for Water and 13.08.500 for Sewer, an annual report for this development fee is required to be prepared and presented to the City Council. The report is to include information on the amount of the fees collected, expenditures and the remaining balance. The City of Sacramento Utilities Department, Development Fee Report for Fiscal Year 2021 is attached as Exhibit A. Pursuant to the Act and the City Code, the report was made available to the public on March 1, 2022.
Policy Considerations: Providing information regarding development fees collected and expenses incurred for projects associated with Water and Sewer development fees is required by Sacramento City Code Section 13.04.820, the Mitigation Fee Act, Government Code section 66013 and City Code Section 13.04.820 and 13.08.480 for Water and 13.08.500 for Sewer
Economic Impacts: Not applicable.
Environmental Considerations: This report concerns administrative activities that do not constitute a "project" as defined by the California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(2) and are not subject to CEQA [CEQA Guidelines Section 15060(c)(3)].
Sustainability: Water and Sewer Development fees are used to mitigate the impacts of development on the systems making them more resilient.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: This is an annual development fee report to City Council in compliance with the Mitigation Fee Act and City Code section 18.56.150. The attached report will satisfy the filing requirements for the water and sewer development fee funds.
Financial Considerations: The report provides a comprehensive accounting of the revenues, expenditures, and budgets of the DOU Development Fee for Fiscal Year 2021. There are no financial impacts to any City funds.
Local Business Enterprise (LBE): Not applicable.
Development Fees
Report
Fiscal Year
2021
Adopted by City Council: March 1, 2022
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
2 TABLE OF CONTENTS
Executive Summary …………………………………………………………………………… 3
Annual Report Requirement …………………………………………………………………. 5
Water Development Fee Fund:
Fund Balance Sheet for fiscal year ending June 30, 2021 ……………………………… 6 Schedule of Revenues, Expenditures, and Changes in Fund Balance for fiscal year ending June 30, 2021………………………………………………….………… 7
Capital Improvement Project Report …………………………………………………… 8
Sewer Development Fee Fund:
Fund Balance Sheets for fiscal year ending June 30, 2021 ……………………………. 12 Schedule of Revenues, Expenditures, and Changes in Fund Balance for fiscal year ending June 30, 2021 ...…………..…………………………………….………. 13
Capital Improvement Project Report …………………………………………………... 14
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
3 EXECUTIVE SUMMARY
The DOU Development Fee Report is a requirement under California Government Code 66013 and Sacramento City ordinance RESO 2007-365, Code Sec. 13.04.820. The Report requirements are located on page 3. Supplemental reports have been included to detail revenues collected and expenditures made for each fund. All financial information is shown for the fiscal year ending June 30, 2021. There are two categories of fees subject to reporting in the DOU 1) Water Development Fee and 2) Sewer and Combined Sewer System Development Fee.
The Water Development Fee is assessed on all projects that require a new water tap or increase in size of an existing tap. For residential projects within certain targeted redevelopment areas, the fee may be waived, and for residential projects in some additional areas of the City, the fee may be waived if the project meets certain criteria (RESO 87-322).
The Sewer System Development Fee is based on new sewer service tap size in City sewer service areas, excluding the Combined Sewer System. The Combined Sewer Development fee is assessed on every customer requesting a connection to the combined sewer system and is based on Equivalent Single Family Dwelling Units (ESD). Projects which are subject to the Combined Sewer Development Fee are not subject to the Sewer System Development Fee.
The revenue collected for Water Development Fee Fund (6001) and the Sewer System Development Fee Fund (6002) are consisted of interest earned and fees collected. Below is a breakdown of each development revenue by fiscal year:
Fiscal Year Water Development Fee Sewer and Combined
Sewer Development Fee
2021 5,093,905 4,317,269
Below is a list of Water and Sewer Development Fees as of July 1, 2021.
