Annual and Five Year Development Impact Fee Report for FYE 06-30-2023Annual and Five‐Year
Development Impact Mitigation Fee Report
For Fiscal Year Ended June 30, 2023
Prepared by
City of Encinitas
Finance Department
December 22, 2023
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
Table of Contents
1.0 Annual Development Impact Fee Report ............................................................................................................ 3
1.1 Annual Report Requirements .......................................................................................................................... 3
1.2 Types of Impact Fees and Impact Fee Funds ................................................................................................... 5
1.3 Current Impact Fees ........................................................................................................................................ 7
1.4 Financial Summary .......................................................................................................................................... 8
1.5 Public Improvements ..................................................................................................................................... 10
1.6 Interfund Loans ............................................................................................................................................. 12
1.7 Refunds .......................................................................................................................................................... 12
2.0 Five‐Year Development Impact Fee Report ...................................................................................................... 13
2.1 Five‐Year Report Requirements .................................................................................................................... 13
2.2 Fund 231 Park Development Fees ................................................................................................................. 14
2.3 Fund 232 Parkland Acquisition Fees .............................................................................................................. 16
2.4 Fund 233 Traffic Mitigation Fees ................................................................................................................... 18
2.5 Fund 234 Regional Traffic Mitigation Fees .................................................................................................... 20
2.6 Fund 235 Open Space Acquisition Fees ......................................................................................................... 22
2.7 Fund 236 Recreational Trails Fees ................................................................................................................. 24
2.8 Fund 237 Community Facilities Fees ............................................................................................................. 26
2.9 Fund 238 Fire Mitigation Fees ....................................................................................................................... 28
2.10 Fund 239 Flood Control Mitigation Fees ..................................................................................................... 30
Attachment ‐ Current Development Impact Fee Schedules ................................................................................... 32
2
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
1.0 Annual Development Impact Fee Report
The California Mitigation Fee Act (Government Code Sections 66000 et seq.) mandates procedures for
administration of impact fee programs, including collection and accounting, reporting, and refunds. Regarding
reporting requirements, the Mitigation Fee Act requires annual reporting for each impact fee fund, and a separate
five‐year reporting process. This Section meets the requirements for the Annual Report. Section 2 meets the
requirements for the Five‐Year Report.
1.1 Annual Report Requirements
Assembly Bill 516 amended Government Code § 66006(b)(1) effective January 1, 2024. The section outlines the
following annual reporting requirements pertaining to development impact fees:
For each separate account or fund established, the local agency shall, within 180 days after the last day of each
fiscal year, make available to the public the following information for the fiscal year:
(A)A brief description of the type of fee in the account or fund. (See report section 1.2)
(B)The amount of the fee. (See report section 1.3 and attachment)
(C)The beginning and ending balance of the account or fund. (See report section 1.4)
(D)The amount of the fees collected and interest earned. (See report section 1.4)
(E)An identification of each public improvement on which fees were expended and the amount of
expenditures on each improvement including the total percentage of the cost of the public improvement
that was funded with fees. (See report section 1.5)
(F)(i) 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 paragraph (2) of subdivision (a) of Section 66001,
and the public improvement remains incomplete.
(ii)An identification of each public improvement identified in a previous report pursuant to clause (i) and
whether construction began on the approximate date noted in the previous report.
(iii)For a project identified pursuant to clause (ii) for which construction did not commence by the
approximate date provided in the previous report, the reason for the delay and a revised approximate
date that the local agency will commence construction. (See report section 1.5)
(G)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 account or fund will
receive on the loan. (See report section 1.6)
(H)The amount of refunds made pursuant to subdivision (e) of Section 66001, the number of persons or
entities identified to receive those refunds, and any allocations pursuant to subdivision (f) of Section
66001. (See report section 1.7)
3
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
Per Section 66006(b)(2), the annual report must be reviewed by the City Council at its next regularly scheduled
public meeting, but not less than 15 days after the statements are made public. Meeting notices also must be
mailed, at least 15 days prior to the meeting, to any interested party who files a written request with the local
agency for mailed notice of the meeting.
GC § 65865(e) also requires that in any development agreement entered into on or after January 1, 2004, the City
shall comply with GC § 66006 with respect to any fee it receives or cost it recovers.
4
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
1.2 Types of Impact Fees and Impact Fee Funds
GC § 66006 (b)(1)(A)
This Annual Development Impact Fee Report includes the fees listed below. The revenue and expenditures for
each fee type is tracked by the City in a separate fund
Fund # Fund Name Fee Description Code
Recent
Fee Study
231 Park
Development
Fees
The park land in lieu/ impact fees and the park
improvement impact fees will be used to acquire land
and construct park improvements to mitigate the
impacts of new development. The parks being funded
by impact fees are needed to serve additional
population related to new residential development.
EMC 23.98 DIF 2015
Chapter 3
232 Parkland
Acquisition
Fees
233 Traffic
Mitigation
Fees
The purpose of the City’s traffic mitigation fee is to
provide for the traffic facilities needed to serve new
development. The fees deposited in the traffic
mitigation fee fund are used for the construction and
reconstruction of Circulation Element streets and
traffic facilities. The City’s traffic mitigation fee
follows the RTCIP amount increased annually as
approved by the SANDAG Board.
EMC 23.94
23.94.050
DIF 2000
Section 3
234 Regional
Traffic
Mitigation
Fees
The TransNet Extension Ordinance requires the 18
cities in the San Diego region and the County of San
Diego to collect a Regional Transportation Congestion
Improvement Program (RTCIP) fee from the private
sector for each new housing unit constructed in its
jurisdiction, with certain exceptions, including low‐
income residential units and accessory dwelling units.
The purpose of this fee is to help ensure that future
development contributes its proportional share of
the funding needed to pay for the impact of new
growth on the Regional Arterial System and related
regional transportation facility improvements as
defined in the most recent Regional Transportation
Plan adopted by SANDAG.
EMC
23.94.040.A
SANDAG
Commission
Ordinance
04‐01
235 Open Space
Acquisition
Fees
The open space and trails development impact fees
will be used to pay for additional open space and
trails to mitigate the demand created by new
residential development, or if it is not feasible to
DIF 2015
Chapter 4
5
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
Fund # Fund Name Fee Description Code
Recent
Fee Study
236 Recreational
Trails Fees
acquire additional open space, the open space fees
may be used to improve access to, or usability of,
existing open space.
237 Community
Facilities Fees
Community Facilities Fees are used to mitigate the
cost of improvements needed to meet the
recreational space and facilities—such as the
Encinitas branch library addressed in the 2005 impact
fee study. Impact fees to recover new development’s
share of the costs for the branch are based on per‐
capita costs and the population per dwelling unit.
DIF 2005
Chapter 5
238 Fire
Mitigation
Fees
The purpose of the fire protection impact fees is to
mitigate the impact of all new development on the
need for fire protection facilities and equipment in
the City. Fees will be used to pay for additional fire
protection assets needed to maintain the existing
level of service for fire protection in the City. The fees
are based on the impact of each type of new
development, as measured by its associated increase
in functional population.
EMC 23.92 DIF 2015
Chapter 5
239 Flood Control
Mitigation
Fees
The purpose of the flood control fee is to provide for
flood control facilities needed to serve the
development. Fees are used for the construction of
planned drainage facilities for the removal of surface
and stormwaters from the City of Encinitas, as shown
on the San Diego County Flood Control Plan adopted
in 1977.
