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CITY OF VICTORVILLE

Annual Development Impact Fee Report

Fiscal Year Ended June 30, 2023

December 21, 2023

Prepared by: NBS for the CITY OF VICTORVILLE

City of Victorville

City Officials

Elizabeth Becerra, Mayor Blanca Gomez, Council Member Bob Harriman, Council Member Leslie Irving, Council Member Debra Jones, Council Member

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 Rmen Cun, Director of Finance/City Treasurer

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.....6
3. Financial Summary Report.....7
4. Public Improvements.....8
5. Interfund Loans.....10
6. Refunds.....11

Attachment 1 - Development Impact Fees Master Fee Schedule in effect between July 1, 2022, and December 31, 2022 Attachment 2 - Development Impact Fees Master Fee Schedule in effect between January 1, 2023, and June 30, 2023

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; An identification of each public improvement identified in a previous report and whether construction began on the approximate date noted in the previous report. For a project identified pursuant for which construction did not commence by the approximate date provided in the previous report, the reason for the delay and a revised approximate date that the local agency will commence construction. (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).

City of Victorville Annual Development Impact Fee Report Prepared by NBS

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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:

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:
5. 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)
6. b.Each public improvement on which charges were expended that was completed during that fiscal year; (report section 4)
7. c.Each public improvement that is anticipated to be undertaken in 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;

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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.

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).

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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 several development impact fee study reports:

Development Impact Fee Justification Study, Regional Drainage Facilities, (Drainage DIF Report), competed by DTA on May 9, 2022 and adopted by City Council June 7, 2022

Development Impact Fee Study, Final Report (NBS DIF Report) completed by NBS on May 6, 2022. Fees documented in the DIF Report were adopted by City Council on June 7, 2022 and were effective during the majority of Fiscal Year 2022-23.

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.

Table 1. Impact Fees and Impact Fee Funds

City of Victorville Annual Development Impact Fee Report Prepared by NBS

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2.2 Current Fee Schedule

During Fiscal Year 2022-23, the Victorville City Council adopted Resolutions 22-055 and VWD 22-008 on June 7, 2022, which included a Development Impact Fee Study and updated Master Fee Schedule, and a phased in approach to update fees to the full amount identified in the study. Prior to January 1, 2023, the City's impact fees that were established in the "Development Impact Fee 2006 Update Study" (2006 Study) report, completed by AGAJANIAN & Associates remained in effect.

• Attachment 1 to this report includes Victorville's Development Impact Fee Schedule in effect between July 1, 2022, and December 31, 2022
• Attachment 2 to this report includes Victorville's Development Impact Fee Schedule in effect between January 1, 2023, and June 30, 2023

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3. FINANCIAL SUMMARY REPORT

The following financial summary provides an annual statement of revenues, and changes in fund balance for each impact fee fund, for the Fiscal Year End June 30, 2023. Figures shown in the table below are unaudited as of the date of this report.

Table 2. Financial Summary Fiscal Year 2023

3 Beginning & Ending Fund Balance per financial reports provided by the City's Finance Department.

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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.

Table 3. Public Improvements Fiscal Year 2023

Government Code Section 66006 (b)(1)(F)(i) also requires 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 City has identified public improvement projects that have sufficient impact fee funds available to complete, including approximate dates (fiscal year) of construction, as follows:

Fund: 354 Parks

Project: 81032 Sports Complex Feasibility Study

○ Project Start: Fiscal Year 2022-23

○ Project Finish: Fiscal Year 2024-25

○ Total Project Funding: $100,000, 100% DIF

City of Victorville

Annual Development Impact Fee Report

Prepared by NBS

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Project: 81004 Dog Park

○ Project Start: Fiscal Year 2022-23

○ Project Finish: Fiscal Year 2024-25

○ Total Project Funding: $150,000, 100% DIF

Project: 81006 New Rectangular Fields

○ Project Start: Fiscal Year 2022-23

○ Project Finish: Fiscal Year 2024-25

○ Total Project Funding: $350,000, 100% DIF

Project: 81008 New Walking Path

○ Project Start Date: Fiscal Year 2024-25

○ Project Finish: Fiscal Year 2025-26

○ Total Project Funding: $150,000, 100% DIF

Government Section 66013(d) has similar requirements for water and wastewater capacity charges to identify each public improvement that is anticipated to be undertaken in the following fiscal year. There will be one future project funded from Fund 414 - Water Capacity Charges in the amount of $4.3 Million for 74338 Pipeline - Area 28 - MWA Turnout #5, to be completed by December 2025, this project will be added during the mid-year Capital Improvement Project budgeting process for Fiscal Year 2024.

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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 2022-23.

Table 4. Fiscal Year 2023 Interfund Loan Statuses

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6. REFUNDS

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).

