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FY 2019-20 DIF Funds Annual Report AB 1600City of La Quinta CITY COUNCIL MEETING: December 15, 2020 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2019/20 DEVELOPMENT PROJECT FEE REPORT RECOMMENDATION Receive and file the fiscal year 2019/20 Development Project Fee Report. EXECUTIVE SUMMARY •Development Impact Fees (DIF) are imposed on new construction to help offset impacts created by new development on City facilities and infrastructure. •The State Mitigation Fee Act requires the City to annually report on the receipts and expenditures of DIF Funds for the last five years within 180 days of the close of the fiscal year. •The City must use, or pledge to use, the developer fees on City facilities and infrastructure within five years of receipt; or present findings if that was not the case. •Staff has completed the required analysis (Attachments 1 and 2) and in all cases the City has complied with the time limit to expend or commit fees for future projects. FISCAL IMPACT - None. BACKGROUND/ANALYSIS The City has three development project category fees subject to State requirements: Infrastructure, Quimby, and DIF. Annually, the City reports on the following: •Brief description on the type of fee in the account or fund; •Amount of the fee; •Beginning and ending balance of the account or fund; •Amount of fees collected and interest earned; •Each public improvement on which fees were expended, the amount of expenditures, and total percentage of the project completed and costs funded with the fee; •Description of each interfund transfer, loan, and the public improvement funded. CONSENT CALENDAR ITEM NO. 5 101 The City must also report payments received pursuant to development agreements entered into after January 1, 2004. A schedule of development agreement payments received, and expenditures are noted in Attachment 2. All projects were reported in the prior fiscal year. As of April 1, 2019, the following funds no longer repay loans owed to the General Fund. Unspent balances will be evaluated for appropriation during the 2020/21 budget cycle. Fund Unspent Balance Civic Center DIF (Fund 252) $ 301,271 Community Center DIF (Fund 254) $ 91,114 Street Maintenance DIF (Fund 255) $ 39,130 Park Maintenance DIF (Fund 256) $5,723 Fire Protection DIF (Fund 257) $ 136,036 Each year these reports are also provided to the Desert Valley Builders Association (DVBA), the Building Industry Association (BIA), and the Gas Company. On November 23, 2020, the City received a letter of satisfaction from the DVBA (Attachment 3). To date, no other correspondence has been received regarding these reports. ALTERNATIVES This report is required by State, staff does not recommend an alternative. Prepared by: Karla Romero, Finance Director Approved by: Jon McMillen, City Manager Attachments: 1. FY 2019/20 Development Project Fee Report 2. FY 2019/20 Developer Agreement Activity Report 3. Desert Valley Builders Association Review 102 2017 AB1600 Report La Quinta Development Project Fee Report ATTACHMENT 1 Quimby Fees (Fund 220) Government Code 66000 Calculation FYE 6/30/2020 Beginning Ending Account Description Fund Balance Fund Balance Developer Fees *- Interest Income 69,689 Contributions from Property Owners - Transfers In - Total Revenue Sources 69,689 Expenditures & Other Uses - Transfers out Capital Projects 1,933,252 Total Uses 1,933,252 Total Available 3,429,137$ (1,863,563)$ 1,565,574$ Five Year Test Using First In First Out Method Fiscal Years Ending Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2016 5,660,033 80,364 305,730 5,979,239 (544,572) Revenues Collected from 2017 5,434,667 128,218 557,338 3,985,916 1,019,631 Revenues Collected from 2018 