East Contra Costa Fire Protection DistrictBoard Workshop
Presentation to Board:May 8, 2019
2ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Presentation Agenda
1. Project Overview
2. Assessment Formation
3. Development Impact Fee Study
4. User Fee Study
5. Fiscal Impact Analysis
6. Community Facilities District Formation
7. Summary & Timing of Project
3ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Project Overview
Fiscal Sustainability
Assessment Formation
User Fee Study
Development Impact Fee
StudyFiscal Impact
Analysis
Community Facilities District
By utilizing various tools, NBS will help ECCFPD fund services for existing and future service populations.
4ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Assessment Formation - Overview
What is a Fire Suppression
Assessment?
• Funding mechanism which enables cities, counties and special districts to collect special assessments
• Engineer’s Report
• Benefit-based
• Approval process: Property-owner protest ballot
• Fire suppression services only
5ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Assessment Formation - Process
Complete Engineer’s Report Intent Meeting
Mailing Ballots (min 45 days prior to
Public Hearing)
Public Hearing / Protest Ballot Proceeding• If no protest, levy August 2020• Receive 1st installment of
funds December 2020
6ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Assessment Formation - Timing
May
201
9
Jun
2019
Jul 2
019
Aug
2019
Sep
2019
Oct
201
9
Nov
201
9
Dec
201
9
Jan
2020
Feb
2020
Mar
202
0
Apr 2
020
ACTIVITY 1 2 3 4 5 6 7 8 9 10 11 12
Task 1. Prepare Engineer's Report
Task 2. Public Outreach
Task 3. Legal Proceedings
Task 4. Property Owner Approval (via mailed ballot)
Task 5. Implementation
7ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Development Impact Fee Study - Description
Fees Calculated Based on Cost of Mitigating Impacts of Development
Documents 3 Elements of the Nexus: Need, Benefit and Proportionality
Needed to Comply With Mitigation Fee Act (AB 1600, GC 66000) and Relevant Case Law
Impacts Measured Using Appropriate Levels of Service
The Development Impact Fee Study focuses on recovery of costs associated with the impacts of new development on the District's capital infrastructure.
8ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Development Impact Fee Study – Process
Compile Tables of Existing and Future Development by Land Use Type
Identify Existing and Planned Facilities and Costs
Identify New Development Cost Share
Specify Appropriate Demand Factors
Allocate Costs by Development Type and Calculate Impact Fees
9ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Development Impact Fee Study - Timing
May
201
9
Jun
2019
Jul 2
019
Aug
2019
Sep
2019
Oct
201
9
ACTIVITY 1 2 3 4 5 6
Task 1. Quantify Existing and Future Development
Task 2. Project Facilty Needs and Costs
Task 3. Identify Costs Eligible for Impact Fee Funding
Task 4. Allocate Costs to New Development
Task 5.Create a Schedule of Impact Fees per Unit
Task 6. Implementation
10ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
User Fee Study - Description
UnderstandFull Cost of Providing Services
Set District Fees
Accordingly
21Project Goal:
11ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
User Fee Study - Process
Fee Structure Review
Data Collection
• Staffing, budget, time estimates, workload
Full Cost of Service
Cost Recovery
Policy
12ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
User Fee Study - Timing
May
201
9
Jun
2019
Jul 2
019
Aug
2019
Sep
2019
Oct
201
9
Nov
201
9
ACTIVITY 1 2 3 4 5 6 7
Task 1. Project Commencement and Data Collection
Task 2. Operations Inverview and Fee Schedule Design
Task 3. Time and Service Analysis
Task 4. Time Valuation
Task 5. Cost of Service Analysis
Task 6. Conduct Comparative Fee Survey
Task 7. Draft Review and Revision
Task 8. Recommend Pricing Analysis
Task 9. Documentation
Task 10. Legislative Process
Task 11. Project CompletionTBD by District
13ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Fiscal Impact Analysis - Description
• Analysis of revenue generated by new development
• Quantification of costs of new development
• Compare revenue to cost to determine net impact
• Impacts to some services may be funded through a CFD
The Fiscal Impact Analysis will evaluate the fiscal impact of new
development on fire services provided by the District. This
analysis will focus entirely on a projection of operational costs and
the projected funding sources available to fund the ongoing services needs to the District.
14ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Fiscal Impact Analysis - Process
Data Collection and Research
Service Level Analysis
Identify Revenues Applicable to
Future Development
Identify Costs Applicable to
Future Development
Determine Future Development’s Net
Fiscal Impacts
Revenue Feasibility Analysis
Prepare Final Fiscal Impact and
Feasibility Report
15ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Fiscal Impact Analysis - Timing
May
201
9
Jun
2019
Jul 2
019
Aug
2019
Sep
2019
ACTIVITY 1 2 3 4 5
Task 1. Introduction and Project Schedule
Task 2. Data Collection and Research
Task 3. Service Level Analysis
Task 4. Identify Applicable Revenues
Task 5. Identify Applicable Costs
Task 6. Determine Net Fiscal Impacts
Task 7. Revenue Feasibility Analysis
Task 8. Prepare Final Fiscal Impact and Feasibility Report
16ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Community Facilities District - Description
• Special Tax
• Facilities and/or Services
• Property Owner Vote (<12 registered voters) or Registered Voter Vote, 2/3rds Approval
• “Reasonable” tax method, very flexible
The Community Facilities District (CFD) is a culmination of all previous studies which have clearly evaluated and identified the cost recovery gap for capital and operational needs, both for existing and future service populations.
17ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Community Facilities District – Process (Bonded)
• 10% Landowners• 10% Registered voters• Payment of pre-formation costs
1. Adopt Goals and Policies
Within 90 days
• Written request of 2 members of legislative body, or
• Majority approval of legislative body
2. Resolution of Intention• Approve proposed CFD boundary• Name CFD• Describe facilities and/or services• Establish Rate and Method of Apportionment and manner of collection of special tax• Fix time and place for public hearing
3. Resolution of Intention to Incur Debt• Declare necessity for debt• State amount of debt• Fix time and place for public hearing
4. Public Hearing• Held not less than 30 or more than 60 days from adoption of Resolution of Intention• Notice must be published not later than 7 days before Public Hearing• If no majority protest, then:
5. Resolution of Formation • Approve facilities and/or services• Identify party responsible for preparing annual levy• State that lien will be recorded• Identify the recording information for the boundary map• Set election
6. Resolution to Incur Debt• Necessity and purpose of debt• Whole/portion of CFD will pay for debt• Amount, term and max. interest rate of debt• Proposition will be submitted to voters and terms of election
7. Election• 2/3 vote required• If less than 12 registered voters then
landowner election not registered voter election
• Voters consider:• Levy of special tax• Appropriations limit• Authorize issuance of bonds
8. Legislative Body Certifies Election Results
9. Ordinance to Levy Special Tax
10. Resolution Authorizing Bond Issuance• Pledge CFD revenue to debt repayment• Designate terms and conditions of debt
issuance
• Execute debt• Initiate construction or
acquisition• Commence activities to
administer debt, levy and collect assessments and comply with continuing disclosure requirement
Petition Initiated CFD
Local Agency Initiated CFD
18ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Community Facilities District – Process (Non-Bonded)
• 10% Landowners• 10% Registered voters• Payment of pre-formation costs
1. Adopt Goals and Policies
Within 90 days
• Written request of 2 members of legislative body, or
• Majority approval of legislative body
2. Resolution of Intention• Approve proposed CFD boundary• Name CFD• Describe services to be funded• Establish Rate and Method of Apportionment and manner of collection of special tax• Fix time and place for public hearing• Describe voting procedures
3. Public Hearing• Held not less than 30 or more than 60 days from adoption of Resolution of Intention• Notice must be published not later than 7 days before Public Hearing• If no majority protest, then:
4. Resolution of Formation • Approve services to be funded• Identify party responsible for preparing annual levy• State that lien will be recorded• Identify the recording information for the boundary map• Set election
5. Election• 2/3 vote required• If less than 12 registered voters then landowner election not registered voter election• Voters consider:
• Levy of special tax• Appropriations limit
6. Legislative Body Certifies Election Results
7. Ordinance to Levy Special Tax
• Commence activities to levy and collect special taxes
Petition Initiated CFD
Local Agency Initiated CFD
19ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Community Facilities District - Timing
May
201
9
Jun
2019
Jul 2
019
Aug
2019
Sep
2019
Oct
201
9
Nov
201
9
Dec 2
019
Jan
2020
Feb
2020
ACTIVITY 1 2 3 4 5 6 7 8 9 10
Task 1. Data Collection and Cost Estimate
Task 2. District Boundaries
Task 3. Rate and Method Apportionment
Task 4. Legal Proceedings
Task 5. Property Owner Approval
Task 6. Implementation
20ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Summary
Steps to Success:
• Thoughtful and multi-pronged approach• Complementary funding tools• Parallel timelines as much as feasible
21ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Overall Timeline
May
201
9
Jun
2019
Jul 2
019
Aug
2019
Sep
2019
Oct
201
9
Nov
201
9
Dec 2
019
Jan
2020
Feb
2020
Mar
202
0
Apr 2
020
ACTIVITY 1 2 3 4 5 6 7 8 9 10 11 12
Task 1. Assessment Formation
Task 2. User Fee Study
Task 3. Development Impact Fee Study
Task 4. Fiscal Impact Analysis
Task 5. Community Facilities District
22ECCFPD – Assessment Formation, Development Impact Fee Study, User Fee Study, FIA, CFD
Questions and Comments
Questions? PROJECT TEAM
Tim SeufertManaging Director
Sara MaresAssociate Director
Nicole KissamDirector
Stephanie ParsonAssociate Director
Joe ColganColgan Consulting
800-676-7516