Water Development Fees
Domestic and Irrigation Water Services
¾" meter $1,741.85
1" meter $3,134.23
1 ¼" meter $4,620.42
1 ½" meter $6,071.27
2" meter $12,565.45
3" meter $35,320.87
4" meter $78,354.21
6" meter $139,178.55
8" meter $172,977.85
10" meter $638,232.54
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
4 Sewer Development Fees
Wastewater System Development Fees
4" $188.20
6" $421.94
8" $749.80
10" $1,171.76
12" $1,687.83
Combined Sewer Service Area
Based on Equivalent Single Family Dwelling Units (ESD)
Development Size Fee Amount
First 25 ESDs $151.36 per each ESD
26 or more ESDs $3,777.20 per each ESD exceeding 25
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
5 ANNUAL REPORT REQUIREMENTS
An annual report for the Water, Sewer and Combined Sewer Development Fees is required under Sacramento City Code Section 13.04.820 for Water and 13.08.480 and 13.08.500 for Sewer. The Water Development Fee revenue and expenditures are accounted for in Fund 6001. The Sewer and Combined Sewer Development Fee revenue and expenditures are accounted for in Fund 6002. The information required is presented below and includes the referenced attachments:
Al. A description of the charges deposited in the fund (Page 3).
A2. The beginning and ending balance of the fund and the interest earned from investment of moneys in the fund (Pages 7 and 12); Balance Sheets for fiscal year ending June 30, 2021 and (Pages 6 and 11) ; Statement of Revenues, Expenditures, and Changes in Fund Balance for the fiscal year ending June 30, 2021 (Pages 7 and 12).
A3. (A) Each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the percentage of the total cost of the public improvement that was funded with those charges if more than one source of funding was used (Pages 8-10 and 14) for expenditures from the DOU Development Funds (Water) 6001 and (Sewer) 6002.
(B) Each public improvement on which charges were expended that was completed during that fiscal year (Pages 8-10 and 14).
(C) Each public improvement that is anticipated to be undertaken in the following fiscal year (Pages 11 and 14).
A4. A description of each interfund transfer or loan made from the capital facilities fund. The information provided, in the case of an interfund transfer, shall identify the public improvements on which the transferred moneys are, or will be, expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that the fund will receive on the loan. There were no interfund transfers or loans for fiscal year ending June 30, 2021 (Water) fund 6001 and (Sewer) 6002.
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
6 WATER DEVELOPMENT FEE FUND
BALANCE SHEET
FOR FISCAL YEAR ENDING JUNE 30, 2021
(in thousands)
2021
ASSETS
Current Assets
Receivables, net
Accounts 1,078$
Loans -
Interest -
Total Current Assets 1,078$
Non Current Assets
Cash and Investments held by the City 43,290$
Loans Receivable -
Capital Assets:
Land 584
Transmission and Distribution Systems 3,429
Construction in Progress 20,228
Less: Accumulated depreciation/amortization (330)
Total Non-Current Assets 67,201$
Total Assets 68,279$
LIABILITIES
Current Liabilities
Accounts Payable 340$
Unearned Revenue 458
Total Current Liabilities 798$
Noncurrent Liabilities
Water fee credits 317$
Total Noncurrent Liabilities 317$
NET POSITION
Net investment in capital assets 23,911$
Capital Projects 43,253
Total Net Position 67,164$
Total Liabilities and fund balances 68,279$
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
7 WATER DEVELOPMENT FEE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR FISCAL YEAR ENDING JUNE 30, 2021
(in thousands)
2021
Revenues:
Operating Revenue -$
Total Operating Revenue -$
Operating Expenses
Depreciation and Amortization 126$
Total Operating Expenses 126$
Operating Income (loss) (126)$
Non-Operating Revenue
Interest and Investment Revenue 436$
Total Nonoperating Revenue 436$
Income (loss) before capital contributions,
transfers, and special item 310$
Capital Contributions 4,658
Change in Net Position 4,968$
Total Net position, beginning of the year 62,196$
Total Net position, end of year 67,164$
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
8 WATER DEVELOPMENT FEE FUND
PROJECT EXPENSES
FOR FISCAL YEAR ENDING JUNE 30, 2021
For the fiscal year ending June 30, 2021, the following open projects incurred expenses:
Project Name: Water Master Plan Program – Project ID I14510200
Project Description – The Water Master Plan Program is an on-going program that includes the planning of the major transmission mains pumping and storage facilities and water supply. The project remains open for planning purposes for future improvements.
