FY 2018-19 DIF Funds Annual Report AB 1600City of La Quinta
CITY COUNCIL MEETING: December 17, 2019
STAFF REPORT
AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2018/19 DEVELOPMENT
PROJECT FEE REPORT
RECOMMENDATION
Receive and file the fiscal year 2018/19 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. 12
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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.
Most projects were reported in the prior fiscal year, except for the following:
Fund Project Committed
Amount
Quimby Fund 201903 Skate Park Conversion $263,000
Transportation DIF 201902 Avenue 50 Bridge Spanning the
Evacuation Channel
$83,745
Parks & Rec. DIF 201608 SilverRock Event Space $2,400,000
During 2018/19, the City wrote-off three DIF interfund loans as follows:
Fund Loan Write-Off Unspent Balance
Civic Center DIF $7,058,068 $78,330
Street Maint. DIF $1,890,705 $8,879
Fire Protection DIF $455,197 $33,663
As of April 1, 2019, these funds no longer repaid loans owed to the General
Fund. Unspent balances will be evaluated for appropriation during the 2020/21
budget cycle.
ALTERNATIVES
This report is required by State, staff does not recommend an alternative.
Prepared by: Karla Romero, Finance Director
Approved by: Jon McMillen, City Manager
Attachments: 1. FY 2018/19 Development Project Fee Financial Report
2. FY 2018/19 Development Agreement Payment Report
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ATTACHMENT 1
Quimby Fees (Fund 220)
Government Code 66000 Calculation
FYE 6/30/2019
Beginning Ending
Account Description Fund Balance FY 18/19 Fund Balance
Developer Fees -
Interest Income 129,832
Contributions from Property Owners -
Transfers In -
Total Revenue Sources 129,832
Expenditures & Other Uses -
Transfers out Capital Projects 1,296,611
Total Uses 1,296,611
Total Available 4,595,916$(1,166,779)$ 3,429,137$
Five Year Test
Using First In First Out Method
Beginning Fund
Balance
Revenues
Collected Expenditures Committed Unspent
Revenues Collected from 2015 8,134,965 263,193 2,738,126 5,122,234 537,798
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 (1,285,740)
Total Revenue For Last Five Years 654,914$ 5,360,743$
Result : Five Year Spent Test Met in accordance with Government Code 66001
Capital Improvement Facilities FY 18/19 Committed % Complete* % funded with fee
151609 North La Quinta Regional Skate and BMX 795,460 2,551,337 20%78%
201608 SilverRock Event Space Park 445,309 1,500,382 14% 33%
201801 Cove Trail Public Restrooms 55,843 400,158 23% 88%
201903 Skate Park Conversion -263,000 0%100%
Total 1,296,611$4,714,876$
* Percentage completed as of 12/1/19.
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.
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Infrastructure Fee (Fund 225)
Government Code 66000 Calculation
FYE 6/30/2019
Beginning Ending
Account Description Fund Balance FY 18/19 Fund Balance
Developer Fees -
Interest Income 733
Reimbursements -
Total Revenue Sources 733$
Expenditures & Other Uses 4,543
Capital Projects -
Project Administration/Internal Engineering -
Total Uses 4,543
Total Available 23,914$ (3,810)$ 20,104$
Five Year Test
Using First In First Out Method
Beginning
Fund Balance
Revenues
Collected Expenditures Committed Unspent
Revenues Collected from 2015 23,208 132 -- 23,339
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)
Total Revenue For Last Five Years 1,439$ 4,543$
Result : Five Year Spent Test Met in accordance with Government Code 66001
Capital Improvement Facilities FY 18/19 Committed % Complete* % funded with fee
151603 La Quinta Village Complete Streets - Road
Diet - 22,618 22%0.20%
2019 DIF Study Update 4,543 1,410 76%11%
Total 4,543 24,028$
* Percentage completed as of 12/1/19.
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.