The fee is 21 cents per square foot of impervious
surface resulting from the completion of the project.
EMC 23.96
6
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
1.3 Current Impact Fees
GC § 66006 (b)(1)(B)
The Attachment to this report provides a current Development Impact Fee Schedule for the City of Encinitas.
Development impact fees in the City of Encinitas are one‐time charges levied on new development to fund
construction of certain capital improvements that will be needed to mitigate the impacts of planned new
development on City facilities and to maintain an acceptable level of public services as the City grows.
Impact fee amounts are calculated in development impact fee nexus studies. The table in section 1.2 references
the most recent development impact fee study performed for each fee. The 2000, 2005, and 2015 studies are
available on the City’s website at https://www.encinitasca.gov/government/departments/finance/city‐financial‐
studies.
In December 2023, City staff issued a request for proposals for a development impact fee nexus study update.
Staff anticipates presenting results to City Council in the spring or summer of 2024. If Council were to approve fee
updates at that time, the new amounts would go into effect sometime in Fiscal Year 2024‐25.
7
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
1.4 Financial Summary
GC § 66006 (b)(1) (C, D, G, H)
The Financial Summary on the next page provides an annual statement of revenue, expenditures, and changes in
fund balance for each impact fee fund, for the Fiscal Year End June 30, 2023.
The Financial Summary includes:
Beginning and ending balance of the account or fund;
Amount of the fees collected and the interest earned;
Interfund loan transfer amounts; and
The amount of refunds made.
8
City of EncinitasAnnual Report of Development Impact/Mitigation FeesFor Fiscal Year Ended June 30, 2023Financial SummaryGC § 66006 (b)(1) C D G HPark Parkland Traffic Regional Arterial Open Space Recreational Community FireFloodDevelopment Acquisition Mitigation System RTCIP Acquisition Trails Facilities Mitigation ControlRequired InformationFund 231Fund 232Fund 233Fund 234Fund 235Fund 236Fund 237Fund 238Fund 239Total(C)Beginning Fund Balance July 1, 2022452,228$ 586,396$ 4,099,068$ 357,688$ 207,316$ 97,456$ ‐$ ‐$ 559,673$ 6,359,825$ (D)Fees Collected228,471 323,31636,272 259,177 25,627 9,800 37,037 12,613 57,877 990,190(H)Fees Refunded‐ (D)Interest Earned includes change in FMV2,938 3,892 43,198 5,144 1,956 1,246‐ ‐ 5,527 63,901Total Revenues231,409 327,208 79,470 264,321 27,583 11,046 37,037 12,613 63,4041,054,091(E)Capital Expenditures on Public Improvement Projects‐ ‐ (226,650) (6,856) (4,506) (94,144) ‐ ‐ (14,581) (346,737) (G) General Fund Transfers Out‐ (G) Debt Service Transfer Out‐ ‐ ‐ ‐ ‐ ‐ (37,037) a(12,613) b‐ (49,650) (C)Ending Fund Balance June 30, 2023683,637$ 913,603$ 3,951,888$ 615,153$ 230,393$ 14,358$ ‐$ ‐$ 608,496$ 7,017,529$ Adjustments(C)Adjusted Ending Fund Balance June 30, 2023683,637$ 913,603$ 3,951,888$ 615,153$ 230,393$ 14,358$ ‐$ ‐$ 608,496$ 7,017,529$ Current Unspent Committed Funds in Approved Public Improvement Projects‐ (3,913) (3,819,675) (522,490) (121,280) (191)‐ ‐ (45,774) (4,513,323)Uncommitted fund balance June 30, 2023 * 683,637$ 909,691$ 132,213$ 92,664$ 109,113$ 14,167$ ‐$ ‐$ 562,722$ 2,504,206$ (G)Interfund transfers made in FY 2022‐23:ab *Note: Column totals may not sum due to rounding.Transfer from the Community Facilities Fund to the General Fund for the repayment of an interfund loan for the construction of the Encinitas Library.Transfer from the Fire Mitigation Fund to the General Fund for the repayment of an interfund loan on the construction of Fire Stations 2 and 5.9
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
1.5 Public Improvements
GC § 66006 (b)(1) (E, F)
This section of the Annual Report identifies each public improvement on which fees were expended and the
amount of the expenditures on each improvement, including the percentage of the cost of the public
improvement that was funded with fees.
The Mitigation Fee Act also requires annual identification of the approximate date by which the construction of a
public improvement will commence, if the City determines sufficient funds have been collected to complete
financing of an incomplete public improvement.
It also contains the following information required by Assembly Bill 516:
(F) (i) 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 paragraph (2) of subdivision (a) of Section 66001,
and the public improvement remains incomplete.
(ii) An identification of each public improvement identified in a previous report pursuant to clause (i) and
whether construction began on the approximate date noted in the previous report.
(iii) For a project identified pursuant to clause (ii) for which construction did not commence by the
approximate date provided in the previous report, the reason for the delay and a revised approximate
date that the local agency will commence construction.
10
City of EncinitasAnnual Report of Development Impact/Mitigation FeesFor Fiscal Year Ended June 30, 2023Public Improvement Project DetailGC § 66006 (b)(1) E, FPROJECT > MITIGATION FUNDFY23 Project ExpendituresAmount Funded by Impact FeesAmount Funded by Other Sources% of Cost Funded by Impact FeesApproximate Construction Start DateAmended Construction Start DateCD17B ‐ 5YR HABITAT‐BIOLOGICAL & MONITORING 14,581 14,581 ‐ 100%Fall 2016239 ‐ FLOOD CONTROL FEE14,581 CP00F ‐ RECREATIONAL TRAILS DEVELOPMENT 153,270 94,144 59,125 61%Financing incomplete236 ‐ RECREATION TRAILS FEES94,144 CP14A ‐ OLYMPUS PARK4,506 4,506 ‐ 100%Complete231 ‐ PARK IMPROVEMENT FEE‐ 232 ‐ PARKLAND ACQUISITION FEE‐ 235 ‐ OPEN SPACE ACQUISITION FEES4,506 CS02F ‐ TRAFFIC SAFETY AND CALMING53,643 ‐ 53,643 0%Ongoing233 ‐ TRAFFIC MITIGATION FEE‐ CS02G ‐ TRAFFIC SIGNAL MODIFICATIONS26,827 8,088 18,739 30%Ongoing233 ‐ TRAFFIC MITIGATION FEE8,088 234 ‐ REGIONAL TRAFFIC MITIGATION FE‐ CS11C ‐ LA COSTA AVENUE IMPROVEMENTS70,531 ‐ 70,531 0%Financing incomplete233 ‐ TRAFFIC MITIGATION FEE‐ 234 ‐ REGIONAL TRAFFIC MITIGATION FE‐ CS16F ‐ EL PORTAL PED/BIKE UNDERPASS PROJ52,255 6,856 45,399 13%Complete234 ‐ REGIONAL TRAFFIC MITIGATION FE6,856 CS19E ‐ SANTA FE DR CORRIDOR IMPROVEMENTS 264,606 218,562 46,045 83%Winter 2023233 ‐ TRAFFIC MITIGATION FEE218,562 Grand Total640,217 346,737 293,481 54%The projects listed above represent recently completed and/or active (in‐progress) uses of impact fee funds in Fiscal Year 2022‐23 to complete current capital improvement projects. The City has also identified public improvement projects that have sufficient impact fee funds available to complete, including approximate dates (fiscal year) of construction in the City’s Capital Improvement Plan as adopted by City Council. Outside of these two sources of information, the City has not determined that sufficient funds have been collected to complete financingof any other incomplete public improvements.11
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
1.6 Interfund Loans
GC § 66006 (b)(1) G
Interfund loan transfer amounts are included in the Financial Summary for the Fiscal Year Ended June 30, 2023
in section 1.4.
