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City of Fontana

Annual Report on Development Impact Fees


Fiscal Year Ended June 30, 2011


Background

The Mitigation Fee Act, Government Code Section 66000 et seq., (the Act) governs
the establishment and administration of development impact fees paid by new
development projects for public facilities needed to serve new development. Fees must
be separately accounted for and used for the specific purpose for which the fee was
imposed. The Citys adopted development impact fees are listed in the attached
exhibits. Expenditures are authorized through the annual Operating Budget and the
Citys Capital Improvement Program.

Annual Development Fee Reporting

The Act requires that the City prepare an annual review of all development impact fees
as defined in the Act and make a public report on the fees available to the public after
the end of each fiscal year. Government Code Section 66006(b)(2) requires the report
to be placed on an agenda for review at a public meeting not less than 15 days after the
report is made available to the public.

The City is also required to adopt by resolution certain findings for any fund accounts
which contain unexpended funds as of the fifth fiscal year following the first deposit into
those funds (Government Code Section 66001(d)).

The report is organized as follows:

Section 1. A brief description of the purpose of each development impact fee,
its authorizing legislation and current amount (Government Code Section
66006(b)(1)(A)).

Section 2. A summary of the beginning fund balance, annual fee revenue
collected and interest earned, public improvement expenditures, and the ending
fund balance for each fee (Government Code Section 66006(b)(1)(C) and (D)).

Section 3. A five-year history of the beginning fund balance, annual fee
revenue collected and interest earned, public improvement expenditures, and the
ending fund balance for each fee (Government Code Section 66006(b)(1)(C) and
(D)).

Section 4. A listing of projects funded or to be funded with development
impact fees.