5,005,547 53,307 462,938 7,298,488 (2,702,572) Revenues Collected from 2019 4,595,916 129,832 1,296,611 4,714,876 (1,285,739) Revenues Collected from 2020 3,429,137 69,689 1,933,252 2,781,625 (1,216,051) Total Revenue For Last Five Years 461,410$ 4,555,869$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 19/20 Committed % Complete**% funded with fee 151609 North La Quinta Regional Skate and BMX Park 32,713 2,518,625 20%78% 201608 SilverRock Event Space Park 1,500,382 - 71%33% 201801 Cove Trail Public Restrooms 400,158 - 83%77% 201903 Skate Park Conversion - 263,000 0%100% Total 1,933,252$ 2,781,625$ ** Percentage completed as of 6/30/2020. The City's Quimby Special Revenue Fund is used to account for the accumulation of developer fees received under the provisions of the Quimby Act for park development and improvements. FY 19/20 * The Quimby Act has not received any new developer revenues since December 2017 because the City has not had a project since May 2017 subject to the fee. 103 2017 AB1600 Report La Quinta Development Project Fee Report Infrastructure Fee (Fund 225) Government Code 66000 Calculation FYE 6/30/2020 Beginning Ending Account Description Fund Balance Fund Balance Developer Fees *- Interest Income 715 Reimbursements - Total Revenue Sources 715$ Expenditures & Other Uses 1,410 Capital Projects - Project Administration/Internal Engineering - Total Uses 1,410 Total Available 20,104$ (695)$ 19,408$ Five Year Test Using First In First Out Method Fiscal Years Ending Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2016 22,339 279 - 22,618 0 Revenues Collected from 2017 23,618 114 - 22,618 1,114 Revenues Collected from 2018 23,732 182 - 22,618 1,296 Revenues Collected from 2019 23,914 733 4,543 24,028 (3,924) Revenues Collected from 2020 20,104 715 1,410 22,618 (3,210) Total Revenue For Last Five Years 2,023$ 5,953$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 19/20 Committed % Complete** % funded with fee 151603 La Quinta Village Complete Streets - Road Diet - 22,618 78%0.20% 2019 DIF Study Update 1,410 - 100%11% Total 1,410 22,618$ * The Infrastructure Fee is being phased out and not subject to collection of future revenue from developments. ** Percentage completed as of 6/30/2020. The Infrastructure fee fund is used to account for the accumulation of resources, provided through developer fees for the acquisition, construction or improvement of the City's infrastructure as defined in Resolution 2013-006. FY 19/20 104 2016 AB1600 Report La Quinta Development Project Fee Report Transportation DIF (Fund 250) Government Code 66000 Calculation FYE 6/30/2020 Activity Unit of Measure Transportation Residential - Single Family Detached Unit 2,842$ Residential - Single Family Attached Unit 2,842$ Residential - Multi Family and Other Unit 1,745$ Office/Hospital Unit 4,645$ General Commercial 1,000 sq ft 5,679$ Tourist Commercial 1,000 sq ft 1,590$ Golf Course Acre 669$ Beginning Ending Account Description Fund Balance Fund Balance Developer Fees 715,194 Interest Income 86,803 Miscellaneous - Transfers In - Total Revenue Sources 801,997 Expenditures & Other Uses 401,410 Transfers out Capital Projects 541,809 Total Uses 943,219 Total Available 2,462,724$ (141,222)$ 2,321,502$ Five Year Test Using First In First Out Method Fiscal Years Ending Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2016 3,763,390 487,907 779,896 6,745,168 (3,273,767) Revenues Collected from 2017 3,471,401 388,472 203,047 3,595,274 61,552 Revenues Collected from 2018 3,656,826 539,365 1,097,811 2,551,507 546,873 Revenues Collected from 2019 3,098,380 756,223 1,391,880 4,971,752 (2,509,028) Revenues Collected from 2020 2,462,724 801,997 943,219 4,897,398 (2,575,896) Total Revenue For Last Five Years 