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Report regarding the transfer of $13,787,957 from the Sewer Capacity Charge Fund (730) to the Sewer Enterprise Fund (710) in accordance with the 2017 Development Mitigation Fee Study and approving Budget Amendment Number 25.057 (Amanda Parker-Govea, Management Analyst I)
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RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the transfer of $13,787,957 from the Sewer Capacity Charge Fund (730) to the Sewer Enterprise Fund (710) representing the 66% buy-in share of total sewer impact fee revenue collected since FY 2017-18 in accordance with the 2017 Development Mitigation Fee Study. and approving Budget Amendment Number 25.057
BACKGROUND/DISCUSSION
In 2017, the City of South San Francisco adopted the Development Mitigation Fee Study prepared by Michael Baker International, which established the fair-share costs associated with providing sewer infrastructure capacity to support new development. The study identified a total fair-share cost of $89,964,937 for the City's sewer infrastructure. Of this total, $60,118,605 (or approximately 66%) was designated as the "buy-in" component, reflecting the value of existing assets that new development should reimburse the City for utilizing.
Since the adoption of the study, the City has collected $20,890,845 in sewer capacity charges. In accordance with the cost allocation established by the 2017 study, 66% of these fees, equivalent to $13,787,957, is attributable to the reimbursement of the Sewer Fund (Fund 710), which financed the existing capacity used by new developments.
This proposed reimbursement aligns with the intent of the Mitigation Fee Act (Government Code ?66000 et seq.) and supports the equitable distribution of infrastructure costs between existing users and new development. It also ensures that the Sewer Fund is reimbursed for its investment in capacity that benefits growth.
FISCAL IMPACT
The proposed transfer of $13,787,957 from the Sewer Capacity Charge Fund to t...
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