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ANNUAL REPORT ON DEVELOPMENT IMPACT FEES FISCAL YEAR ENDED JUNE 30, 2021Executive Summary City of Eastvale Annual Report on Development Impact Fees Fiscal Year Ended June 30, 2021 Background The Mitigation Fee Act, Government Code Section 66000 et seq., (the “Act”) governs the establishment and administration of development impact fees paid by new development projects for public facilities needed to serve new development. Fees must be separately accounted for and used for the specific purpose for which the fee was imposed. The City’s adopted development impact fees are listed in the attached exhibits. Expenditures are authorized through the annual Operating Budget and the City’s Capital Improvement Program. Development Fee Reporting The Act mandates two specific reporting requirements for the city: • A periodic (five-year) report making certain findings with respect to all unexpended mitigation fees; and, • An annual review of all development impact fees as defined in the Act, in a public report after the close of each fiscal year. Government Code Section 66006(b)(2) requires the report be placed on an agenda for review at a public meeting not less than 15 days after the report is made available to the public. The City is also required to adopt by resolution certain findings, as defined in the Act, for any unexpended balances of mitigations fees as of the fifth fiscal year following the first deposit into those funds (Government Code Section 66001(d)). The City completed a Development Impact Fee study in 2012 and adopted fees by resolution effective July 1, 2012. The city initially adopted the County of Riverside Development Impact Fees when it incorporated on October 1, 2010, and used those fee amounts until adoption of updated City fees in June 2012. The report is organized as follows: Section 1. A brief description of the purpose of each development impact fee, its authorizing legislation and current amount (Government Code Section 66006(b) (1) (A)). Section 2. A summary of the beginning fund balance on July 1, 2020, annual fee revenue collected, interest earned, public improvement expenditures, and the ending fund balance at June 30, 2021 for each fee (Government Code Section 66006(b)(1)(B)-(H)). Section 3. A listing of projects funded or to be funded with development impact fees (Government Code Section 66006(b)(1)(E)). Section 4. Report of Findings for each fee. Detail City of Eastvale Annual Report on Development Impact Fees Fiscal Year Ended June 30, 2021 City of Eastvale │ 12363 Limonite Avenue, Suite 910, Eastvale, CA 91752 │ (951) 361-0900 │ eastvaleca.gov 2 SECTION 1 | Fee Descriptions The City’s Development Impact Fees (DIF) were first adopted at incorporation on October 1, 2010, adopting the fees that were being charged by the County of Riverside at the time. In April 2012, a nexus study was done to update the fees, effective July 1, 2012. The following development impact fees were adopted: transportation facilities development impact fee, fire facilities development impact fee, and the public facilities development impact fee. Subsequently, a fourth fee was adopted, the Road and Bridge Benefit District. A description of each fee is noted below: Transportation Facilities The purpose of the Transportation Facilities DIF is to ensure that new development within the City of Eastvale pays its proportionate share of the capital investments made by the city, which are necessary to provide traffic amenities adequate to accommodate a growing service population within the standards and needs defined by the City’s master planning process. The 2012 Nexus Study identified a total of $8.4 million in capital facilities costs for facilities related to transportation. The transportation facilities identified were as follows: 1. Road improvements: Hellman Avenue one lane bridge widening over Cucamonga Creek. 