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HomeMy WebLinkAboutAgenda Report - September 6, 2017 C-19TM CITY OF LODI COUNCIL COMM UNICATION AGENDA ITEM elaR AGENDA TITLE: Adopt Resolution Approving Impact Mitigation Fee Program Annual Report for Fiscal Year 2016/17 MEETING DATE: September 6, 2017 PREPARED BY: Public Works Director RECOMMENDED ACTION: Adopt resolution approving Impact Mitigation Fee Program Annual Report for Fiscal Year 2016/17. BACKGROUND INFORMATION: The City's Development Impact Mitigation Fee (IMF) program consists of 11 separate fee categories, plus the Art in Public Places set-aside. The categories are Electric, Water, Wastewater, Streets, Regional Transportation, Storm, Police, Fire, Parks and Recreation, General City Facilities, and Neighborhood Parks. The fees can only be used for capital improvements and/or debt service to accommodate new growth. The fees were established in 1991 and updated in 2012. In accordance with the State's annual reporting requirements, staff has prepared the following exhibits: Exhibit A - A summary of the current fee amount, beginning and ending balances for each fee account, total fees collected, interest earned, and total expenditures from each account for Fiscal Year (FY) 2016/17. Exhibit B - A summary by account of IMF expenditures during FY 2016/17. The Lodi Municipal Code provides the City Manager authority to establish loans between impact fee funds to assure adequate project cash flow. This is reflected in Exhibit A where revenue generated in the Fire fund is being used to repay debt service on an interfund loan from the Water fund. The $1.6 million loan was used to advance construction of Fire Station No. 4 in 2001, prior to funding availability. Per State law, the annual report must be available for public review at least 15 days prior to City Council action. The annual report has been posted on the City's website and the Lodi News Sentinel and the Stockton Record, have been notified of the report's availability. FISCAL IMPACT: Not applicable. FUNDING AVAILABLE: Not applicable. Charles E. Swimley, J Public Works Director Prepared by Rebecca Areida-Yadav, Public Works Management Analyst FWS/RAY/tdb Attachments APPROVED: wa • : - ity Manager K:\WP\IMFees\CIMFAnnualReport_1617.doc 8/9/2017 K:\W P\IMFees\IMFAnnualReport2016-17.xls A � B � C 1 D � E � F � G I H � 1 I J I K I L I M 1 EXHIBIT A 2 IMPACT MITIGATION FEE PROGRAM 3 FY 2016/17 Annual Report 4 5 6 Fee: Electrical Wastewater Water Storm Drain Streets Regional Transp Police Fire Parks & Rec General Facilities Neighborhood Parks Art in PP 7 Fund #: 505 533 562 535 308 314 435 436 437 438 439 434 8 9 Fee Amount July 1 - December 18, 2016 (1) 336 1,720 1,263 567 289 3,223 307 157 1,584 251 1,016 33 10 Fee Amount December 19, 2016 - June 30, 2017 (1) 826 4,225 3,103 1,394 711 3,223 753 385 3,890 617 2,541 80 11 12 Fund Balance - Beginning of Year 925,979.48 268,989.29 1,572,590.64 899,121.43 722,937.38 750,366.87 203,589.15 (1,043,342.58) 761,563.23 96,714.61 65,182.54 154,809.55 13 14 Revenues: 15 Investment Revenues 5,144.93 2,853.60 5,467.26 4,682.02 4,541.30 1,227.26 313.19 3,744.05 643.64 354.10 828.03 16 Impact Mitigation Fees 83,913.60 560,701.74 206,847.06 37,849.81 98,252.65 983,821.68 45,688.71 34,724.89 157,997.24 38,667.42 1,207.64 6,493.06 17 Other Revenue 18 19 Total Revenue 83,913.60 565,846.67 209,700.66 43,317.07 102,934.67 988,362.98 46,915.97 35,038.08 161,741.29 39,311.06 1,561.74 7,321.09 20 21 22 Expenditures: 23 Capital Projects 0.00 0.00 0.00 0.00 (13,705.60) (422,255.86) 0.00 0.00 (238,152.12) 0.00 0.00 (1,340.94) 24 25 Total Expenditures 0.00 0.00 0.00 0.00 (13,705.60) (422,255.86) 0.00 0.00 (238,152.12) 0.00 0.00 (1,340.94) 26 27 28 Other Sources (Uses): 29 Operating Transfers In 30 Operating Transfers Out 0.00 31 32 Total Other Sources (Uses) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 33 34 35 Total Fund Balance - End of Year 1,009,893.08 $834,835.96 $ 1,782,291.30 $942,438.50 $812,166.45 $1,316,473.99 $250,505.12 ($1,008,304.50) $685,152.40 $136,025.67 $66,744.28 $160,789.70 36 Change in Receivables/Payables (2) (11,140.00) (74,882.19) (55,462.52) (18,880.93) (23,290.39) 15,218.82 (24,114.80) (12,774.77) 35,007.50 (19,505.01) (98.50) (2,757.47) 37 Interfund Loans (1,024,024.89) 1,024,024.89 38 Cash Balance - End of Year $998,753.08 $759,953.77 $ 702,803.89 $923,557.57 $788,876.06 $1,331,692.81 $226,390.32 $2,945.62 $720,159.90 $116,520.66 $66,645.78 $158,032.23 39 40 41 (1) Fees listed are for one unit of residential low density. RTIF fee listed is for one residential single family dwelling unit equivalent. 