Staff Report - Citywide Transportation Development Impact Fee Annual Reports

City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org

File ID: 2022-01000 June 14, 2022

Title: Citywide Transportation Development Impact Fee Annual Report for the Years Ending June 30, 2019, June 30, 2020, and June 30, 2021 [Published 06/03/2022]

Location: Citywide

Recommendation: Pass a Motion to receive and file the Citywide Transportation Development Impact Fee Annual Reports for the Years Ending June 30, 2019, June 30, 2020, and June 30, 2021.

Contact: April Lu, Supervising Financial Analyst, (916) 808-2680, [email protected] ;
Lucinda Willcox, Program Manager, (916) 808-5052; [email protected], Department of Public Works.

Presenter: None

Attachments:
1-Description/Analysis
2-Exhibit A (FY 19 Citywide Transportation Development Impact Fee Annual Report) 3-Exhibit B (FY 20 Citywide Transportation Development Impact Fee Annual Report) 4-Exhibit C (FY 21 Citywide Transportation Development Impact Fee Annual Report)

Description/Analysis

Issue Detail: The Transportation Development Impact Fee (TDIF) is established under Sacramento City Code Title 18, Chapter 18.56, Article III. The Mitigation Fee Act (California Government Code Section 66000 et. seq., hereafter the “Act”) and City Code Section

18.56.150 require preparation of an annual report to be made available to the public. The Citywide Transportation Development Impact Fee Annual Report for the years ending June 30, 2019, June 30, 2020, and June 30, 2021 (attached as Exhibit A, Exhibit B and Exhibit C) fulfills the annual reporting requirement for the Citywide Transportation Development Impact Fee (TDIF).

The report presents the following information as required by the Act and City Code:

 A brief description of the type of fee in the account or fund.  The amount of the fee.
 The beginning and ending balance of the account or fund.  The amount of the fees collected, and interest earned.  An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded by the fees.  An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement.  A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan.  The amount of any refunds made once it has been determined that sufficient revenues have been collected to fund incomplete public improvements but an approximate date for commencement of construction has not been identified.  The amount of any automatic annual adjustment, including the basis of the calculation.

Due to the impact of COVID-19, there was a delay on filing the Fiscal Year (FY) 19 and FY20 Citywide Transportation Development Impact Fee Annual Reports. These reports will be filed along with the FY21 Citywide Transportation Development Impact Fee Annual Report.

Policy Considerations: Filing the required annual report will satisfy the requirement of the Act and City Code. The TDIF provides funding to address impacts from new development on the city’s transportation network. Areas near transit stations and in housing incentive zones receive a 40 percent discount on the fees in order to reduce fee burdens in these areas. Low- income housing projects and accessory dwelling units are exempt from paying TDIF to further support City housing objectives.

Economic Impacts: Not applicable.

Environmental Considerations:

California Environmental Quality Act (CEQA): This report contains administrative activities that do not constitute a “project” as defined by the CEQA Guidelines Section 15378(b)(2) (Title 14 Cal Code Reg. §15000et. Seq.).

Sustainability: Not applicable.

Commission/Committee Action: None

Rationale for Recommendation: The Mitigation Fee Act and City Code Section 18.56.150 require an annual report filed with City Council.

Financial Considerations: Revenue from TDIF fees (Fund 3215) collected by fiscal year are:

FY19 $1,810,283
FY20 $2,958,197
FY21 $2,101,521

This funding is budgeted and expended from eligible Capital Improvement Projects as identified in the attached reports and background section below.

Through its TDIF fee incentives, the City foregoes approximately $500,000 to $750,000 in TDIF revenue annually in reduced fees in transit area and housing incentive zones. In addition, in the last three years, the City has supported affordable housing projects by waiving an estimated $1.5 million in TDIF fees.

Local Business Enterprise (LBE): Not applicable.

Background: The TDIF was adopted on February 14, 2017, in an effort to partially offset the impact of projected growth on the City’s transportation network. The City’s transportation network continues to rely on state, federal, and other funding sources to fund the majority of transportation improvements.