1.7 Refunds
GC § 66006 (b)(1)(H)
The refunding requirements for the Mitigation Fee Act are summarized as follows:
If the City determines that sufficient funds have been collected to complete financing on incomplete
improvements for which impact fee revenue is to be used, it must, within 180 days of that determination, identify
an approximate date by which construction of the public improvement will be commenced (Government Code
Section 66001 (e)). If the agency fails to comply with that requirement, it must refund impact fee revenue in the
account according to procedures specified in Section 66001 (d).
As discussed in this Section 1.5 of this report, determinations regarding sufficient funds collected to complete
incomplete improvements are provided by the City’s annual Capital Improvement Plan. The City has not made a
determination that sufficient funds have been collected to complete financing of any other incomplete public
improvements. No refunds of impact fee monies were made or required.
Both the amount of refunds made and the number of persons or entities identified to receive those refunds are
zero.
12
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
2.0 Five‐Year Development Impact Fee Report
2.1 Five‐Year Report Requirements
GC § 66001 (d)
Prior to 1996, The Mitigation Fee Act required that a local agency collecting impact fees was required to expend
or commit impact fee revenue within five years or make findings to justify a continued need for the money.
Otherwise, those funds had to be refunded. SB 1693, adopted in 1996 as an amendment to the Mitigation Fee
Act, changed that requirement in material ways.
Now, Section 66001 (d) requires that, for the fifth fiscal year following the first deposit of any impact fee revenue
into an account or fund as required by Section 66006 (b), and every five years thereafter, the local agency shall
make all the following findings for any fee revenue that remains unexpended, whether committed or
uncommitted:
1. Identify the purpose to which the fee will be put;
2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged;
3. Identify all sources and amounts of funding anticipated to complete financing of incomplete
improvements for which impact fees are to be used;
4. Designate the approximate dates on which the funding necessary to complete financing of those
improvements will be deposited into the appropriate account or fund.
Those findings are to be made in conjunction with the annual reports discussed above. If such findings are not
made as required by Section 66001, the local agency could be required to refund the moneys in the account or
fund, per Section 66001 (d).
Once the agency determines that sufficient funds have been collected to complete financing on incomplete
improvements for which impact fee revenue is to be used, it must, within 180 days of that determination, identify
an approximate date by which construction of the public improvement will be commenced (Section 66001 (e)). If
the agency fails to comply with that requirement, it must refund impact fee revenue in the account according to
procedures specified in Section 66001 (d).
The following sections provide Five‐Year Report financial analysis and findings for each of the City’s development
impact fee funds.
13
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
2.2 Fund 231 Park Development Fees
The table on the following page provides a five‐year financial summary for the Park Development Fund.
As shown, there are no fee revenues within the fund balance that have not been spent within five years from the
year of collection.
Findings
1.Identify the purpose to which the fee will be put.
The purpose to which the fees apply is as stated in Section 1.2 of this report as well as the most recent impact
fee/nexus study completed by the City. See the Development Impact Fee Study, dated August 5, 2015 available
on the City website at https://www.encinitasca.gov/government/departments/finance/city‐financial‐studies.
2.Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.
The reasonable relationship between the fee and the purpose for which it is charged is also substantiated by the
most recent and applicable impact fee/nexus study completed by the City.
3.Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements
for which impact fees are to be used.
The City’s impact fee and nexus study reports identify types of improvements for which park development impact
fees are to be used. Specific other sources and amounts of funding anticipated to be used to complete
improvements are determined on a project‐by‐project basis and documented in the City’s annual Capital
Improvement Plan adopted by City Council. Typical sources of funding for park development other than impact
fees include donations and the General Fund.
4.Designate the approximate dates on which the funding necessary to complete financing of those
improvements will be deposited into the appropriate account or fund.
The exact date of impact fee collection and deposit of funding is impossible to predict (as impact fee revenue is
dependent on economic cycles associated with development activity) the City annually identifies public
improvement projects that have sufficient impact fee funds available to complete, including approximate dates
(fiscal year) of construction in the Capital Improvement Plan as adopted by City Council.
Capital Improvement Plans and capital budgets are available on the City’s website at
https://www.encinitasca.gov/government/departments/finance/city‐budgets.
14
Fund 231
Park Development
Required Information FY 2018‐19 FY 2019‐20 FY 2020‐21 FY 2021‐22 FY 2022‐23
Fund Balance, Beginning of Year a 1,271,707$ 1,617,206$ 1,288,098$ 446,061$ 452,228$
Fees Collected 298,338 229,636 171,608 137,306 228,471
Fees Refunded
Interest Earned including change in FMV b 47,161 53,052 7,316 (14,704) 2,938
Total Revenues*345,499 282,688 178,924 122,602 231,409
Capital Expenditures ‐ (611,796) (1,020,961) (116,435) ‐
General Fund Transfers In
Debt Service Transfer Out ‐ ‐ ‐ ‐ ‐
Total Expenditures ‐ (611,796) (1,020,961) (116,435) ‐
Fund Balance, End of Year 1,617,206$ 1,288,098$ 446,061$ 452,228$ 683,637$
Less prior year General Fund transfers included in
beginning fund balance
Less current year General Fund transfers included
in ending fund balance
Adjusted Fund Balance, End of Year a 1,617,206$ 1,288,098$ 446,061$ 452,228$ 683,637$
Less Current Unspent Committed Funds in Approved
Projects 939,453 1,137,396 116,435 ‐ ‐
Uncommited Fund Balance, End of Year 677,753$ 150,702$ 329,626$ 452,228$ 683,637$
Five Year Fee Revenue Test
Fee Revenues Current Year 231,409
Fee Revenue Prior FY (2‐yr Old Funds)122,602
Fee Revenue Prior FY (3‐yr Old Funds) 178,924
Fee Revenue Prior FY (4‐yr Old Funds)282,688
Fee Revenue Prior FY (5‐yr Old Funds)345,499
*Total Revenues Received 2019 ‐ 2023 1,161,121
Adjusted Fund Balance, June 30, 2023 683,637
Less Total Revenues Received 2019‐2023 (1,161,121)
Fee Revenue Greater than Five Prior Fiscal Years c (477,485)
a Cash balance as reported per Trial Balance provided by City Finance Department
b Interest category includes all types of Investment Revenue
c Five‐Year Fee Revenue Test compares year end fund balance to total of most recent five years of revenue received.
A negative value indicates 5‐Year Revenue Test is compliant.
15
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
2.3 Fund 232 Parkland Acquisition Fees
The table on the following page provides a five‐year financial summary for the Parkland Acquisition Fees Fund. As
shown, there are no fee revenues within the fund balance that have not been spent within five years from the
year of collection.
Findings
1. Identify the purpose to which the fee will be put.
The purpose to which the fees apply is as stated in Section 1.2 of this report as well as the most recent impact
fee/nexus study completed by the City. See the Development Impact Fee Study, dated August 5, 2015 available
on the City website at https://www.encinitasca.gov/government/departments/finance/city‐financial‐studies.
2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.
The reasonable relationship between the fee and the purpose for which it is charged is also substantiated by the
most recent and applicable impact fee/nexus study completed by the City.
