FOR THE COUNCIL MEETING OF DECEMBER 20, 2022
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Director of Finance
SUBJECT: GROWTH MITIGATION ANNUAL COMPLIANCE REPORT
RECOMMENDATION:
That the City Council receive, review, and file the Growth Mitigation Annual Compliance Report.
BACKGROUND:
State of California Assembly Bill 1600 (AB 1600) - the Mitigation Fee Act (Government Code Section 66000 et seq.) established the criteria by which municipal governments may charge developments for the future cost of providing services to new residents. The philosophy of AB 1600 is that all residents of a community deserve the same level of service. As residents are added to a community, the increased cost incurred by the municipal government to provide the same level of service to the community should be borne by the development.
The purpose of the City's growth mitigation fee program is to finance the design, construction, and acquisition of facilities and equipment to maintain the City's level of service and mitigate the impacts of growth.
Once collected, growth mitigation fees are segregated and placed in special funds that earn interest and are held for the facilities and equipment for which the fees are collected.
Santa Maria Municipal Code, Title 8, Section 8-15.07(a) states:
"Monies from these funds shall be expended solely for the design, construction and acquisition of the corresponding facilities and equipment, including reimbursement for such expenditures. Any financing mechanism used to finance the cost of capital improvements identified as eligible for funding under the Growth Mitigation Fee Program may be charged to growth mitigation fees...".
The Santa Maria City Council adopted the first Capital Improvement Plan and implemented Ordinances for the Growth Mitigation Fee Program on July 6, 1993, and the last update to this Program was on October 20, 2020.
DISCUSSION:
As required by law, staff is reporting the accounting, compliance, and reconciliation of AB 1600 Growth Mitigation Fees for 2021-22. Growth mitigation fees, in effect during fiscal year 2021-22, were established with the adoption of the 2020 Growth Mitigation Fee Program. All changes to the City's Mitigation Fee Program are separately handled from this report and are subject to public hearing requirements. By way of this Council Agenda Report, staff is not requesting that the City Council adopt new development fees, just to receive and file the report.
Pursuant to Government Code Section 66006(b)(1) local agencies shall, within 180 days after the last day of each fiscal year, make available to the public the following AB 1600 information for the fiscal year:
A) A brief description of the type of fee in the account or fund; B) The amount of the fee (in effect on June 30, 2022);
C) The beginning and ending balance of the account or fund; D) The amount of the collected fee and interest earned; E) 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 were funded with fees; F) 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, as identified in Paragraph (2) of Subdivision (a) Section 66001 of the Government Code, and the public improvement remains incomplete;
G) 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; and H) The amount of refunds made pursuant to Government Code Subdivision (e) Section 66001 and any allocation pursuant to Government Code Subdivision (f) of Section 66001.
To comply with Government Code Section 66006, staff has prepared and incorporated herein, reports disclosing the above -outlined information in Attachment A. State legislation requires that the City:
• Identify an approximate date for starting construction on a public improvement within 180 days of determining that sufficient funds have been collected to complete the financing of the improvement; and
• Annually update its capital improvement plan pertaining to improvements financed by developer fees.
The City updates its Capital Improvement Plan as part of the bi-annual update of the Growth Mitigation Program Fees and reviews the Capital Improvement Plan during the City's two-year budget cycle. To date, sufficient funds have not been collected to complete financing of improvements on the individual project lists.
Compliance Report Format:
Each Growth Mitigation fee is incorporated in Attachment A of this report. Items "A" through "H" that are listed in the Discussion section of this Council Agenda Report are reproduced in Attachment A for each account or fund to ensure accuracy, understanding, and compliance to the annual reporting.
Fiscal Impact:
There is no fiscal impact. This is a required annual reporting and compliance report. The Growth Mitigation Fund as a whole has a positive fund balance of approximately $42,196,626.20. The information on the following pages reflects the account balances in each of the program areas at a specific period of time and not the total cost of the project buildouts. The fees shown on the report reflect the Growth Mitigation fees in effect as of June 30, 2022.
Impact to the Community:
The purpose of the legislation, as it applies to compliance reporting, is to provide the community with information as to the status and use of fees collected through the Growth Mitigation Fee Program.
MARY HARVEY
Director of Finance
Attachment: A) Annual Compliance Report for Growth Mitigation Fees
ANNUAL SENATE BILL 1693
COMPLIANCE REPORT FOR GROWTH MITIGATION FEES
Fiscal Year Ending June 30, 2022
Pursuant to Government Code Section 66006(b)(1) local agencies shall, within 180 days after the last day of each fiscal year make available to the public the following information for the fiscal year:
A) A brief description of the type of fee in the account or fund.
Buildings/Corporation Yard - To provide a corporation yard and other facilities.
B) The amount of the fee.
Single Family Per Square Foot
Multiple Family Per Square Foot
Senior/Affordable Per Square Foot
Commercial/Industrial Per Square Foot
C) The beginning and ending balance of the account or fund.
Beginning:
Ending:
$ 1,725,681.95
1,674,017.47
D) The amount of the fees collected and the interest earned.