2. Limonite Bridge over Cucamonga Channel 3. New Traffic Signals: 23 new traffic signals. Cost estimates for the facilities include design, permitting, land acquisition, construction, and project administration. The fee amount for the Transportation Facilities Development Impact Fee is as follows: Land Use Maximum Fee Single Family Residential $693 per dwelling unit Multi-Family Residential $487 per dwelling unit Commercial/ Retail $1,685 per 1,000 square feet of building space Light Industrial/Warehousing $352 per 1,000 square feet of building space Office/Business Park $373 per 1,000 square feet of building space Fire Facilities The purpose of the Fire Facilities DIF is to ensure that new development within the City of Eastvale pays its proportionate share of the capital investments made by the city, which are necessary to provide fire protection, fire suppression and other fire safety services adequate to accommodate a growing service population within the standards and needs defined by operational standards and planning criteria. The 2012 Nexus Study identified a total of $8.9 million in capital facilities costs for fire facilities. The fire facilities identified were as follows: 1. Eastvale Fire Station No. 27. Detail City of Eastvale Annual Report on Development Impact Fees Fiscal Year Ended June 30, 2021 City of Eastvale │ 12363 Limonite Avenue, Suite 910, Eastvale, CA 91752 │ (951) 361-0900 │ eastvaleca.gov 3 2. Eastvale Fire Station, additional Cost estimates for the facilities include design, permitting, land acquisition, construction, and project administration. The fee amount for the Fire Facilities Development Impact Fee is as follows: Land Use Maximum Fee Single Family Residential $481 per dwelling unit Multi-Family Residential $332 per dwelling unit Commercial/ Retail $132 per 1,000 square feet of building space Light Industrial/Warehousing $137 per 1,000 square feet of building space Office/Business Park $132 per 1,000 square feet of building space Public Facilities The purpose of the Public Facilities DIF is to ensure that new development within the City of Eastvale pays its proportionate share of the capital investments made by the city, which are necessary to provide general governmental and related civic services adequate to accommodate a growing service population within the standards and needs defined by the City’s capital improvement programs, long-range planning, and strategic planning. The 2012 Nexus Study identified a total of $13.4 million in capital facilities costs for facilities related to governmental and community services. The public facilities identified were as follows: 1. Civic Center: Governmental Services 2. Civic Center: Police Services Cost estimates for the facilities include design, permitting, land acquisition, construction, and project administration. The fee amount for the Public Facilities Development Impact Fee is as follows: Land Use Maximum Fee Single Family Residential $942 per dwelling unit Multi-Family Residential $650 per dwelling unit Commercial/ Retail $150 per 1,000 square feet of building space Light Industrial/Warehousing $156 per 1,000 square feet of building space Office/Business Park $150 per 1,000 square feet of building space Road and Bridge Benefit District The Road and Bridge Benefit District (District) DIF is inherited from the County of Riverside associated with incorporation of the city. The city accepted responsibility for the portion of the district within the city’s footprint. The district was created to ensure that new development within the district’s boundaries pays its Detail City of Eastvale Annual Report on Development Impact Fees Fiscal Year Ended June 30, 2021 City of Eastvale │ 12363 Limonite Avenue, Suite 910, Eastvale, CA 91752 │ (951) 361-0900 │ eastvaleca.gov 4 proportionate share of the necessary capital investments required to provide they road and bridge improvements within the district adequate for the growing service population, consistent with the standards and needs defined by the City’s capital improvement programs, long-range planning, and strategic planning. The most recent update of the Nexus Study in support of the DIF was completed by the County of Riverside in 2005. That study identified a total of $47.1 million (net of fees collected to date at that time) in capital facilities costs for projects needed within the district to meet its obligation to fund adequate roads and bridges within the district’s boundaries. Cost estimates for the facilities include