title
Accept the FY2023/24 Annual Disclosure and Review of the County Public Facility Fee as required by Government Code section 66006(b), including the Solano Transportation Authority Regional Transportation Impact Fee Annual Report, and the Dixon Public Library District Impact Fee Annual Report
body
Published Notice Required? Yes _X__ No _ _
Public Hearing Required? Yes _X__ No _ _
DEPARTMENTAL RECOMMENDATION:
The County Administrator’s Office recommends the Board of Supervisors accept the FY2023/24 Annual Disclosure and Review of the County Public Facility Fee as required by Government Code section 66006(b), including the Solano Transportation Authority Regional Transportation Impact Fee Annual Report, and the Dixon Public Library District Impact Fee Annual Report.
SUMMARY:
The Annual Disclosure and Review of Public Facility Fee (Annual Disclosure) is required by section 66006(b) of the Government Code. This Annual Disclosure is prepared in compliance with the requirements of the code as a coordinated effort with the General Services’ Department, the Auditor-Controller’s Office and County Counsel. The Annual Disclosure and Review Report for the County Public Facility Fee, Solano Transportation Authority Regional Transportation Impact Fee Annual Report, and the Dixon Public Library District are included as attachments herein. Also included are the current fee tables. The County is not recommending any adjustment to the fees at this time.
FINANCIAL IMPACT:
Since its inception, the County’s Public Facilities Fee (PFF) has provided funding for numerous capital facility projects that enhance the County’s ability to respond to the growing needs for public services. This annual review provides an overview of the projects that were identified to receive funding from the PFF in FY2023/24. Disbursements in FY2023/24 totaled $4.4 million and include a disbursement of $2.3 million in transportation improvements; $1.3 million for existing debt service payments; $581,000 to the Vacaville Library; $203,000 to the Dixon Public Library District; and $28,000 in Administration & Compliance costs.
In August 2019, the Board received a report on the updated Nexus Analysis for Solano County Public Facilities Fee. A public hearing was conducted, and the Board adopted a resolution establishing modified fee amounts based on the Nexus Analysis. The new fee amounts went into effect on October 6, 2019 and included a transportation component (Regional Transportation Impact Fee (RTIF)). The County is in the process of working with a consultant to complete an updated Nexus Analysis which is projected to be completed and presented to the Board for consideration in early 2025.
Historical collections of PFFs are as follows: FY2015/16 had collections of $7,806,204; FY2016/17 had collections of $8,761,328; FY2017/18 had collections of $6,044,491; FY2018/19 had collections of $10,217,358; FY2019/20 had collections of $9,561,921; FY2020/21 had collections of $17,925,039; FY2021/22 had collections of $13,526,117; and FY2022/23 had collections of $10,347,981. FY2023/24 has collections of $13,879,305, which includes $49,736 (RTIF Part A) and $3,674,679 (RTIF Part B) for the County and Solano Transportation Authority regional transportation impact fee component. Notable increases in collections are for the City of Dixon, an increase of $1.34 million or 81%; the City of Fairfield, an increase of $1.88 million or 67.8%; the City of Rio Vista, an increase of $900,000 or 213.4%; and the City of Suisun, an increase of $1.61 million or 1,720.8%. Notable decreases in collections are for the City of Vacaville, a decrease of $910,000 or 24.8%; and the City of Vallejo, a decrease of $1.27 million or 85.2%.
The costs associated with preparing the agenda item are nominal and absorbed by the department’s FY2024/25 Working Budget.
DISCUSSION:
Government Code section 66000 et seq., more commonly known as ‘the Mitigation Fee Act’ or ‘Act,’ provides for the establishment and collection of the PFFs to fund expansion of County facilities to meet growth requirements. In FY1992/93, Solano County adopted the PFFs to be collected on new construction in both the incorporated and unincorporated areas of the County. To support this purpose, the County also established a Public Facilities Expenditure Plan. This plan calls for periodic studies of the fee structure and recommendations for expenditures of previously collected and anticipated fees. The PFFs are established by findings contained in annual public facilities fee updates as required by the Act. The Act also requires that local agencies that collect PFFs evaluate the assumptions that justify the collection of PFFs every five years. In FY2019/20, Solano County completed the most recent Nexus Analysis, which provided a comprehensive review and current analysis of the fee program. On August 6, 2019, the Board received a report on the updated Nexus Analysis and adopted a resolution establishing modified fee amounts based on the analysis contained in the report, which became effective October 6, 2019. The current fee amounts are shown in the Summary of Solano County Public Facilities Fees (Attachment B). The County is currently working with a consultant to complete an updated Nexus Analysis which is projected to be completed and presented to the Board for consideration in early 2025.