Fees Collected $ 13,279.48
Interest -64,898.97
Refund -44.99
0.09 0.09
0.09 0.09
E) 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 with fees.
Approximate Percent
Expenditures Funded by Fees
None $ 0 0%
F) 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, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
Sufficient funds have not been collected.
G) 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.
No interfund transfer or loans, utilizing these funds, were made during the fiscal year.
H) The amount of refunds made pursuant to subdivision (e) Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
No refunds were made during the fiscal year.
Attachment A
ANNUAL SENATE BILL 1693
COMPLIANCE REPORT FOR GROWTH MITIGATION FEES
Fiscal Year Ending June 30, 2022
A) A brief description of the type of fee in the account or fund.
CltlLHall - To provide a new govemment center.
B) The amount of the fee.
Single Family Per Square Foot $ 0.12
Multiple Family Per Square Foot 0.12
Senior/Affordable Per Square Foot 0.12
Commercial/Industrial Per Square Foot 0.12
C) The beginning and ending balance of the account or fund.
Beginning:
Ending:
$ 1,155,772.54
1,129,977.96
D) The amount of the fees collected and the interest earned.
Fees Collected $ 17,934.41
Interest -43,669.01
Refund -59.98
E) 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 with fees.
Approximate Percent
Expenditures Funded by Fees
None $ 0 0%
F) 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, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
Sufficient funds have not been collected
G) 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.
No interfund transfer or loans, utilizing these funds, were made during the fiscal year.
H) The amount of refunds made pursuant to subdivision (e) Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
No refunds were made during the fiscal year.
Attachment A
ANNUAL SENATE BILL 1693
COMPLIANCE REPORT FOR GROWTH MITIGATION FEES
Fiscal Year Ending June 30, 2022
A) A brief description of the type of fee in the account or fund.
Recreation and Parks - To provide funds for the acquisition, improvement, and development of park and open space land
B) The amount of the fee.
Single Family Per Square Foot $ 2.14
Multiple Family Per Square Foot 3.27
Senior/Affordable Per Square Foot 3.27
Commercial/Industrial Per Square Foot 0.01
C) The beginning and ending balance of the account or fund.
Beginning:
Ending:
$ 4,234,182.91
4,593,519.07
D) The amount of the fees collected and the interest earned.
Fees Collected $ 533,003.26
Interest -172,347.50
Refunds -1,319.60
E) 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 with fees.
Approximate Percent
Expenditures Funded by Fees
None $ 0 0%
F) 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, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
Not applicable since funds were previously spent on approved projects.
G) 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.
No interfund transfer or loans, utilizing these funds, were made during the fiscal year.
H) The amount of refunds made pursuant to subdivision (e) Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
No refunds were made pursuant to subdivision (e) of Section 66001.
Attachment A
ANNUAL SENATE BILL 1693
COMPLIANCE REPORT FOR GROWTH MITIGATION FEES
Fiscal Year Ending June 30, 2022
A) A brief description of the type of fee in the account or fund. police - To provide for new police facilities and equipment.
B) The amount of the fee.
Single Family Per Square Foot $ 0.38
Multiple Family Per Square Foot 0.38
Senior/Affordable Per Square Foot 0.38
Commercial/Industrial Per Square Foot 0.30
C) The beginning and ending balance of the account or fund.
Beginning:
Ending:
$ -4,937,543.53
-4,708,574.90
D) The amount of the fees collected and the interest earned.
Fees Collected $ 55,928.96
Interest 173,229.61
Refund -189.94
E) 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 with fees.
Approximate Percent
Expenditures Funded by Fees
None $ 0 0%
F) 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, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
Not applicable since funds were previously spent on approved projects.
G) 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.
No interfund transfer or loans, utilizing these funds, were made during the fiscal year.
H) The amount of refunds made pursuant to subdivision (e) Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
No refunds were made during the fiscal year.
Attachment A
ANNUAL SENATE BILL 1693
COMPLIANCE REPORT FOR GROWTH MITIGATION FEES
Fiscal Year Ending June 30, 2022
A) A brief description of the type of fee in the account or fund. ihrary - To provide a new library facility and equipment.
B) The amount of the fee.
Single Family Per Square Foot
Multiple Family Per Square Foot
Senior/Affordable Per Square Foot
Commercial/Industrial Per Square Foot
C) The beginning and ending balance of the account or fund.
Beginning:
Ending:
$ -4,561,543.13
-4,360,973.68
D) The amount of the fees collected and the interest earned.
Fees Collected $ 40,281.86
Interest 160,427.55
Refund -139.96
0.28 0.28
0.28 0.10
E) 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 with fees.
Approximate Percent
Expenditures Funded by Fees
None $ 0 0%
F) 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, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
Not applicable since funds were previously spent on approved projects.
G) 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.
No interfund transfer or loans, utilizing these funds, were made during the fiscal year.
H) The amount of refunds made pursuant to subdivision (e) Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
No refunds were made during the fiscal year.
