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FY 2016-17 DIF Funds Annual Report AB 1600City of La Quinta CITY COUNCIL MEETING: December 19, 2017 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2016/17 DEVELOPMENT PROJECT FEE REPORT RECOMMENDATION Receive and file the fiscal year 2016/17 Development Project Fee Report. EXECUTIVE SUMMARY Development project fees 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 these revenues and expenditures for the prior five years, within 180 days of close of the fiscal year. The City must use, or pledge to use, this income on City facilities and infrastructure within five years of receipt, or present findings if that was not the case. Staff completed the required analysis (Attachment 1) and in all cases the City has complied. The Development Project Fee Report (Report) was provided to stakeholders for review and comment. FISCAL IMPACT – None. BACKGROUND/ANALYSIS The City has three developer project fees subject to State requirements: Infrastructure, Quimby, and DIF (Development Impact Fee). DIF is comprised of eight fee categories – Transportation, Parks and Recreation, Civic Center, Library, Community Center, Street Maintanence, Park Maintenance and Fire Protection. Annually, the City reports on the following: A brief description of the fee and the accounts or funds they are deposited; The amount of each fee; The beginning and ending balances; The amount collected and interest earned; Each public improvement on which fees were expended, the amount of expenditures, and total percentage of cost funded with fees; CONSENT CALENDAR ITEM NO. 4 63  The approximate construction start date of the public improvement if the local agency determines that sufficient funds have been collected to complete financing; and  A description of each interfund transfer or loan and the public improvement being funded. The City must also report payments received pursuant to development agreements entered into after January 1, 2004. A schedule of development agreement payments received is attached (Attachment 2). In all cases, the City complied with the time limit to expend or commit fees for future projects. The interested stakeholders: Building Industry Association of Southern California – Riverside County Chapter (BIA), Desert Valley Builders Association (DVBA), and Southern California Gas Company (SC Gas) received the Report on November 29 and 30, 2017. On December 1, 2017, the DVBA submitted a letter of examination stating their satisfaction with the Report and the City’s compliance with the Mitigation Fee Act (Attachment 3). To date, no other comments have been received. ALTERNATIVES As the report is required by the State, staff does not recommend an alternative. Prepared by: Karla Campos, Finance Director Approved by: Frank J. Spevacek, City Manager Attachments: 1. Development Project Fee Financial Report 2. Development Agreement Payment Report 3. DVBA Letter of Examination dated December 1, 2017 64 2017 AB1600 Report La Quinta Development Project Fee Report ATTACHMENT 1 Quimby Fees (Fund 220) Government Code 66000 Calculation FYE 6/30/2017 Beginning Ending Account Description Fund Balance FY 16/17 Fund Balance Revenues & Other Sources: Developer Fees 104,223 Interest Income 23,995 Contributions from Property Owners - Transfers In - Total Sources 128,218 Expenditures & Other Uses - Transfers out Capital Projects 557,338 Total Uses 557,338 Total Available 5,434,667$ (429,119)$ 5,005,548$ Five Year Test Using First In First Out Method Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2013 8,290,177$ 38,760$ 90,471$ 9,173,609$ (935,143)$ Revenues Collected from 2014 8,241,870 1,011,747 1,118,651 7,320,215 814,751$ 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$ Total Revenue For Last Five Years 1,522,282$ 4,810,316$ 31,581,213$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 16/17 Committed % Complete % funded with fee 131402 Miscellaneous Parks ADA Improvements 74,289$ -$ 100%33% 131412 La Quinta Park Restroom Project 218,692 - 100%100% 141501 Sports Complex ADA Improvement Project 83,070 - 100%83% 151609 North La Quinta Regional Skate and BMX 290 3,391,797 1%97% 151611 Cove Trailhead Improvements 117,866 - 100%100% 201604 Fritz Burns Park Tenis and Pickleball Conversion 63,131 544,119 11%100% 201608 SilverRock Park - 50,000 8%100% Total 557,338$ 3,985,916$ 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. 