design, permitting, land acquisition, construction, and project administration. The fee amount for the Road and Bridge Benefit District Development Impact Fee are broken down into zones within the original County district. Fee amounts are listed below: Land Use Maximum Fee Single Family Residential $884 – $2681 per dwelling unit Multi-Family Residential $417 – $1,857 per dwelling unit Commercial/ Retail $2652 – $9,117 per acre Light Industrial/Warehousing $2652 – $9,117 per acre Office/Business Park $2652 – $9,117 per acre CITY OF EASTVALE Annual Report on Development Impact FeesFiscal Year Ended June 30, 2021 Detail Section 2 | Beginning Fund Balance Fiscal Transportation Fire Public Road & Bridge Year Facilities Facilities Facilities Benefit Dist.Total BEGINNING BALANCE 7/1/2020 443,538$ 446,130$ 755,431$ 6,521,727$ 8,166,826$ REVENUES Fees Received: 2020/21 118,896$ 46,212$ 490,127$ -$ 655,235$ Total 118,896$ 46,212$ 490,127$ -$ 655,235$ Interest Income: 2020/21 (3,455)$ 8,176$ (92,574)$ 84,487$ (3,366)$ Total (3,455)$ 8,176$ (92,574)$ 84,487$ (3,366)$ Total Revenues FY 2020/21 115,440$ 54,388$ 397,553$ 84,487$ 651,868$ EXPENDITURES Cost Allocation: 2020/21 -$ -$ -$ -$ -$ Total -$ -$ -$ -$ -$ Capital Expenditures: Civic Center Project 95001-0002 & 95001-0003 92$ -$ 656,148$ -$ 656,240$ Tarpon DIF Credit/Reimbursement 248,285 -$ -$ -$ 248,285$ Landscape Median Improvement 93029-0000 Phase 1 Limonite - - - 160,802 160,802$ 2020/21 248,377$ -$ 656,148$ 160,802$ 1,065,327$ Total 248,377$ -$ 656,148$ 160,802$ 1,065,327$ Total Expenditures FY 2020/21 248,377$ -$ 656,148$ 160,802$ 1,065,327$ ENDING BALANCE 06/30/2021 310,602$ 500,518$ 496,836$ 6,445,412$ 7,753,367$ City of Eastvale │ 12363 Limonite Avenue, Suite 910, Eastvale, CA 91752 │ (951) 361-0900 │ eastvaleca.gov CITY OF EASTVALE Annual Report on Development Impact FeesFiscal Year Ended June 30, 2021 Detail Section 3 | Project Listing Transportation Fire Public Road & Bridge Total DIF Other Funding % of DIF vs Other Facilities Facilities Facilities Benefit Dist.Funds Sources Funding Sources Est. Project Completion Status Date CAPITAL EXPENDITURES 2020/21 Activity Civic Center Project 95001-0002 & 95001-0003 2021 In Progress 92$ -$ 656,148$ -$ 656,240$ 3,097,821$ 17% Landscape Median Improvement 93029-0000 Phase 1 Limonite 2021 Complete - - - 160,802 160,802 5,075 97% Total 2020/21 92$ -$ 656,148$ 160,802$ 817,042$ 3,102,896$ Total Capital Expenditures to 06/30/2021 92$ -$ 656,148$ 160,802$ 817,042$ 3,102,896$ 21% UNSPENT COMMITTED FUNDS IN APPROVED PROJECTS 2021/22 and Beyond Committed Funds: Limonite Gap 93026-0000 2023 Design -$ -$ -$ 5,000,000$ 5,000,000$ -$ 0% Landscape Median Improvement 93029-0000 Phase 2 Schleisman 2022 Design - - - 239,198 239,198 - - -$ -$ -$ 5,239,198$ 5,239,198$ Total Unspent Committed Funds -$ -$ -$ 5,239,198$ 5,239,198$ FUTURE PROJECTS PLANNED Limonite Gap 93026-0000 2023 Design -$ -$ -$ 5,000,000$ 5,000,000 -$ 0% Landscape Median Improvement 93029-0000 Phase 2 Schleisman 2022 Design - - - 239,198 239,198 - - -$ -$ -$ 5,239,198$ 5,239,198$ -$ 0% Total Future Projects Planned -$ -$ -$ 5,239,198$ 5,239,198$ -$ 0% City of Eastvale │ 12363 Limonite Avenue, Suite 910, Eastvale, CA 91752 │ (951) 361-0900 │ eastvaleca.gov Detail City of Eastvale Annual Report on Development Impact Fees Fiscal Year Ended June 30, 2021 City of Eastvale │ 12363 Limonite Avenue, Suite 910, Eastvale, CA 91752 │ (951) 361-0900 │ eastvaleca.gov 5 Section 4 | Report of Findings (Government Code Section 66001(d)) Transportation Facilities 1. The purpose of the Transportation Facilities DIF is to ensure that new development within the City of Eastvale pays its proportionate share of the capital investments made by the city, which are necessary to provide traffic amenities adequate to accommodate a growing service population within the standards and needs defined by the city’s master planning process. 2. The reasonable relationship between the Transportation Facilities DIF and the purpose for which it is charged is demonstrated in the City of Eastvale Development Impact Fee Study dated February 2, 2012, effective July 1, 2012. 3. The sources and amount of funding anticipated to complete the Transportation Facilities is in the city of Eastvale Development Impact Fee Study dated February 2, 2012, effective July 1, 2012. 