In order to comply with the Mitigation Fee Act, Government Code section 66006(b) requires an annual review and disclosure of the PFF funds. The disclosure portion of section 66006(b) requires that within 180 days of the last day of the fiscal year, the County shall make available to the public the following information for the prior fiscal year:
• A brief description of the type of fee in the account or fund. This information is contained in the Description of Solano County PFF (Attachment A).
• The amount of the fee. This information is contained in the Solano County Current PFF Rate Summary (Attachment B).
• The beginning and ending balance of the account or fund. This information is contained in the PFF Schedule of Collections and Disbursements for FY2023/24 (Attachment C) and the PFF Agencies Summary for FY2023/24 (Attachment D).
• The amount of the fees collected, and the interest earned. Also, if applicable, a description of each interfund transfer or loan made from the account or fund including the public improvement on which the transferred or loaned fees 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. This information is also contained in the PFF Schedule of Collections and Disbursements for FY2023/24 (Attachment C).
• An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. If applicable, an identification of an approximate date by which the 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, as identified in Government Code, section 66001(a)(2), and the public improvement remains incomplete. This information is contained in the 180-Day Review of PFF for FY2023/24 (Attachment E).
• Those components of the PFF that are in a deficit are charged interest. Interest is then apportioned to the other components of the PFF Fund based on their pro rata balance in the Fund.
• The amount of refunds made pursuant to Government Code 66001(e) and any allocations pursuant to Government Code 66001(f). No refunds were made in FY2023/24.
The County collects an impact fee on behalf of, and in partnership with, the Solano Transportation Authority (STA) for Part B of the regional transportation component. The STA Board’s Draft FY2023/24 Regional Transportation Impact Fee (RTIF) Annual Report is included as Attachment F and is anticipated to be considered by their board on December 11, 2024.
In 2004, the County agreed to collect an impact fee on behalf of the Dixon Public Library District (DPLD) for the library component within the DPLD boundaries. Since that time, the DPLD has utilized this fee towards capital projects to address growth in the District. In October 2019, the DPLD Board of Trustees voted to approve an MOU to shift managerial services for the Library to the County. The transition occurred beginning in 2020. The transfer of management responsibilities resulted in no change in the Public Facility Fee for the Dixon Library. The DPLD Public Facility Fee Annual Report is included as Attachment G. This report provides a summary of the fees collected and disbursed in FY2023/24. As outlined in the report, no funds were expended by the DPLD in FY2023/24. The DPLD provided this information at its noticed Dixon Public Library Board of Trustees General Board Meeting on September 10, 2024, where the information was also available to the public.
In compliance with Government Code section 66006(b)(2), a notice of the time and place of this meeting, including the address where this information may be reviewed, was published in newspapers of general circulation as follows: the Benicia Herald and the Daily Republic on November 27 and December 4, 2024, and the Vacaville Reporter and the Vallejo Times Herald on November 29 and December 4, 2024. All interested parties who have filed a written request with the Clerk of the Board were sent a notice at least 15-days prior to today’s Board meeting. Notification was also sent to the City Managers of the seven cities located within Solano County.
ALTERNATIVES:
The Board could choose not to accept the Annual Disclosure. This action is not recommended as the Annual Disclosure is required by the Mitigation Fee Act to provide information to the public concerning collections and expenditures of the Public Facilities Fee.
OTHER AGENCY INVOLVEMENT:
The Auditor-Controller’s Office provided the schedule of collections and disbursements, and agency balances (Attachments C and D). The Department of General Services assisted with the 180-day review of projects receiving PFF during FY2023/24 (Attachment E). The STA provided their FY2023/24 RTIF Annual Report (Attachment F). The DPLD provided their FY2023/24 PFF Annual Report (Attachment G).
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION