City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00153 3/14/2023 Consent Item 2.
Department of Utilities Annual Development Fee Report for Fiscal Year 2021/22 File ID: 2023-00153
Location: Citywide
Recommendation: Receive and file the Department of Utilities (DOU) Annual Development Fee Report for fiscal year (FY) 2021/22.
Contact: Pravani Vandeyar, Director (916) 808-3765; [email protected], Chuong (Ryan) Pham, Business Services Manager (916) 808-8995; [email protected], Penny Buchman, Supervising Financial Analyst (916) 808-1481; [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 2021/22
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 Council. The report is to include information on the amount of the fees collected, expenditures and the remaining balance. The DOU Development Fee Report for FY2021/2022 is attached.
Policy Considerations: Provision of information regarding development fees collected and expenses incurred for projects associated with Water and Sewer development fees is required by City Code and provides Council with information necessary to make future policy decisions with regard to need and costs of infrastructure funding.
File ID: 2023-00153 3/14/2023 Consent Item 2.
Economic Impacts: Not applicable.
Environmental Considerations: This report concerns administrative activities that do not constitute a "project" as defined by the CEQA Guidelines Section 15378(b)(2).
Sustainability: The collection and use of development fees are consistent with the City’s General Plan goal U1.1.3 (Sustainable Facilities and Services) by providing adequate water and wastewater infrastructure in a cost-efficient manner.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: This report complies with the Mitigation Fee Act.
Financial Considerations: The report provides a comprehensive accounting of the revenues, expenditures, and budgets of the DOU Development Fee for FY2021/22.
Local Business Enterprise (LBE): Not applicable.
Development Fees
Report
Fiscal Year
2022
Adopted by City Council: March 14, 2023
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, 2022 ……………………………… 6 Schedule of Revenues, Expenditures, and Changes in Fund Balance for fiscal year ending June 30, 2022………………………………………………….………… 7
Capital Improvement Project Report …………………………………………………… 8
Sewer Development Fee Fund:
Fund Balance Sheets for fiscal year ending June 30, 2022 ……………………………. 10 Schedule of Revenues, Expenditures, and Changes in Fund Balance for fiscal year ending June 30, 2022 ...…………..…………………………………….………. 11
Capital Improvement Project Report …………………………………………………... 12
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
3 EXECUTIVE SUMMARY
The DOU Development Fee Re port 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 5. Supplemen tal 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, 2022. There are two categories of fees subject to reporting in the DOU 1) Water Development Fee a nd 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 project s 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 Sy stem. 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 Developm ent Fee Sewer and Combined
Sewer Development Fee
2022 4,701,013 2,538,190
Below is a list of Water and Sewer Development Fees as of July 1, 2023
Water Development Fees
Domestic and Irrigation Water Services
¾" meter $2,005.97
1" meter $3,609.48
1 ¼" meter $5,321.03
1 ½" meter $6,991.88
2" meter $14,470.79
3" meter $40,676.69
4" meter $90,235.32
6" meter $160,282.65
8" meter $199,207.04
10" meter $735,009.82
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
4 Sewer Development Fees
Wastewater System Development Fees
4" $204.42
6" $458.31
8" $814.42
10" $1,272.75
12" $1,833.29
Combined Sewer Service Area
Based on Equivalent Single Family Dwelling Units (ESD)
Development Size Fee Amount
First 25 ESDs $164.41 per each ESD
26 or more ESDs $4,102.73 per each ESD exceedin g 25
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
5 ANNUAL REPORT REQUIREMENTS
An annual report for the Water, Sewer and Comb ined 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 Developmen t Fee revenue and expenditure s are accounted for in Fund 6001. The Sewer and Combine d Sewer Development Fee re venue 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 a nd the interest earned from investment of moneys in the fund (Pages 6 and 10); Balance Sheets for fiscal year ending June 30, 2022 and (Pages 6 and 10) ; Statement of Revenues, Expenditures, and Changes in Fund Balance for the fiscal year ending June 30, 2022 (Pages 7 and 11).
A3. (A) Each public improvement on which charge s 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 charge s if more than one source of funding was used (Pages 8-9 and 12) for expenditures from the DOU Development Funds (Water) 6001 and (Sewer) 6002.
(B) Each public improvement on which ch arges were expended that was completed during that fiscal year (
Pages 8-9 and 12).
(C) Each public improvement that is anticipated to be undertak en in the following fiscal year (Pages 9 and 12).