3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements
for which impact fees are to be used.
The City’s impact fee and nexus study reports identify types of improvements for which parkland acquisition
development impact fees are to be used. Specific other sources and amounts of funding anticipated to be used to
complete improvements are determined on a project‐by‐project basis and documented in the City’s annual Capital
Improvement Plan adopted by City Council. Typical sources of funding for parkland acquisition other than impact
fees include donations and the General Fund.
4. Designate the approximate dates on which the funding necessary to complete financing of those
improvements will be deposited into the appropriate account or fund.
The exact date of impact fee collection and deposit of funding is impossible to predict, as impact fee revenue is
dependent on economic cycles associated with development activity. The City annually identifies public
improvement projects that have sufficient impact fee funds available to complete, including approximate dates
(fiscal year) of construction in the Capital Improvement Plan as adopted by City Council.
Capital Improvement Plans and capital budgets are available on the City’s website at
https://www.encinitasca.gov/government/departments/finance/city‐budgets.
16
Fund 232
Parkland Acquisition
Required Information FY 2018‐19 FY 2019‐20 FY 2020‐21 FY 2021‐22 FY 2022‐23
Fund Balance, Beginning of Year a 2,761,086$ 3,137,341$ 3,241,780$ 378,953$ 586,396$
Fees Collected 476,623 390,641 286,816 233,190 323,316
Fees Refunded
Interest Earned including change in FMV b 95,206 113,978 16,178 (19,665) 3,892
Total Revenues*571,829 504,619 302,994 213,525 327,208
Capital Expenditures (195,574) (400,180) (3,165,821) (6,083) ‐
General Fund Transfers In
Debt Service Transfer Out ‐ ‐ ‐ ‐ ‐
Total Expenditures (195,574) (400,180) (3,165,821) (6,083) ‐
Fund Balance, End of Year 3,137,341$ 3,241,780$ 378,954$ 586,396$ 913,603$
Less prior year General Fund transfers included in
beginning fund balance
Less current year General Fund transfers included
in ending fund balance
Adjusted Fund Balance, End of Year a 3,137,341$ 3,241,780$ 378,954$ 586,396$ 913,603$
Current Unspent Committed Funds in Approved
Projects 2,509,775 2,970,816 9,995 (3,913) (3,913)
Uncommited Fund Balance, End of Year 627,566$ 270,964$ 368,958$ 582,483$ 909,691$
Five Year Fee Revenue Test
Fee Revenues Current Year 327,208
Fee Revenue Prior FY (2‐yr Old Funds)213,525
Fee Revenue Prior FY (3‐yr Old Funds) 302,994
Fee Revenue Prior FY (4‐yr Old Funds)504,619
Fee Revenue Prior FY (5‐yr Old Funds)571,829
*Total Revenues Received 2019 ‐ 2023 1,920,175
Adjusted Fund Balance, June 30, 2023 913,603
Less Total Revenues Received 2019‐2023 (1,920,175)
Fee Revenue Greater than Five Prior Fiscal Years c (1,006,572)
a Cash balance as reported per Trial Balance provided by City Finance Department
b Interest category includes all types of Investment Revenue
c Five‐Year Fee Revenue Test compares year end fund balance to total of most recent five years of revenue received.
A negative value indicates 5‐Year Revenue Test is compliant.
17
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
2.4 Fund 233 Traffic Mitigation Fees
The table on the following page provides a five‐year financial summary for the Traffic Mitigation Fees Fund.
The analysis shows that there is $1.8 million in fee revenues within the fund that have not been spent within five
years from the year of collection. However, these revenues have been committed to the Santa Fe Drive Corridor
Improvements (CS19E) project, which started construction in Fiscal Year 2023‐24.
Findings
1. Identify the purpose to which the fee will be put.
The purpose to which the fees apply is as stated in Section 1.2 of this report as well as the most recent impact
fee/nexus study completed by the City. See the Development Impact Fee Study, dated March 30, 2000. The City’s
traffic mitigation fee follows the Regional Transportation Congestion Improvement Program amount increased
annually as approved by the SANDAG Board.
2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.
The reasonable relationship between the fee and the purpose for which it is charged is also substantiated by the
most recent and applicable impact fee/nexus study completed by the City.
3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements
for which impact fees are to be used.
The City’s impact fee and nexus study reports identify types of improvements for which traffic mitigation
development impact fees are to be used. Specific other sources and amounts of funding anticipated to be used to
complete improvements are determined on a project‐by‐project basis and documented in the City’s annual Capital
Improvement Plan adopted by City Council. Typical sources of funding for traffic mitigation other than impact fees
include TransNet, Community Development Block grant, State grant, Federal grants, and the General Fund.
4. Designate the approximate dates on which the funding necessary to complete financing of those
improvements will be deposited into the appropriate account or fund.
The exact date of impact fee collection and deposit of funding is impossible to predict, as impact fee revenue is
dependent on economic cycles associated with development activity. The City annually identifies public
improvement projects that have sufficient impact fee funds available to complete, including approximate dates
(fiscal year) of construction in the Capital Improvement Plan as adopted by City Council.
Capital Improvement Plans and capital budgets are available on the City’s website at
https://www.encinitasca.gov/government/departments/finance/city‐budgets.
18
Fund 233
Traffic Mitigation
Required Information FY 2018‐19 FY 2019‐20 FY 2020‐21 FY 2021‐22 FY 2022‐23
Fund Balance, Beginning of Year a 2,765,615$ 3,066,807$ 4,148,536$ 4,266,587$ 4,099,068$
Fees Collected 496,456 1,078,062 417,580 125,589 36,272
Fees Refunded (207,813)
Interest Earned including change in FMV b 94,138 141,674 4,851 (123,568) 43,198
Total Revenues*382,781 1,219,736 422,430 2,020 79,470
Capital Expenditures (81,589) (138,008) (304,379) (169,539) (226,650)
General Fund Transfers In
Debt Service Transfer Out ‐ ‐ ‐ ‐ ‐
Total Expenditures (81,589) (138,008) (304,379) (169,539) (226,650)
Fund Balance, End of Year 3,066,807$ 4,148,536$ 4,266,588$ 4,099,068$ 3,951,888$
Less prior year General Fund transfers included in
beginning fund balance
Less current year General Fund transfers included
in ending fund balance
Adjusted Fund Balance, End of Year a 3,066,807$ 4,148,536$ 4,266,588$ 4,099,068$ 3,951,888$
Current Unspent Committed Funds in Approved
Projects 2,446,198 2,383,190 3,758,404 (4,020,449) (3,819,675)
Uncommited Fund Balance, End of Year 620,609$ 1,765,346$ 508,183$ 78,620$ 132,213$
Five Year Fee Revenue Test
Fee Revenues Current Year 79,470
Fee Revenue Prior FY (2‐yr Old Funds)2,020
Fee Revenue Prior FY (3‐yr Old Funds) 422,430
Fee Revenue Prior FY (4‐yr Old Funds)1,219,736
Fee Revenue Prior FY (5‐yr Old Funds)382,781
*Total Revenues Received 2019 ‐ 2023 2,106,438
Adjusted Fund Balance, June 30, 2023 3,951,888
Less Total Revenues Received 2019‐2023 (2,106,438)
Fee Revenue Greater than Five Prior Fiscal Years c 1,845,450
a Cash balance as reported per Trial Balance provided by City Finance Department
b Interest category includes all types of Investment Revenue
c Five‐Year Fee Revenue Test compares year end fund balance to total of most recent five years of revenue received.