65 2017 AB1600 Report La Quinta Development Project Fee Report Infrastructure fee (Fund 225) Government Code 66000 Calculation FYE 6/30/2017 Beginning Ending Account Description Fund Balance FY 16/17 Fund Balance Revenues & Other Sources: Developer Fees - Interest Income 114 Reimbursements - Total Sources 114$ Expenditures & Other Uses Capital Projects - Project Administration/Internal Engineering - Other - Total Uses - Total Available 23,618$ 114$ 23,732$ Five Year Test Using First In First Out Method Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2013 267,801$ 72$ 244,738$ 244,738$ (221,602)$ Revenues Collected from 2014 23,136 72 - 23,208$ 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$ Total Revenue For Last Five Years 669$ 244,738$ 289,974$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 16/17 Committed % Complete % funded with fee 151603 La Quinta Village Complete Streets - Road Diet - 22,618$ 0%1% Total - 22,618$ 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 89-39. 66 2016 AB1600 Report La Quinta Development Project Fee Report Transportation DIF (Fund 250) Government Code 66000 Calculation FYE 6/30/2017 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 16/17 Fund Balance Revenues & Other Sources: Developer Fees 370,465 Interest Income 18,007 Miscellaneous 0 Transfers In - Total Sources 388,472 Expenditures & Other Uses - Transfers out Capital Projects 203,047 Total Uses 203,047 Total Available 3,471,401$ 185,425$ 3,656,826$ Five Year Test Using First In First Out Method Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2013 2,622,006$ 468,764$ 2,935,185$ 2,935,185$ (2,779,599)$ Revenues Collected from 2014 155,586 1,399,090 35,194 35,194 1,484,288 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 Total Revenue For Last Five Years 6,775,857$ 5,741,037$ 15,098,535$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 16/17 Committed % Complete % funded with fee 091002 Madison Street Ave. 50 to Ave. 52 12,222$ 1,609,126$ 12%77% 091004 Dune Palms Road Street Improvements - 502,407 4%21% 121301 Adams Street Signal & Street Improvements 2,000 - 100%62% 111205 Dune Palms Bridge Improvement - 165,859 45%2% 151602 Miles Avenue Median Island Landscaping 64,597 574,826 14%60% 151603 La Quinta Village Complete Streets - Road Diet 16,728 343,055 20%22% 151607 New Traffic Signal (Jefferson @ Dunbar Dr)107,500 - 100%50% 201702 Developer Reimbursements - 400,000 0%100% Total 203,047$ 3,595,274$ 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. 67 2016 AB1600 Report La Quinta Development Project Fee Report Parks & Rec DIF (Fund 251) Government Code 66000 Calculation FYE 6/30/2017 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 16/17 Fund Balance Revenues & Other Sources: Developer Fees 202,752 Interest Income (2,659) Miscellaneous Transfers In Total Sources 200,093 Expenditures & Other Uses - Transfers Out Capital Projects - Total Uses 0 Total Available 358,702$ 200,093$ 558,795$ Five Year Test Using First In First Out Method Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2013 (1,183,816)$ 136,319$ 4,542$ 1,458$ (1,053,497)$ Revenues Collected from 2014 (1,052,040) 585,784 3,231 1,169 (470,656) 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 Total Revenue For Last Five Years 1,751,292$ 8,681$ 363,921$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 16/17 Committed % Complete % funded with fee Total -$ -$ 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. 68 2017 AB1600 Report La Quinta Development Project Fee Report Civic Center DIF (Fund 252) Government Code 66000 Calculation FYE 6/30/2017 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 16/17 Fund Balance Revenues & Other Sources: Developer Fees 98,757 Interest Income (17) Miscellaneous Transfers In Total Sources 98,740 Advance Interest Expense 55,994 Total Uses 55,994 Total Available (7,212,007)$ 42,746$ (7,169,261)$ Five Year Test Using First In First Out Method Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2013 (7,169,491) 96,322 232,321 4,618 (7,310,108)$ Revenues Collected from 2014 (7,305,489) 224,260 231,261 - (7,312,490) 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) Total Revenue For Last Five Years 818,475$ 818,245$ 59,896$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 16/17 Committed % Complete % funded with fee Total -$ -$ 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. 69 2017 AB1600 Report La Quinta Development Project Fee Report Library DIF (Fund 253) Government Code 66000 Calculation FYE 6/30/2017 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 16/17 Fund Balance Revenues & Other Sources: Developer Fees 34,056 Interest Income Miscellaneous Transfers In Total Sources 34,056 Advance Interest Expense 12,890 Total Uses 12,890 Total Available (1,631,001)$ 21,166$ (1,609,835)$ Five Year Test Using First In First Out Method Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2013 (1,860,330)$ 26,674$ 7,400$ 2,000$ (1,843,056)$ Revenues Collected from 2014 (1,841,056) 98,333 7,428 2,072 (1,752,223) Revenues Collected from 2015 (1,750,152) 103,949 8,577 - (1,654,779) Revenues Collected from 2016 (1,654,779) 36,464 12,686 - (1,631,001) Revenues Collected from 2017 (1,631,001) 34,056 12,890 - (1,609,835) Total Revenue For Last Five Years 265,420$ 36,091$ 4,072$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 16/17 Committed % Complete % funded with fee Total -$ -$ 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. 