Item 02 2025-00685 Citywide Transportation Development Impact Fee Annual Reports for the Years Ending June 30, 2023 and June 30, 2024 [Published 04-01-2025]

City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00685 4/22/2025 Item 2.

Citywide Transportation Development Impact Fee Annual Reports for the Years Ending June 30, 2023 and June 30, 2024 [Published 04/01/2025]
File ID: 2025-00685
Location: Citywide
Recommendation: Pass a Motion approving the Citywide Transportation Development Impact Fee Annual Reports for the years ending June 30, 2023, and June 30, 2024.

Contact: Nicole Henderson, Supervising Financial Analyst, [email protected], (916) 808-8242; Ofelia Avalos, Engineering Manager, [email protected], (916) 808- 5054; Department of Public Works
Presenter: None
Attachments:
1-Description/Analysis
2-Fiscal Year 2023 Citywide Transportation Development Impact Fee Annual Report 3-Fiscal Year 2024 Citywide Transportation Development Impact Fee Annual Report Description/Analysis
Issue Detail: The Mitigation Fee Act (California Government Code Section 66000 et. seq., hereafter the “Act”) and Sacramento City Code Section 18.56.150 require the preparation of an annual report regarding development impact fees charged by the City and made available to the public. The Citywide Transportation Development Impact Fee Annual Report for the Fiscal Year ending June 30, 2023 (attached with exhibits) and for Fiscal Year ending June 30, 2024 (attached with exhibits) fulfills the annual reporting requirement for the Citywide Transportation Development Impact Fee.

The reports present 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

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File ID: 2025-00685 4/22/2025 Item 2.
· 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 expenditure 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 the loan · The amount of any refunds made once it has been determined that sufficient revenues have been collected to fund all projects
Due to staffing issues, there was a delay in preparing and submitting the annual report for FY 2022/23 and for FY2023/24. Pursuant to the Act and City Code, both annual reports, and the exhibits attached to each report, were made available to the public on April 8, 2025.

Policy Considerations: Filing the required annual reports will satisfy the requirements of the Mitigation Fee Act and Sacramento City Code. The Transportation Development Impact Fee (TDIF) provides funding to reduce some impacts from new development on specifically identified citywide facilities on the transportation network. Areas near transit stations, infill areas, and specific census tracts areas are given a 40 percent discount on the fees.

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. §15000 et. 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 the City Council for all the City’s Transportation Development Impact Fees.

Financial Considerations:

Fiscal Year 2023:

For Fiscal Year 2023 (FY23) implementation, the City collected $3,111,633 in TDIF revenues.

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File ID: 2025-00685 4/22/2025 Item 2.

Development in North Natomas and Delta Shores are generally exempt from TDIF due to prior agreements. In FY23, developments in fee incentive areas were equivalent to approximately $500,000. In addition, all fees were waived for affordable housing projects and accessory dwelling units.

The following table summarizes where funding was collected in FY23 by plan area.

FY23 TDIF Collected by Plan Area
Community Plan Area Amount Percent
ARDEN ARCADE 337,870 10.86%
CENTRAL CITY 1,068,319 34.33%
EAST SACRAMENTO 120,076 3.86%
FRUITRIDGE/BROADWAY 237,384 7.63%
LAND PARK 308,492 9.91%
NORTH NATOMAS 10,763 0.35%
NORTH SACRAMENTO 275,494 8.85%
POCKET 346,492 11.14%
SOUTH AREA 21,711 0.70%
SOUTH NATOMAS 385,032 12.37%
Grand Total $ 3,111,633 100.00%
Funding is allocated to capital improvement projects (CIPs) based on project eligibility, readiness, consideration of where fees were collected, and opportunities to leverage grant funds.

In FY23, the following projects included TDIF funding:

K15165100 - Del Rio Trail
K15202000 - Niños Parkway Phase 2
T15165000 - North 12th Complete Street
T15165500 - Franklin Boulevard Complete Street
T15195000 - Downtown Mobility Project
Fiscal Year 2024:

For Fiscal Year 2024 (FY24) implementation, the City collected $680,932 in TDIF revenues.

Development in North Natomas and Delta Shores are generally exempt from TDIF due to prior agreements. In FY24, developments in fee incentive areas were equivalent to approximately $100,000. In addition, all fees were waived for affordable housing projects and accessory dwelling units.

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File ID: 2025-00685 4/22/2025 Item 2.

The following table summarizes where funding was collected in FY24 by plan area.

FY24 TDIF Collected by Plan Area
Community Plan Area Amount Percent
ARDEN ARCADE 2,691 0.40%
CENTRAL CITY 133,733 19.64%
EAST SACRAMENTO 11,524 1.69%
FRUITRIDGE/BROADWAY 248,394 36.48%
LAND PARK 9,338 1.37%
NORTH NATOMAS 1,120 0.16%
NORTH SACRAMENTO 179,197 26.32%
POCKET 2,810 0.41%
SOUTH AREA 55,764 8.19%
SOUTH NATOMAS 36,361 5.34%
Grand Total $ 680,932 100.00%
Funding is allocated to capital improvement projects (CIPs) based on project eligibility, readiness, consideration of where fees were collected, and opportunities to leverage grant funds.

In FY24, the following projects included TDIF funding:

K15125000 -Two Rivers Trail Phase 2
K15165100 - Del Rio Trail
K15202000 - Niños Parkway Phase 2
T15165000 - North 12th Complete Street
T15165500 - Franklin Boulevard Complete Street
T15195000 - Downtown Mobility Project
Local Business Enterprise (LBE): Not applicable.

