Fresno County Board of Supervisors First Public Hearing / First Reading of Ordinance Public Facilities Impact Fees and Capital Improvement Plan June 17, 2008 Challenge As County population grows greater demands for County services occur. Greater service demands require additional/expanded facilities to house/equip the services and service providers. The County has identified a Capital need of approximately $1.4 billion. Staff has identified a Capital Improvement Program of approximately $483 million over the next 5 years. Where will the needed funding come from? County General Plan policy PF-B.1 “development shall pay it’s fair share for developing new facilities”. 1 Funding A.Current Government Financial Landscape in California for funding improvements and expansion of County facilities is very limited. Proposition 13 eliminated a major source of funding. Federal and State Grants, are very rare. The County does not have sufficient general fund revenues to meet these demands. Impact Fees are one small source that may be used to fund only growth related impacts. 2 Funding (continued). B.BBR dated June 6, 2005 – Recommendation for implementation of Impact Fees Ordinance. Possibility of generating funds for facilities expansion through levy of facilities impact fees. Counties have legal authority to levy impact fees under the Mitigation Fee Act. A recent survey indicated that at least 24 counties in California levy some form of facilities impact fees. C.On June 14, 2005, Board authorized MuniFinancial to complete a Public Facilities Impact Fees Report. 3 MuniFinancial Report D. Submission of report by MuniFinancial on February 17, 2006, identified categories that could be subject to levy of facilities impact fees. a. Public Protection Parks and Open Space General Government Sheriff’s Patrol and Investigation Libraries Health and Human Services b.Developed a financial model: $value of existing facilities ÷ population served = $/person. c.Population served varies by each category. 4 MuniFinancial Report (continued). Public Protection/General Government includes population they serve and a portion of the worker population. Health and Human Services/Parks and Open Space includes population of cities and unincorporated areas. Library service population excludes Huron and Coalinga. Sheriff’s Patrol and Investigation limited to unincorporated areas. d. Developed a fee schedule for the maximum justifiable impact fees for each category. 5 Affordable housing developers Outreach Program – Habitat for Humanity – Coalition for Urban Development County Staff conducted extensive and Excellence outreach with the groups listed – Self-Help Enterprises below: – Fresno Urban Neighborhood Development Fifteen City Councils CEN-CAL Business Finance Group Building Industry Association Greater Fresno Area Chamber of Regional Jobs Initiative Commerce Farm Bureau Fresno County Planning Commission Economic Development Public Meeting Corporation Fresno Bee Editorial Board Informational packets to community papers 6 The Proposed Ordinance 1. Establishes fee schedule and a policy for annual adjustments. 2. For customer convenience provides for collection of fees by the Cities. 3. Establishes a Five Year Capital Improvement Program. 4. Allows for deferral of impact fees on low and moderate income housing. a. The fee deferment program for low and moderate income housing proposes a sunset provision of 24 months. 7 The Proposed Ordinance (continued). 5. Waives impact fees on agricultural buildings that are open on at least one side. a. Requires County to fund cost of program through other means. 6. Establishes process to study fees for unusual projects. 7. Convenience fee for credit card payment. 8. Two year grace period. a. TTM (tentative tract map) approval (from Fee implementation). b. Final maps from approval of map. c. Vesting vs. Non-vesting. d. SPR (site plan reviews). 