Section 5. Report of Findings for each fee.
SFDU 2-4 5+ Mobile Home Retail Office Industrial
620 San Sevaine Flood Control Drainage facility improvements 90-34 $4,405 $4,405 $4,405 $4,405 $4,405 $4,405
621 Upper Etiwanda Flood Control Drainage facility improvements 90-34 $9,790 $9,790 $9,790 $9,790 $9,790 $9,790
SFDU 2-4 5+ Mobile Home Retail Office Industrial
622 Storm Drainage - Declez North Master interceptor drains & major drainage facilities 2006-46 $23,317 $23,317 $23,317 $23,317 $23,317 $23,317
622 Storm Drainage - Declez South Master interceptor drains & major drainage facilities 2006-46 $27,684 $27,684 $27,684 $27,684 $27,684 $27,684
622 Storm Drainage - Fontana East Master interceptor drains & major drainage facilities 2006-46 $14,196 $14,196 $14,196 $14,196 $14,196 $14,196
622 Storm Drainage - I-10 North Master interceptor drains & major drainage facilities 2006-46 $20,388 $20,388 $20,388 $20,388 $20,388 $20,388
622 Storm Drainage - I-10 South Master interceptor drains & major drainage facilities 2006-46 $4,998 $4,998 $4,998 $4,998 $4,998 $4,998
622 Storm Drainage - I-15 North Master interceptor drains & major drainage facilities 2006-46 $19,065 $19,065 $19,065 $19,065 $19,065 $19,065
622 Storm Drainage - Lower Etiwanda Master interceptor drains & major drainage facilities 2006-46 $8,331 $8,331 $8,331 $8,331 $8,331 $8,331
622 Storm Drainage - Middle Etiwanda Master interceptor drains & major drainage facilities 2006-46 $6,949 $6,949 $6,949 $6,949 $6,949 $6,949
622 Storm Drainage - Project 3-4 Master interceptor drains & major drainage facilities 2006-46 $16,719 $16,719 $16,719 $16,719 $16,719 $16,719
622 Storm Drainage - Upper Etiwanda Master interceptor drains & major drainage facilities 2006-46 $9,013 $9,013 $9,013 $9,013 $9,013 $9,013
SFDU 2-4 5+ Mobile Home Retail Office Industrial
630 Circulation Mitigation Arterial street and interchange improvements 2008-157 $5,743 $3,509 $3,509 $3,509 $8,605 $6,962 $6,962
631 Fire Assessment Fire protection facilities 92-161 $164 $164 $164 $164 $0.25/bldg SF $0.25/bldg SF $0.10/bldg SF
632 General Government Public facilities 2006-46 $796.26 $358.32 $358.32 $358.32 $398.13 $398.13 $398.13
633 Landscape Improvements Median landscaping 2006-46 $573.20 $348.51 $348.51 $348.51 $872.41 $698.16 $348.51
634 Library Cap Improvements Library facilities 2006-46 $533.30 $239.99 $239.99 $239.99 $42.83 $42.83 $42.83
635 Park Development Park and recreational facilities Ord. 1061 $6,500 $5,981.70 $5,139.37 $5,476.44 N/A N/A N/A
636 Police Cap Facilities Police facilities, vehicles and equipment 2006-46 $526.52 $710.80 $710.80 $710.80 $562.62 $562.62 $131.63
702 Sewer Capital Sewer connection 2006-46 $876.61 $876.61 $876.61 $876.61 $876.61/EDU $876.61/EDU $876.61/EDU
City of Fontana
Fiscal Year Ended June 30, 2011
Fund Description
Residential Fees per Net Developable Acre
Fee Description
Fund Description
Last Updated
Brief Description and Amount of Fees
Development Impact Fees
Fund # Fee Description
Government Code Section 66006(b)(1)(A) and (B)
Fund #
Annual Report
Non-Residential Fees per 1,000
Gross Building SF
Non-Residential Fees per 1,000
Gross Building SF
Residential Fees per Dwelling Unit
Residential Fees per Gross Acre
Last Updated
Last Updated
Fund Description Fee Description Fund #
Non-Residential Fees per 1,000
Gross Building SF
Section 1
Page 1 of 1
Beginning
Balance
Ending
Balance
07/01/10 06/30/11
620 Flood Control - San Sevaine 643,579 26,296 101,749 (52,252) (7,300) 712,072
621 Flood Control - Etiwanda 458,930 (417,712) 13,539 0 54,757
622 Storm Drain 18,134,020 486,906 349,342 (727,849) (206,000) 18,036,419
630 Circulation Mitigation 1,309,568 1,418,466 111,043 (3,750,630) (147,100) (1,058,653)
631 Fire Facility 1,255,215 40,377 27,804 (381,954) (22,300) 919,142
