SR 05:162 - Laserfiche WebLink

FIVE-YEAR REVIEW REQUIRED BY AB 1600 AND SB 1693 AB 1600 and SB 1693 further provide procedures for the collection and holding of development fees. Government Code section 66001(d) provides that five years after collecting a development fee subject to AB 1600 and SB 1693, a local agency shall make findings that year and every five years thereafter, with respect to any portion of the fee remaining unexpended. The findings must identify the purpose that the fee is to be used and demonstrate a nexus between the fee and the purpose for which it was originally charged. The findings must also identify all sources and amounts of funding anticipated to complete the improvement and the approximate date that the improvement will be fully funded. After five years, a local agency is also required to refund the unexpended portion of the fee, and any accrued interest, for which a need cannot be demonstrated. Unexpended fees must be refunded by a local agency if a need for the fee cannot be established. However, when a city makes appropriate findings (including that the purpose for the developer impact fee remains), the city may retain the fee. Staff reviewed development impact fees collected during the period between July 1, 1998 and June 30, 1999 to determine if any remain unexpended or uncommitted. Four developer exactions collected in FY 98-99 remain unexpended as of June 30, 2004. The attached resolution has more details on these particular exactions, but one ($1,581,098 on page A6) has been expended in FY2004-05, one ($6,928 on page Al3) will be expended when certain issues are resolved, and two ($15,049 on page Al8 and $14,996 on page Al6) will be expended when future development occurs. In addition, of the developer exactions that received findings five years ago, there are two developer exactions that still remain unexpended. Of those two, one ($143,245 on page A4) will be expended when certain issues are resolved and one ($15,076 on page Al6) will be disbursed back to the developer when appropriate. Also, the Lower-Income Housing Fund has not expended all the developer fees collected during the period between July 1, 1998 and June 30, 1999. These lower- income housing fees are being accumulated in this fund and have been committed to the construction of the Bridge assisted living facility, the Busch Gardens senior housing project, affordable housing programs on the Bernal property and various other housing projects. FISCAL IMPACT Staff recommends that the Council adopt the attached resolution finding that certain funds collected from developers are unexpended after five years but that the funds are committed to particular projects. Respectfully Submitted, Susan Rossi Director of Finance Nelson Fialho City Manager 4 SR:05:162