8 September 15, 2008 Ordinance Effective Date Final Maps 2 Years Fees SPR’s apply Approved Vesting Years (Unknown) Fees Tract apply Maps Non-Vesting Application 2 Years Fees Deemed Complete Tentative Prior to apply Tract Maps Ordinance Effective Date 9 VESTING TENTATIVE TRACK MAPS NON - VESTING Clovis Rarely Yes Coalinga Yes No Firebaugh Yes Yes Fowler Yes No Fresno Yes No Huron Yes No Kerman Yes No Kingsburg Yes No Mendota Yes No Orange Cove Yes No Parlier Yes No Reedley Yes No San Joaquin Yes No Sanger Yes No Selma Yes No County of Fresno Yes Yes 10 Proposed Soft Start MuniFinancial report justified maximum fee. Staff is recommending soft start with the following: Four year phase in at approximately 20% a year plus proportional escalation. Year 1 : 20% Year 2 : 40% Year 3 : 60% Year 4 : 80% Year 5 : 100% Grace period of up to two years. 11 Capital Improvement Plan Living Document Eligible only for growth related expansion. 19 projects utilizing Public Facilities Impact Fees identified over the 5 year Capital Improvement Plan totaling approximately $475 million. Between 20 - 25% of program revenues. Additional Funding Sources Required. General fund Tax Exempt Bond funds Taxable Bond funds Library Measure B funds Other County funding sources 12 Next steps in fee adoption Hold the second public hearing/and second reading of the ordinance on July 8, 2008. Finalize Memorandum of Understanding with City of Fowler. Fees effective September 15, 2008, 90 days after first public hearing/first reading. 13 14 Schedule A - Schedule of Fees Health County-w ide and Sheriff Admin. Service Area and Public General Human Patrol & County Charge Land Use Protection Government Library Services Investigation Parks (2.5%) Total Unincorporated areas in County (except w ithin Coalinga-Huron Library District*) Residential (Fee per Dwelling Unit) Single Family Unit $ 1,644 $ 1,424 $ 485 $ 417 $ 257 $ 65 $ 107 $ 4,399 Multi-Family Unit $ 1,208 $ 1,046 $ 356 $ 306 $ 189 $ 48 $ 79 $ 3,232 Nonresidential (Fee per 1,000 Building Square Feet) Retail $ 255 $ 221 N/A N/A $ 40 N/A $ 13 $ 529 Office $ 370 $ 320 N/A N/A $ 58 N/A $ 19 $ 767 Industrial $ 121 $ 104 N/A N/A $ 19 N/A $ 6 $ 250 Warehouse $ 141 $ 122 N/A N/A $ 22 N/A $ 7 $ 292 Incorporated areas in Cities (except Coalinga and Huron,* and Kingsburg** and Clovis***) Residential (Fee per Dwelling Unit) Single Family Unit $ 1,644 $ 664 $ 485 $ 417 N/A $ 65 $ 82 $ 3,357 Multi-Family Unit $ 1,208 $ 488 $ 356 $ 306 N/A $ 48 $ 60 $ 2,466 Nonresidential (Fee per 1,000 Building Square Feet) Retail $ 255 $ 103 N/A N/A N/A N/A $ 9 $ 367 Office $ 370 $ 149 N/A N/A N/A N/A $ 13 $ 532 Industrial $ 121 $ 49 N/A N/A N/A N/A $ 4 $ 174 Warehouse $ 141 $ 57 N/A N/A N/A N/A $ 5 $ 203 Unincorporated areas in County within Coalinga-Huron Library District* Residential (Fee per Dwelling Unit) Single Family Unit $ 1,644 $ 1,424 * $ 417 $ 257 $ 65 $ 95 $ 3,902 Multi-Family Unit $ 1,208 $ 1,046 * $ 306 $ 189 $ 48 $ 70 $ 2,867 Nonresidential (Fee per 1,000 Building Square Feet) Retail $ 255 $ 221 N/A N/A $ 40 N/A $ 13 $ 529 Office $ 370 $ 320 N/A N/A $ 58 N/A $ 19 $ 767 Industrial $ 121 $ 104 N/A N/A $ 19 N/A $ 6 $ 250 Warehouse $ 141 $ 122 N/A N/A $ 22 N/A $ 7 $ 292 Incorporated areas in Cities of Coalinga and Huron,* City of Kingsburg,** and City of Clovis*** Residential (Fee per Dwelling Unit) Single Family Unit $ 1,644 $ 664 * / ** / *** $ 417 N/A $ 65 $ 70 $ 2,860 Multi-Family Unit $ 1,208 $ 488 * / ** / *** $ 306 N/A $ 48 $ 51 $ 2,101 Nonresidential (Fee per 1,000 Building Square Feet) Retail $ 255 $ 103 N/A N/A N/A N/A $ 9 $ 367 Office $ 370 $ 149 N/A N/A N/A N/A $ 13 $ 532 Industrial $ 121 $ 49 N/A N/A N/A N/A $ 4 $ 174 Warehouse $ 141 $ 57 N/A N/A N/A N/A $ 5 $ 203 * Coalinga-Huron Library Dis trict is outs ide of County's Library s ys tem , and includes the cities of Coalinga and Huron, and s om e s urrounding area not s erved by the County Library s ys tem . ** In Kings burg, the City of Kings burg charges an exis ting library fee that is greater than the County's library fee, above. *** (Effective for Clovis com m encing July 1, 2008) In Clovis , the City of Clovis ' library fee will be greater than the County's library fee, above. 15 Refer to Ordinance Chapter 17.90 for the term s governing developm ent fees charged by cities toward cos ts of County public facilities .