TITLE
Recommendation to receive and file the Park Impact Fee Report for Fiscal Year 2006. (Citywide)
DISCUSSION
The Fiscal Year 2006 (FY 06) Park Impact Fee Annual Report was prepared in accordance with Municipal Code Section 18.18.160, and California Government Code Section 66006, to update the City Council on the status of the Park Impact Fee Fund.
This report covers the fiscal year ending September 30, 2006.
In February 1989, the Long Beach City Council established the Park Impact Fee for parkland acquisition and improvements. The Park Impact Fee was originally imposed on all new residential development to mitigate the impact of increased population from those new developments on parks and park facilities. The fees were based on a citywide recreation standard, the projected growth in population, and the estimated cost to provide the new and expanded recreational facilities needed to serve the increased population at the citywide standard.1
1 A service level standard of 1.35 acres of park space per 1,000 persons was adopted in 1989. This ratio was one-half the citywide average service level of 2.7 acres per 1,000 persons that was estimated to exist at the time. The standard for the Park Impact Fee was set at half the cost of providing the then existing service level because it was believed the same level of service could be achieved more efficiently by utilizing school land for public recreation and by providing recreational equipment to allow more intense park use.
Based on the projected housing growth from 1989 to 2000, the Park Impact Fee program was projected to generate $46,866,000 during this period of time. Through September 30, 2006, only $12,362,150 in fees, interest, and "in lieu" contributions have been received. The difference between the actual receipts and the projected receipts is the result of residential construction being significantly lower than the projected rate.
The fees have purchased 15.23 acres of new or expanded parks, built 5,225 square feet of community recreation center buildings, developed a one-third acre nature reserve and provided the equivalent of one new soccer field through lighting night play> Attachment A summarizes Park Impact Fee collections and expenditures. The lower receipts noted above have caused a delay in implementing many of the planned projects. Attachment B is the development impact fee program progress, including the projects originally planned to be funded by this fee and modifications to the plan since
its inception. The achievement of less than one-quarter of the proposed programs is also due to the reduced purchasing power of the fee over the last 16 years.
During FY 06, $471,466 was received from fees and $33,897 from interest, for a total of $505,363. During FY 06, $1,220,000 of Park Impact Fees collected from multiple years was expended in the Capital Improvement Budget. This was expended as indicated in the following table:
FY 06 Expenditures
Project Amount District
MLK Pool Locker Rooms and Classroom $340,170 6
Silverado Pool Classrooms $40,505 7
California Recreation Center Expansion $307,040 6
Chittick Field Land Purchase $40,000 6
Build Admiral Kidd Park Teen/Community Center $85,428 7
Seaside Park $537,655 1
Administrative Expenditures $31,500
The Parks and Recreation Commission received and filed the Park Impact Fee Report for FY 06 on January 18, 2007. This matter was reviewed by Deputy City Attorney Gary Anderson on February 13, 2007, and Budget and Performance Management Bureau Manager David Wodynski on February 16, 2007.
TIMING CONSIDERATIONS
City Council action is requested on March 20, 2007, as State law directs that this report be received no later than 180 days following the end of the fiscal year. Therefore, the Park Impact Fee Report for FY 06 must be received by March 30, 2007.
FISCAL IMPACT
There is no fiscal impact associated with the suggested action.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
PHIL T. HESTER
DIRECTOR OF PARKS, RECREATION AND MARINE
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APPROVED: |
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GERALD R. MILLER |
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CITY MANAGER |