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Transportation DIF (Fund 250)
Government Code 66000 Calculation
FYE 6/30/2019
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 FY 18/19 Fund Balance
Developer Fees 639,345
Interest Income 91,636
Miscellaneous 0
Transfers In 25,242
Total Revenue Sources 756,223
Expenditures & Other Uses 404,543
Transfers out Capital Projects 987,337
Total Uses 1,391,880
Total Available 3,098,380$ (635,657)$ 2,462,724$
Five Year Test
Using First In First Out Method
Beginning Fund
Balance
Revenues
Collected Expenditures Committed Unspent
Revenues Collected from 2015 1,519,482 4,031,623 1,787,715 1,787,715 1,975,675
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)
Total Revenue For Last Five Years 6,203,590$ 5,260,349$
Result : Five Year Spent Test Met in accordance with Government Code 66001
Capital Improvement Facilities FY 18/19 Committed % Complete* % funded with fee
091002 Madison Street Ave. 50 to Ave. 52 977,180 557,036 78%67%
091004 Dune Palms Road Street Improvements - 2,407 90%1%
111205 Dune Palms Bridge Improvement - 73,755 11%2%
151603 La Quinta Village Complete Streets - Road
Diet - 343,055 22%4%
201702 Developer Reimbursements 400,000 3,739,723 18%100%
201709 Avenue 53 Jefferson Street Roundabout 10,157 170,621 6%11%
201902 Avenue 50 Bridge Spanning the
Evacuation Channel - 83,745 0%3%
2019 DIF Study Update 4,543 1,409 76%11%
Total 1,391,880$ 4,971,752$
* Percentage completed as of 12/1/19.
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.
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Parks & Rec DIF (Fund 251)
Government Code 66000 Calculation
FYE 6/30/2019
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 FY 18/19 Fund Balance
Developer Fees 344,064
Interest Income 35,346.54
Miscellaneous
Transfers In
Total Revenue Sources 379,411
Expenditures & Other Uses 4,542
Transfers Out Capital Projects -
Total Uses 4,542
Total Available 887,905$ 374,869$ 1,262,773$
Five Year Test
Using First In First Out Method
Beginning Fund
Balance
Revenues
Collected Expenditures Committed Unspent
Revenues Collected from 2015 (469,486) 610,919 908 2,592 137,933
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)
Total Revenue For Last Five Years 1,737,710$ 5,450$
Result : Five Year Spent Test Met in accordance with Government Code 66001
Capital Improvement Facilities FY 18/19 Committed % Complete* % funded with fee
201608 SilverRock Event Space -$2,400,000 14%40%
2019 DIF Study Update 4,542 1,410 76%11%
Total 4,542$ 2,401,410$
* Percentage completed as of 12/1/19.
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.
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Civic Center DIF (Fund 252)
Government Code 66000 Calculation
FYE 6/30/2019
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 FY 18/19 Fund Balance
Developer Fees 176,934
Interest Income 866
Miscellaneous
Transfers In
Total Revenue Sources 177,800
Expenditures & Other Uses 4,542
Advance Interest Expense 48,533
Interfund Loan Write-Off (7,058,068)
Total Uses (7,004,993)
Total Available (7,103,053)$ 7,182,793$ 79,740$
Five Year Test
Using First In First Out Method
Beginning Fund
Balance
Revenues
Collected Expenditures Committed Unspent
Revenues Collected from 2015 (7,312,490) 290,145 237,123 55,277 (7,314,745)
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
Total Revenue For Last Five Years 821,186$ (6,571,044)$
Result : Five Year Spent Test Met in accordance with Government Code 66001
Capital Improvement Facilities FY 18/19 Committed % Complete % funded with fee
General Fund loan repayment (City Hall expansion)*48,533 -100%100%
General Fund Loan Write-off*(7,058,068) -100%100%
2019 DIF Study Update 4,542 1,410 76%11%
Total (7,004,993)$ 1,410$
* 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 $78,330 and will be included in the FY 20/21 budget.
The Civic Center Impact Fee fund was used to fund the expansion of the La Quinta Civic Center completed in 2008 to support
the City's needs through build out. The fee is based upon the table below and varies from project to project.