Fiscal Year Budget Expenses
2021 $0 $0
Total
Budget
Prior
Expenses
FY21
Expenses
Budget
Remaining
% Funded
$26,847 $6,679 $0 $20,168 25%
Project Name: River Arc Project – Project ID I14510205
Project Description: The River Arc Project is also known as the Sacramento River Regional Water Reliability Project. The purpose of this project is to divert water through existing or new intake(s) from the Sacramento River to offset water currently diverted from the American River.
The water will be delivered through new raw water pipelines to a new regional water treatment plant and distribute the treated surface water through new and existing pipelines to the Parties. The project is scheduled to be completed in fiscal year 2030.
Fiscal Year Budget Expenses
2021 $0 $0
Total
Budget
Prior
Expenses
FY21
Expenses
Budget
Remaining
% Funded
$63,248 $56,250 $0 $6,998 89%
Project Name: Shasta Park 4MG Reservoir and Pump Station – Project ID Z14005400
Project Description: The Shasta Park 4MG Reservoir and Pump Station project is to identify the appropriate reservoir location; design a four million-gallon (4 MG) water storage reservoir, a booster pump station, and groundwater well to provide water to the southern portion of the City during peak hour demands, fire demands, and emergencies. The project is scheduled to be completed in fiscal year 2024.
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
9 WATER DEVELOPMENT FEE FUND
PROJECT EXPENSES (Continued)
FOR FISCAL YEAR ENDING JUNE 30, 2021
Fiscal Year Budget Expenses
2021 $0 $0
Total
Budget
Prior
Expenses
FY21
Expenses
Budget
Remaining
% Funded
$4,380,814 4,366,918 $0 $13,896 100%
Project Name: Shasta Park Water Facility - Project ID: Z14005402
Project Description: The Shasta Park Water Facility project is the construction of Shasta Park’s 4MG reservoir and the pump station. The project is scheduled to be completed in fiscal year 2022.
Fiscal Year Budget Expenses
2021 $350,000 $553,516
Total
Budget
Prior
Expenses
FY21
Expenses
Budget
Remaining
% Funded
$16,908,840 $15,895,177 $553,517 $2,798 97%
Project Name: TP Rehab Design - Project ID: Z14006000
Project Description: The TP Rehab Design project prepare plans and specifications for necessary improvements and rehabilitation work at both E.A. Fairbairn Water Treatment Plant (FWTP) and Sacramento River Water Treatment Plant (SRWTP). The project was completed in fiscal year 2021.
Fiscal Year Budget Expenses
2021 $0 $0
Total Budget Prior Expenses FY21 Expenses % Funded
$1,500,000 $1,500,000 $0 100%
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
10 Project Name: Wholesale Wheeling Connection Fee Improvement- Project ID: Z14006700
Project Description: The Wholesale Wheeling Connection Fee Improvement project provides distribution improvements to construct pipelines and meter vaults to give water to wholesale agencies. The first phase of the project was completed in fiscal year 2018; however, the project remains open for planning purposes for future improvements.
Fiscal Year Budget Expenses
2021 $0 $0
Total
Budget
Prior
Expenses
FY21
Expenses
Budget
Remaining
% Funded
$490,786 $391,826 $0 $98,960 26%
Project Name: CalAM Water - Arden Intertie - Project ID: Z14006702
Project Description : The CalAM Water project is the service area for Arden’s. The area is approximately one square mile and it currently served by five water wells nearing the end of their service life. To enhance its water portfolio, CalAM wished to add a surface water supply by constructing an intertie with the City's potable water system. City staff will review and approve initial and final design of a new potable water intertie to California American Water. The Ownership and operation of the intertie will be transferred to the City upon project completion, and all City incurred costs will be reimbursed. The project is scheduled to be completed in fiscal year 2022.