A negative value indicates 5‐Year Revenue Test is compliant.
19
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
2.5 Fund 234 Regional Traffic Mitigation Fees
Regional Arterial System (RTCIP) unexpended funds need to be committed in the Regional Transportation
Improvement Program (RTIP) or expended within a seven‐year period. Therefore, unexpended fees collected prior
to July 1, 2018 are committed or spent by June 30, 2025.
The table on the following page provides a five‐year financial summary for the Regional Traffic Mitigation Fees
Fund. As shown, there are no fee revenues within the fund balance that have not been spent within five years
from the year of collection. This also meets the seven‐year requirements for this specific fund.
Findings
1. Identify the purpose to which the fee will be put.
The purpose to which the fees apply is as stated in Section 1.2 of this report and the SANDAG TransNet Extension
Ordinance and Regional Transportation Improvement Program.
2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.
The reasonable relationship between the fee and the purpose for which it is charged is substantiated by SANDAG’s
TransNet Extension Ordinance and Expenditure Plan which requires the 18 cities in the San Diego region and the
County of San Diego to collect a Regional Transportation Congestion Improvement Program fee from the private
sector for each new housing unit constructed in its jurisdiction, with certain exceptions.
3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements
for which impact fees are to be used.
SANDAG’s Regional Transportation Improvement Program identifies improvements for which regional traffic
mitigation fees are to be used. Specific other sources and amounts of funding anticipated to be used to complete
improvements are determined on a project‐by‐project basis and documented in the City’s annual Capital
Improvement Plan adopted by City Council. Typical sources of funding for regional traffic mitigation other than
impact fees include TransNet, Federal grants, State grants, and the General Fund.
4. Designate the approximate dates on which the funding necessary to complete financing of those
improvements will be deposited into the appropriate account or fund.
The exact date of impact fee collection and deposit of funding is impossible to predict, as impact fee revenue is
dependent on economic cycles associated with development activity. The City annually identifies public
improvement projects that have sufficient impact fee funds available to complete, including approximate dates
(fiscal year) of construction in the Capital Improvement Plan as adopted by City Council.
Capital Improvement Plans and capital budgets are available on the City’s website at
https://www.encinitasca.gov/government/departments/finance/city‐budgets.
20
Fund 234
Regional Arterial System RTCIP
Required Information FY 2018‐19 FY 2019‐20 FY 2020‐21 FY 2021‐22 FY 2022‐23
Fund Balance, Beginning of Year a 1,375,911$ 1,463,241$ 571,935$ 297,437$ 357,688$
Fees Collected 151,651 157,055 98,317 89,720 259,177
Fees Refunded
Interest Earned including change in FMV b 45,588 33,642 3,902 (11,444) 5,144
Total Revenues*197,239 190,697 102,219 78,276 264,321
Capital Expenditures (109,909) (1,082,003) (376,718) (18,025) (6,856)
General Fund Transfers In
Debt Service Transfer Out ‐ ‐ ‐ ‐ ‐
Total Expenditures (109,909) (1,082,003) (376,718) (18,025) (6,856)
Fund Balance, End of Year 1,463,241$ 571,935$ 297,437$ 357,688$ 615,153$
Less prior year General Fund transfers included in
beginning fund balance
Less current year General Fund transfers included
in ending fund balance
Adjusted Fund Balance, End of Year a 1,463,241$ 571,935$ 297,437$ 357,688$ 615,153$
Current Unspent Committed Funds in Approved
Projects 866,091 384,088 47,370 (329,346) (522,490)
Uncommited Fund Balance, End of Year 597,150$ 187,847$ 250,066$ 28,342$ 92,664$
Five Year Fee Revenue Test
Fee Revenues Current Year 264,321
Fee Revenue Prior FY (2‐yr Old Funds)78,276
Fee Revenue Prior FY (3‐yr Old Funds) 102,219
Fee Revenue Prior FY (4‐yr Old Funds)190,697
Fee Revenue Prior FY (5‐yr Old Funds)197,239
*Total Revenues Received 2019 ‐ 2023 832,752
Adjusted Fund Balance, June 30, 2023 615,153
Less Total Revenues Received 2019‐2023 (832,752)
Fee Revenue Greater than Five Prior Fiscal Years c (217,599)
a Cash balance as reported per Trial Balance provided by City Finance Department
b Interest category includes all types of Investment Revenue
c Five‐Year Fee Revenue Test compares year end fund balance to total of most recent five years of revenue received.
A negative value indicates 5‐Year Revenue Test is compliant.
21
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
2.6 Fund 235 Open Space Acquisition Fees
The table on the following page provides a five‐year financial summary for the Open Space Acquisition Fees Fund.
As shown, there are $42,867 in fee revenues within the fund balance that have not been spent within five years
from the year of collection. The City has not determined that sufficient funds have been collected to complete
financing on incomplete improvements for which impact fee revenue is to be used.
As of June 30, 2023, $121,280 in revenues have been committed to the Habitat/Watershed Acquisition (CP05A)
project.
Findings
1. Identify the purpose to which the fee will be put.
The purpose to which the fees apply is as stated in Section 1.2 of this report as well as the most recent impact
fee/nexus study completed by the City. See the Development Impact Fee Study, dated August 5, 2015 available
on the City website at https://www.encinitasca.gov/government/departments/finance/city‐financial‐studies.
2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.
The reasonable relationship between the fee and the purpose for which it is charged is also substantiated by the
most recent and applicable impact fee/nexus study completed by the City.
3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements
for which impact fees are to be used.
The City’s impact fee and nexus study reports identify types of improvements for which open space acquisition
development impact fees are to be used. Specific other sources and amounts of funding anticipated to be used to
complete improvements are determined on a project‐by‐project basis and documented in the City’s annual Capital
Improvement Plan adopted by City Council. Typical sources of funding for open space acquisition other than
impact fees include donations and the General Fund.
4. Designate the approximate dates on which the funding necessary to complete financing of those
improvements will be deposited into the appropriate account or fund.
The exact date of impact fee collection and deposit of funding is impossible to predict, as impact fee revenue is
dependent on economic cycles associated with development activity. The City annually identifies public
improvement projects that have sufficient impact fee funds available to complete, including approximate dates
(fiscal year) of construction in the Capital Improvement Plan as adopted by City Council.
Capital Improvement Plans and capital budgets are available on the City’s website at
https://www.encinitasca.gov/government/departments/finance/city‐budgets.
