===== PAGE 1 ===== ## CITY OF VICTORVILLE Annual Development Impact Fee Report Fiscal Year Ended June 30, 2022 December 5, 2022 Prepared by: NBS for the CITY OF VICTORVILLE
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===== PAGE 2 ===== ## City of Victorville
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## City Officials Debra Jones, Mayor Leslie Irving, Mayor Pro Tem Elizabeth Becerra, Councilmember Blanca Gomez, Councilmember Officers Jennifer Thompson, City Clerk ## Administrative Team Keith Metzler, City Manager Jenele Davidson, Deputy City Manager Sophie Smith, Deputy City Manager Andre De Bortnowsky, City Attorney In Mendiola, City Treasurer/Finance Director ===== PAGE 3 ===== ## TABLE OF CONTENTS 1. Development Impact Fee Report.....1 1.1 Annual Report .....1 1.2 Five-Year Report.....2 2. Current Impact Fees & Capacity Charges.....4 2.1 Types of Impact Fees, Capacity Charges and Associated Funds.....4 2.2 Current Fee Schedule.....5 3. Financial Summary Report.....6 4. Public Improvements .....7 5. Interfund Loans.....8 6. Refunds .....10 Attachment – Current Impact Fee Schedule (effective through December 31, 2022) ===== PAGE 4 ===== ### 1. DEVELOPMENT IMPACT FEE REPORT The California Mitigation Fee Act (Government Code Sections 66000 et seq.) mandates procedures for administration of impact fee programs, including collection and accounting, reporting, and refunds. Regarding reporting requirements, the Mitigation Fee Act requires annual reporting for each impact fee fund, and a separate five-year reporting process. This report meets the requirements described in 1.1 Annual Report, below. A combined Annual and Five-Year Report will be provided in future years when needed to meet required reporting timelines. ### 1.1 Annual Report Section 66006 (b) (1) requires that once each year, within 180 days of the close of the fiscal year, the local agency must make available to the public the following information for each separate account established to receive impact fee revenues: 1. A brief description of the type of fee in the account or fund; (report section 2) 2. The amount of the fee; (report section 2 and attachment) 3. The beginning and ending balance of the account or fund; (report section 3) 4. The amount of the fees collected and interest earned; (report section 3) 5. Identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the percentage of the cost of the public improvement that was funded with fees; (report section 4) 6. Identification of the approximate date by which the construction of a public improvement will commence, if the City determines sufficient funds have been collected to complete financing of an incomplete public improvement; (report section 4) 7. A description of each inter-fund transfer or loan made from the account or fund, including interest rates, repayment dates, and a description of the improvement on which the transfer or loan will be expended; (report section 5) 8. The amount of any refunds or allocations made pursuant to Section 66001, paragraphs (e) and (f). (report section 6) The annual report must be reviewed by the City Council at its next regularly scheduled public meeting, but not less than 15 days after the statements are made public, per Section 66006 (b) (2). Section 66013(d) has similar requirements for capacity charges in that, within 180 days after the close of each fiscal year, the local agency must make available to the public the following information: City of Victorville Annual Development Impact Fee Report Prepared by NBS ===== PAGE 5 ===== 1. A description of the charges deposited in the fund; (report section 2) 2. The beginning and ending balance of the fund and the interest earned from investment of moneys in the fund; (report section 3) 3. The amount of charges collected in that fiscal year; (report section 3) 4. An identification of: a. Each public improvement on which charges were expended and the amount of expenditure for each improvement, including the percentage of the total cost of the public improvement that was funded with those charges if more than one source of funding was used; (report section 4) b. Each public improvement on which charges were expended that was completed during that fiscal year; (report section 4) c. Each public improvement that is anticipated to be undertaken I the following fiscal year; (report section 4) 5. A description of each interfund transfer or loan made from the capital facilities fund, including the public improvement on which the transferred or loaned charges are or will be expended and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the fund will receive on the loan. (report section 6) ### 1.2 Five-Year Report Prior to 1996, The Mitigation Fee Act required that a local agency collecting impact fees was required to expend or commit impact fee revenue within five years or make findings to justify a continued need for the money. Otherwise, those funds had to be refunded. SB 1693, adopted in 1996 as an amendment to the Mitigation Fee Act, changed that requirement in material ways. Now, Section 66001 (d) requires that, for the fifth fiscal year following the first deposit of any impact fee revenue into an account or fund as required by Section 66006 (b), and every five years thereafter, the local agency shall make all of the following findings for any fee revenue that remains unexpended, whether committed or uncommitted: 1. Identify the purpose to which the fee will be put; 2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged; 3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements for which impact fees are to be used; 4. Designate the approximate dates on which the funding necessary to complete financing of those improvements will be deposited into the appropriate account or fund. ===== PAGE 6 ===== Those findings are to be made in conjunction with the annual reports discussed above. If such findings are not made as required by Section 66001, the local agency could be required to refund the moneys in the account or fund, per Section 66001 (d). Once the agency determines that sufficient funds have been collected to complete financing on incomplete improvements for which impact fee revenue is to be used, it must, within 180 days of that determination, identify an approximate date by which construction of the public improvement will be commenced (Section 66001 (e)). If the agency fails to comply with that requirement, it must refund impact fee revenue in the account according to procedures specified in Section 66001 (d). ===== PAGE 7 ===== ### 2. CURRENT IMPACT FEES & CAPACITY CHARGES Development impact fees (DIFs) in the City of Victorville are one-time charges levied on new development in Victorville to fund various infrastructure, facilities, vehicles, and equipment. The basis for these impact fees is presented in the “Development Impact Fee 2006 Update Study” (2006 Study) report, completed by AGAJANIAN & Associates. ### 2.1 Types of Impact Fees, Capacity Charges and Associated Funds The fees documented in the body of this Annual Development Impact Fee Report (Report) include the following fees listed below. The revenue and expenditures for each fee type is tracked by the City in a separate fund.
