11-01-2011 CC RPT 15 - Laserfiche WebLink

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TFAIF 50 % Fee Reduction Extension ' Page 2 current TUMF. Jurisdictions that elect to continue TUMF reductions will be required to document uncollected fees and backfill uncollected TUMF through measures that could include alternative funding sources, in -kind equivalent contributions, cash, soft cost equivalent contributions and savings from reduced construction costs. It is estimated that the TUMF program lost approximately $14.2 million between January 2010 and September 2011 from the fee reductions in the participating jurisdictions. Construction activity within the City of Riverside for the past five (5) years is summarized below: Year Residential permits Non - Residential permits TUMF Paid 2007 312 95 $9,704,012 2008 75 41 $2,556,686 2009 59 30 $1,827,756 2010 133 15 $1,894,500 2011* 44 16 $207,766 'through 9/30/2011 In order to continue the 50% fee reduction, the City Council must introduce and adopt the attached Ordinance and Resolution. Under both the Ordinance and Resolution, the TUMF reduction will be extended through December 31, 2012, or until the City is notified by WRCOG that the lost revenues exceed $20 million and that the fee should revert to 100 %, whichever occurs first. FISCAL IMPACT The fiscal impact to the City is uncertain. TUMF is assessed as a development fee and paid by project owners. Since the number and type of permits to be issued in the future cannot be reasonably estimated, the lost revenue to the program cannot be predicted with any certainty However, the City would be required to backfill the lost revenues. For the City of Riverside, the lost revenue to the TUMF program through September 2011 is estimated at $2,105,000. Reducing the fee will also reduce the available funding to the program by an undetermined amount, up to the $20 million cap established by WRCOG. By approving the fee reduction, the City's remaining $9.36 million reimbursement for the Magnolia Avenue Grade Separation project may be delayed for an undetermined amount of time. Current programming has $5.7 million for reimbursement for this project through Fiscal Year 2014/15, with the remaining $3.66 million to be programmed in following years, assuming TUMF revenue projections are met. The annual programmed reimbursement amounts range from $700,000 to $1.5 million. It is necessary for the City to remain compliant with the TUMF program and be recognized by WRCOG as a TUMF participating jurisdiction. Failure to do so could result in loss of the City's Measure A Local Return funding of approximately $5.2 million annually. Prepared by: Certified as to availability of funds Approved by: Approved as to form Thomas J. Boyd, Interim Public Works Director Paul C. Sundeen, Assistant City Manager /CFO /Treasurer Deanna Lorson, Assistant City Manager for Scott C. Barber, Interim City Manager Gregory P. Priamos, City Attorney 15 -2