A4. A description of each interfund transfer or loan made from the capital facilities fund. The information provided, in the case of an in terfund 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 th e fund will receive on the loan. There were no interfund transfers or loans for fiscal year ending June 30, 2022 (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, 2022
(in thousands)
2022
ASSETS
Current Assets
Receivables, net
Accounts 551 $
Loans -
Interest -
Total Current Assets 551 $
Non Current Assets
Cash and Investments held by the City 45,964 $
Loans Receivable -
Capital Assets:
Land 1,729
Buildings and improvements 820
Machinery and equipment 680
Transmission and Distribution Systems 3,429
Construction in Progress 19,711
Less: Accumulated depreciation/amortization (478)
Total Non-Current Assets 71,855 $
Total Assets 72,406 $
LIABILITIES
Current Liabilities
Accounts Payable 116 $
Unearned Revenue 561
Total Current Liabilities 677 $
Noncurrent Liabilities
Water fee credits 12 $
Total Noncurrent Liabilities 12 $
NET POSITION
Net investment in capital assets 25,775 $
Capital Projects 45,942
Total Net Position 71,717 $
Total Liabilities and fund balances 72,406 $
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 ENDI NG JUNE 30, 2022
(in thousands)
2022
Revenues:
Operating Revenue - $
Total Operating Revenue - $
Operating Expenses
Depreciation and Amortization 148 $
Total Operating Expenses 148 $
Operating Income (loss) (148)$
Non-Operating Revenue
Interest and Investment Revenue 327 $
Total Nonoperating Revenue 327 $
Income (loss) before capital contributions,
transfers, and special item 179$
Capital Contributions 4,374
Change in Net Position 4,553$
Total Net position, beginning of the year 67,164$
Total Net position, end of year 71,717$
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
8 WATER DEVELOPMENT FEE FUND
PROJECT EXPENSES
FOR FISCAL YEAR ENDING JUNE 30, 2022
For the fiscal year ending June 30, 2022, 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
2022 $0 $0
Total
Budget
Prior
Expenses
FY22
Expenses
Budget
Remaining
% Funded
$26,847 $6,679 $0 $20,168 25%
Project Name: RiverArc Project– Project ID I14510205
Project Description - Project Description - The River Arc Project is also known as the Sacramento River Regional Water Reliability Project. The purpos e of this project is to divert water through existing or new intake(s) from the Sacramento Rive r to offset water currently diverted from the American River. The water will be delivered through new raw wate r pipelines to a new regional water treatment plant and distribute the treate d 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
2022 $0 $0
Total
Budget
Prior
Expenses
FY22
Expenses
Budget
Remaining
% Funded
$63,248 $56,250 $0 6,998 11%
Project Name: Shasta Park Water Facility - Project ID Z14005402
Project Description – Project Description: The Shasta Park Water Facility project is the construction of Shasta Park’s 4MG reservoir and the pump station. The project will be completed in fiscal year 2023.
Fiscal Year Budget Expenses
2022 $13,896 $8,153
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
9 WATER DEVELOPMENT FEE FUND
PROJECT EXPENSES (Continued)
FOR FISCAL YEAR ENDING JUNE 30, 2022
Total
Budget
Prior
Expenses
FY22
Expenses
Budget
Remaining
% Funded
$16,922,736 $16,431,677 $8,153 $482,906 97%
Project Name: Water Sup Expansion Pre-Design - Project ID: Z14190102
Project Description: The Water Supply Expansion Pre-Desi gn 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 scheduled to be completed in fiscal year 2025.
Fiscal Year Budget Expenses
2022 2,570,000 $1,007,386
Total
Budget
Prior
Expenses
FY22
Expenses
Budget
Remaining
% Funded
$8,159,000 $2,596,305 $1,007,386 $4,555,309 44%
Project Name: Water + Property Acquisition- Project ID: Z14190103
Project Description: The Water + Program includes the Sacramento River Water Treatment Plant Expansion Project (SRWTP). Existi ng treatment plant property is insufficient to meet the needs for full expansion. This project is used to obtain and secure property adjacent to the existing water treatment plant. The project is scheduled to be completed in fiscal year 2025.
Fiscal Year Budget Expenses
2022 1,419,659 $1,171,747
Total
Budget
Prior
Expenses
FY22 Budget
Remaining
% Funded
$1,454,852 $17,131 $1,171,747 $265,974.30 82%
The following projects are anticipated for the Water Development Fee Fund (Fund 6001) for the Fiscal Year ending June 30, 2023:
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
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
10 SEWER DEVELOPMENT FEE FUND
BALANCE SHEET
FOR FISCAL YEAR ENDING JUNE 30, 2022
(in thousands)
2022
ASSETS
Current Assets
Receivables, net
Accounts 768 $
Loans -
Interest -
Total Current Assets 768 $
Non Current Assets
Cash and Investments held by the City 5,339 $
Loans Receivable -
Capital Assets:
Land -
Building and improvements 20,339
Machinery and equipment -
Transmission and Distribution Systems 1,013
Construction in Progress 2,224
Less: Accumulated depreciation/amortization (388)
Total Non-Current Assets 28,527 $
Total Assets 29,295 $
LIABILITIES
Current Liabilities
Accounts Payable 1,512 $
Unearned Revenue -
Total Current Liabilities 1,512 $
Noncurrent Liabilities
Water fee credits 10,772 $
Total Noncurrent Liabilities 10,772 $
NET POSITION
Net investment in capital assets 12,413 $
Unrestricted 4,598
Total Net Position 17,011 $
Total Liabilities and fund balances 29,295 $
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
11 SEWER DEVELOPMENT FEE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR FISCAL YEAR ENDING JUNE 30, 2022
(in thousands)
2022
Revenues:
Operating Revenue - $
Total Operating Revenue - $
Operating Expenses
Depreciation and Amortization 213 $
Total Operating Expenses 213 $
Operating Income (loss) (213)$
Non-Operating Revenue
Interest and Investment Revenue 41 $
Total Nonoperating Revenue 41 $
Income (loss) before capital contributions,
transfers, and special item (172)$
Capital Contributions 2,497
Change in Net Position 2,325$
Total Net position, beginning of the year 14,686$
Total Net position, end of year 17,011$
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
12 SEWER DEVELOPMENT FEES
PROJECT EXPENSES
FOR FISCAL YEAR ENDI NG JUNE 30, 2022
For the fiscal year ending June 30, 2022 the following open projects incurred expenses:
Project Name: 3
rd 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 re lief in 3rd Street. The project is scheduled to be completed in fiscal year 2023.
Fiscal Year Budget Expense
2022 $0 $16,781,974
Total
Budget
Prior
Expenses
FY22
Expenses
Budget
Remaining
% Funded
$22,687,810 $5,781,114 $16,781,974 $124,722 99%
There were no anticipated projects for the Sewer Development Fee Fund (Fund 6002) for the Fiscal Year ending June 30, 2023.