632 Public Facilities 1,507,726 80,680 35,850 (662,237) (4,200) 957,819
633 Median Landscaping 2,346,731 120,207 35,327 (161,832) (118,300) 2,222,133
634 Library Facility 77,451 32,250 1,296 (9,300) 101,697
635 Park Development 1,066,332 533,817 25,937 (250,887) (454,300) 920,899
636 Police Facilities 1,453,721 118,115 34,184 (402,314) (21,100) 1,182,606
702 Sewer Connection 2,077,474 250,961 9,215 280,816 (470,292) (260,500) 1,887,674
TOTALS 30,330,747 2,690,363 745,286 280,816 (6,860,247) (1,250,400) 25,936,565
City of Fontana
Fiscal Year Ended June 30, 2011
Fund Balances, Fees Collected, Interest Earned, and Project Expenditures
Government Code Section 66006(b)(1)(C) and (D)
Annual Report
Development Impact Fees
Cost
Allocation
Fund Description Fund
Fees
Collected
Interest
Earned
Other
Revenues
Capital
Expenditures
Section 2
Page 1 of 1
Fee Type 2010/11 2009/10 2008/09 2007/08 2006/07
Flood Control - San Sevaine (620)
Beginning balance 643,579 4,822,205 4,624,315 3,872,545 7,908,393
Revenue 26,296 52,667 314,970 631,061 1,650,069
Interest 101,749 113,342 10,745 200,829 335,863
Other revenue
Capital (52,252) (4,338,135) (76,325) (56,220) (5,999,980)
Cost allocation (7,300) (6,500) (51,500) (23,900) (21,800)
Ending balance 712,072 643,579 4,822,205 4,624,315 3,872,545
Flood Control - Etiwanda (621)
Beginning balance 458,930 442,587 442,934 423,120 368,655
Revenue 0 0 0 0 32,860
Interest 13,539 17,443 553 19,814 21,605
Other revenue
Capital
Cost allocation (1,100) (900)
PPA - fees owed to County (417,712)
Ending balance 54,757 458,930 442,587 442,934 423,120
Storm Drain (622)
Beginning balance 18,134,020 16,122,101 17,328,744 16,964,943 13,729,551
Revenue 486,906 2,049,355 1,243,342 2,019,759 2,607,260
Interest 349,342 640,703 87,576 819,357 852,071
Other revenue
Capital (727,849) (623,839) (2,518,561) (2,448,515) (171,839)
Cost allocation (206,000) (54,300) (19,000) (26,800) (52,100)
Ending balance 18,036,419 18,134,020 16,122,101 17,328,744 16,964,943
Circulation Mitigation (630)
Beginning balance 1,309,568 10,221,982 10,889,147 11,078,474 10,005,702
Revenue 1,418,466 3,933,395 1,069,478 2,851,246 2,467,676
Interest 111,043 175,494 (5,952) 443,879 591,997
Other revenue 110,222 79,365
Capital (3,750,630) (12,933,203) (1,785,413) (3,460,452) (2,019,066)
Cost allocation (147,100) (88,100) (55,500) (24,000) (47,200)
Ending balance (1,058,653) 1,309,568 10,221,982 10,889,147 11,078,474
Government Code Section 66006(b)(1)(C) and (D)
Annual Report
Development Impact Fees
City of Fontana
Fiscal Year Ended June 30, 2011
Fund Balances, Fees Collected, Interest Earned, and Project Expenditures - Five Year History
Section 3
Page 1 of 3
Fee Type 2010/11 2009/10 2008/09 2007/08 2006/07
Government Code Section 66006(b)(1)(C) and (D)
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2011
Fund Balances, Fees Collected, Interest Earned, and Project Expenditures - Five Year History
Fire Facility (631)
Beginning balance 1,255,215 1,528,692 1,765,272 1,285,480 2,377,920
Revenue 40,377 31,977 37,026 137,953 262,962
Interest 27,804 63,011 9,723 76,544 113,854
Other revenue 500,000 684,828
Capital (381,954) (354,065) (267,129) (226,205) (2,145,484)
Cost allocation (22,300) (14,400) (16,200) (8,500) (8,600)
Ending balance 919,142 1,255,215 1,528,692 1,765,272 1,285,480
Public Facilities (632)
Beginning balance 1,507,726 1,721,542 1,700,707 1,284,110 1,802,422
Revenue 80,680 150,042 79,899 474,979 408,495
Interest 35,850 72,596 4,733 67,818 86,808
Other revenue 174,685
Capital (662,237) (428,954) (51,497) (120,200) (1,180,000)
Cost allocation (4,200) (7,500) (12,300) (6,000) (8,300)
Ending balance 957,819 1,507,726 1,721,542 1,700,707 1,284,110
Median Landscaping (633)
Beginning balance 2,346,731 2,669,561 3,999,555 3,633,166 3,242,388
Revenue 120,207 201,339 91,104 477,038 325,397