Fund No.Fee NamePurpose and Use of the Fee
350Public BuildingsThe purpose of the Public Buildings impact fee is to mitigate the impact of new development on the need for public buildings in Victorville. Funding collected from the public buildings fee will be used for new facilities, capital equipment, or expansion of existing city facilities needed to serve future development. The list of eligible public buildings projects are included in Table 6 of the 2006 Study.
351Fire SafetyThe purpose of the fire impact is to mitigate the impact of new development on the need for fire facilities provided by the City of Victorville. Impact fee funding will be used to provide additional fire facilities to mitigate the impact of new development on the need for those facilities in the City. The list of eligible fire safety projects are included in Table 4 of the 2006 Study.
352RoadsThe purpose of the roads impact fee is to mitigate the impact of new development on the need for road, bridge, interchange, and traffic signal improvements in Victorville. Impact fees will be used to provide additional road, bridge, interchange and traffic signal improvements to mitigate the impact of new development. The list of eligible improvement projects for roadway projects is included in Table 2 of the 2006 Study. Note funds 355 and 356, which are also roads related impact fees, are reported as combined with Fund 352 going forward. The purpose of the Fund 355 Nisqualli impact fee is to mitigate the impact of new development within an area served by the I-15 / Nisqualli Rd. / La Mesa Rd. Interchange. Impact fees have been and will be used to pay for the interchange improvements. The purpose of the Fund 356 Goodwill impact fee is to mitigate the impact of new development within an area served by the Goodwill (I-15 / Roy Rogers) Interchange. Impact fees have been and will be used to pay for the interchange improvements.
City of Victorville Annual Development Impact Fee Report Prepared by NBS ===== PAGE 8 =====
Fund No.Fee NamePurpose and Use of the Fee
353Public Safety (Police)The purpose of Public Safety impact fees is to mitigate the impact of new development on the need for police facilities in Victorville. Impact fee funding will be used to provide additional police facilities to mitigate the impact of new development on the need for those facilities in the City. The list of eligible police safety projects are included in Table 5 of the 2006 Study.
354Parks and RecreationThe purpose of the parks and recreation impact fees is to mitigate the impact of new development on the need for parks and recreation facilities in Victorville. Fee revenues will be used to fund additional parks and recreation facilities to mitigate the impacts of new development in the City. The list of eligible parks and recreation projects is included in Table 3 of the 2006 Study.
357Storm drainFunding collected is to be used for the building of storm drain infrastructure as new development occurs in previously undeveloped areas of the City or in areas with deficiencies as a result of new growth.
410WaterThe purpose of the water capacity charge is to fund the new connections attributable to the impact from new development. Water Capacity Charges are one-time charges to new development connecting to the City of Victorville/Victorville Water District's water system.
425SewerThe purpose of the sewer capacity charge is to fund the new connections attributable to the impact from new development. Sewer Capacity Charges are one-time charges to new development or existing development first connecting to the City of Victorville's sewer system.
### 2.2 Current Fee Schedule The Attachment to this Report provides a copy of Victorville's Development Impact Fee Schedule active through June 30, 2022. The basis for these impact fees is presented in the "Development Impact Fee 2006 Update Study" (2006 Study) report, completed by AGAJANIAN & Associates. The City also completed a comprehensive impact fee study during the 2021/2022 fiscal year, which was adopted on June 7, 2022 by City Council which will go into effect in the 2022/23 Fiscal Year. ===== PAGE 9 ===== ### 3. FINANCIAL SUMMARY REPORT The following financial summary report provides a statement of revenue, expenditures, and changes in fund balance for each impact fee fund, for the Fiscal Year End June 30, 2022.
