CITY OF SIMI VALLEY
MEMORANDUM
N
ovember 18, 2024
T
O: City Council
F
ROM: Department of Administrative Services
S
UBJECT: RECEIPT OF THE STATE- REQUIRED ANNUAL AB 1600
DEVELOPMENT IMPACT FEE REPORT ON THE COLLECTION AND
USE OF DEVELOPMENT IMPACT FEES
STAFF RECOMMENDATION
I
t is recommended that City Council receive and file the FY 2023- 24 AB 1600 Development Impact Fee Report on the collection and use of certain development impact fees.
BACKGROUND AND OVERVIEW
A
B 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.
T
he 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. Expenditures from these funds have been used for the purposes for which the fees were collected.
FINDINGS AND ALTERNATIVES
A
ttached is the FY 2023- 24 AB 1600 Development Impact Fee report required under Government Code Section 66006(b)(1). The report summarizes revenue and expenditures for the funds, and includes beginning and ending balances, as required.
The purpose and use of the expenditures and transfers made during the fiscal year have been identified. Since the fees are imposed on development projects that impact the facility requirements of the community, the use of these fees must bear a reasonable 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 as well as, pothole repair, street striping, crack and seal, and curb, gutter, asphalt, and sidewalk repair.
T
he 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 AGENDA ITEM NO.
Consent (4)
is associated with the City Council meeting at which this report will be presented. In addition, this report was publicly posted on October 27, 2024 , to meet the minimum 15- day posting requirement.
The following alternatives are available to the City Council:
1. R
eceive and file the FY 2023-24 AB 1600 Development Impact Fee Report on the collection and use of certain development impact fees;
2. P
rovide staff with other direction.
S
taff recommends Alternative No. 1.
SUGGESTED CITY COUNCIL MOTION
I
move that the City Council receive and file the FY 2023-24 AB 1600 Development Impact Fee Report on the collection and use of development impact fees.
SUMMARY
C
ity staff recommends that the City Council receive and file this report conforming to Government Code requirements.
___
_______________________________
Carolyn Johnson,
Administrative Services Director
P
repared by: Cynthia Orozco, Management Analyst
INDEX Page
F
Y 2023-24 AB 1600 Development Impact Fee Report…………………3 2 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 $113.74/trip
Mobile Home Pad: $321.87
One Bedroom: $492.47
Two Bedroom: $734.73
Three Bedroom: $980.40
Beginning Balance 07/01/2023 $1,815,373 $1,635,319
REVENUE
Sevice Charges $238,889 $8,578
Interest Earnings $51,840 $44,142
Contributions/Donations $100,000
Transfers In
EXPENDITURES
Stormwater Detention Basins
Maintenance Contracts
Other Contract Services ($84,000)
Water Connection
Sewer Connection
Streets and Roads ($350,000) ($200,000)
Transfer Out to General Fund ($70,000)
Ending Balance, 06/30/2024 $1,772,102 $1,418,039
Projects in 2023-24
Routine traffic signal
equipment, synchronization,
upgrades, and lighting
maintenance.
Funding toward police service
costs related to City growth, as
allowed per Ordinance 630
and funding for pothole repair
on City streets.
Planned Future Projects FY 2024-25: Routine traffic
signal equipment/upgrades.
FY 2024-25: Funding toward
police service costs related to
City growth, as allowed per
Ordinance 630, and pot hole
repair, street striping, crack
seal, and curb, gutter, asphalt,
sidewalk repair
This annual report of the Development Impact fees will be heard at the November 18, 2024, City Council meeting.
City of Simi Valley
FY 2023-24
AB 1600 Development Impact Fees
3