CITY OF SIMI VALLEY
MEMORANDUM
Nov
ember 13, 2023
TO: City Council
FR
OM: Department of Administrative Services
SUBJ
ECT: RECEIPT OF THE STATE- REQUIRED ANNUAL AB 1600
DEVELOPMENT IMPACT FEE REPORT ON THE COLLECTION AND
USE OF DEVELOPMENT IMPACT FEES
STAFF RECOMMENDATION
It is recommended that City Council receiv e and file the FY 2022-23 AB 1600 Development Impact Fee Report on the collection and use of certain development impact fees.
BACKGROUND AND OVERVIEW
AB 1600 (Statutes of 1998, Mitigation Fee Act), codified as Section 66000 et seq. of the California Government Code, regulates how public agencies collect, maintain, and spend development impact fees imposed on developers for the purpose of defraying costs of public facilities. It includes requirements for accounting, spending, and reporting the fees and related interest earnings.
The City’s Traffic Mitigation Fee and New Dwelling Fee collected by the City have been identified as fees subject to Government Code 66000 (AB 1600) requirements, and each had a balance remaining at the end of the most recently ended fiscal year. These fees are accounted for in separate funds, and each fund earns and accumulates interest. Simi Valley City Ordinance 630 requires New Dwelling Fees to be utilized solely to provide funds for necessary street and roads maintenance and police protection. Traffic Mitigation Fees may be used towards the cost of traffic -related public infrastructur e improvements. The City previously conducted a study to determine the improvements that may be constructed with these Fees. Expenditures from these funds have been used for the purposes for which the fees were collected.
FINDINGS AND ALTERNATIVES
A
ttached is the FY 2022-23 AB 1600 Development Im pact Fee report required under Government Code Section 66006(b)(1). The r eport summarizes revenue and expenditures for the funds, and includes beginning and ending balances, as required. The purpose and us e of the expenditures and trans fers made during the fiscal y ear have been identified. Since the fees ar e imposed on development projects that impact the facility requirements of the community, the use of these fees must bear a reasonable
AGENDA ITEM NO.
Consent (2)
2 relationship to the actual cost of providing the public services demanded by the new development on which the fee is imposed. From the Traffic Impact Fund, anticipated future projects include routine traffic signal equipment, synchronization, upgrades, and lighting maintenance. Anticipated future projects from the New Dwelling Fee fund include funding for police protection related to City growth and wear -and-tear repair and improvements on City streets.
Th
e law also requires that this report be made available to the public. This requirement has been met in conjunction with the posting of the agenda and related attachment that is associated with the City Council meeting at which this report will be presented. In addition, this report was publicly posted on October 27, 202 3, to meet the minimum 15- day posting requirement.
Th
e following alternatives are available to the City Council:
1. Receive and file the FY 2022-23 AB 1600 Development Impact Fee Report on the collection and use of certain development impact fees;
2. Provide staff with other direction.
St
aff recommends Alternative No. 1
SUGGESTED CITY COUNCIL MOTION
I move that the City Council receive and file the FY 2022-23 AB 1600 Development Impact Fee Report on the collection and use of development impact fees.
SUMMARY
AB 1600 (Statutes of 1998, Mitigation Fee A ct), codified as S ection 66000 et seq. of the California Government Code, regulates how public agencies collect, maintain, and spend development impact fees im posed on developers for the purpose of defr aying costs of public facilities. It includes requirements for accounting, spending, and reporting the fees and related interest earnings. Receiving and filing this report conforms to the Government Code requirements.
______
______________________________
Carolyn Johnson,
Administrative Services Director
Pr
epared by: Cynthia Orozco, Management Analyst
INDEX Page
FY
2022-23 AB 1600 Development Impact Fee Report ..................... 3
Traffic Impact New Dwelling
Fee (Fund 263) Fee (Fund 260)
Description of Fee Type
Traffic Impact Fee assessed
to mitigate impact of new
development on traffic
capacity and needs in
affected areas
New Dwelling Fee assessed
to mitigate impact of new
development on roads and
public improvements
Amount of Fee $107.50/trip
Mobile Home Pad: $304.23
One Bedroom: $465.48
Two Bedroom: $694.45
Three Bedroom: $926.65
Beginning Balance 07/01/2022 $1,858,027 $1,645,177
REVENUE
Sevice Charges $102,159 $26,726
Interest Earnings $39,187 $33,416
Contributions/Donations $100,000
Transfers In
EXPENDITURES
Stormwater Detention Basins
Maintenance Contracts
Other Contract Services ($84,000)
Water Connection
Sewer Connection
Streets and Roads ($200,000)
Transfer Out to General Fund ($70,000)
Ending Balance, 06/30/2023 $1,815,373 $1,635,319
Projects in 2022-23
Routine traffic signal
equipment, upgrades, and
lighting maintenance.
$70,000 toward police service
costs related to City growth, as
allowed per Ordinance 630
Planned Future Projects
FY2023-24: Routine traffic
signal equipment,
synchronization, upgrades,
and lighting maitenance.
FY2023-24: Funding toward
police service costs related to
City growth, as allowed per
Ordinance 630 and funding for
pothole repair on City streets.
This annual report of the Development Impact fees will be heard at the November 13, 2023 City Council meeting.
City of Simi Valley
FY 2022-23
AB 1600 Development Impact Fees
3