Fund No.350351352353354357410425
Public BuildingsFire SafetyRoadsPublic Safety (Police)Parks and RecreationStorm DrainWaterSewer
REVENUES
Fees1,088,708252,6013,944,649115,2233,659,880358,8993,330,9253,209,620
Interest--------
Loan Repayments--2,693,37750,715192,938162,068--
Other Revenue1----3,757---
Transfers In21,943,9292,286,995------
Total Revenues3,032,6372,539,5966,638,027165,9383,856,574520,9673,330,9253,209,620
Expenditures
Expenditures4,2872,1439,804,7192,14319,2914,287293-
Loan Payments3,053,9282,286,995------
Total Expenditures3,058,2152,289,1399,804,7192,14319,2914,287293-
REVENUES OVER (UNDER) EXPENDITURES(25,578)250,457(3,166,692)163,7953,837,283516,6803,330,6333,209,620
Fund Balance, Beginning of the Year340,53919,39410,638,116597,5748,737,4641,385,99415,610,5726,207,191
Fund Balance, End of the Year314,778269,7609,065,862761,28212,528,1731,902,49319,941,4979,416,811
1Fund 354, escrow refund for overpayment2 Fund 350, land return/debt dissolution with SCLAA; Fund 351, repayment of loan from General Fund. See Section 5 Interfund Loans for more information3 Beginning&Ending Fund Balance is presented on a cash basis per trial balance financial reports provided by the City's Finance Department. Water and Sewer Fund balances were also provided by City staff. ===== PAGE 10 ===== ### 4. PUBLIC IMPROVEMENTS This section of the Annual Report identifies each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the percentage of the cost of the public improvement that was funded with fees.
FISCAL YEAR 2021/22 PUBLIC IMPROVEMENT EXPENDITURES
FundFund NameProject NameTotal Project FundingTotal Impact Fee Funded Amount% Impact Fee FundedTotal Prior Year Impact Fee ExpendituresFY 2022 Impact Fee ExpendituresImpact Fee Funding Remaining
352RoadNISQ/I15 INTERCHANGE-ST CONST$ 48,860,904$ 22,762,80347%$ 22,741,318$ 21,485$ 0
352Road352-60013 Green Tree Blvd Extension$ 80,550,764$ 19,005,39324%$ 692,143$ 9,218,145$ 9,095,105
352Road352-60014 Bear Valley Road Bridge over BNSF Railway$ 23,932,167$ 4,703,14020%$ 208,812$ 544,968$ 3,949,360
410Water410-74419 Project Area 31- Pipeline Replacement$ 1,550,000$ 699,84845%-$ 293$ 699,556
TOTAL$ 154,893,835$ 47,171,184$ 23,642,273$ 9,784,890$ 13,744,021
The Mitigation Fee Act also requires annual identification of the approximate date by which the construction of a public improvement will commence, if the City determines sufficient funds have been collected to complete financing of an incomplete public improvement. The projects listed above represent recently completed and/or active (in-progress) uses of impact fee funds in Fiscal Year 2021/22 to complete current capital improvement projects. The City has also identified public improvement projects that have sufficient impact fee funds available to complete, including approximate dates (fiscal year) of construction in the City's 2022/23 Capital Improvement Plan as adopted by City Council. Outside of these two sources of information, the City has not determined that sufficient funds have been collected to complete financing of any other incomplete public improvements. ===== PAGE 11 ===== ### 5. INTERFUND LOANS The Mitigation Fee Act requires a description of each inter-fund transfer or loan made from the account or fund, including interest rates, repayment dates, and a description of the improvement on which the transfer or loan will be expended. There were no new interfund transfers or loans made between impact fee funds in Fiscal Year 2021/22. However, two loans were paid off during Fiscal Year 2021/22. The loan between Fund 352 Roads and Fund 351 Fire Safety was repaid by the General Fund per City Council direction on May 17, 2022, in the amount of $2,286,536.07. Also, the loan between Fund 350 Public Buildings and SCLAA was terminated during the same Council meeting, by way of transferring property back to SCLAA and nullifying the loan which had a balance of $1,943,928. The following table summarizes all active interfund loans to and/or from the City's impact fee funds.