As discussed in Section 4 of this report, throughout the Fiscal Year 2022-2023 the City has made progress on several active public improvement projects that are funded by impact fees. Also, through the 2023-24 budgeting process, the City made a determination regarding sufficient funds collected to complete several improvements and a construction schedule has been identified. Therefore, no refunds were made or required.

Disclaimer: In preparing this report and any analysis and findings included herein, NBS has relied on several principal assumptions and considerations regarding financial matters, conditions and events that occurred or may occur in the future. This information and assumptions, including the City's budgets, financial reports, capital project data, and other information were provided by sources we believe to be reliable; however, NBS has not independently verified such information and assumptions. While we believe NBS' use of such information and assumptions is reasonable for the purpose of this report, some assumptions will invariably not materialize as stated herein and may vary due to unanticipated events and circumstances.

City of Victorville Annual Development Impact Fee Report Prepared by NBS

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City of Victorville Development Impact Fees Master Fee Schedule in effect between July 1, 2022, and December 31, 2022

City of Victorville

BUILDING FEES – RESIDENTIAL

In order to assist you in estimating the permit fees for your project, several tables and charts have been compiled and are included in this package. By following the steps listed below, a reasonable estimate may be made.

THE FOLLOWING BUILDING VALUATION DATA REPRESENTS AVERAGE COSTS FOR MOST BUILDINGS. THIS CHART IS ADJUSTED ANNUALLY AS RELEASED BY THE INTERNATIONAL CODE COUNCIL AND USED SOLELY FOR THE DETERMINATION OF PERMIT FEES.

STEP 1 – Find the type of project below and determine the value per square foot. Multiply this figure by the total square footage of the project. This will be the project valuation. Typical single family dwellings are Type 5B construction.

STEP 2 – Find the valuation of the project on page 2, and then add the fees for plan review and construction permit. Determine the Strong Motion Implementation Program (SMIP) fee and add to the total, as follows:

< $5,000 valuation = .50 SMIP; > $5,000 valuation x .00013 (.00028 if over 3 stories) = SMIP

STEP 3 – Review page 3 for miscellaneous plumbing, electrical, and mechanical fees.

Note that a separate permit is required for each independent structure, even though they may be located on the same parcel.

Additional Fees

Development Impact Fees - $11,327.00 per single-family dwelling unit, and $7,639.00 per multi-family dwelling unit. This fee is used for parks, roads, and public safety capital improvement costs. Following is a break-down of these fees:

Victor Valley Water Reclamation Authority (VVWRA) or Industrial Waste Water Treatment Plant (IWWTP) Fees – VVWRA and IWWTP fees are used for the expansion of sewage treatment facilities, and can be computed by completing the form on page 4.

Sewer Capacity Fees – Fees are generally figured at a minimum of $350.00 per house connection.

Water Connection Fees – Please contact the Engineering Department for questions regarding costs.

Other Special Assessments – Depending on the location of the project, there may also be special assessment fees to cover storm drains, bridges, road widening, street lighting, and fire hydrant installation. Please contact the Development Department for more information regarding special assessment districts.

School District Fees – A Certificate of Compliance from the school district must be submitted to the Development Department.

Technology Fee – Multiply the Plan Review, Building Permit, Mechanical Permit, Electrical Permit, and Plumbing Permit fees by 4.8% (.048) to determine the Technology Fee.

Green Building Fee – Senate Bill 1473 which provides for the creation of the Building Standards Administration Special Revolving Fund.

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Updated 1/30/2019

City of Victorville Development Department Planning ♦ Building ♦ Code Enforcement ♦ Business License ♦ Animal Control BUILDING FEES – RESIDENTIAL

Project Valuation

*BUILDINGS PROVIDED WITH AUTOMATIC SPRINKLER SYSTEMS WILL BE GIVEN AN ADDITIONAL VALUATION OF $2.40 PER SQUARE FOOT.*

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Updated 1/30/2019

Plumbing, Electrical, Mechanical Fees

Note: A one-time fee of $20.00 will be added to Plumbing, Electrical and Mechanical Permits.

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Updated 1/30/2019

Victor Valley Water Reclamation Authority Fee (VVWRA)

or

Industrial Waste Water Treatment Plant Fee (IWWTP)

Note: The fee assessed is based on the location of the project. Please contact the Development Department for more information.

Type of Unit

Single Family Residence Condo ☐

Multi-Family Units Mobile Home ☐

Number of Units: Other:

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Updated 1/30/2019

• Bathtub (With or Without Shower
• Dishwasher
• Floor Drain
• Laundry Tub or Clotheswasher (Each Pair Faucets)
• Lavatory (Bathroom) Dual Basins
• RV. Dump Station
• Shower Stall (Each Set of Faucets)
• Sink (KitchenlUtility; Includes Garbage Disposal)

In order to assist you in estimating the permit fees for your project, several tables and charts have been compiled and are included in this package. By following the steps listed below, a reasonable estimate may be made.