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Citywide Transportation Development Impact Fee
Annual Report
For the Year Ending June 30, 2023
Made Available to the Public April 8, 2025
Received and Filed by the Sacramento City Council at its Meeting April 22, 2025

City of Sacramento Fiscal Year 2023 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, 2023

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. Fiscal Year 2023 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 Fiscal Year 2023 Citywide Transportation Development Impact Fee Annual Report Page 2

1. INTRODUCTION
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) 2022/23 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: The 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: 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 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: The 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 Fiscal Year 2023 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, 2023, 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, 2023 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, 2023 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, 2023, 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, 2023, no interfund transfers or loans occurred.

9. REFUNDS MADE
For the year ending June 30, 2023, no refunds have been identified.

Exhibit A
FY2022/23
Citywide Transportation Impact Fees
Land Use
North
Natomas2
River
District
Central
City Railyards
Delta
Shores4
Finance
Plan Area
Finance
Plan Area
Finance
Plan Area
Finance
Plan Area
Finance
Plan Area
Residential Land Use Categories5
Single-family $2,740 $573 $2,188 $1,644 $344 $700 $1,498 $155 E Multifamily $1,574 $330 $1,257 $944 $198 $409 $861 $90 E Nonresidential Land Use Categories
Retail First 5000 SF $0.41 $0.09 $0.33 $0.25 $0.05 $0.11 $0.23 $0.02 E 5001 SF and above $4.11 $0.85 $3.28 $2.47 $0.51 $1.05 $2.25 $0.23 E Office First 5000 SF $0.41 $0.09 $0.32 $0.24 $0.05 $0.10 $0.22 $0.02 E 5001 SF and above $4.06 $0.85 $3.24 $2.44 $0.51 $1.03 $2.22 $0.23 E Major Medical Facilities First 5000 SF $0.39 $0.08 $0.31 $0.23 $0.05 $0.10 $0.21 $0.02 E 5001 SF and above $3.91 $0.83 $3.12 $2.35 $0.50 $0.99 $2.13 $0.22 E Schools First 5000 SF $0.15 $0.03 $0.12 $0.09 $0.02 $0.04 $0.08 $0.01 E 5001 SF and above $1.53 $0.31 $1.22 $0.92 $0.18 $0.39 $0.82 $0.09 E Church/Assembly First 5000 SF $0.09 $0.02 $0.07 $0.05 $0.01 $0.02 $0.05 $0.00 E 5001 SF and above $0.87 $0.17 $0.70 $0.53 $0.10 $0.22 $0.47 $0.05 E Industrial First 5000 SF $0.28 $0.06 $0.22 $0.17 $0.03 $0.07 $0.15 $0.02 E 5001 SF and above $2.78 $0.57 $2.22 $1.67 $0.34 $0.71 $1.53 $0.16 E Warehouse First 5000 SF $0.13 $0.03 $0.11 $0.08 $0.02 $0.03 $0.07 $0.01 E 5001 SF and above $1.32 $0.28 $1.06 $0.79 $0.17 $0.34 $0.73 $0.07 E Gas Station $4,117 $850 $3,289 $2,472 $510 $1,053 $2,253 $234 E Hotel/Motel $1,130 $236 $903 $678 $141 $289 $601 $64 E
Other (calculation to be based on City traffic analysis) $277 $58 $221 $166 $35 $71 $151 $15 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 Baseline
North Natomas2
Finance Plan
Area
Panhandle
Finance Plan
Area Baseline
City of Sacramento
Transportation Development Impact Fee
Fee Rate Schedule (As of July 1, 2022)1
Outside Housing Incentive/
Transit Center Area Within Housing Incentive/Transit Center3 Area 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 unit --------------------------------------------------- ------------------------------ per sq. ft. --------------------------------- ---------------------------------------------- per sq. ft. ------------------------------------------------- ------------------------------ per pump --------------------------------- ---------------------------------------------- per pump ------------------------------------------------- ------------------------------- per room---------------------------------- ----------------------------------------------- per room-------------------------------------------------- -------------------------------- per trip ----------------------------------- ------------------------------------------------ per trip --------------------------------------------------- 1 Fee rates are adjusted annually effective July 1 based on the percentage change in the ENR CCI

Exhibit B
Combined Statement of Revenues,
Expenditures, and Charges in Fund Balance
For the Fiscal Year Ended June 30, 2023

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 Ending June 30, 2023
Fund Description Fund PY Ending BalanceTDIF RevenueInterest IncomeTransfers In/ Transfers OutTotal AvailablePublic Improvement ExpenseAdministration ExpenseEnding Balance Citywide Transportation
Development Impact Fee 3215 8,422,311 3,111,633 170,902 11,704,846 (2,304,384) (95,956) 9,304,507 Expenditures
Exhibit C
Identification of Locations on
Where Fees were Expended
City of Sacramento
Identificaton of Location on Where Fee were Expended
Citywide Transportation Development Impact Fee Fund (TDIF Fund 3215) For the Fiscal Year Ended June 30, 2023
Fund Expenditure FY2022/23 % Funded
Description Fund Description Expenditures with Impact Fee 3215 Administrative Services 95,956 $ 100% Central City
(North 12 Complete Street -T15165000) 147,923$ 17% Central City
(Downtown Mobility Project-T15195000) 1,835,931$ 31% South Area
(Del Rio Trail - K15165100) 194,516$ 17%
South Area
(Franklin Blvd Complete St Seg 2-T15165502) 50,753$ 12% South Natomas
(Ninos Parkway Phase 2-K15202000) 75,260$ 60% Grant Total 2,400,340 $
Citywide Transportation
Development Impact Fee
Citywide Transportation Development Impact Fee
Annual Report
For the Year Ending June 30, 2024
Made Available to the Public April 8, 2025
Received and Filed by the Sacramento City Council at its Meeting April 22, 2025

City of Sacramento Fiscal Year 2024 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, 2024