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Library DIF (Fund 253)
Government Code 66000 Calculation
FYE 6/30/2019
Activity Unit of Measure Transportation
Residential - Single Family Detached Unit 344$
Residential - Single Family Attached Unit 344$
Residential - Multi Family and Other Unit 344$
Beginning Ending
Account Description Fund Balance FY 18/19 Fund Balance
Developer Fees 57,792
Interest Income
Miscellaneous
Transfers In
Total Revenue Sources 57,792
Expenditures & Other Uses 4,542
Advance Interest Expense 30,939
Total Uses 35,480
Total Available (1,572,557)$ 22,312$ (1,550,245)$
Five Year Test
Using First In First Out Method
Beginning Fund
Balance
Revenues
Collected Expenditures Committed Unspent
Revenues Collected from 2015 (1,750,152) 103,949 8,577 1,654,779 (3,309,558)
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)
Total Revenue For Last Five Years 288,677$ 88,771$
Result : Five Year Spent Test Met in accordance with Government Code 66001
Capital Improvement Facilities FY 18/19 Committed % Complete** % funded with fee
Successor Agency loan repayment (construction of
public library facility)*30,939 1,548,436 38%100%
2019 DIF Study Update 4,542 1,410 76%11%
Total 35,480$ 1,549,846$
* Loan repayment interest rate is based on the average quartery investment yield of the City's investment portfolio.
As of 6/30/19 the outstanding loan balance was:Principal 1,547,195
Interest 1,241
Total Due 1,548,436
This loan remains active and is being evaluated in FY 2019/20.
** Percentage completed as of 9/30/19.
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.
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Community Center DIF (Fund 254)
Government Code 66000 Calculation
FYE 6/30/2019
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 FY 18/19 Fund Balance
Developer Fees 21,672
Interest Income 4,805
Miscellaneous
Transfers In
Total Revenue Sources 26,477
Expenditures & Other Uses 4,542
Total Uses 4,542
Total Available 136,956$ 21,935$ 158,891$
Five Year Test
Using First In First Out Method
Beginning Fund
Balance
Revenues
Collected Expenditures Committed Unspent
Revenues Collected from 2015 47,350 39,430 - - 86,780
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 114,964 21,993 4,542 103,049 29,366
Total Revenue For Last Five Years 111,600$ 4,542$
Result : Five Year Spent Test Met in accordance with Government Code 66001
Capital Improvement Facilities FY 18/19 Committed % Complete % funded with fee
151609 La Quinta X Park Youth Center -$ 101,639 20%2%
2019 DIF Study Update 4,542 1,410 76%11%
Total 4,542$ 103,049$
Projects are being evaluated for the unspent balance of $29,366 and will be included in the FY 20/21 budget.
The Community Center Fee fund is used for community center facilities required to serve future development in La Quinta.
The fee is based upon the table below and varies from project to project.
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Street Maintenance DIF (Fund 255)
Government Code 66000 Calculation
FYE 6/30/2019
Activity Unit of Measure Transportation
Residential - Single Family Detached Unit 116$
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 FY 18/19 Fund Balance
Developer Fees 26,099
Interest Income 129
Miscellaneous
Transfers In 3,966
Total Revenue Sources 30,194
Expenditures & Other Uses 4,542
Advance Interest Expense 14,474
Interfund Loan Write-Off (1,890,705)
Total Uses (1,871,689)
Total Available (1,891,594)$ 1,901,883$10,289$
Five Year Test
Using First In First Out Method
Beginning Fund
Balance
Revenues
Collected Expenditures Committed Unspent
Revenues Collected from 2015 (1,966,991) 69,453 9,757 243 (1,907,538)
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
Total Revenue For Last Five Years 168,416$ (1,808,864)$
Result : Five Year Spent Test Met in accordance with Government Code 66001
Capital Improvement Facilities FY 18/19 Committed % Complete % funded with fee
General Fund loan repayment (Phase 1 Corporate
Yard)*14,474 - 100%50%
General Fund Loan Write-off*(1,890,705) - 100%100%
2019 DIF Study Update 4,542 1,410 76%11%
Total (1,871,689)$ 1,410$
* 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 $8,879 and will be included in the FY 20/21 budget.
