Fremont City

Staff Report

DEVELOPMENT IMPACT FEE ANNUAL REPORT FOR FISCAL YEAR 2015/2016 – Consideration of the Development Impact Fee Annual Report for Fiscal Year 2015/2016


Department:Public WorksSponsors:
Category:Fees & Rates

Item Discussion

Executive Summary: The California Government Code establishes an annual reporting requirement for the collection and use of development impact fees. Staff recommends that the City Council approve Fremont’s Development Impact Fee Annual Report for Fiscal Year 2015-2016 (“Annual Report”). 


BACKGROUND: The Mitigation Fee Act (California Government Code Sections 66000, et seq.) establishes requirements for annual reporting of receipt and expenditure of development impact fees. The annual report must include the following:


1.              A brief description of the type of fee in the account;

2.              The amount of the fee;

3.              The beginning and ending balance of the account for the fiscal year;

4.              The amount of fees collected;

5.              The interest earned;

6.              Identification of each public improvement for which fees from the account were expended and the amount of expenditures on each improvement, including the percentage of the cost of the improvement that is being funded with impact fees;

7.              Identification of an approximate date by which construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement and the public improvement remains incomplete;

8.              Description of each inter-fund transfer or loan made from the account, including the public improvement on which the transferred or loaned fees will be expended; and

9.              The amount of any refunds made pursuant to statute.


DISCUSSION/ANALYSIS: The overview and body of the attached Annual Report addresses the reporting requirements. As noted in the overview section of the report, it is not possible to precisely identify the anticipated date of construction of public improvements (requirement seven). Fremont collects fees in each fee category to fund improvements needed to serve the City’s population through general plan build-out as identified in the nexus studies.  Specific improvement projects are not identified in the nexus studies, except for the traffic impact fee program.. Although the City  does not earmark impact fees for any specific project as the fees are collected, ,, the City does identify the projects on which impact fees are allocated in the City’s Five- Year (2015/16-2019/20) Capital Improvement Program (CIP) adopted by the City Council on June 9, 2015. The CIP is a comprehensive planning document that applies the fees toward the completion of a multi-project capital improvement program with varying timelines. The City’s Capital Improvement Program (CIP) provides detail regarding the sources, amounts, and approximate dates of funding anticipated over a five year period that will be used to complete the financing of future projects funded with parkland fee, park facilities fee, traffic impact fee, fire facilities fee, and capital facilities fee. 


Mitigation Fee Act findings are not required this year.  Government Code Section 66001(d) requires the Council to make certain findings with respect to unexpended impact fees every five years following the first deposit into the fee account.  These findings were made with the acceptance of the FY 2014/15 Impact Fee Annual Report by the City Council on February 2, 2016, so the next findings will be scheduled to made with the FY 2019/20 Annual Report.


FISCAL IMPACT: The Impact Fee Annual Report is an informational report, so there is no fiscal impact. 



Document Comments

RECOMMENDATION: Accept the Development Impact Fee Annual Report for Fiscal Year 2015/2016.