The TDIF includes the following exemptions and reductions:

 40% discount for properties within ½ mile of existing and future transit stations, Central City Community Plan Area, and other Housing Incentive Areas  Minimal rates for the first 5,000 square feet of new non-residential development to minimize impacts on small business and support business expansion  Exempts low-income housing and facilities for the homeless  Provides credits for prior uses to support redevelopment, reuse, and reinvestment  Exempts new development in North Natomas under existing Development Agreements in reflection of the investment made in citywide serving infrastructure under the North Natomas Finance Plan
 Exempts development in Delta Shores for at least ten years consistent with the provisions of the City’s Cost Sharing Agreement where the property owner advanced the funding for the Cosumnes River Boulevard extension and I-5 interchange

While the TDIF can be used for eligible facilities citywide, the tables below identify collections by Community Plan area for informational purposes only.

FY19 TDIF Fee Collected by Plan Area
Comm Plan Area Amount Percent
ARDEN ARCADE $ 15,372.89 0.85%
CENTRAL CITY $ 120,349.31 6.65%
EAST SACRAMENTO $ 243,955.20 13.48%
FRUITRIDGE/BROADWAY $ 184,360.08 10.18%
LAND PARK $ 167,637.94 9.26%
NORTH NATOMAS $ 49,004.40 2.71%
NORTH SACRAMENTO $ 163,534.44 9.03%
POCKET $ 1,728.00 0.10%
SOUTH AREA $ 127,015.70 7.02%
SOUTH NATOMAS $ 737,325.04 19.22%
Grand Total $ 1,810,283.00 100.00%

FY20 TDIF Fee Collected by Plan Area
Comm Plan Area Amount Percent
ARDEN ARCADE $ 323,777.66 10.95%
CENTRAL CITY $ 490,559.59 16.58%
EAST SACRAMENTO $ 256,139.12 8.66%
FRUITRIDGE/BROADWAY $ 199,523.07 6.74%
LAND PARK $ 190,766.10 6.45%
NORTH NATOMAS $ 12,684.25 0.43%
NORTH SACRAMENTO $ 156,742.82 5.30%
POCKET $ 5,436.00 0.18%
SOUTH AREA $ 346,976.21 11.73%
SOUTH NATOMAS $ 975,592.00 32.98%
Grand Total $ 2,958,197.00 100.00%

FY21 TDIF Fee Collected by Plan Area
Comm Plan Area Amount Percent
ARDEN ARCADE $ 353.70 0.02%
CENTRAL CITY $ 280,335.12 13.34%
EAST SACRAMENTO $ 78,574.39 3.74%
FRUITRIDGE/BROADWAY $ 409,574.48 19.49%
LAND PARK $ 225,019.45 10.71%
NORTH NATOMAS $ 777.20 0.04%
NORTH SACRAMENTO $ 136,960.28 6.52%
POCKET $ 4,605.00 0.22%
SOUTH AREA $ 258,050.64 12.28%
SOUTH NATOMAS $ 707,270.84 33.66%
Grand Total $ 2,101,521.10 100.00%

To date, the City has used or will need to use TDIF to support the following capital improvement projects that are underway:

Downtown Mobility Project (T15195000)
Niños Parkway Phase 2 (K15202000)
North 12th Complete Street (T15165000)
Del Rio Trail (K15165100)
Meadowview Road Complete Streets (T15145500)
Franklin Boulevard Complete Streets (T15165500)

Citywide Transportation Development Impact Fee
Annual Report
For the Year Ending June 30, 2019

Made Available to the Public May 16, 2022

Received and Filed by the Sacramento City Council at its Meeting June 14, 2022

City of Sacramento FY2018/19 Citywide Transportation Development Impact Fee Annual Report Page 1

City of Sacramento
Citywide Transportation Development Impact Fee Annual Report For the Year Ending June 30, 2019

TABLE OF CONTENTS
Section Page

1. INTRODUCTION ................................................................................................................................. 2

2. BRIEF DESCRIPTION OF FEES ............................................................................................................. 2

3. FEE AMOUNTS ................................................................................................................................... 3

4. FUND BALANCES ................................................................................................................................ 3

5. FEES COLLECTED AND INTEREST EARNED ......................................................................................... 3