STEP 1 – Review page 2 for type of project and determine the value per square foot. Multiply this figure by the total square footage of the project.

STEP 2 – Find the valuation of the project on page 3, and then add the fees for plan review and construction permit.

STEP 3 – Review page 4 for miscellaneous plumbing, electrical, and mechanical fees.

Note that a separate permit is required for each independent structure, even though they may be located on the same parcel.

Additional Permit Fees

Development Impact Fee – $9.28 per square foot for commercial projects, $3.44 per square foot for industrial projects and $1.87 per square foot for industrial high cube projects. This fee is used for roads and public safety capital improvement costs. Following is a break-down of these fees:

VWWRA (Victor Valley Water Reclamation Authority) or IWWTP (Industrial Waste Water Treatment Plant) – VWWRA and IWWTP fees are used for the expansion of sewage treatment facilities, and can be computed by completing the form on page 5. The fee assessed is based on the location of the project. Please contact the Development Department for more information.

Sewer Capacity Fees – Commercial projects are figured on an equivalent dwelling unit basis by using the following calculations:

Total number of fixture units (using form on page 5), divided by 20, and multiplied by $350.00.

Other Special Assessments – Depending on the location of the project, there may also be special assessment fees to cover storm drains, bridges, road widening, street lighting, and fire hydrant installation. Please contact the Development Department for more information regarding special assessment districts.

School District Fees – A Certificate of Compliance from the school district must be submitted to the Development Department.

Strong Motion Implementation Program (SMIP) Fee – Projects with a valuation less than $2,381 will receive a SMIP fee of .50. Projects with a valuation greater than $2,381 should multiply the valuation by .00028 to determine SMIP.

Technology Fee – Multiply the Plan Review, Building Permit, Mechanical Permit, Electrical Permit, and Plumbing Permit fees by 4.8% (.048) to determine the Technology Fee.

Green Building Fee – Senate Bill 1473 which provides for the creation of the Building Standards Administration Special Revolving Fund.

THESE FEES ARE FOR ESTIMATION PURPOSES ONLY. ALL PLANS MUST BE SUBMITTED AND APPROVED BEFORE OFFICIAL FEES CAN BE ASSESSED.

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Updated 1/30/2019

THE FOLLOWING BUILDING VALUATION DATA REPRESENTS AVERAGE COSTS FOR MOST NEW CONSTRUCTION BUILDINGS. THIS CHART IS ADJUSTED ANNUALLY AS RELEASED BY THE INTERNATIONAL CODE COUNCIL AND USED SOLELY FOR THE DETERMINATION OF PERMIT FEES. TENANT IMPROVEMENTS WILL BE VALUATED AT 20% OF THESE FEES.

*BUILDINGS PROVIDED WITH AUTOMATIC SPRINKLER SYSTEMS WILL BE GIVEN AN ADDITIONAL VALUATION OF $2.40 PER SQUARE FOOT.*

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Updated 1/30/2019

Development Department

Planning ♦ Building ♦ Code Enforcement ♦ Business License ♦ Animal Control

BUILDING FEES – COMMERCIAL

Project Valuation

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Development Department Planning ♦ Building ♦ Code Enforcement ♦ Business License ♦ Animal Control BUILDING FEES – COMMERCIAL

Plumbing, Electrical, Mechanical Fees

Note: A one-time fee of $20.00 will be added to Plumbing, Electrical and Mechanical Permits.

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Updated 1/30/2019

BUILDING FEES – COMMERCIAL

VVWRA (Victor Valley Water Reclamation Authority)

or

IWWTP (Industrial Waste Water Treatment Plant)

Note: The fee assessed is based on the location of the project. Please contact the Development Department for more information.

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Updated 1/30/2019

City of Victorville Development Impact Fees Master Fee Schedule in effect between January 1, 2023, and June 30, 2023

City of Victorville

CITY OF VICTORVILLE DEVELOPMENT IMPACT FEES MASTER FEE SCHEDULE

Adopted 6/7/2022 Residential Development Year 1 - Effective 1/1/2023

[1] Subtotal does not include Water System Capacity fee, Sewer fee and Regional Drainage fee.

Residential - Year 1

CITY OF VICTORVILLE DEVELOPMENT IMPACT FEES MASTER FEE SCHEDULE

Adopted 6/7/2022 Non-Residential Effective 1/1/2023

[5] Canopy only; Convenience store, carwash, etc. calculated separately at Retail/Service Commercial rates.

Non-Residential