REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, Acting City Manager
VIA: David Cain, Interim Chief Financial Officer
PREPARED BY: Janice Eckles, Principal Finance Analyst
Subject:
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Adopt Resolution No. 2024-61 accepting and approving the Development Impact Fee (DIF) Report for Fiscal Year 2023-24 and to make findings as required by Government Code Sections 66006 and 66001
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Statement of Issue:
Pursuant to the Mitigation Fee Act, (California Government Code Sections 66001 through 66009), the City Council established certain Development Impact Fees (DIFs) that must be paid by developers of property to help offset some (or all) the cost of public facilities related to the development project. The DIFs are for Parkland Acquisition and Park Facilities, Police Facilities, Fire Facilities, and Library and In-Lieu Parking. Additionally, there are three Public Works facilities improvement fees, Planned Local Drainage, Sanitary Sewer Facilities, and Fair Share Traffic Impact Mitigation program. The Mitigation Fee Act requires the City Council approve an annual report that provides information about the DIFs. These fees are required to be deposited into their own separate accounts or funds. The law also requires that certain findings be made in association with accumulated DIF’s after the deposit into their respective account or fund.
Financial Impact:
Not applicable.
Recommended Action:
recommendation
Adopt Resolution No. 2024-61, “A Resolution of the City Council of the City of Huntington Beach to Accept and Approve the Development Impact Fee Report for Fiscal Year Ending June 30, 2024, and to make the findings as required by Government Code Sections 66006(b) and 66001(d).”
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Alternative Action(s):
Do not approve the recommendation and direct staff accordingly.
Analysis:
Reporting requirements under California Government Code 66006 specify that the City must prepare annual reports of Development Impact Fees within 180 days of the close of the fiscal year. The reports must describe the fee, the amount of the fees collected, interest earned, and identification of any expenditures from those funds. The code also specifies that the City Council must review the reports at a regularly scheduled meeting not less than 15 days following release to the public. The Fiscal Year (FY) 2023-24 Development Impact Fee Annual Report was released for public review on December 2, 2024 (Attachment 1).
The FY 2023-24 Development Impact Fee Annual Report for Public Works (Planned Local Drainage, Sanitary Sewer Facilities, and Fair Share Traffic Impact Mitigation Fee Program), In-Lieu Parking, Parkland Acquisition and Park, Police Facilities, and Fire Facilities and Library Development Impact Fees is attached for City Council review and approval (Attachment 2). A summary of the fees collected and expenditures incurred in FY 2023-24 is included in the Financial Summary Report section. As these funds are collected and their corresponding fund balance grows, the restricted funds may be used on projects identified in the City’s General Plan, the Master Facilities Plan, or City Council approved development projects.
Use of the funds for the Traffic Impact, Sanitary Sewer, and Planned Local Drainage fees is restricted to making system improvements as outlined in the respective master plans for each fund. Information contained in the reports conforms to the requirements of the Huntington Beach Municipal Code regarding revenues and expenditures in each fund.
Pursuant to the Mitigation Fee Act, a resolution has been prepared to make the required findings associated with any funds that may remain uncommitted. That resolution is attached to this Staff Report and it is requested that the City Council consider adopting the resolution.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Memo to City Council dated December 2, 2024
2. Resolution No. 2024-61, “A Resolution of the City Council of the City of Huntington Beach to Accept and Approve the Development Impact Fee Report for Fiscal Year Ending June 30, 2024 and to Make the Findings as Required by Government Code Section 66006(b) and 66001(d)” including Exhibit A, “Development Impact Fee Report”
3. FY 23-24 DIF Report Presentation