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BACKGROUND Beginning in 1984, public entities were required to provide an annual accounting concerning the collection and use of all development impact fees. Effective January 1, 1989, A61600 (Government Code 66000 et seq.) established new accounting guidelines regarding the imposition and use of development impact fees. Effective January 1, 1997, SB1693 made certain changes to A61600 and clarified and expanded the responsibilities of local agencies. One of the mandated accounting guidelines, as stated in Government Code 66006(a), provides that a local agency shall establish separate capital facility accounts for each improvement funded by development impact fees. Any interest income earned by funds in such an account shall also be deposited in that account. Each local agency is required within 180 days after the financial year is closed, (the books for fiscal year ending June 30, 2006 were closed on December 31, 2006) to make available to the public the following information for each separate account: (1) the account's beginning and ending balance; (2) the amount of fees, interest, and other income in the account; (3) the amount of expenditure for each public facility or improvement made from the account; (4) the total percentage of the cost of the improvement that was funded with the fees; (5) the date construction will commence if sufficient funds have been collected; (6) a description of any Interfund transfers or loans made from an account; and (7) the amount of refunds made from the account. Appendices A, B and C providing this information are attached for funds held on June 30, 2006. Each developer's contribution to a current or future project has been provided. This information is for review purposes only; any changes and updates will be made through amendments and adoption of the Capital Improvement Program. The 2005-06/2008-09 Capital Improvement Program adopted June 21, 2005 and the 2006-07 Midterm review adopted on June 20, 2006 provide detailed information on the City's capital projects. DISCUSSION The City uses Fund Accounting to segregate development related fees from other City revenues. Interest income is allocated to each individual fund based on its own cash balance. The City utilizes the following funds to track development related revenues: Miscellaneous Capital Improvement Fund (Fund 154) -This fund is utilized to track the Public Facilities fee. Facilities projects, equipment, etc. required to service new development are funded from this fee. When a project serves both new and existing development, only the portion related to new development is charged against this fund. The other portions of the project are funded by other sources, such as the General Fund. Appendix C includes the fiscal year 2005-06 information for this fund as part of the Miscellaneous Projects worksheet. Page 2 of 4