2,973,964$ 4,415,853$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 19/20 Committed % Complete*% funded with fee 091002 Madison Street Ave. 50 to Ave. 52 532,895 - 100%66% 091004 Dune Palms Road Street Improvements 2,407 - 98%1% 111205 Dune Palms Bridge Improvement - 73,755 13%2%151603 La Quinta Village Complete Streets - Road Diet - 343,055 78%4% 201702 Developer Reimbursements 400,000 3,339,723 26%100% 201709 Avenue 53 Jefferson Street Roundabout - 170,621 9%11%201902 Avenue 50 Bridge Spanning the Evacuation Channel 6,506 970,244 0.22%33% 2019 DIF Study Update 1,410 - 100%11% Total 943,219$ 4,897,398$ * Percentage completed as of 6/30/2020. The Transportation Impact Fee developer fee fund is used to account for the accumulation of resources, provided through developer fees for street system improvements needed to handle traffic that will be generated by future development. The fee is based upon the table below and varies from project to project. FY 19/20 105 2016 AB1600 Report La Quinta Development Project Fee Report Parks & Rec DIF (Fund 251) Government Code 66000 Calculation FYE 6/30/2020 Activity Unit of Measure Transportation Residential - Single Family Detached Unit 2,048$ Residential - Single Family Attached Unit 2,048$ Residential - Multi Family and Other Unit 2,048$ Beginning Ending Account Description Fund Balance Fund Balance Developer Fees 448,512 Interest Income 24,439 Miscellaneous Transfers In Total Revenue Sources 472,951 Expenditures & Other Uses 1,410 Transfers Out Capital Projects 1,440,287 Total Uses 1,441,697 Total Available 1,262,773$ (968,747)$ 294,027$ Five Year Test Using First In First Out Method Fiscal Years Ending Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2016 140,525 218,177 - 358,702 0 Revenues Collected from 2017 358,702 200,093 - -558,795 Revenues Collected from 2018 558,795 329,110 - -887,905 Revenues Collected from 2019 887,905 379,411 4,542 2,401,410 (1,138,637) Revenues Collected from 2020 1,262,773 472,951 1,441,697 959,713 (665,686) Total Revenue For Last Five Years 1,599,741$ 1,446,239$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 19/20 Committed % Complete* % funded with fee 201608 SilverRock Event Space 1,440,287 959,713 71%40% 2019 DIF Study Update 1,410 - 100%11% Total 1,441,697$ 959,713$ * Percentage completed as of 6/30/2020. The Parks & Recreation Impact Fee fund is used to account for the accumulation of resources, provided through developer fees for parks required to serve future development. The fee is based upon the table below and varies from project to project. FY 19/20 106 2017 AB1600 Report La Quinta Development Project Fee Report Civic Center DIF (Fund 252) Government Code 66000 Calculation FYE 6/30/2020 Activity Unit of Measure Transportation Residential - Single Family Detached Unit 942$ Residential - Single Family Attached Unit 796$ Residential - Multi Family and Other Unit 447$ Office/Hospital Unit 373$ General Commercial 1,000 sq ft 373$ Tourist Commercial 1,000 sq ft 363$ Golf Course Acre 179$ Beginning Ending Account Description Fund Balance Fund Balance Developer Fees 213,014 Interest Income 9,928 Miscellaneous Transfers In Total Revenue Sources 222,942 Expenditures & Other Uses 1,411 Total Uses 1,411 Total Available 79,740$ 221,531$ 301,271$ Five Year Test Using First In First Out Method Fiscal Years Ending Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2016 (7,259,468) 109,007 61,546 - (7,212,007) Revenues Collected from 2017 (7,212,007) 98,740 55,994 - (7,169,261) Revenues Collected from 2018 (7,169,261) 145,494 79,286 - (7,103,053) Revenues Collected from 2019 **(7,103,053) 177,800 (7,004,993) 1,410 78,330 Revenues Collected from 2020 79,740 222,942 1,411 - 301,271 Total Revenue For Last Five