22
Fund 235
Open Space Acquisition
Required Information FY 2018‐19 FY 2019‐20 FY 2020‐21 FY 2021‐22 FY 2022‐23
Fund Balance, Beginning of Year a 754,268$ 1,319,919$ 973,245$ 316,435$ 207,316$
Fees Collected 32,382 25,407 18,991 15,197 25,627
Fees Refunded
Interest Earned including change in FMV b 33,269 37,919 2,983 (6,205) 1,956
Total Revenues*65,651 63,326 21,974 8,992 27,583
Capital Expenditures ‐ ‐ (88,784) (118,111) (4,506)
General Fund Transfers In 500,000 (410,000) (590,000)
Debt Service Transfer Out ‐ ‐ ‐ ‐ ‐
Total Expenditures 500,000 (410,000) (678,784) (118,111) (4,506)
Fund Balance, End of Year 1,319,919$ 973,245$ 316,435$ 207,316$ 230,393$
Less prior year General Fund transfers included in
beginning fund balance (500,000) (590,000)
Less current year General Fund transfers included
in ending fund balance (500,000)
Adjusted Fund Balance, End of Year a 319,919$ 383,245$ 316,435$ 207,316$ 230,393$
Current Unspent Committed Funds in Approved
Projects 121,280 337,530 248,746 (130,635) (121,280)
Uncommited Fund Balance, End of Year 198,639$ 45,715$ 67,689$ 76,681$ 109,113$
Five Year Fee Revenue Test
Fee Revenues Current Year 27,583
Fee Revenue Prior FY (2‐yr Old Funds)8,992
Fee Revenue Prior FY (3‐yr Old Funds) 21,974
Fee Revenue Prior FY (4‐yr Old Funds)63,326
Fee Revenue Prior FY (5‐yr Old Funds)65,651
*Total Revenues Received 2019 ‐ 2023 187,526
Adjusted Fund Balance, June 30, 2023 230,393
Less Total Revenues Received 2019‐2023 (187,526)
Fee Revenue Greater than Five Prior Fiscal Years c 42,867
a Cash balance as reported per Trial Balance provided by City Finance Department
b Interest category includes all types of Investment Revenue
c Five‐Year Fee Revenue Test compares year end fund balance to total of most recent five years of revenue received.
A negative value indicates 5‐Year Revenue Test is compliant.
23
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
2.7 Fund 236 Recreational Trails Fees
The table on the following page provides a five‐year financial summary for the Recreational Trails Fees Fund. As
shown, there are no fee revenues within the fund balance that have not been spent within five years from the
year of collection.
Findings
1. Identify the purpose to which the fee will be put.
The purpose to which the fees apply is as stated in Section 1.2 of this report as well as the most recent impact
fee/nexus study completed by the City. See the Development Impact Fee Study, dated August 5, 2015 available
on the City website at https://www.encinitasca.gov/government/departments/finance/city‐financial‐studies.
2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.
The reasonable relationship between the fee and the purpose for which it is charged is also substantiated by the
most recent and applicable impact fee/nexus study completed by the City.
3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements
for which impact fees are to be used.
The City’s impact fee and nexus study reports identify types of improvements for which recreational trails
development impact fees are to be used. Specific other sources and amounts of funding anticipated to be used to
complete improvements are determined on a project‐by‐project basis and documented in the City’s annual Capital
Improvement Plan adopted by City Council. Typical sources of funding for trails development other than impact
fees include donations, Federal grants, and the General Fund.
4. Designate the approximate dates on which the funding necessary to complete financing of those
improvements will be deposited into the appropriate account or fund.
The exact date of impact fee collection and deposit of funding is impossible to predict, as impact fee revenue is
dependent on economic cycles associated with development activity. The City annually identifies public
improvement projects that have sufficient impact fee funds available to complete, including approximate dates
(fiscal year) of construction in the Capital Improvement Plan as adopted by City Council.
Capital Improvement Plans and capital budgets are available on the City’s website at
https://www.encinitasca.gov/government/departments/finance/city‐budgets.
24
Fund 236
Recreational Trails
Required Information FY 2018‐19 FY 2019‐20 FY 2020‐21 FY 2021‐22 FY 2022‐23
Fund Balance, Beginning of Year a 59,831$ 74,523$ 87,207$ 94,574$ 97,456$
Fees Collected 12,494 9,744 7,280 5,824 9,800
Fees Refunded
Interest Earned including change in FMV b 2,198 2,940 87 (2,942) 1,246
Total Revenues*14,692 12,684 7,367 2,882 11,046
Capital Expenditures ‐ ‐ ‐ ‐ (94,144)
General Fund Transfers In
Debt Service Transfer Out ‐ ‐ ‐ ‐ ‐
Total Expenditures ‐ ‐ ‐ ‐ (94,144)
Fund Balance, End of Year 74,523$ 87,207$ 94,574$ 97,456$ 14,358$
Less prior year General Fund transfers included in
beginning fund balance
Less current year General Fund transfers included
in ending fund balance
Adjusted Fund Balance, End of Year a 74,523$ 87,207$ 94,574$ 97,456$ 14,358$
Current Unspent Committed Funds in Approved
Projects 64,335 64,335 64,335 (94,335) (191)
Uncommited Fund Balance, End of Year 10,188$ 22,872$ 30,239$ 3,121$ 14,167$
Five Year Fee Revenue Test
Fee Revenues Current Year 11,046
Fee Revenue Prior FY (2‐yr Old Funds)2,882
Fee Revenue Prior FY (3‐yr Old Funds) 7,367
Fee Revenue Prior FY (4‐yr Old Funds)12,684
Fee Revenue Prior FY (5‐yr Old Funds)14,692
*Total Revenues Received 2019 ‐ 2023 48,671
Adjusted Fund Balance, June 30, 2023 14,358
Less Total Revenues Received 2019‐2023 (48,671)
Fee Revenue Greater than Five Prior Fiscal Years c (34,313)
a Cash balance as reported per Trial Balance provided by City Finance Department
b Interest category includes all types of Investment Revenue
c Five‐Year Fee Revenue Test compares year end fund balance to total of most recent five years of revenue received.
A negative value indicates 5‐Year Revenue Test is compliant.
25
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
2.8 Fund 237 Community Facilities Fees
The table on the following page provides a five‐year financial summary for the Community Facilities Fees Fund.
As shown, there are no fee revenues within the fund balance that have not been spent within five years from the
year of collection. Revenues are committed for the repayment of an interfund loan from the General Fund for the
construction of the Encinitas Library.
Findings
1. Identify the purpose to which the fee will be put.
The purpose to which the fees apply is as stated in Section 1.2 of this report as well as the most recent impact
fee/nexus study completed by the City. See the Development Impact Fee Study, dated November 30, 2005
available on the City website at https://www.encinitasca.gov/government/departments/finance/city‐financial‐
studies.
2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.
The reasonable relationship between the fee and the purpose for which it is charged is also substantiated by the
most recent and applicable impact fee/nexus study completed by the City.
3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements
for which impact fees are to be used.
The City’s impact fee and nexus study reports identify types of improvements for which community facilities
development impact fees are to be used—such as the Encinitas branch library. Specific other sources and amounts
of funding anticipated to be used to complete improvements are determined on a project‐by‐project basis and
documented in the City’s annual Capital Improvement Plan adopted by City Council. Typical sources of funding for
community facilities other than impact fees include the General Fund.
4. Designate the approximate dates on which the funding necessary to complete financing of those
improvements will be deposited into the appropriate account or fund.
The exact date of impact fee collection and deposit of funding is impossible to predict, as impact fee revenue is
dependent on economic cycles associated with development activity. The City annually identifies public
improvement projects that have sufficient impact fee funds available to complete, including approximate dates
(fiscal year) of construction in the Capital Improvement Plan as adopted by City Council.
Capital Improvement Plans and capital budgets are available on the City’s website at
https://www.encinitasca.gov/government/departments/finance/city‐budgets.
