Title
Adopt a Resolution to:
a. Approve a report on the status of development traffic impact fees for fiscal year ending June 30, 2023; and
b. Adopt findings, in accordance with Government Code section 66000 et seq., that the need for the improvements for which the fees are being collected still exists, and as such the funds will be retained.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors adopt a Resolution to:
a. Approve a report on the status of development traffic impact fees for fiscal year ending June 30, 2023; and
b. Adopt findings, in accordance with Government Code section 66000 et seq., that the need for the improvements for which the fees are being collected still exists, and as such the funds will be retained.
SUMMARY:
The County of Monterey collects traffic impact fees (“TIFs”) from development projects that represent the projects’ fair share towards specific road improvement projects in the immediate area of the development. This report provides an update on various TIFs throughout unincorporated Monterey County, including the Carmel Valley Traffic Mitigation Fee (“CVTMF”) Master Plan where 10 projects have been identified as eligible for TIF funding. As of June 30, 2023, the ending balances for TIF funds are as follows: CVTMF: $3,131,595; East Garrison TIF: $395,726; and all other Countywide TIFs: $5,466,040. Additional details for each TIF fund are included in the attached exhibits to the draft Resolution.
DISCUSSION:
Government Code sections 66001 and 66006 delineate certain accounting and reporting requirements with respect to development impact fees collected by the County. The fees, for accounting purposes, must be segregated from the general funds of the County, and from other funds or accounts containing fees collected for other improvements. Interest on each development fee fund must be credited to that fund and used only for the purposes for which the fees were collected. Pursuant to Government Code section 66006, the agency that collected the fees must make available to the public the following information regarding each fund or account:
1. Brief description of the type of fee in the fund;
2. Amount of the fee;
3. Beginning and ending balance for the fiscal year;
4. Amount of fees collected, and interest earned;
5. Identification of each public improvement on which fees were expended and the amount of the expenditure on each improvement, including the total percentage of the cost of the public improvement that was funded with fees;
6. Identification of an approximate date by which the construction of a public improvement will commence, if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement fund;
7. Description of each inter-fund transfer or loan made from the account or fund, including the public improvement on which the loaned funds will be expended, and in the case of an inter-fund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan; and
8. Amount of any refunds made due to inability to expend fees within the required time frame.
Pursuant to Government Code section 66001, development projects for which fees have been collected for more than five years are required to make findings with respect to any portion of the fee remaining unexpended, whether committed or uncommitted. Staff has provided a draft Resolution that addresses the following findings (Exhibit 2 to Resolution):
1. Identify the purpose to which the fee is to be put;
2. Demonstrate a reasonable relationship between the fee and the purpose for which it was originally charged;
3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements; and
4. Designate the approximate dates on which the anticipated funding is expected to be deposited into the fund.
Exhibit 1 to the draft Resolution is a list of the projects and associated accounting of development impact fees by project and for fiscal year ending June 30, 2022 through June 30, 2023. Exhibit 2 is a listing of the projects for which fees have been collected for more than five years.
OTHER AGENCY INVOLVEMENT:
Submitting this report to the Board of Supervisors with a recommendation regarding findings required pursuant to Government Code sections 66001 and 66006 assures that the County has complied with state law. These fees are collected to address fair share costs associated with impacts to infrastructure resulting from development. The fees collected are designated to be used for improvements identified by traffic studies conducted in conjunction with development projects or by regional studies that establish the basis for a fee plan.
FINANCING:
The Public Works, Facilities, and Parks Department has collected pro-rata fair share development fees. Exhibit 1 summarizes the traffic impact fees received by project location and fiscal year ending June 30, 2022 through June 30, 2023.
For the CVTMF fund, the fund balance is $3,131,595. For the East Garrison TIF fund, the fund balance is $395,726. For all other Countywide traffic impact fees, the TIF fund balance is $5,466,040.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
Submitting this report to the Board of Supervisors with a recommendation regarding findings required pursuant to Government Code sections 66001 and 66006 assures that the County has complied with state law.
__ Economic Development
X Administration
__ Health & Human Services
X Infrastructure
__ Public Safety
Prepared by: Armando Fernandez, Senior Civil Engineer
Reviewed by: Joshua Bowling, CBO, CCEO, Chief of Building Services
Approved by: Craig Spencer, Director of Housing and Community Development
The following attachments are on file with the Clerk of the Board:
Attachment A - Resolution
• Exhibit 1 - Summary Traffic Fees-Countywide
• Exhibit 2 - Five Year Report