Years 753,983$ (6,806,756)$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 19/20 Committed % Complete *% funded with fee 2019 DIF Study Update 1,411$ - 100%11% Total 1,411$ -$ * Percentage completed as of 6/30/2020. ** Loan repayment interest rate was based on the average quartery investment yield of the City's investment portfolio. During FY 2018/19, this loan was written-off. Projects are being evaluated for the unspent balance of $301,271 and will be included in the FY 2021/22 budget. The Civic Center Impact Fee fund was used to fund the expansion of the La Quinta Civic Center completed in 2008 to support the City's needs through build out. The fee is based upon the table below and varies from project to project. FY 19/20 107 2017 AB1600 Report La Quinta Development Project Fee Report Library DIF (Fund 253) Government Code 66000 Calculation FYE 6/30/2020 Activity Unit of Measure Transportation Residential - Single Family Detached Unit 344$ Residential - Single Family Attached Unit 344$ Residential - Multi Family and Other Unit 344$ Beginning Ending Account Description Fund Balance FY 19/20 Fund Balance Developer Fees 75,336 Interest Income Miscellaneous Transfers In Total Revenue Sources 75,336 Expenditures & Other Uses 1,410 Advance Interest Expense 28,868 Total Uses 30,278 Total Available (1,550,245)$ 45,058$ (1,505,187)$ Five Year Test Using First In First Out Method Fiscal Years Ending Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2016 (1,654,779) 36,464 12,686 1,631,001 (3,262,001) Revenues Collected from 2017 (1,631,001) 34,056 12,890 1,609,835 (3,219,670) Revenues Collected from 2018 (1,609,835) 56,416 19,138 1,572,557 (3,145,114) Revenues Collected from 2019 (1,572,557) 57,792 35,480 1,549,846 (3,100,091) Revenues Collected from 2020 (1,550,245) 75,336 30,278 1,505,187 (3,010,374) Total Revenue For Last Five Years 260,064$ 110,472$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 19/20 Committed % Complete *% funded with fee Successor Agency loan repayment (construction of public library facility) **28,868 1,505,187 40%100% 2019 DIF Study Update 1,410 - 100%11% Total 30,278$ 1,505,187$ * Percentage completed as of 6/30/2020. ** Loan repayment interest rate is based on the average quartery investment yield of the City's investment portfolio. As of 6/30/2020 the outstanding loan balance was:Principal 1,505,187 Interest - Total Due 1,505,187 This loan remains active and is being evaluated in FY 2020/21. The Library Impact Fee fund is used for library facilities required to serve future development in La Quinta. The fee is based upon the table below and varies from project to project. 108 2017 AB1600 Report La Quinta Development Project Fee Report Community Center DIF (Fund 254) Government Code 66000 Calculation FYE 6/30/2020 Activity Unit of Measure Transportation Residential - Single Family Detached Unit 129$ Residential - Single Family Attached Unit 129$ Residential - Multi Family and Other Unit 129$ Beginning Ending Account Description Fund Balance Fund Balance Developer Fees 28,251 Interest Income 7,021 Miscellaneous Transfers In Total Revenue Sources 35,272 Expenditures & Other Uses 1,410 Total Uses 1,410 Total Available 158,891$ 33,863$ 192,753$ Five Year Test Using First In First Out Method Fiscal Years Ending Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2016 86,780 14,859 - 101,639 0 Revenues Collected from 2017 101,639 13,325 - 101,600 13,364 Revenues Collected from 2018 114,964 21,993 - 101,639 35,318 Revenues Collected from 2019 136,956 26,477 4,542 103,049 55,842 Revenues Collected from 2020 158,891 35,272 1,410 101,639 91,114 Total Revenue For Last Five Years 111,926$ 5,952$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 19/20 Committed % Complete * % funded with fee 151609 La Quinta X Park Youth Center - 101,639 20%2% 2019 DIF Study Update 1,410 - 100%11% Total 1,410$ 101,639$ * Percentage completed as of 6/30/2020. Projects are being evaluated for the unspent balance of $91,114 and will be included in the FY 21/22 budget. The Community Center Fee fund is used for community center facilities required to serve future development in La Quinta. The fee is based upon the table below and varies from project to project. FY 19/20 109 2017 AB1600 Report La Quinta Development Project Fee Report Street Maintenance DIF (Fund 255) Government Code 66000 Calculation FYE 6/30/2020 Activity Unit of Measure Transportation Residential - Single Family Detached Unit 116$ Residential - Single Family Attached Unit 116$ Residential - Multi Family and Other Unit 71$ Office/Hospital Unit 190$ General Commercial 1000 sq ft 232$ Tourist Commercial 1000 sq ft 65$ Golf Course Acre 27$ Beginning Ending Account Description Fund Balance Fund Balance Developer Fees 28,967 Interest Income 1,284 Miscellaneous Transfers In - Total Revenue Sources 30,251 Expenditures & Other Uses 1,410 Total Uses 1,410 Total Available 10,289$ 28,841$ 39,130$ Five Year Test Using First In First Out Method Fiscal Years Ending Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2016 (1,907,295) 22,325 16,581 - (1,901,551) Revenues Collected from 2017 (1,901,551) 19,095 15,191 - (1,897,647) Revenues Collected from 2018 (1,897,647) 27,349 21,296 - (1,891,594) Revenues Collected from 2019 **(1,891,594) 30,194 (1,871,689) 1,410 8,879 Revenues Collected from 2020 10,289$ 30,251 1,410 - 39,130 Total Revenue For Last Five Years 129,214$ (1,817,211)$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 19/20 Committed % Complete * % funded with fee 2019 DIF Study Update 1,410 - 100%11% Total 1,410$ -$ * Percentage completed as of 6/30/2020. ** Loan repayment interest rate was based on the average quartery investment yield of the City's investment portfolio. During FY 2018/19, this loan was written-off. Projects are being evaluated for the unspent balance of $39,130 and will be included in the FY 21/22 budget. The Street Maintenance Fee fund is used for street maintenance required to serve future development in La Quinta. The fee is based upon the table below and varies from project to project. FY 19/20 110 2017 AB1600 Report La Quinta Development Project Fee Report Park Maintenance DIF (Fund 256) Government Code 66000 Calculation FYE 6/30/2020 Activity Unit of Measure Transportation Residential - Single Family Detached Unit 40$ Residential - Single Family Attached Unit 40$ Residential - Multi Family and Other Unit 40$ Beginning Ending Account Description Fund Balance Fund Balance Developer Fees 8,760 Interest Income 155 Miscellaneous Transfers In Total Revenue Sources 8,915 Expenditures & Other Uses 1,410 Transfers Out - Total Uses 1,410 Total Available (1,782)$ 7,505$ 5,723$ Five Year Test Using First In First Out Method Fiscal Years Ending Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2016 2 4,243 4,244 - 2 Revenues Collected from 2017 2 3,969 3,969 - 2 Revenues Collected from 2018 2 6,570 6,567 - 5 Revenues Collected from 2019 **5 6,722 8,508 1,410 (3,192) Revenues Collected from 2020 (1,782) 8,915 1,410 - 5,723 Total Revenue For Last Five Years 30,419$ 24,698$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 19/20 Committed % Complete *% funded with fee 2019 DIF Study Update 1,410 - 100%11% Total 1,410$ -$ * Percentage completed as of 6/30/2020. ** Loan repayment interest rate was based on the average quartery investment yield of the City's investment portfolio. During FY 2018/19, this loan was written-off. Expenses from this Fund will resume in FY 21/22 or as adjusted