FISCAL YEAR 2021/22 INTERFUND LOAN STATUSES
Date of LoanMaturity DatePurpose of LoanOriginal AdvanceLenderBorrowerBalance 06/30/2022Interest Rate1
06/30/1106/30/26City Hall Expansion Project #980057,725,000352 Roads350 Public Buildings7,201,4691.37%
06/30/1106/30/26City Hall Expansion Project #980051,150,000353 Public Safety350 Public Buildings1,072,0631.37%
06/30/1106/30/26City Hall Expansion Project #980054,375,000354 Recreation350 Public Buildings4,078,5021.37%
06/30/1106/30/26City Hall Expansion Project #98005570,000352 Roads350 Public Buildings531,3701.37%
06/30/1106/30/26City Hall Expansion Project #98005920,000352 Roads350 Public Buildings857,6511.37%
06/30/1106/30/26City Hall Expansion Project #980053,675,000357 Storm Drain DIF350 Public Buildings3,425,9421.37%
06/30/1106/30/26City Hall Expansion Project #98005280,000358 Street Lighting350 Public Buildings261,0241.37%
City of Victorville Annual Development Impact Fee Report Prepared by NBS ===== PAGE 12 =====
Date of LoanMaturity DatePurpose of LoanOriginal AdvanceLenderBorrowerBalance 06/30/2022Interest Rate1
06/30/1106/30/26City Hall Expansion Project #98005395,000359 Fire Hydrant350 Public Buildings368,2311.37%
06/30/1106/30/26City Hall Expansion Project #980051,200,000202 Storm Drain Utility350 Public Buildings-1.37%
06/30/1106/30/26Fire Station #312 Project #980202,000,000352 Roads351 Fire-1.37%
06/30/1106/30/26Fire Station #315 Project #980041,742,000352 Roads351 Fire-1.37%
06/30/1106/30/26Vacant Land-Library Project #980101,895,000455 SCLA350 Public Buildings-1.37%
===== PAGE 13 ===== ### 6. REFUNDS As discussed in this Section 4 of this report, in Fiscal Year 2021/22, no such determination has been made regarding sufficient funds collected to complete incomplete improvements. Therefore, no refunds were made or required. The refunding requirements for the Mitigation Fee Act are summarized as follows: Refunds under the Mitigation Fee Act: If the City determines that sufficient funds have been collected to complete financing on incomplete improvements for which impact fee revenue is to be used, it must, within 180 days of that determination, identify an approximate date by which construction of the public improvement will be commenced (Government Code Section 66001 (e)). If the agency fails to comply with that requirement, it must refund impact fee revenue in the account according to procedures specified in Section 66001 (d). ===== PAGE 14 ===== ATTACHMENT CURRENT IMPACT FEE SCHEDULE ===== PAGE 15 ===== # CITY OF VICTORVILLE DEVELOPMENT IMPACT FEES MASTER FEE SCHEDULE Residential Development Effective through 12/31/2022
Residential DevelopmentUnitParks and RecreationFire ProtectionPolicePublic BuildingsRoad ImprovementsSubtotal [1]
Single FamilyDwelling Unit$ 5,046.00$ 329.00$ 139.00$ 1,334.00$ 4,470.00$ 11,318.00
Multi FamilyDwelling Unit$ 3,847.00$ 232.00$ 98.00$ 717.00$ 2,745.00$ 7,639.00
[1] Subtotal does not include Water System Capacity fee, Sewer fee and Regional Drainage fee.
Residential DevelopmentWater System Capacity Charge
3/4" Meter5,142.00
1" Meter7,672.00
1-1/2" Meter16,671.00
2" Meter26,954.00
3" Meter54,129.00
4" Meter90,250.00
6" Meter180,464.00
8" Meter283,291.00
Residential DevelopmentUnitSewer
Single FamilyEDU$ 350.00
Multi FamilyEDU$ 350.00
Residential DevelopmentUnitRegional Drainage
Single FamilyAcre$ 2,585.00
Multi FamilyAcre$ 2,585.00
===== PAGE 16 ===== # CITY OF VICTORVILLE DEVELOPMENT IMPACT FEES MASTER FEE SCHEDULE Non-Residential Effective through 12/31/2022
Non-Residential DevelopmentUnitFire ProtectionPolicePublic BuildingsRoad ImprovementsSubtotal [1]
CommercialKSF$ 170.00$ 170.00$ 1,340.00$ 7,600.00$ 9,280.00
IndustrialKSF$ 10.00$ 10.00$ 440.00$ 2,980.00$ 3,440.00
High-Cube WarehouseKSF$ 20.00$ 20.00$ 250.00$ 1,580.00$ 1,870.00
[1] Subtotal does not include Water System Capacity fee, Sewer fee and Regional Drainage fee.
Non-Residential DevelopmentUnitSewer
CommercialEDU$ 350.00
IndustrialEDU$ 350.00
High-Cube WarehouseEDU$ 350.00
Non-Residential DevelopmentUnitRegional Drainage
CommercialAcre$ 2,585.00
IndustrialAcre$ 2,585.00
High-Cube WarehouseAcre$ 2,585.00
Non-Residential DevelopmentWater System Capacity Charge
3/4" Meter$ 5,142.00
1" Meter$ 7,672.00
1-1/2" Meter$ 16,671.00
2" Meter$ 26,954.00
3" Meter$ 54,129.00
4" Meter$ 90,250.00
6" Meter$ 180,464.00
8" Meter$ 283,291.00