Fiscal Year Budget Expenses
2021 $0 $3,695
Total
Budget
Prior
Expenses
FY21
Expenses
Budget
Remaining
% Funded
$189,455 $58,510 $3,695 $130,945 31%
Project Name: Water Sup Expansion Pre-Design - Project ID: Z14190102
Project Description: The Water Supply Expansion Pre-Design project is the conceptual design, CEQA, permitting support services, and public outreach for the Sacramento River Water Treatment Plant Expansion Project (SRWTP). The initial Council award is limited to conceptual design and draft EIR (Phase 1). Phase 2 will complete the EIR and provide 10% of the design. The project is expected to be completed in fiscal year 2023
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
11 WATER DEVELOPMENT FEE FUND
PROJECT EXPENSES (Continued)
FOR FISCAL YEAR ENDING JUNE 30, 2021
Fiscal Year Budget Expenses
2021 1,589,000 $1,740,236
Total
Budget
Prior
Expenses
FY21 Budget
Remaining
% Funded
$5,589,000 $1,069,168 $1,740,236 $2,779,596 50%
The following projects are anticipated for the Water Development Fee Fund (Fund 6001) for the Fiscal Year ending June 30, 2022:
Project Name Project ID Allocated Budget
Base CIP Contingency Water Z14000700 $38,752
SSWD Inter-Tie Modification Z14006701 $65,000
Water Supply Expansion
Program
Z14190100 $861,000
Water Supply Expansion Pre-
Design
Z14190102 $2,570,000
Water and Property Acquisition Z14190103 $1,294,659
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
12 SEWER DEVELOPMENT FEE FUND
BALANCE SHEET
FOR FISCAL YEAR ENDING JUNE 30, 2021
(in thousands)
2021
ASSETS
Current Assets
Receivables, net
Accounts 1,307$
Total Current Assets 1,307$
Non Current Assets
Cash and Investments held by the City 6,353$
Capital Assets:
Buildings and improvements 20,339
Transmission and Distribution Systems 1,013
Construction in Progress
Less: Accumulated depreciation/amortization (175)
Total Non-Current Assets 27,530$
Total Assets 28,837$
LIABILITIES
Current Liabilities
Accounts Payable 239$
Total Current Liabilities 239$
Noncurrent Liabilities
Wastewater Fee Credits 13,912$
Total Noncurrent Liabilties 13,912$
NET POSITION
Net investment in capital assets 21,177$
Unrestricted (6,491)
Total Net Position 14,686$
Total Liabilities and Fund Balances 28,837$
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
13 SEWER DEVELOPMENT FEE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR FISCAL YEAR ENDING JUNE 30, 2021
(in thousands)
2021
Revenues:
Operating Revenue -$
Total operating Revenue -$
Operating Expenses
Depreciation and Amortization 112$
Total Operating Expenses 112$
Operating Income (loss) (112)$
Non-Operating Revenue
Interest and Investment Revenue 73$
Total Nonoperating Revenue 73$
Income (loss) before contributions and transfers (39)$
Capital Contributions 4,244
Change in Net Position 4,205$
Total Net position, beginning of the year 10,481$
Total Net position, end of year 14,686$
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
14 SEWER DEVELOPMENT FEES
PROJECT EXPENSES
FOR FISCAL YEAR ENDING JUNE 30, 2021
For the fiscal year ending June 30, 2021 the following open projects incurred expenses:
Project Name: 3rd St Relief Sewer Project - Project ID: X14010107
Project Description: This project is to provide relief for increased sanitary sewer flows from major planned development in the Richards Area and Downtown Railyards. The City has determined that these additional flows require mitigation through the construction of a relief in 3rd Street. The project is scheduled to be completed in fiscal year 2022.
Fiscal Year Budget Expense
2021 $16,085,556 $3,049,928
Total
Budget
Prior
Expenses
FY21
Expenses
Budget
Remaining
% Funded
$22,687,810 $17,653,194 $3,049,928 $434,688 98%