June 17, 2008

Fresno County Board of SupervisorsFirst Public Hearing / First Reading of Ordinance

Public Facilities Impact Fees and Capital Improvement Plan

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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”.

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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.

Funding

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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.

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MuniFinancial Report

Public Protection

General Government

Libraries

Parks and Open Space

Sheriff’s Patrol and Investigation

Health and Human Services

b. Developed a financial model: $value of existing facilities ÷ population served = $/person.

c. Population served varies by each category.

D. Submission of report by MuniFinancial on February 17, 2006, identified categories that could be subject to levy of facilities impact fees.

a.

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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.

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Outreach Program

County Staff conducted extensive outreach with the groups listed below:

Fifteen City Councils

Building Industry Association

Regional Jobs Initiative

Farm Bureau

Economic Development Corporation

Affordable housing developers– Habitat for Humanity– Coalition for Urban Development and

Excellence– Self-Help Enterprises– Fresno Urban Neighborhood

Development

CEN-CAL Business Finance Group

Greater Fresno Area Chamber of Commerce

Fresno County Planning Commission

Public Meeting

Fresno Bee Editorial Board

Informational packets to community papers

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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.

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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).

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Fees apply

September 15, 2008

OrdinanceEffective

Date

Approved

Final Maps

SPR’s

VestingTract Maps

2 YearsNon-Vesting Tentative

Tract Maps

ApplicationDeemed Complete

Prior toOrdinance Effective

Date

2 Years

Years (Unknown) Fees apply

Fees apply

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VESTING TENTATIVE

TRACK MAPS NON - VESTINGClovis Rarely Yes

Coalinga Yes No

Firebaugh Yes YesFowler Yes No

Fresno Yes NoHuron Yes No

Kerman Yes NoKingsburg Yes NoMendota Yes No

Orange Cove Yes No

Parlier Yes NoReedley Yes NoSan Joaquin Yes No

Sanger Yes No

Selma Yes No

County of Fresno Yes Yes

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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.

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Capital Improvement PlanLiving 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

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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.

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Service Area andLand Use

County-widePublic

ProtectionGeneral

Government Library

Healthand

HumanServices

Sheriff Patrol &

InvestigationCountyParks

Admin.Charge(2.5%) Total

Unincorporated areas in County (except within 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$ NonresidentialRetail 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$ NonresidentialRetail 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$ NonresidentialRetail 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$ NonresidentialRetail 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$

*** (Effective for Clovis commencing July 1, 2008) In Clovis, the City of Clovis' library fee will be greater than the County's library fee, above.

Refer to Ordinance Chapter 17.90 for the terms governing development fees charged by cities toward costs of County public facilities.

* Coalinga-Huron Library District is outside of County's Library system, and includes the cities of Coalinga and Huron, and some surrounding area not

served by the County Library system.

** In Kingsburg, the City of Kingsburg charges an existing library fee that is greater than the County's library fee, above.

Schedule A - Schedule of Fees

(Fee per 1,000 Building Square Feet)

(Fee per 1,000 Building Square Feet)

(Fee per 1,000 Building Square Feet)

(Fee per 1,000 Building Square Feet)