70 2017 AB1600 Report La Quinta Development Project Fee Report Community Center DIF (Fund 254) Government Code 66000 Calculation FYE 6/30/2017 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 16/17 Fund Balance Revenues & Other Sources: Developer Fees 12,771 Interest Income 554 Miscellaneous Transfers In Total Sources 13,325 Advance Interest Expense Total Uses - Total Available 101,639$ 13,325$ 114,964$ Five Year Test Using First In First Out Method Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2013 1,199,352$ 14,426$ -$ -$ 1,213,777$ Revenues Collected from 2014 1,213,777 39,764 1,206,191 47,350 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 Total Revenue For Last Five Years 108,479$ 1,206,191$ 101,639$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 16/17 Committed % Complete % funded with fee 151609 La Quinta X Park Youth Center 101,600$ 0% 100% Total -$ 101,600$ 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. 71 2017 AB1600 Report La Quinta Development Project Fee Report Street Maintenance DIF (Fund 255) Government Code 66000 Calculation FYE 6/30/2017 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 16/17 Fund Balance Revenues & Other Sources: Developer Fees 15,126 Interest Income Miscellaneous Transfers In 3,969 Total Sources 19,095 Advance Interest Expense 15,191 Total Uses 15,191 Total Available (1,901,551)$ 3,904$ (1,897,647)$ Five Year Test Using First In First Out Method Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2013 (2,021,771)$ 20,624$ 8,037$ 1,963$ (2,011,147)$ Revenues Collected from 2014 (2,009,184) 50,422 8,229 1,771 (1,968,762) 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) Total Revenue For Last Five Years 162,824$ 42,604$ 3,977$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 16/17 Committed % Complete % funded with fee Total -$ -$ 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. 72 2017 AB1600 Report La Quinta Development Project Fee Report Park Maintenance DIF (Fund 256) Government Code 66000 Calculation FYE 6/30/2017 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 16/17 Fund Balance Revenues & Other Sources: Developer Fees 3,960 Interest Income 9 Miscellaneous Transfers In Total Sources 3,969 Transfers Out 3,969 Total Uses 3,969 Total Available 2$ (0)$ 2$ Five Year Test Using First In First Out Method Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2013 0$ 3,669$ 3,668$ -$ 1$ Revenues Collected from 2014 1 11,502 11,503 - 1$ 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$ Total Revenue For Last Five Years 31,319$ 31,317$ -$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities Capital Improvement Facilities FY 16/17 Committed % Complete % funded with fee Total -$ -$ 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. 73 2017 AB1600 Report La Quinta Development Project Fee Report Fire Protection DIF (Fund 257) Government Code 66000 Calculation FYE 6/30/2017 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 16/17 Fund Balance Revenues & Other Sources: Developer Fees 45,399 Interest Income Miscellaneous Transfers In Total Sources 45,399 Advance Interest Expense 4,581 Total Uses 4,581 Total Available (593,484)$ 40,818$ (552,665)$ Five Year Test Using First In First Out Method Beginning Fund Balance Revenues Collected Expenditures Committed Unspent Revenues Collected from 2013 (913,642)$ 49,375$ 3,585$ 1,115$ (868,967)$ Revenues Collected from 2014 (867,852) 104,615 3,402 98 (766,737) 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 -$ (552,665) Total Revenue For Last Five Years 336,100$ 15,942$ 1,213$ Result : Five Year Spent Test Met in accordance with Government Code 66001 Capital Improvement Facilities FY 16/17 Committed % Complete % funded with fee Total -$ -$ 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. 74 2017 AB1600 Report La Quinta Development Project Fee Report ATTACHMENT 2 Developer Agreement Activity (Fund 217) FYE 6/30/2017 Date Project/Purpose Amount Interest Earned Expenses Total 10/9/2006 (Plaza Estado) Fee in lieu of Old Town Parking Requirement 110,537$ 25,678$ -136,215$ The following development agreement payment was received for development agreements entered into after January 1, 2004 in accordance with Government Code Section 65865 75 ATTACHMENT 3 76