6. IDENTIFICATION OF PUBLIC IMPROVEMENTS ON WHICH FEES WERE EXPENDED ........................... 3

7. APPROXIMATE DATE OF COMMENCEMENT OF CONSTRUCTION ..................................................... 3

8. INTERFUND TRANSFERS OR LOANS ................................................................................................... 3

9. REFUNDS MADE ................................................................................................................................. 3

EXHIBITS
A. FY2018/19 Citywide Transportation Development Impact Fee B. Combined Statement of Revenues, Expenditures and Charges in Fund Balance C. Identification of Locations on Where Fee were Expended

City of Sacramento FY2018/19 Citywide Transportation Development Impact Fee Annual Report Page 2

The Mitigation Fee Act (California Government Code 66000 et. seq., hereafter the “Act”), more commonly known as Assembly Bill 1600, was enacted by the State of California in 1987. Section 66006(a) of the Act requires local agencies to report, every year and every fifth year, certain financial information regarding their development impact fees. The local agency must make this information available for review by the public and must present it at the next regularly scheduled public meeting within 15 days from when the information is made available to the public.

This Fiscal Year (FY) 2018/19 annual report presents the information required by the Act for certain development fee funds and accounts established by the City of Sacramento. The report is organized as follows:

Section 2: A brief description of the type of fee in the account or fund Section 3: The amount of the fee
Section 4: T he beginning and ending balance of the account or fund Section 5: The amount of the fees collected and interest earned Section 6: An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded by the fees Section 7: A n identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement Section 8: A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan Section 9: T he amount of any refunds made once it has been determined that sufficient revenues have been collected to fund all projects.

2. BRIEF DESCRIPTION OF FEES
Below is a brief description of the Citywide Transportation Development Impact fees in the account/fund included in this report:

Citywide Transportation Development Impact Fee:

This fund is used to provide funding for transportation facilities to benefit new development within the city.

City of Sacramento FY2018/19 Citywide Transportation Development Impact Fee Annual Report Page 3

3. FEE AMOUNTS
The following details the amount of each fee for the year ending June 30, 2019, unless otherwise indicated.

Citywide Transportation Development Impact Fee:

See Exhibit A.

4. FUND BALANCES
The beginning and ending fund balances for the Citywide Transportation Development Impact Fee (Fund 3215) for the year ending June 30, 2019 is provided in Exhibit B to this report.

5. FEES COLLECTED AND INTEREST EARNED
The fees collected and interest earned for the Citywide Transportation Development Impact Fee (Fund 3215) for the year ending June 30, 2019 is provided in Exhibit B to this report.

6. IDENTIFICATION OF PUBLIC IMPROVEMENTS ON WHICH FEES WERE EXPENDED For each fee district, an identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement during the year ending June 30, 2019, including the total percentage of the cost of the public improvement that was funded by the fees is provided in the Exhibit C to this report.

7. APPROXIMATE DATE OF COMMENCEMENT OF CONSTRUCTION
An identification of the approximate date by which construction of public improvements will commence if it has been determined that sufficient funds have been collected to complete financing on an incomplete public improvement and the public improvement remains incomplete is provided in the same exhibits identified in Section 6 above.

