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Agenda Packet_2022-05-17
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Agenda Packet_2022-05-17
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5/17/2022
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Exhibit 1 <br />RESIDENTIAL DEVELOPMENT IMPACT FEE <br />The City of Santa Ana's Residential Development <br />Impact Fee is an important source of funding <br />for parks and recreation facility improvements. <br />The fee program, originally adopted in the <br />1980s, levies development impact fees on new <br />residential development projects for the purpose <br />of constructing parks and recreation facilities to <br />serve the needs of new City residents associated <br />with those projects. <br />As part of the PIMP development, Economic & <br />Planning Systems (EPS) evaluated Santa Ana's <br />park impact fees to consider their current and <br />future capacity to fund parks and recreational <br />facilities. Preliminary findings are noted here. A <br />full Nexus Study process as prescribed by the <br />State's Mitigation Fee Act (AB 1600) should be <br />undertaken to fully consider the ways in which <br />impact fees may fund parks and facilities. <br />CURRENT FEE PROGRAM <br />Chapter 35, Article IV of the City's Municipal <br />Code states: "Development of parks within <br />the city will require the construction of park <br />and recreation facilities sufficient to provide <br />two (2) acres of such facilities per one <br />thousand (1,000) population in the city... <br />Any person adding net residential units or <br />converting apartments to condominiums <br />in the City of Santa Ana shall pay to the <br />City fees ... for the purpose of preserving an <br />appropriate balance between the demand <br />by residents for use of park and recreational <br />facilities and the availability of such park <br />and recreational facilities and to preclude <br />residential development which would create <br />an excess demand on such facilities."i <br />City Councill 14-112 <br />Santa Ana, CA Municipal Code, Section 35-108 and 35-110. <br />The Code further specifies that the fees paid <br />under this article "shall be placed in a special <br />fund to be known as the 'Park Acquisition and <br />Development Fund.' Moneys in such fund shall <br />be expended for the acquisition, construction <br />and renovation of park and recreation facilities. <br />In the event the City meets the standard of two <br />(2) acres of such facilities per one thousand <br />(1,000) population, and will meet such criterion <br />following all developments for which fees have <br />been collected, any moneys remaining in such <br />fund may be used for renovation of the City's <br />existing parks.112 <br />Fee Structure and Level <br />The Residential Development Impact Fee is levied <br />specifically on new residential development in <br />Santa Ana. The fee levels are calculated based on <br />the number of bedrooms in the new residential <br />units. Since program adoption, the fee levels have <br />been regularly increased based on the Consumer <br />Price Index (CPI) to keep pace with escalating <br />costs over time. <br />The City collects Residential Development <br />Impact Fees in four districts (Figure 8-3). The <br />fees collected from each district are deposited <br />into a district -specific A&D Fund and can only <br />be used to fund parks and recreation facilities <br />within that specific district. The intention of <br />the district structure is to target fee revenues <br />towards the development of parks and facilities <br />in close proximity to new residents. <br />Recent Fee Collection <br />Table 8-4 summarizes the City's Residential <br />Development Impact fee collections from 2018 <br />to 2021, broken out by district. As shown, the <br />City collected approximately $11.7M over these <br />three fiscal years, an average of $3.9 million <br />annually. However, the fee collection was not <br />evenly distributed across the four districts. <br />Nearly three-quarters of the total fee collection <br />took place in District 3, while fees collected in <br />Districts 1 and 4 accounted for less than ten <br />percent each of the total fee amount. <br />TABLE 84: SANTA ANA PARKS ACQUISITION AND DEVELOPMENT FUND COLLECTIONS, 2018-2021 <br />District 1 $433,682.66 <br />$57,793.46 <br />$451,702.00 <br />District 2 $270,284.17 <br />$876,298.48 <br />$529,089.00 <br />District 3 $4,796,801.94 <br />$84,567.71 <br />$3,557,383.00 <br />District 4 $486,576.03 <br />$131,245.58 <br />$46,052.00 <br />Source: City of Santa Ana; EPS <br />2Santa Ana, CA Municipal Code, Section 35-108. <br />5/17/2022 <br />SANTA ANA PARKS MASTER PLAN <br />CHAPTER 8: ACTION PLAN <br />
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