Transcript Slide 1

Educational Facilities
Developer Fee Information
October 2010
7/18/2015
FEE BASICS AND TYPES
Allowed by statute (EC 17620;
GC 65995)
For new development,
renovations, and
reconstruction to mitigate
impact
Level I & Commercial/Industrial
Level II -- ”Alternative”
Level III
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FEE BASICS AND TYPES
(continued)
Level I and
Commercial/Industrial
Minimum amount allowed by Statute (EC
17620)
Adjusted biannually by SAB (January
2010 for next increase)
Fee Justification Study (FJS) required
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FEE BASICS AND TYPES
(continued)
Level II – “Alternative”
Increased fees allowable with certain
criteria met
Residential only
School Facilities Needs Analysis (SFNA)
required
Valid for one year
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FEE BASICS AND TYPES
(continued)
Level III
Allowable only if/when SAB
finds that funds are no
longer available; has yet to
occur.
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ACCOUNTING FOR FEES
Separate account maintained for
developer fees
Amounts attributable to each fee
are segregated
Level I:
Residential (currently $2.97)
Commercial/Industrial (currently $0.47)
Level II
Mitigation payments
CFDs
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REPORTING FREQUENCY
Five (5) Year -- Govt. Code
66001(d)
Annual -- Govt. Code 66006
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FIVE-YEAR REPORT
Per Gov’t Code Section 66001(d)
Fees levied and unexpended in 5th fiscal
year following the first deposit
into the developer fee fund and
every 5 years thereafter.
1988/89 (first deposit)
1993/94 (5th fiscal year)
1998/99 (5 years thereafter)
And every 5 years thereafter
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FIVE-YEAR REPORT
(continued)
Report must include findings in regard
to the funds that remain unexpended and
whether or not such funds are committed
or uncommitted to specific school
facilities projects. Fees levied and
unexpended in 5th fiscal year following
the first deposit into the developer fee
fund and every 5 years thereafter (which
means each year a ‘new dollar’ turns 5,
thereby the need for a 5-Year Report
annually as well).
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FIVE-YEAR REPORT
(continued)
Identify purpose of fee
Demonstrate relationship:
fee  purpose
Identify anticipated funding sources
and amounts to complete
financing
Designate approximate dates on
which funding is expected to be
deposited into account/fund
Update annually (because each year
a dollar turns 5)
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ANNUAL REPORT
Per Govt. Code Section 66006
Applies to each account established
to finance public improvements.
Must be made available within
180 days after last day of fiscal
year (December 27, 2010).
Must be made available 15 days
prior to public meeting of
governing board to act on Annual
Report.
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REPORTING PROCESS
Plan on beginning preparation process no
later than October to ensure
compliance.
Board must review annual and five–year
reports at a regularly scheduled
meeting not less than 15 days after the
report is made available to the public.
Notice requirements:
Mail notice 15 days before meeting
to anyone who filed written request.
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REPORTS INFORMATION
Fees collection:
Description of type of fees collected;
Amounts that may be collected;
Beginning and ending balances of
accounts and sub-accounts;
Total amounts collected and interest
earned.
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REPORTS INFORMATION
(continued)
Project expenditures:
Detailed information on each project for
which Fees were expended;
Percentage actually funded by Responsible
Fees for project;
Descriptions of any inter-fund transfers or
loans;
Amount of any refunds made.
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REPORTS INFORMATION
(continued)
Maintenance of records:
Information should be obtained from
internal business records;
Separate files of this information should
be kept;
File should include all relevant
information to assist in making
required findings.
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Understanding How to
Increase Fees
Increase in fees due January 2010 (remained the
same as 2008 per State Allocation Board)
Update Fee Justification Study
Conduct Public Review Period
Make available to public 10 days before Public
Hearing.
Meet 10-day mailing, posting, and publishing
notice requirements.
Schedule Public Hearing in mid-February
(recommendation).
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Understanding How to Increase Fees
(continued)
After the Public Hearing and Governing Board
adopts a Resolution Fee Justification Study,
statutory feed do not take effect for 60 days
unless urgency resolutions are adopted.
Up to two urgency resolutions may be adopted
which provide interim authorization for the
adopted fees for 30 days per urgency
resolution.
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PROPER EXPENDITURE
OF FEES
Section 17620(a)(3) states fees cannot
be used for:
Regular maintenance
Routine repair of facilities
Inspection, sampling, analysis,
encapsulation, or removal of asbestos–
containing materials
Except where incidental to construction or
reconstruction in which the
expenditure of fees is not prohibited
Deferred maintenance
Described in Section 17582
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PROPER EXPENDITURE
OF FEES (continued)
Flexibility:
Education Code Section 17620(a)(5) allows
paying cost to perform needs analysis
Described in Govt. Code 65995.6.
Allows 3% fees for reimbursement of
administrative costs.
3% can only be calculated against Level I
Fees collected.
Not allowed for Level II or III Fees collected.
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NOTES
If you are considering spending
developer fees on something
other than the actual allowances
noted in Code, it is recommended
you discuss the idea with legal
counsel.
The Building Industry Association (BIA)
is going to begin asking for these
reports in the near future.
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POTENTIAL BIA AND
DEVELOPER CHALLENGES
Missed reporting and/or action
deadlines
Declining enrollment
Fee Justification Study (FJS) or
School Facilities Needs
Assessment (SFNA) not
updated regularly.
Other (any district experiences?)
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AVAILABLE RESOURCES
Sample reports and templates are
available at the Educational
Facility Solutions Group web
site:
www.sdcoe.net: Business Services
Division – Educational Facility Solutions
Group– Developer Fees
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