8. INTERFUND TRANSFERS OR LOANS
For the year ending June 30, 2019, no interfund transfers or loans occurred.

9. REFUNDS MADE
For the year ending June 30, 2019, no refunds have been identified.

Exhibit A
FY2018/19
Citywide Transportation Impact Fees

Land Use Baseline
North
Natomas2 Baseline
North
Natomas2
River
District
Central
City Railyards
Delta
Shores4
Residential Land Use Categories5
Single-family $2,226 $465 $1,336 $279 $569 $1,217 $126 E Multifamily $1,278 $268 $767 $161 $333 $699 $73 E
Nonresidential Land Use Categories ---------------------------------------------- per sq. ft. ------------------------------------------------ Retail First 5000 SF $0.33 $0.07 $0.20 $0.04 $0.09 $0.18 $0.02 E 5001 SF and above $3.34 $0.69 $2.00 $0.42 $0.86 $1.83 $0.19 E Office First 5000 SF $0.33 $0.07 $0.20 $0.04 $0.08 $0.18 $0.02 E 5001 SF and above $3.30 $0.69 $1.98 $0.42 $0.84 $1.80 $0.19 E Major Medical Facilities First 5000 SF $0.32 $0.07 $0.19 $0.04 $0.08 $0.17 $0.02 E 5001 SF and above $3.18 $0.67 $1.91 $0.40 $0.81 $1.73 $0.18 E Schools First 5000 SF $0.12 $0.03 $0.07 $0.02 $0.03 $0.07 $0.01 E 5001 SF and above $1.24 $0.26 $0.74 $0.16 $0.32 $0.67 $0.07 E Church/Assembly First 5000 SF $0.07 $0.01 $0.04 $0.01 $0.02 $0.04 $0.00 E 5001 SF and above $0.71 $0.13 $0.43 $0.08 $0.18 $0.38 $0.04 E Industrial First 5000 SF $0.23 $0.05 $0.14 $0.03 $0.06 $0.12 $0.01 E 5001 SF and above $2.26 $0.47 $1.36 $0.28 $0.58 $1.24 $0.13 E Warehouse First 5000 SF $0.11 $0.02 $0.06 $0.01 $0.03 $0.06 $0.01 E 5001 SF and above $1.08 $0.23 $0.65 $0.14 $0.27 $0.59 $0.06 E ---------------------------------------------- per pump ------------------------------------------------- Gas Station $3,345 $691 $2,008 $415 $855 $1,830 $190 E
--------------------------------------------- per room--------------------------------------------------- Hotel/Motel $918 $191 $551 $115 $235 $488 $52 E
---per seat---
MLS NA NA NA NA NA NA $0.00 E
tdif
Other (calculation to be based on City traffic analysis) ---------------------------------------------- per trip ---------------------------------------------------- $225 $47 $135 $28 $57 $123 $13 E
2 Only for projects without a Development Agreement (DA) as of 7/1/17; development with DA is exempt. 3 See Exhibit A.
5 Low income housing and second residential units are exempt.

Table 1
City of Sacramento
Transportation Development Impact Fee
Fee Rate Schedule (As of October 28, 2018)1
--------------------------------------------- per unit ----------------------------------------------- 4 E -- Under the terms of the Cost Sharing Agreement: I-5 Interchange & Cosumnes River Boulevard Extension (C2012-0059), development is exempt from paying TDIF fees for a period of 10 years after the date the City issued notice to proceed for construction of the Project and thereafter until the aggregate amount of all TDIFs that would apply to the Project exceed M&H's eligible payments as defined in the Cost Sharing Agreement. -------------- per unit -----------------
-------------- per sq. ft. ----------------
In Finance Plan Area
--------------- per trip ------------------
------------- per pump ----------------
1 Fee rates will be increased for annual inflationary update on July 1, 2019 based on the percentage change in the ENR CCI year-over-year change as of March 2018 to March 2019.
-------------- per room-----------------
Housing Incentive/Transit Center3 Fee
(Including Administration)

Exhibit B
Combined Statement of Revenues,
Expenditures, and Charges in Fund Balance
For the Fiscal Year Ended June 30, 2019

City of Sacramento
Combined Statement of Revenues, Expenditures and Changes in Fund Balance Citywide Transportation Development Impact Fee Fund (TDIF Fund 3215) For the Fiscal Year Ended June 30, 2019
Fund Beginning TDIF Interest Transfer In/ Total Ending Description Fund Balance Revenue Income Transfer Out Available Admin Exp Balance Citywide Transportation
Development Imapct Fee 3215 1,276,213 $ 1,810,283$ 48,607$ 3,135,103$ (145,607) (52,663) 2,936,833$ Public Improvement Exp
Expenditures

Citywide Transportation Development Impact Fee
Annual Report
For the Year Ending June 30, 2020

Made Available to the Public May 16, 2022

Received and Filed by the Sacramento City Council at its Meeting June 14, 2022

City of Sacramento FY2019/20 Citywide Transportation Development Impact Fee Annual Report Page 1

City of Sacramento
Citywide Transportation Development Impact Fee Annual Report For the Year Ending June 30, 2020