Attachment A
ANNUAL SENATE BILL 1693
COMPLIANCE REPORT FOR GROWTH MITIGATION FEES
Fiscal Year Ending June 30, 2022
A) A brief description of the type of fee in the account or fund.
Eire — To finance new fire stations and fire equipment.
B) The amount of the fee.
Single Family Per Square Foot
Multiple Family Per Square Foot
Senior/Affordable Per Square Foot
Commercial/Industrial Per Square Foot
C) The beginning and ending balance of the account or fund.
Beginning: $ -56,970.43
Ending: 25,472.79
D) The amount of the fees collected and the interest earned.
Fees Collected . $ 83,543.51
Interest -815.38
Refund -284.91
0.57 0.57
0.57 0.08
E) 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 with fees.
Approximate Percent
Expenditures Funded by Fees
None $ 0 0%
F) 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, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
Not applicable since funds were previously spent on approved projects.
G) 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.
No interfund transfer or loans, utilizing these funds, were made during the fiscal year.
H) The amount of refunds made pursuant to subdivision (e) Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
No refunds were made during the fiscal year.
Attachment A
ANNUAL SENATE BILL 1693
COMPLIANCE REPORT FOR GROWTH MITIGATION FEES
Fiscal Year Ending June 30, 2022
A) A brief description of the type of fee in the account or fund.
Traffic Improvement Fee — To provide for transportation improvements to accommodate traffic generated by future development within the City and its sphere of influence annexation areas.
B) The amount of the fee.
Single Family Per Square Foot $ 3.87
Multiple Family Per Square Foot 3.89
Senior/Affordable Per Square Foot 1.08
Commercial/Industrial Per Square Foot See Note
Note: Commercial and Industrial traffic fees shall be based on land use categories.
C) The beginning and ending balance of the account or fund.
Beginning:
Ending:
$ 34,422,306.19
33,382,089.06
D) The amount of the fees collected and the interest earned.
Fees Collected $ 656,957.32
Interest -1,292,865.97
Refund -1,934.42
E) 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 with fees.
Approximate Percent
Expenditures Funded by Fees
Highway 101/135 Interchange $ 402,374.06 71%
F) 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, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
Sufficient funds have not been collected.
G) 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.
No interfund transfer or loans, utilizing these funds, were made during the fiscal year.
H) The amount of refunds made pursuant to subdivision (e) Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
No refunds were made during the fiscal year.
Attachment A
ANNUAL SENATE BILL 1693
COMPLIANCE REPORT FOR GROWTH MITIGATION FEES
Fiscal Year Ending June 30, 2022
A) A brief description of the type of fee in the account or fund.
Water — To provide funding for the construction of facilities to ensure a continuing supply of potable water or purchase of State water entitlements.
B) The amount of the fee.
Single Family Per Unit
Multiple Family Per Unit
Commercial Per Unit
Industrial Per Unit
$ 2,612.00
See Note
See Note
See Note
Note: Fees vary depending on connection size. Single family rates assume a meter size of .75 inches. If size is different, the fee is based on meter size.
C) The beginning and ending balance of the account or fund.
Beginning:
Ending:
$ 3,268,788.52
3,298,894.62
D) The amount of the fees collected and the interest earned.
Fees Collected $ 162,638
Interest -126,145.25
Refund -6,386.65
E) 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 with fees.
Approximate Percent
Expenditures Funded by Fees
None $ 0 0%
F) 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, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
Not applicable since funds were previously spent on approved projects.
G) 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.
No interfund transfer or loans, utilizing these funds, were made during the fiscal year H) The amount of refunds made pursuant to subdivision (e) Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
No refunds were made during the fiscal year.
Attachment A
ANNUAL SENATE BILL 1693
COMPLIANCE REPORT FOR GROWTH MITIGATION FEES
Fiscal Year Ending June 30, 2022
A) A brief description of the type of fee in the account or fund.
Wastewater — To provide funding for the construction of wastewater treatment plant improvements and expansions, wastewater interceptors and other closely related projects.
B) The amount of the fee.
Single Family Per Unit $ 4,281.00
Multiple Family Per Unit 3,837.00
Senior/Affordable Per Unit 1,435.00
Commercial/Industrial Per Unit See Note
Note: Fees are stated in terms of connection size.
C) The beginning and ending balance of the account or fund.
Beginning:
Ending:
$ 7,158,145.32
7,162,203.81
D) The amount of the fees collected and the interest earned.
Fees Collected $ 283,485.56
Interest -274,595.87
Refund 0
E) 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 with fees.
Approximate Percent
Expenditures Funded by Fees
Knudsen Way UCS A-2 Sewer Line
Replacement $ 4,831.20 20%
F) 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, as identified in paragraph (2) of subdivision (a) of Section 66001, and the public improvement remains incomplete.
Sufficient funds have not been collected.
G) 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.
No interfund transfer or loans were made during the fiscal year utilizing these funds.
H) The amount of refunds made pursuant to subdivision (e) Section 66001 and any allocation pursuant to subdivision (f) of Section 66001.
No refunds were made pursuant to subdivision (e) and (0 of Section 66001 Attachment A