in FY 20/21. The Park Maintenance Fee fund is used for park maintenance required to serve future development in La Quinta. The fee is based upon the table below and varies from project to project. FY 19/20 111 2017 AB1600 Report La Quinta Development Project Fee Report Fire Protection DIF (Fund 257) Government Code 66000 Calculation FYE 6/30/2020 Activity Unit of Measure Transportation Residential - Single Family Detached Unit 433$ Residential - Single Family Attached Unit 366$ Residential - Multi Family and Other Unit 206$ Office/Hospital Unit 171$ General Commercial 1000 sq ft 172$ Tourist Commercial 1000 sq ft 167$ Golf Course Acre 82$ Beginning Ending Account Description Fund Balance Fund Balance Developer Fees 97,907 Interest Income 4,466 Miscellaneous Transfers In Total Revenue Sources 102,373 Expenditures & Other Uses 1,410 Total Uses 1,410 Total Available 35,073$ 100,963$ 136,036$ Five Year Test Using First In First Out Method Fiscal Years Ending Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2016 (638,219) 50,120 5,385 - (593,484) Revenues Collected from 2017 (593,484) 45,399 4,581 - (552,666) Revenues Collected from 2018 (552,665) 66,456 4,634 - (490,843) Revenues Collected from 2019 **(490,843) 81,761 (444,154) 1,410 33,663 Revenues Collected from 2020 35,073 102,373 1,410 - 136,036 Total Revenue For Last Five Years 346,109$ (428,145)$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 19/20 Committed % Complete * % funded with fee 2019 DIF Study Update 1,410 - 100%11% Total 1,410$ -$ * Percentage completed as of 6/30/2020. ** Loan repayment interest rate was based on the average quartery investment yield of the City's investment portfolio. During FY 2018/19, this loan was written-off. Projects are being evaluated for the unspent balance of $136,036 and will be included in the FY 21/22 budget. The Fire Protection Facilities Fee fund is used for fire protection facilities required to serve future development in La Quinta. The fee is based upon the table below and varies from project to project. FY 19/20 112 2019/20 AB1600 Report La Quinta Development Project Fee Report ATTACHMENT 2 Developer Agreement Activity (Fund 401) FYE 6/30/2020 Date Project/Purpose Balance Revenues Expenses Total 3/8/2010 Traffic Signals at Madison Street on Avenue 58 and Avenue 60 257,563.00 - - 257,563.00 10/18/2010 Monroe Avenue landscape median, Trilogy/Shea TM30023 234,869.64 - - 234,869.64 1/25/2016 Traffic signal at Madison Street at Avenue 52, Madison Club 215,000.00 215,000.00 10/11/2016 Madison at Avenue 52 raised median, TM33076-1 59,642.00 - - 59,642.00 6/14/2019 Turn lane extension at Highway 111 & Costco Drive 3,644.22 - - 3,644.22 6/30/2020 Traffic signal at Madison Street at Avenue 54, COA/Griffin Ranch - 107,500.00 107,500.00 Account No. 401-0000-22811 878,218.86$ 11/30/2009 Lions gate project 1821 sidewalk and landscaping 16,798.30 - - 16,798.30 1/31/2011 Toll Brothers, Avenue 50 & Verano Drive, TM 30357, Mt. View Country Club Traffic Signal Improvements 215,000.00 215,000.00 6/30/2015 Avenue 53 at Jefferson Street Roundabout 39,833.52 - (39,252.90) 580.62 6/30/2015 Traffic signal Avenue 50 & Orchard, Project 1757 99,075.26 - - 99,075.26 2/24/2016 ACM LQ/Highway 111 & Simon Drive 2,788.50 - - 2,788.50 2/24/2016 ACM LQ/Washington & Miles 8,460.00 - - 8,460.00 6/30/2019 Dune Palms Road Widening Eminent Domain 7,895.55 6,465.31 14,360.86 (Account No. 401-0000-22210)357,063.54$ 1,235,282.40$ The following development agreement payment was received for development agreements entered into after January 1, 2004 in accordance with Government Code Section 65865 Total Developer Contributions for Future CIP Projects Total Unearned Revenue on Deposit OVERALL TOTAL AVAILABLE 113 ATTACHMENT 3114