City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-00605 3/19/2024 Consent Item 5.
Department of Utilities Annual Development Fee Report for Fiscal Year 2022/23 File ID: 2024-00605
Location: Citywide
Recommendation: Receive and file the Department of Utilities Annual Development Fee Report for Fiscal Year 2022/23.
Contact:
Pravani Vandeyar, Director, (916) 808-376, [email protected]; Chuong (Ryan) Pham, Business Services Manager, (916) 808-8995, [email protected]; Penny Buchman, Supervising Financial Analyst, (916) 808-148, [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 2022/23
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 for Water and 13.08.480 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 (FY) 2022/23 is attached.
Policy Considerations: Providing information regarding development fees collected and expenses incurred for projects associated with Water and Sewer development fees.
Economic Impacts: Not applicable.
Environmental Considerations: This report concerns administrative activities that do not constitute
File ID: 2024-00605 3/19/2024 Consent Item 5.
a "project" as defined by the California Environmental Quality Act (CEQA) Guidelines Section 15378 (b)(2) and is not subject to CEQA [CEQA Guidelines Section 15060(c)(3)].
Sustainability: Assess fees on all projects that require a new water tap or increase in size of an existing tap and on new sewer services within City service areas.
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.
Financial Considerations: The report provides a comprehensive accounting of the revenues, expenditures, and budgets for DOU development fees collected in Fiscal Year 2022/23.
Local Business Enterprise (LBE): Not applicable.
Development Fees
Report
Fiscal Year
2022/23
Received and Filed by City Council: March 19, 2024
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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TABLE OF CONTENTS
Executive Summary …………………………………………………………………………… 3
Annual Report Requirement …………………………………………………………………. 5
Water Development Fee Fund:
Fund Balance Sheet for fiscal year ending June 30, 2023 ……………………………… 6 Schedule of Revenues, Expenditures, and Changes in Fund Balance for fiscal year ending June 30, 2023………………………………………………….………… 7
Capital Improvement Project Report …………………………………………………… 8
Sewer Development Fee Fund:
Fund Balance Sheets for fiscal year ending June 30, 2023 ……………………………. 11 Schedule of Revenues, Expenditures, and Changes in Fund Balance for fiscal year ending June 30, 2023 ...…………..…………………………………….………. 12
Capital Improvement Project Report …………………………………………………... 13
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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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 5. Supplemental reports have been included to detail revenues collected and expenditure made for each fund. All financial information is shown for the fiscal year ending June 30, 2023. 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 pro jects 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 the 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
2023 4,824,364 1,932,772
Below is the list of Water and Sewer Development Fees used to calculate fees from July 1st, 2022, through June 30, 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
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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 exceeding 25
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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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 informa tion 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 and Balance Sheets for fiscal year ending June 30, 2023 (Pages 6 and 11); Statement of Revenues, Expenditures, and Changes in Fund Balance for the fiscal year ending June 30, 2023 (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 13) 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 13).
(C) Each public improvement that is anticipated to be undertaken in the following fiscal year (Pages 10 and 13).
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 the fiscal year ending June 30, 202 3 (Water) fund 6001 and (Sewer) 6002.
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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WATER DEVELOPMENT FEE FUND
BALANCE SHEET
FOR FISCAL YEAR ENDING JUNE 30, 202 3
(in thousands)
2023
ASSETS
Current Assets
Receivables, net
Accounts 455$
Loans -
Interest -
Total Current Assets 455$
Non Current Assets
Cash and Investments held by the City 49,617$
Loans Receivable -
Capital Assets:
Land 1,729
Buildings and improvements 820
Machinery and equipment 680
Transmission and Distribution Systems 3,429
Construction in Progress 21,458
Less: Accumulated depreciation/amortization (646)
Total Non-Current Assets 77,087$
Total Assets 77,542$
LIABILITIES
Current Liabilities
Accounts Payable 38$
Unearned Revenue -
Total Current Liabilities 38$
Noncurrent Liabilities
Water fee credits 12$
Total Noncurrent Liabilities 12$
NET POSITION
Net investment in capital assets 27,432$
Capital Projects 50,060
Total Net Position 77,492$
Total Liabilities and fund balances 77,542$
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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WATER DEVELOPMENT FEE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR FISCAL YEAR ENDING JUNE 30, 20 23
(in thousands)
2023
Revenues:
Operating Revenue -$
Total Operating Revenue -$
Operating Expenses
Depreciation and Amortization 168$
Total Operating Expenses 168$
Operating Income (loss) (168)$
Non-Operating Revenue
Interest and Investment Revenue 836$
Total Nonoperating Revenue 836$
Income (loss) before capital contributions,
transfers, and special item 668$
Capital Contributions 3,989
Transfers in 1,118
Change in Net Position 5,775$
Total Net position, beginning of the year 71,717$
Total Net position, end of year 77,492$
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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WATER DEVELOPMENT FEE FUND
PROJECT EXPENSES
FOR FISCAL YEAR ENDING JUNE 30, 2023
For the fiscal year ending June 30, 2023, 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
2023 $0 $0
Total
Budget
Prior
Expenses
FY23
Expenses
Budget
Remaining
% Funded
$26,847 $6,679 $0 $20,168 25%
Project Name: RiverArc 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 the fiscal year 2030.