26
Fund 237
Community Facilities
Required Information FY 2018‐19 FY 2019‐20 FY 2020‐21 FY 2021‐22 FY 2022‐23
Fund Balance, Beginning of Year a ‐$ ‐$ ‐$ ‐$ ‐$
Fees Collected 43,463 33,302 25,411 20,578 37,037
Fees Refunded
Interest Earned including change in FMV b ‐ ‐ ‐ ‐ ‐
Total Revenues*43,463 33,302 25,411 20,578 37,037
Capital Expenditures ‐ ‐ ‐ ‐ ‐
General Fund Transfers In
Debt Service Transfer Out (43,463) (33,302) (25,411) (20,578) (37,037)
Total Expenditures (43,463) (33,302) (25,411) (20,578) (37,037)
Fund Balance, End of Year ‐$ ‐$ ‐$ ‐$ ‐$
Less prior year General Fund transfers included in
beginning fund balance
Less current year General Fund transfers included
in ending fund balance
Adjusted Fund Balance, End of Year a ‐$ ‐$ ‐$ ‐$ ‐$
Current Unspent Committed Funds in Approved
Projects ‐ ‐ ‐ ‐ ‐
Uncommited Fund Balance, End of Year ‐$ ‐$ ‐$ ‐$ ‐$
Five Year Fee Revenue Test
Fee Revenues Current Year 37,037
Fee Revenue Prior FY (2‐yr Old Funds)20,578
Fee Revenue Prior FY (3‐yr Old Funds) 25,411
Fee Revenue Prior FY (4‐yr Old Funds)33,302
Fee Revenue Prior FY (5‐yr Old Funds)43,463
*Total Revenues Received 2019 ‐ 2023 159,791
Adjusted Fund Balance, June 30, 2023 ‐
Less Total Revenues Received 2019‐2023 (159,791)
Fee Revenue Greater than Five Prior Fiscal Years c (159,791)
a Cash balance as reported per Trial Balance provided by City Finance Department
b Interest category includes all types of Investment Revenue
c Five‐Year Fee Revenue Test compares year end fund balance to total of most recent five years of revenue received.
A negative value indicates 5‐Year Revenue Test is compliant.
27
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
2.9 Fund 238 Fire Mitigation Fees
The table on the following page provides a five‐year financial summary for the Fire Mitigation Fees Fund.
As shown, there are no fee revenues within the fund balance that have not been spent within five years from the
year of collection. Revenues are committed for the repayment of an interfund loan from the General Fund for the
construction of Fire Stations 2 and 5.
Findings
1. Identify the purpose to which the fee will be put.
The purpose to which the fees apply is as stated in Section 1.2 of this report as well as the most recent impact
fee/nexus study completed by the City. See the Development Impact Fee Study, dated August 5, 2015 available
on the City website at https://www.encinitasca.gov/government/departments/finance/city‐financial‐studies.
2. Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.
The reasonable relationship between the fee and the purpose for which it is charged is also substantiated by the
most recent and applicable impact fee/nexus study completed by the City.
3. Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements
for which impact fees are to be used.
The City’s impact fee and nexus study reports identify types of improvements for which fire mitigation
development impact fees are to be used. Specific other sources and amounts of funding anticipated to be used to
complete improvements are determined on a project‐by‐project basis and documented in the City’s annual Capital
Improvement Plan adopted by City Council. Typical sources of funding for fire mitigation other than impact fees
include the General Fund.
4. Designate the approximate dates on which the funding necessary to complete financing of those
improvements will be deposited into the appropriate account or fund.
The exact date of impact fee collection and deposit of funding is impossible to predict, as impact fee revenue is
dependent on economic cycles associated with development activity. The City annually identifies public
improvement projects that have sufficient impact fee funds available to complete, including approximate dates
(fiscal year) of construction in the Capital Improvement Plan as adopted by City Council.
Capital Improvement Plans and capital budgets are available on the City’s website at
https://www.encinitasca.gov/government/departments/finance/city‐budgets.
28
Fund 238
Fire Mitigation
Required Information FY 2018‐19 FY 2019‐20 FY 2020‐21 FY 2021‐22 FY 2022‐23
Fund Balance, Beginning of Year a ‐$ ‐$ ‐$ ‐$ ‐$
Fees Collected 76,620 222,837 24,994 195,183 12,613
Fees Refunded
Interest Earned including change in FMV b ‐ ‐ ‐ 4 ‐
Total Revenues*76,620 222,837 24,994 195,187 12,613
Capital Expenditures ‐ ‐ ‐ ‐ ‐
General Fund Transfers In
Debt Service Transfer Out (76,620) (222,837) (24,994) (195,187) (12,613)
Total Expenditures (76,620) (222,837) (24,994) (195,187) (12,613)
Fund Balance, End of Year ‐$ ‐$ ‐$ ‐$ ‐$
Less prior year General Fund transfers included in
beginning fund balance
Less current year General Fund transfers included
in ending fund balance
Adjusted Fund Balance, End of Year a ‐$ ‐$ ‐$ ‐$ ‐$
Current Unspent Committed Funds in Approved
Projects ‐ ‐ ‐ ‐ ‐
Uncommited Fund Balance, End of Year ‐$ ‐$ ‐$ ‐$ ‐$
Five Year Fee Revenue Test
Fee Revenues Current Year 12,613
Fee Revenue Prior FY (2‐yr Old Funds)195,187
Fee Revenue Prior FY (3‐yr Old Funds) 24,994
Fee Revenue Prior FY (4‐yr Old Funds)222,837
Fee Revenue Prior FY (5‐yr Old Funds)76,620
*Total Revenues Received 2019 ‐ 2023 532,250
Adjusted Fund Balance, June 30, 2023 ‐
Less Total Revenues Received 2019‐2023 (532,250)
Fee Revenue Greater than Five Prior Fiscal Years c (532,250)
a Cash balance as reported per Trial Balance provided by City Finance Department
b Interest category includes all types of Investment Revenue
c Five‐Year Fee Revenue Test compares year end fund balance to total of most recent five years of revenue received.
A negative value indicates 5‐Year Revenue Test is compliant.
29
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
2.10 Fund 239 Flood Control Mitigation Fees
The table on the following page provides a five‐year financial summary for the Flood Control Mitigation Fees Fund.
As shown, there are $152,435 in fee revenues within the fund balance that have not been spent within five years
from the year of collection. The City has not determined that sufficient funds have been collected to complete
financing on incomplete improvements for which impact fee revenue is to be used.
The ($43,774) unspent committed fund balance reflects a reimbursement for the North County Transit District
related to the North Vulcan Avenue Temporary Parking (CS21B) project received in Fiscal Year 2021‐22. Revenues
have also been committed to Storm Drain Repairs (CD05E) and Five‐Year Habitat Biological Monitoring (CD17B)
projects.
Findings
1.Identify the purpose to which the fee will be put.
The purpose to which the fees apply is as stated in Section 1.2 of this report as well as the Encinitas Municipal
Code Chapter 23.96.
2.Demonstrate the reasonable relationship between the fee and the purpose for which it is charged.
The reasonable relationship between the fee and the purpose for which it is charged is also substantiated by the
as the Encinitas Municipal Code Chapter 23.96 and the San Diego County Flood Control Plan adopted in 1977.
3.Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements
for which impact fees are to be used.
The City’s municipal code and County’s Flood Control Plan identify flood control facilities for which the flood
control mitigation fees are to be used. Specific other sources and amounts of funding anticipated to be used to
complete improvements are determined on a project‐by‐project basis and documented in the City’s annual
Capital Improvement Plan adopted by City Council. Typical sources of funding for flood control other than
impact fees include the General Fund.
4.Designate the approximate dates on which the funding necessary to complete financing of those
improvements will be deposited into the appropriate account or fund.