42 Water/Wastewater fees are per 3/4" residential meter. 43 Electrical fees listed are for Residential for a 200 amp panel. 44 45 (2) Difference between investments and accounts/retainages payable. K:\W P\IMFees\IMFAnnualReport2016-17.xls Description Electrical 505 Wastewater 531 EXHIBIT B IMPACT MITIGATION FEE PROGRAM SUMMARY OF PUBLIC IMPROVEMENT PROJECT EXPENDITURES FY 2015/16 Water 561 Storm Drain 535 Streets 308 RTIF Police Fire Parks & Rec General Facilities Art in Public PI 314 435 436 437 438 434 Harney Lane Grade Separation 422,255.86 Victor/Guild Signal 13,705.60 Debenedetti Park Trail/Parking Lot 238,152.12 Traffic Control Box Art 1,340.94 Total 0.00 0.00 0.00 0.00 13,705.60 422,255.86 0.00 0.00 238,152.12 0.00 1,340.94 RESOLUTION NO. 2017-177 A RESOLUTION OF THE LODI CITY COUNCIL APPROVING THE IMPACT MITIGATION FEE PROGRAM ANNUAL REPORT FOR FISCAL YEAR 2016/17 NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby approve the Impact Mitigation Fee Program Annual Report for Fiscal Year 2016/17, as shown on Exhibits A and B attached, and made a part of this Resolution. Dated: September 6, 2017 I hereby certify that Resolution No. 2017-177 was passed and adopted by the City Council of the City of Lodi in a regular meeting held September 6, 2017, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Johnson, Mounce, Nakanishi, and Mayor Kuehne NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None 2017-177 X NNIFER FERRAIOLO tv Clerk K:\WP\IMFees\IMFAnnualReport2016-17 xis A r 9 r c I 13 7 E L F 1 G 1 R 1 I 1J 1 K 1 L 1 M 1 2 EXHIBIT A IMPACT MITIGATION FEE PROGRAM 3. FY 2016117 Annual Report 4 6 Fee: Electrical Wastewater Water Storm Drain Streets Regional Tran5p Police FRO Perks 4 RCC central YaciWtka NMlthh0rhbod NA* 439 Art In P7 434 7 Fund.8: 565 633 582 • 535 308 314 435 436 437 I 498 8 9 Foe Amount July 1 - December 18 2016 (1) 336 1,720 1.263 567 289 3225 307 157 1,584 251 1,016 33 10 Fee Amount December 19. 2016 - June 30.2017 0) 326 4.225 3.103 1,394 711 3223- 753 385 3.890 617 2.541 80 11 12 Fund Balance- Beginning at Year 925.979-48 268.90929 1,572.55864 899,121.43 722,937.38 750,366.87 203.589-95 (1.043.342_58) 761,56323 86,714.61 65,18254 156,309.56 13 14 Revenues: 15 investment Revenues 5,144.93 2,053.60 5,467.26 ! 4,682 02 4,541.30 1.22726 l 313.19 3,744.05 543.54 354.10 328.03 16 lmpad MSfgellon Fees 83.91300 560.701.74 206.64706 37-049.81 98.252.65 983,821.68 45.688.71 39.724.89 157.99724 38,667.42 1207.64 6.493.06 17 Diner Revenue 16 19 T61a1 Revenue.... 565,846.677 209,700.66 43,317.07 102,934.87 981362.98 46,915.97 35,038.05 161,741.29 39.311,06 1,561.74 7,321.09 20 21 22 Expenditures: 23 C3094119rojsc1s 0.00 0.00 0.00 0.00 (13.705.54) (422.255 86) 0.00 0 00 (238,152 123 9.00 0.00 (1,340.94) 24 25 75151 Expenditures 0.00 0.00 0.00 0.00 [43705.60) 1422,255,06 0.00 0,00 (236152.121 0.06 0.00 0,340.94) 26 27 26 Other Sources (Usti): 28 Operebrlg Transfers 1n 30 Operating Transfers Out 0 00 31 32 Total Other Some* (Uses) 0.00 0.00 0.00 0.00 0.00 0.00 0.06 0.6' 0.00 I 0,00 0.00 0.00 33 14 35 Total Fund Bslsnce - End of Year 1,009,893,06 $834,635.96 1 1,782,291.30 6942,433.50 *312,160.45 51,316,473,99 5250,505.12 (61.006,304.30) 5685002.40 0136,025,67 566,74438 5160,788.70 36 Change in ReceivahlsafF'a7ab445(2) (11.140.00) {74.86219) (55.462.528 (16.660.93) {23.90.191 15219.82 (24.114 80) (12,774.773 35,007.50 (19,505-01) (96.50) (2,757.471 37 Inlerfund Loans (1,024.024.89) 1024,024,39 36 C4ah 131114nce • End of Year 5998.753.08 5769,953,77 5 702.803.69 5823,557.57 $788,876.06 51,331,698:51 5226,38642 52.446,42 5720.155.90 5416,570,05 566,645.78 0158.032.23 39 40 41 51) Fees Wed are for one rind of residential low density. RTLF lee Itsted is for one residential Single family drr814ng un6 equivalent 12 W8!OrAlrastewafer tees era per 354" residential meter. 43 Electrical fees Ii6ted are 801 Resid680al for a 200 amp panel. 44 I I I 45 (3) Difference between investments and 6ccountXr 05158901 paysbie. 