TITLE
Recommendation to adopt resolution approving the Annual and Five-Year Reports for the Transportation Improvement Fee, Park and Recreation Facilities Fee, the Fire Facilities Impact Fee, and the Police Facilities Impact Fee. (Citywide)
DISCUSSION
New development affects the level of services provided through the City's facilities, infrastructure, land and equipment. To accommodate the needs of the new residents and businesses, the City imposes impact fees to expand these resources as follows:
· Transportation Improvement Fee
· Park and Recreation Facilities Fee
· Fire Facilities Impact Fee
· Police Facilities Impact Fee
In the past, each department that had an impact fee would request a separate City Council action to approve their annual and\or five-year reports. The purpose of these reports is to provide information to the City Council and the public and to fulfill State Government Code and Municipal Code mandated reporting and disclosure requirements. In order to improve transparency and to reduce the City's administrative costs, City Council is being requested to approve one Resolution that contains all the required reports. Additional discussion on this topic was included in a recent memorandum to the City Council.
Annual Reports
The California Government Code requires that local agencies that impose fees in connection with the approval of development projects make certain information available to the public on an annual basis. The Long Beach Municipal Code also adds additional elements to these requirements, including those related to the annual automatic increase in the Parks and Recreation Facilities Fee.
Five-Year Reports
Section 66001 of the Government Code mandates additional disclosure with respect to any fees collected and remaining unexpended in the fifth year after collection. In order to ensure that the City Council keeps fully informed of the status of unexpended funds, five-year reports will be submitted annually.
This matter was reviewed by Assistant City Attorney Heather A. Mahood on March 4, 2011 and Budget and Performance Management Bureau Manager Lou Palmer on February 28, 2011.
TIMING CONSIDERATIONS
State Law requires the information contained in these reports to be made available to the public within 180 days after the last day of the Fiscal Year, or March 30, 2011.
FISCAL IMPACT
The amount of impact fees collected each year is dependent on the amount and type of new development and its relationship to the purpose of the fee. The impact fee revenue for Fiscal Year ended September 30, 2010 (FY 10) was $1,975,338 with expenditures of $4,442,871. These fees can only be used on projects and expenses to offset the impact of the new development. The five-year reports provide information on revenue unexpended in the various impact fee funds during Fiscal Years 2006 through 2010.
Transportation Improvement Fee Report (Exhibit A to Resolution)
The Traffic Mitigation Program Nineteenth Annual Report summarizes the status of implementation of the citywide Traffic Mitigation Program (TMP). The TMP is the City's program for implementing the transportation improvements needed to meet increased traffic resulting from economic growth using a combination of public funds, such as gas tax and federal grants, and impact fees from new development. The TMP was designed as the mechanism by which the City could implement its basic access strategy to support economic growth and maintain mobility.
In FY 10, a total of $1,053,062 in transportation improvement fund fees was collected, with $4,043,012 in expenditures and reimbursements, leaving a fund balance of $9,322,952. These funds may only be used to provide transportation improvements needed to serve new development. The City issued permits for 384,224 gross square feet of residential units and 1,020,121 gross square feet of commercial development, which will generate an estimated 3,800 evening peak hour trips each weekday.
Parks and Recreation Facilities Fee Report (Exhibit B to Resolution)
In February 1989, the Long Beach City Council established the Parks and Recreation Facilities Fee (PRFF), a fee on new development designed to maintain the existing level of service for existing and new residents. New residential development increases the population of the City by providing more places to live. This adversely impacts parks and recreational resources through crowding and overuse, lowering the quality of life for all existing and new residents.
During FY 10, $605,880 was received from PRFF, and $8,070 from interest. Additional revenue of $3,571 is due to an unrealized gain recordation in accordance with the Government Accounting Standards Board requirements for a total of $617,521. During FY 10, $399,859 of PRFF collected from multiple years was expended in the Capital Improvement Budget. This figure includes $243,084 in PRFF that pays approximately one-quarter of the Open Space Bond repayments. The other $113,641 was expended on projects. Specific projects are listed in the Parks and Recreation Facilities Impact Fee Report.
Fire Facilities Fee Report (Exhibit C to Resolution)
In April 2007, the Long Beach City Council established the Fire Facilities Impact Fee. The Fee is imposed on new development and is to mitigate the impact of new development on fire facilities. New development increases the demand for public safety facilities and impact fees help defray the costs for these facilities.
In FY 10, a total of $117,151 in Fire Facilities Impact Fees was collected, with no expenditures or reimbursements, leaving a fund balance of $141,006. The Fire Department has not spent any of these funds to date. However, it is anticipated that funds may be used to support a portion of the cost of equipment and furnishing of Fire Station 12. This new fire station, built with Redevelopment Agency funds, will include a disaster resource building and a community meeting room and will offer increased capacity to the North Long Beach community, as well as the entire City.
Police Facilities Fee Report (Exhibit D to Resolution)
In April 2007, the City Council also established the Police Facilities Impact Fee to mitigate the impact of new development on police facilities. New development increases the demand for public safety facilities and impact fees help defray the costs for these facilities.
As of September 30, 2010, the Police Facilities Impact Fee fund had a balance of $225,116. In FY 10, the fund had a beginning balance of $37,462. During the Fiscal Year, $186,916 was received from fees, $736 was received from interest, and there were no expenses or refunds, for a total revenue of $187,654, resulting in an ending balance of $225,116.
BODY
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LONG BEACH ADOPTING THE CITY OF LONG BEACH TRANSPORTATION IMPROVEMENT FEE, PARKS AND RECREATION FACILITIES FEE, FIRE AND POLICE FACILITIES IMPACT FEE REPORTS FOR FISCAL YEAR 2010; AND MADE FINDINGS RELATIVE THERETO IN ACCORDANCE WITH LONG BEACH MUNICIPAL CODE CHAPTERS 18.17, 18.18, 18.22 AND 18.23 AND GOVERNMENT CODE SECTIONS 66001 AND 66006.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
WILLIAM YEOMANS
INTERIM DIRECTOR OF FINANCIAL MANAGEMENT
APPROVED:
PATRICK H. WEST
CITY MANAGER