The exact date of impact fee collection and deposit of funding is impossible to predict, as impact fee revenue is
dependent on economic cycles associated with development activity. The City annually identifies
public improvement projects that have sufficient impact fee funds available to complete, including approximate
dates (fiscal year) of construction in the Capital Improvement Plan as adopted by City Council.
Capital Improvement Plans and capital budgets are available on the City’s website at
https://www.encinitasca.gov/government/departments/finance/city‐budgets.
30
Fund 239
Flood Control
Required Information FY 2018‐19 FY 2019‐20 FY 2020‐21 FY 2021‐22 FY 2022‐23
Fund Balance, Beginning of Year a 466,868$ 483,732$ 543,990$ 362,484$ 559,673$
Fees Collected 104,915 95,270 37,890 135,958 57,877
Fees Refunded
Interest Earned including change in FMV b 15,050 18,915 2,980 (18,321) 5,527
Total Revenues*119,966 114,185 40,870 117,636 63,404
Capital Expenditures (103,102) (53,927) (222,376) 79,553 (14,581)
General Fund Transfers In
Debt Service Transfer Out ‐ ‐ ‐ ‐ ‐
Total Expenditures (103,102) (53,927) (222,376) 79,553 (14,581)
Fund Balance, End of Year 483,732$ 543,990$ 362,484$ 559,673$ 608,496$
Less prior year General Fund transfers included in
beginning fund balance
Less current year General Fund transfers included
in ending fund balance
Adjusted Fund Balance, End of Year a 483,732$ 543,990$ 362,484$ 559,673$ 608,496$
Current Unspent Committed Funds in Approved
Projects 151,421 95,745 103,497 (181,596) (45,774)
Uncommited Fund Balance, End of Year 332,311$ 448,245$ 258,987$ 378,077$ 562,722$
Five Year Fee Revenue Test
Fee Revenues Current Year 63,404
Fee Revenue Prior FY (2‐yr Old Funds)117,636
Fee Revenue Prior FY (3‐yr Old Funds) 40,870
Fee Revenue Prior FY (4‐yr Old Funds)114,185
Fee Revenue Prior FY (5‐yr Old Funds)119,966
*Total Revenues Received 2019 ‐ 2023 456,061
Adjusted Fund Balance, June 30, 2023 608,496
Less Total Revenues Received 2019‐2023 (456,061)
Fee Revenue Greater than Five Prior Fiscal Years c 152,435
a Cash balance as reported per Trial Balance provided by City Finance Department
b Interest category includes all types of Investment Revenue
c Five‐Year Fee Revenue Test compares year end fund balance to total of most recent five years of revenue received.
A negative value indicates 5‐Year Revenue Test is compliant.
31
City of Encinitas
Annual and Five‐Year Report of Development Impact Mitigation Fees
For Fiscal Year Ended June 30, 2023
Attachment ‐ Current Development Impact Fee Schedules
32
City of EncinitasAnnual Report of Development Impact/Mitigation FeesFor Fiscal Year Ended June 30, 2023Fee AmountGC § 66006 (b)(1)(B)Park Parkland Traffic Regional Arterial Open Space Recreational Community Fire FloodDevDevelopment Acquisition Mitigation System RTCIP Acquisition Trails Facilities Mitigation ControlDevelopment TypeUnits 1Fund 231 Fund 232 Fund 233 Fund 234 Fund 235 Fund 236 Fund 237 Fund 238 Fund 239Development projects within the City $0.21 per sq ft new impervious surface Residential ‐ Single‐FamilyDU3,959$ 5,371$ 438$ 168$ 571$ 675$ Residential ‐ Multi‐FamilyDU2,644 3,587293 112 R8‐11 $449 R11‐25 $428451Residential ‐ Mobile Home ParkDU2,518 3,416279 107 387 429Residential ‐ Accessory Unit 2DUN/A N/A N/A N/A N/A N/AOffice ‐ ProfessionalKSF741CommercialKSF627Industrial ‐ LightKSF184Hotel/ Motel RoomRoom184Traffic Mitigation FeesSingle‐Family Residential x Peak Hour Trips x Traffic Mitigation Fee x Reduction Factor for Pass‐by‐Trips = Total FeeResidential ‐ Single‐FamilyDU$2,688.21 Residential ‐ Low IncomeDU$2,688.21 ExemptResidential ‐ RuralDU$537.64 $2,688.21Residential ‐ OtherDU$2,688.21Other Development ‐ Non ResidentialCalculated based on EDM 2.13 Attachment A1 Units of development. DU = dwelling unit; KSF = 1,000 square feet of building area; Room = guest room or suite2 Per Council direction on August 19, 2015, impact fees on ADUs were removed from the fee schedules (2015‐10‐21 Item 10C).33
CITY OF ENCINITAS ENGINEERING DESIGN MANUAL - 2009
REV 06/29/2022 Appendix 2.13 Page 2-33
attachment a
peak-hour trips for specific residential and non-residential
uses, and applicable Pass-By Trip reduction Factors
1 Peak hour trip =$2,688.21
Land Use Categories Highest AM/ PM Pass-By Trips Traffic Fees
Peak hour trips Reduction Factor
RESIDENTIAL (per DU)
Rural Residential 1.20 N/A $3,225.85
Single Family 1.00 N/A $2,688.21
Other Residential N/A N/A $2,688.21
OFFICE (per 1,000 sf)
Standard Commercial Office 2.80 N/A $7,526.99
Single Tenant Office 2.10 N/A $5,645.24
Medical-Dental Office 5.50 N/A $14,785.16
SHOPPING CENTER (per 1,000 sf)
Community (10-30 acres) 7.00 0.70 $13,172.23
Neighborhood (<10 acres) 12.00 0.60 $19,355.11
COMMERCIAL SHOPS (per 1,000 sf)
Convenience Market 40.00 0.50 $53,764.20
Grocery Store 15.00 0.60 $24,193.89
Discount Store 4.80 0.70 $9,032.39
General Retail Shop 3.60 0.90 $8,709.80
Furniture Store 0.54 N/A $1,451.63
RESTAURANTS (per 1,000 sf)
Fast Food (with drive through) 45.50 0.60 $73,388.13
Fast Food (without drive through)
Delicatessen (7 a.m. – 4 p.m.)
Sit Down, High Turnover
49.00
13.50
12.80
0.60
N/A
0.80
$79,033.37
$36,290.84
$27,527.27
Sit Down, Low Turnover (quality) 8.00 0.90 $19,355.11
FINANCIAL SERVICES (per 1,000 sf)
Bank (walk-in only) 12.00 0.75 $24,193.89
Bank (with drive-through) 20.00 0.75 $40,323.15
OTHER LAND USES (per 1,000 sf unless otherwise noted)
Church 0.72 N/A $1,935.51
Day Care Center (per child) 0.90 0.30 $ 725.82
Private School (per student) 0.90 0.30 $ 725.82
General Hospital (per bed) 1.70 N/A $4,569.96
Convalescent/Nursing (per bed) 0.21 N/A $ 564.52
Gas Station w/mart/car wash (per pump) 13.95 0.50 $18,750.26
Hotel (w/convention facilities/restaurant)
(per room)
0.80 N/A $2,150.57
Motel (per room) 0.81 N/A $2,177.45
Resort Hotel (per room) 0.56 N/A $1,505.40
Business Hotel (per room) 0.63 N/A $1,693.57
RECREATIONAL (per 1,000 sf)
Golf Course (per hole) 3.20 N/A $8,602.27
Movie Theater (per seat) 0.144 N/A $ 387.10
Health Club 2.70 N/A $7,258.17 34