1 K:\WP\IMFees\IMFAnnualReport2016-17 xis Description Hamey Lane Grade Separation Victor/Guild Signal Debenedetti Park Trail/Parking Lot Traffic Control Box Art Total Electrical 505531 Wastewater EXHIBIT B IMPACT MITIGATION FEE PROGRAM SUMMARY OF PUBLIC IMPROVEMENT PROJECT EXPENDITURES FY 2015/16 Water 551 Storm Drain 595 RPF 314 Police Fire Parks & Rec General Facilities Art in Public PI 435 430 •:37 438 434 0 00 238,152 12 0 00 1,340 94 1,340.94 El 1181HX3 LODI CITY COUNCIL BLUE SHEET AGENDA ITEM C-19 SEPT. 6, 2017 LODI CITY MANAGER MAKE CHANGES TO THE IMPACT MITIGATION FEE PROGRAM (IMFP) Reference Agenda Item C-19 meeting of Sept. 6, 2017 1. Add funding item titled Recycled Water Fund. This fund would support the new portion of the Water Utility Enterprise enabling the City to establish design, and installation of infrastructure to connect the City Limits of Lodi with the White Slough Wastewater recycling plant, with the purpose of suppling non -potable water sources to the new developments within the City of Lodi. These funds would be restricted for use within the Water Utility Enterprise for the sole purpose as described above and the operating budgets would be incorporated into the Water Utility Enterprise as a subset of the potable water enterprise. The City of Lodi has already studied the infrastructure and implementation cost of establishing the non -potable recycled water facilities back in 2001 water studies. The City already has an estimate of non -potable water usage in the current water billing. The comparison between potable winter usage and summer outside water consumption provides a basis to establish future IMF costs to Developers. 2. Restrict the use of each fund for Wastewater, Water, Recycled Water and Storm Water to be solely used within the designated fund. NO inter fund loans! Money restricted to designated fund use only. Example: The City borrowed 1.9 million dollars plus from the Water IMF fund in 2002 for the construction of Fire House number 4 and 15 years later still has not paid this loan back to the Water IMF and shorting the Utility Rate Payers this funding. Page 1 3. Restrict the City of Lodi from reducing the amount of Impact Mitigation Fee established and charged to the Developers. When looking at the individual Enterprise Budgets covered under Prop 218 the City of Lodi has had a past practice of not supporting the revenues of each enterprise 100 percent with revenues from the IMFP. The City of Lodi through its Municipal Funding Corporation establishes Certificates of Participation, by-passing the requirement of both Prop 13 and 218 voter authority and expanding the Enterprise budgets and inflating the need for Utility Rate increases. The Certificates of Participation specifically state the funds to be repaid by Utility Rate revenues and are not the responsibility of the City or the General Fund obligation. Therefore the necessity of restricted fund use, so that 100 percent of the IMF is collected and used solely within the designated Enterprise. 4. Change the way the Annual IMF Report is presented. Add to the report the total number of Developer units within each development. Show the number of current year units paid by that development into each fund. Show how many units left to be paid for and carried over to the next reporting year/years. 5. The current format of the Annual Report is more of a summary report lacking details of transactions. If you compare the yearly reports to one another there are discrepancies in the ending and beginning balances year to year. They lack the detail of interest accrued on each inter fund loan, showing only the original loan balance amount borrowed year to year. There should be line item details of payables and receivables not just note references of some of the transactions that affect the balances. Page 2 6. Item 7 FEE PROGRAM ADMINISTRATION REQUIREMENTS found on page 73 of the LODI IMPACT FEE MITIGATION PROGRAM UPDATE OF 2012 states "A description of each interfund transfer or loan made from the account and when it will be repaid". This Agenda Item C-19 does not give a specific date when the interfund loan from the water fund to the fire fund in 2002 for Firehouse 4 will be repaid. After 15 years the City has had plenty of time to establish a specific date for the repayment. The last paragraph of this section on page 74 also requires the City to disclose as with the annual disclosure, the five year report must be made public within 180 days after the end of the City's fiscal year and must be reviewed at the next regularly scheduled public meeting. When can we see this report? Can we expect to see any or all the Items above 1 through 6 included in the update? You as the City Council or a City Employee have to ask the question, can I understand the detail of what the City is doing from this report as it exists in its current form? I respectfully request that these changes be made in the City of Lodi's municipal code and the format of the Impact Mitigation Fund's Report. Respectfully Mike Lusk, Lodi Page 3