Fiscal Year Budget Expenses
2023 $0 $0
Total
Budget
Prior
Expenses
FY23
Expenses
Budget
Remaining
% Funded
$63,248 $56,250 $0 6,998 89%
Project Name: Shasta Park 4MG Reservoir and Pump Station Project - Project ID Z14005400
Project Description –The Shasta Park 4MG Reservoir and Pump Station project is the construction, operation, and maintenance of an above -ground 4 million -gallon (MG) water reservoir, two groundwater wells, a water treatment system, and a pump station . The project remains open for planning purposes for future improvements.
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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WATER DEVELOPMENT FEE FUND
PROJECT EXPENSES (Continued)
FOR FISCAL YEAR ENDING JUNE 30, 2023
Fiscal Year Budget Expenses
2023 $0 $0
Total
Budget
Prior
Expenses
FY23
Expenses
Budget
Remaining
% Funded
$4,366,918 $4,366,918 $0 $0 100%
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 the fiscal year 2024.
Fiscal Year Budget Expenses
2023 $0 $308,128
Total
Budget
Prior
Expenses
FY23
Expenses
Budget
Remaining
% Funded
$16,922,736 $16,402,823 $308,128 $211,785 99%
Project Name: Wholesale Wheeling Connection Fee Improvements - Project ID Z14006700
Project Description –Design and construct needed for pipelines and meter vaults to provide wholesale surface water to agencies within the City of Sacramento’s Place of use. The project remains open for planning purposes for future improvements.
Fiscal Year Budget Expenses
2023 $65,000 $0
Total
Budget
Prior
Expenses
FY23
Expenses
Budget
Remaining
% Funded
$745,241 $ 391,826 $0 $ 353,415 53%
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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WATER DEVELOPMENT FEE FUND
PROJECT EXPENSES (Continued)
FOR FISCAL YEAR ENDING JUNE 30, 2023
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 aw ard 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 the fiscal year 2028.
Fiscal Year Budget Expenses
2023 $0 $538,017
Total
Budget
Prior
Expenses
FY23
Expenses
Budget
Remaining
% Funded
$8,159,000 $3,281,792 $538,017 $4,339,191 47%
Project Name: Water + Property Acquisition- Project ID: Z14190103
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 scheduled to be completed in the fiscal year 2026.
Fiscal Year Budget Expenses
2023 $835,193 $901,102
Total
Budget
Prior
Expenses
FY23 Budget
Remaining
% Funded
$2,254,852 $1,171,747 $901,102 $182,003 92%
The following projects are anticipated for the Water Development Fee Fund (Fund 6001) for the Fiscal Year ending June 30, 2024:
Project Name Project ID Allocated Budget
Base CIP Contingency Water Z14000700 $38,752
Water Supply Expansion
Program
Z14190100 $5,236,148
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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SEWER DEVELOPMENT FEE FUND
BALANCE SHEET
FOR FISCAL YEAR ENDING JUNE 30, 2023
(in thousands)
2023
ASSETS
Current Assets
Receivables, net
Accounts 177$
Loans -
Interest -
Total Current Assets 177$
Non Current Assets
Cash and Investments held by the City 8,504$
Loans Receivable -
Capital Assets:
Land -
Building and improvements -
Machinery and equipment -
Transmission and Distribution Systems 23,686
Construction in Progress -
Less: Accumulated depreciation/amortization (613)
Total Non-Current Assets 31,577$
Total Assets 31,754$
LIABILITIES
Current Liabilities
Accounts Payable 2,351$
Unearned Revenue -
Total Current Liabilities 2,351$
Noncurrent Liabilities
Sewer fee credits 8,450$
Total Noncurrent Liabilities 8,450$
NET POSITION
Net investment in capital assets 12,272$
Restricted
Capital projects 8,681
Total Net Position 20,953$
Total Liabilities and fund balances 31,754$
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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SEWER DEVELOPMENT FEE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR FISCAL YEAR ENDING JUNE 30, 2023
(in thousands)
2023
Revenues:
Operating Revenue -$
Total Operating Revenue -$
Operating Expenses
Depreciation and Amortization 225$
Total Operating Expenses 225$
Operating Income (loss) (225)$
Non-Operating Revenue
Interest and Investment Revenue 94$
Total Nonoperating Revenue 94$
Income (loss) before capital contributions and transfers (131)$ Capital Contributions 1,840
Transfers in 2,233
Change in Net Position 3,942$
Total Net position, beginning of the year 17,011$
Total Net position, end of year 20,953$
CITY OF SACRAMENTO
DEPARTMENT OF UTILITIES (DOU) DEVELOPMENT FEE REPORT
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SEWER DEVELOPMENT FEES
PROJECT EXPENSES
FOR FISCAL YEAR ENDING JUNE 30, 202 3
For the fiscal year ending June 30, 2023, 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 was completed in August 2023.
Fiscal Year Budget Expense
2023 $14,557,780 $109,718
Total
Budget
Prior
Expenses
FY23
Expenses
Budget
Remaining
% Funded
$22,687,810 $22,563,088 $109,718 $15,004 100%
The following projects are anticipated for the Sewer Development Fee Fund (Fund 6002) for the Fiscal Year ending June 30, 2024:
Project Name Project ID Allocated Budget
Combined Sump & Treatment
Facilities Rehabilitation and
Replacement Program
X14170500 $15,005