4. The approximate date for funding and constructing some of the Transportation Facilities is noted in the Capital Improvement Program for Fiscal Years 2021-2022 through 2025-2026. 5. Future projects that are planned do not have an estimated date for completion as these projects will be connected to new development within the city. Fire Facilities 1. The purpose of the Fire Facilities DIF is to ensure that new development within the City of Eastvale pays its proportionate share of the capital investments made by the city, which are necessary to provide fire protection, fire suppression and other fire safety services adequate to accommodate a growing service population within the standards and needs defined by operational standards and planning criteria. 2. The reasonable relationship between the Fire Facilities DIF and the purpose for which it is charged is demonstrated in the City of Eastvale Development Impact Fee Study dated February 2, 2012, effective July 1, 2012. 3. The sources and amount of funding anticipated to complete the Fire Facilities was in the City of Eastvale Development Impact Fee Study dated February 2, 2012, effective July 1, 2012. 4. The date for funding and constructing the new Fire Facilities will be included in in the Capital Improvement Program in future years as projects are programmed. Future expansion of the Fire Facilities has not been determined at this time but will be considered as the city develops further. Detail City of Eastvale Annual Report on Development Impact Fees Fiscal Year Ended June 30, 2021 City of Eastvale │ 12363 Limonite Avenue, Suite 910, Eastvale, CA 91752 │ (951) 361-0900 │ eastvaleca.gov 6 Public Facilities 1. The purpose of the Public Facilities DIF is to ensure that new development within the City of Eastvale pays its proportionate share of the capital investments made by the city, which are necessary to provide general governmental and related civic services adequate to accommodate a growing service population within the standards and needs defined by the city’s capital improvement programs, long- range planning, and strategic planning. 2. The reasonable relationship between the Public Facilities DIF and the purpose for which it is charged is demonstrated in the City of Eastvale Development Impact Fee Study dated February 2, 2012, effective July 1, 2012. 3. The sources and amount of funding anticipated to complete the Public Facilities is in the City of Eastvale Development Impact Fee Study dated February 2, 2012, effective July 1, 2012. 4. The approximate date for funding and constructing of the Public Facilities is noted in the Capital Improvement Program for Fiscal Years 2021-2022 through 2025-2026. Future expansion of Public Facilities has not been determined at this time but will be considered as the city is built out. Road and Bridge Benefit District 1. The purpose of the Road and Bridge Benefit District (district) DIF is to ensure that new development within the City of Eastvale pays its proportionate share of the capital investments made by the city to provide necessary road and bridge improvements within the district adequate to accommodate a growing service population within the standards and needs defined by the city’s capital improvement programs, long-range planning, and strategic planning. 2. The reasonable relationship between the Road and Bridge Benefit District DIF and the purpose for which it is charged is demonstrated in the County of Riverside Road and Bridge Development Impact Fee Update Report dated November 1, 2005, January 7, 2006. 3. The sources and amount of funding anticipated to complete the Road and Bridge projects are in the County of Riverside Development Impact Fee Update Report dated November 1, 2005, effective January 7, 2006. 4. The approximate date for funding and constructing of Road and Bridge projects is noted in the Capital Improvement Program for Fiscal Years 2021-2022 through 2025-2026. Future capital projects to meet the city’s need for road and bridge expansion within the district have not been determined at this time but will be considered as the city develops further.