The Street Maintenance Fee fund is used for street maintenance required to serve future development in La Quinta. The
fee is based upon the table below and varies from project to project.
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Park Maintenance DIF (Fund 256)
Government Code 66000 Calculation
FYE 6/30/2019
Activity Unit of Measure Transportation
Residential - Single Family Detached Unit 40$
Residential - Single Family Attached Unit 40$
Residential - Multi Family and Other Unit 40$
Beginning Ending
Account Description Fund Balance FY 18/19 Fund Balance
Developer Fees 6,720
Interest Income 2
Miscellaneous
Transfers In
Total Revenue Sources 6,722
Expenditures & Other Uses 4,542
Transfers Out 3,966
Total Uses 8,508
Total Available 5$ (1,786)$ (1,782)$
Five Year Test
Using First In First Out Method
Beginning Fund
Balance
Revenues
Collected Expenditures Committed Unspent
Revenues Collected from 2015 1 11,904 11,902 - 2
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)
Total Revenue For Last Five Years 33,408$ 35,190$
Result : Five Year Spent Test Met in accordance with Government Code 66001
Capital Improvement Facilities
Capital Improvement Facilities FY 18/19 Committed % Complete % funded with fee
General Fund loan repayment (Transfer Out to
Fund 255, Street Maintenace Fund - Phase 1
Corporate Yard)*
3,966 - 100%50%
2019 DIF Study Update 4,542 1,410 76%11%
Total 8,508$ 1,410$
* 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 20/21 or as adjusted in FY 19/20.
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.
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Fire Protection DIF (Fund 257)
Government Code 66000 Calculation
FYE 6/30/2019
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 FY 18/19 Fund Balance
Developer Fees 81,370
Interest Income 392
Miscellaneous
Transfers In
Total Revenue Sources 81,761
Expenditures & Other Uses 4,542
Advance Interest Expense 6,501
Interfund Loan Write-Off (455,197)
Total Uses (444,154)
Total Available (490,843)$ 525,916$ 35,073$
Five Year Test
Using First In First Out Method
Beginning Fund
Balance
Revenues
Collected Expenditures Committed Unspent
Revenues Collected from 2015 (766,639) 131,990 3,570 -(638,219)
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
Total Revenue For Last Five Years 375,726$ (425,985)$
Result : Five Year Spent Test Met in accordance with Government Code 66001
Capital Improvement Facilities FY 18/19 Committed % Complete % funded with fee
General Fund loan repayment (Development of
northern fire station)*6,501 - 100%100%
General Fund Loan Write-Off (455,197) -100%100%
2019 DIF Study Update 4,542 1,410 76%11%
Total (444,154)$ 1,410$
* Loan repayment interest rate is 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 $33,663 and will be included in the FY 20/21 budget.
The Fire Protection Facilities Fee fund is used for fire protection facilities required to serve future development in La Quinta.
The fee is based upon the table below and varies from project to project.
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ATTACHMENT 2
Developer Agreement Activity (Fund 217)
FYE 6/30/2019
Date Project/Purpose Balance Revenues Expenses Total
10/9/2006 (Plaza Estado) Fee in lieu of Old Town Parking Requirement 56,829.61$ 20,911.54$ 77,741.15 -$
Original deposit amount was $136,215
Uses during FY 2018/19:
The City's General Fund contributed $20,229.27 to this fund for parking lot site improvements. During FY 2018/19 the Fund earned
$682.27 of interest for total revenues of $20,911.54
The following development agreement payment was received for development agreements entered into after January 1,
2004 in accordance with Government Code Section 65865
In 2017/18 the City purchased vacant land between the Frontier (formally Verizon) building and City Library for additional parking
in Old Town.
Parking lot site preparation work completed in FY 2018/19.
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