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09 - FY 2012-13 Annual Compliance Report Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by providing sol id waste and sewer collection services. www.cmsdca.gov Memorandum To: Board of Directors Via: Scott Carroll, General Manager From: Wendy H. Davis , Interim Accounting Manager Date: January 23, 2014 Subject: Fiscal Year 2012-2013 Annual Compliance Report for Requirements of Government Code Section 66013 for Capacity Charges. Summary Staff is providing the Board with the Annual Compliance Report to fulfill the information and reporting requirements of Government Code Section 66013 for capacity charges. Staff Recommendation Staff recommends the Board receive and file this report. Analysis On May 27, 2010 the Board adopted Ordinance No. 76, revising the charges collected by the District and establishing that fixture fees are capacity charges and making related clarifying changes. Fixture fees are capacity charges for public facilities in existence at the time a charge is imposed or charges for new public facilities to be acquired or constructed in the future that are of proportional benefit to the person or property being charged, including supply or capacity contracts for rights or entitlements, real property interests, and entitlements and other rights of the local agency involving capital expense relating to its use of existing or new public facilities. ITEM NO. 09 Bo ard of Directors January 23, 2014 Page 2 of 2 Upon payment of the fees, the money shall be deposited in a separate capital facilities account maintained in accordance with Government Code Section 66013(d). For each such separate account, the District shall, within one hundred eighty (180) days of the close of the fiscal year, make available to the public the following information: (1) A description of the charges deposited in the fund. (2) The beginning and ending fund balance of the fund and the interest earned from investment of moneys in the fund. (3) The amount of charges collected i n that fiscal year. (4) An identification of all of the following: (A) Each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the percentage of the total cost of the public improvement tha t was funded with those charges if more than one source of funding was used. (B) Each public improvement on which charges were expended that was completed during that fiscal year. (C) Each public improvement that is anticipated to be undertaken in the fol lowing fiscal year. (5) A description of each interfund transfer or loan made from the capital facilities fund. The information provided, in the case of an interfund transfer, shall identify the public improvements on which the transferred moneys are, o r will be, expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that the fund will receive on the loan. Strategic Plan Element & Goal This item supports achieving S trategic Element No. 7.0, Finances , by providing financial resources to fund current and planned operations and projects. Legal Review Not applicable. Environmental Review Preparing the yearly compliance report is not a project under CEQA because it ha s no effect on the environment, and the reconstruction program being referred to is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15301 Existing Facilities as “Class 1 consists of the … maintenance … of existing public or private structures”, as further described in Section (b) as “Existing facilities of both investor and publicly -owned utilities used to provide …. sewerage …” Board of Directors January 23, 2014 Page 3 of 3 Financial Review Finance staff confirms that the Annual Compliance Report presents fairly the financial activity of the Facilities Revolving Fund for the fiscal year ending June 30, 201 3 . During the fiscal year 201 2 -1 3 , the Facilities Revolving Fund received $189 ,262 in capacity charges , inter est income decrease $1 ,5 00 due to fair market valuation adjustments recorded at year end and there were no expend itures incurred during the fiscal year . As of June 30, 201 3 , the funds available in the Facilities Revolving Fund were $195,878 and are design ated for the System Wide Sewer Reconstruction Phase 2 and Phase 3 project costs to be incurred in fiscal year 201 3 -1 4 and subsequent year s . In comparison, the capacity charges collected in fiscal year 20 1 1 -1 2 were $78 ,229 and interest income received was $3,5 19. The large increase in capacity charges collected was due to the construction of a several multi -family residential project s in the City of Costa Mesa. Public Notice Process Copies of this report are on file and will be included with the entire ag enda packet for the January 23, 2014 regular Board of Directors meeting at District Headquarters and on District’s website. Alternative Actions 1. Refer the matter back to staff Attachment 1 : Annual Compliance Report for capacity charges. Attachment 1 COSTA MESA SANITARY DISTRICT ANNUAL COMPLIANCE REPORT FOR REQUIREMENTS OF GOVERNMENT GODE SECTION 66013 Fiscal Year Ending June 30, 201 3 Government Code Section 66013(d) For each separate account, the District shall, within one hundred eighty (180) days of the close of the fiscal year, make available to the public the following information: (1 ) A description of the charges deposited in the fund. Capacity Charges – The purpose of these fixture fees is for the acquisition, construction, or reconstruction of local sewers. These fees provide the facilities or infrastructure to accommodate the demands generated by future development within the District. (2) The beginning and ending balance of the fund and the interest earned from investment of moneys in t he fund. (3) The amount of charges collected in the fiscal year. Beginning July 1, 20 1 2 $ 8,1 16 Plus: Fees Collected 189 ,2 62 Interest (1 ,5 00) Transfers In from Other Fund s 0 Less: Project Costs ( 0 ) Refunds ( 0 ) Transfer Out to Other Funds ( 0) Ending June 30, 201 3 $ 195 ,878 (4) An identification of all of the following: (A) Each public improvement on which charges were expended and the amount of t he 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. No charges were expended during the fiscal year utilizing these funds . (B) Each public improvement on which charges were expended that was completed during that fiscal year. Not applicable Attachment 1 (C) Each public improvement that is anticipated to be undertaken in the following fiscal year. System Wide Sewer Reconstruction Phase 2 System Wide Sewer Reconstruction Phase 3 (5) A description of each interfund transfer or loan made from the capital facilities fund. The information provided, in the case of an interfund transfer, shall identify the public improvements on which the transferred moneys are, or will be, expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that the fund will receive on the loan. No in terfund transfer s or loans were made during the fiscal year utilizing these funds.