TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:January 16, 2024
SUBJECT: Development Impact Fees: Annual Review of Accounts as of June 30, 2023
RECOMMENDATION:
1. Receive and file report.
2. Find that this action is not a project as defined under section 15378(b)(5) of the California Environmental Quality Act Guidelines.
FINANCIAL IMPACT:
No Additional Funding Requested. Minimal staff time to complete the staff report is included in the Adopted FY 2023-24 General Fund Budget. The City received Development Impact Fee Revenue in Fiscal Year 2022-23 in the amount of $1,770,674.
BACKGROUND:
The Mitigation Fee Act (Act) is contained in the California State Government Code Section 66000 et seq. and governs the establishment and administration of Development Impact Fees (Fee). These Fees are charged to new development projects. Fee revenue must be used for new public capital facilities necessitated by new development, such as intersection improvements, traffic signals, street widening, interchange improvements, and additional water and wastewater infrastructure necessary to support new development. Fee revenue must be separately accounted for and used for the specific purpose for which the Fee was collected. The City has 18 Fees established via City Council resolutions; five of those Fees are no longer being collected. Expenditures/expenses are authorized through the biennial budget.
Development Impact Fees: Annual Review of Accounts as of June 30, 2023 January 16, 2024
DISCUSSION/ANALYSIS:
The Act requires that the City prepare an annual accounting review of all Fees.
This report is to be received and filed by City Council. Attachment #1 lists the name of each Fee, the legislative history referencing the corresponding ordinance or resolution, and a brief description of the Fee. Attachment #2 includes the beginning balance, annual revenue, annual interest, annual expenditures/expenses, and ending balance as of June 30, 2023, for each Fee.
The Act also requires that the City identify any Fee revenue that has been held for more than five years without being expended. The chart below provides the analysis for FY 2022-23:
Fund Balance/ UnexpendedNet Position Expenditures 5th YearName 6/30/2018 07/01/18-06/30/23 Revenue1Road Payback 36,945$ 30,061$ 6,884$ 2Master Plan Traffic Signal * 597,866 382,748 215,1183Newbury Park Rd Imprv * 3,934,820 3,909,535 25,2854Suppl Traffic Signal Const * 467,511 449,029 18,4825Suppl Traffic Signal Maint * 679,582 582,261 97,3216Wendy/101 Interchange 191,292 - 191,2927Borchard Rd/US 101 Intchg 455 32,796 N/A8Moorpark Rd/US 101 Intchg - 45,808 N/A9Lynn Road Payback Fee - 18,860 N/A10Thousand Oaks Rd Improv * 2,944,570 2,543,021 401,54911Air Quality Impact 1,002,730 1,045,281 N/A12Fire Protection Facilities 58,271 238,733 N/A13Police / Library Capital Fees 1,499 366,934 N/A14Citywide Traffic Impact Fees - 8,715 N/A15Wastewater Capital Fees (21,025,996) 3,797,414 N/A16-18Water Capital Fees 4,678,535 4,032,600 645,935Total (6,431,920)$ 17,483,796$ 1,601,866$ * Fees are no longer being collected
Development Impact Fees - 5th Year Revenue Analysis
Based on the analysis, eight Fees have unexpended 5th year revenue. The revenue is anticipated to be fully spent in FY 2023-24; except for Wendy/101 Interchange (DF0915/530) which is anticipated to be budgeted for expenditure in the FY 2026-2028 Budget.
Development Impact Fees: Annual Review of Accounts as of June 30, 2023 January 16, 2024
The chart below provides a summary of all revenues collected for each Fee over the past five years:
# Name FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 Total 1 Road Payback -$ 210$ -$ 11,375$ -$ 11,585$ 2 Master Plan Traffic Signal* 121,305 - - - - 121,305
3 Newbury Park Rd Improv* 62,028 - - - - 62,028
4 Suppl Traffic Signal Const* - - - - - -
5 Suppl Traffic Signal Maint* - - - - - -
6 Wendy Dr/101 Intchg 179,456 199,541 1,895 - 66,361 447,253 7 Borchard Rd/US 101 Intchg 13,145 12,121 7,059 - 12,215 44,540 8 Moorpark Rd/US 101 Intchg 23,927 21,317 - - - 45,244
9 Lynn Road Payback Fee 18,520 - - - 12,723 31,243
10 Thousand Oaks Rd Improv* 270,413 - - - - 270,413
11 Air Quality Impact 3,517 2,859 - - - 6,376
12 Fire Protection Facilities 19,415 40,794 59,691 41,386 20,534 181,820 13 Police/Library Capital Fees 43,808 94,345 116,104 76,423 36,254 366,934 14 Citywide Traffic Impact Fees - 504,475 227,316 809,726 1,174,974 2,716,491 15 Wastewater Capital Fees 758,714 1,033,785 312,280 1,309,114 383,522 3,797,415 16-18 Water Capital Fees 157,360 249,553 112,054 611,970 64,091 1,195,028 1,671,608$ 2,159,000$ 836,399$ 2,859,994$ 1,770,674$ 9,297,675$ *Fees are no longer being collected
Five-Year History By Revenue
The current projects, including all funding sources and approximate dates of funding, can be found in the FY 2023-2025 Capital Improvement Program Budget on the City’s website at www.toaks.org/capital.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Blanca Gomez, Sr. Accountant
Attachments:
Attachment #1 – City of Thousand Oaks Development Impact Fees Attachment #2 – City of Thousand Oaks Development Impact Fees – Detail
FIN: 330-40\H:\COMMON\ACFLR\Developer Fees\Impact_fees\2022-2023\011624 Development Impact Fees Staff Report.doc