Interest 35,327 80,423 27,712 175,846 189,527
Other revenue
Capital (161,832) (583,992) (1,437,210) (274,795) (109,046)
Cost allocation (118,300) (20,600) (11,600) (11,700) (15,100)
Ending balance 2,222,133 2,346,731 2,669,561 3,999,555 3,633,166
Library Facility (634)
Beginning balance 77,451 24,240 97,812 3,904,831 3,133,788
Revenue 32,250 92,018 43,152 158,323 233,534
Interest 1,296 593 1,825 146,688 188,976
Other revenue 466 395,577
Capital (113,915) (4,112,030) (47,044)
Cost allocation (9,300) (39,400) (5,100)
Ending balance 101,697 77,451 24,240 97,812 3,904,831
Section 3
Page 2 of 3
Fee Type 2010/11 2009/10 2008/09 2007/08 2006/07
Government Code Section 66006(b)(1)(C) and (D)
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2011
Fund Balances, Fees Collected, Interest Earned, and Project Expenditures - Five Year History
Park Development (635)
Beginning balance 1,066,332 472,174 5,578,794 7,603,113 6,420,360
Revenue 533,817 1,261,506 353,150 824,075 1,746,397
Interest 25,937 17,215 99,114 313,478 386,885
Other revenue 134,136
Capital (250,887) (642,563) (5,534,784) (3,128,672) (1,018,065)
Cost allocation (454,300) (42,000) (24,100) (33,200) (66,600)
Ending balance 920,899 1,066,332 472,174 5,578,794 7,603,113
Police Facilities (636)
Beginning balance 1,453,721 1,842,777 1,985,225 1,790,146 1,537,523
Revenue 118,115 135,908 87,110 221,391 223,680
Interest 34,184 76,194 8,083 87,968 89,282
Other revenue 184,043
Capital (402,314) (588,858) (229,841) (106,280) (232,782)
Cost allocation (21,100) (12,300) (7,800) (8,000) (11,600)
Ending balance 1,182,606 1,453,721 1,842,777 1,985,225 1,790,146
Sewer Connection (702)
Beginning balance 2,077,474 483,752 234,334 5,397,615 2,325,983
Revenue 250,961 337,720 152,015 498,345 502,472
Interest 9,215 18,094 42,110 62,166 219,527
Other revenue 226,721 634,062 11,702 241,322 3,969,696
Loan proceeds 54,095 1,291,876 1,654,240 5,280,986
Loan repayment (416,115) (416,115) (416,115)
Capital (54,177) (121,915) (1,169,534) (11,206,500) (1,596,063)
Cost allocation (260,500) (150,000) (25,000) (39,600) (24,000)
Ending balance 1,887,674 2,077,474 483,752 234,334 5,397,615
Section 3
Page 3 of 3
Flood Control - San Sevaine (620) 128,755
Due to County Flood Control 128,755
See Findings
Flood Control - Etiwanda (621) 0
See Findings
Storm Drain (622) 11,164,066
9316000622 WEST FONTANA CHANNEL On hold 6,735,000 500,000 0 500,000 7%
9320200622 CAMPUS PARKING 2012 4,685,000 420,000 240,306 179,694 9%
9320800622 DUNCAN CYN RCB/PH 1-LINE A On hold 10,469,000 10,000,000 0 10,000,000 96%
9322400622 MANGO SD:HGHLND-BASELINE On hold 2,825,000 200,000 6,639 193,361 7%
9328300622 LAUREL/PE TRAIL STORM DRAIN 80,000 80,000 22,454 57,546 100%
9328400622 ALMERIA S OF FTHL STM DR 200,000 200,000 51,351 148,649 100%
9328500622 TOKAY/PE TRAIL STRM DRN 100,000 100,000 15,184 84,816 100%
Circulation (630) 39,037,521
Due to SANBAG 10,582,726
9305701630 J URUPA:TAMARIND TO ALDER On hold 681,596 23,596 23,596 0 3%
9306006630 SIERRA/RIVERSIDE INTER On hold 5,990,000 319,375 206,568 112,807 5%
903100630 SIERRA: VLY-FOOTHILL MED 207,439 207,439 31,823 175,616 100%
9308700630 I-10/CHERRY INTERCHANGE 2014 9,654,500 9,489,500 367,458 9,122,042 98%
9308800630 I-10/CITRUS INTERCHANGE 2014 27,002,122 16,775,122 2,768,146 14,006,976 62%
9311700630 CITRUS: J URUPA TO SLOVER 2012 3,262,837 1,288,837 355,215 933,622 40%
9315100630 SIERRA:VALLEY TO SAN BDNO 2011 2,509,062 534,062 154,481 379,581 21%
9321500630 VICTORIA/CHERRY REALIGN On hold 300,000 300,000 0 300,000 100%
9323600630 CYPRESS: J URUPA TO SLOVER 1,363,584 690,584 192,763 497,821 51%
9326500630 SIERRA LKS PKWY ST IMPR 5,060,000 300,000 11,131 288,869 6%
9326600630 CITRUS:SLVR 800FT S I10 2013 3,552,000 300,000 0 300,000 8%
9327100630 SANTA ANA: CITRUS TO CYPRESS 2012 1,200,000 1,200,000 226,745 973,255 100%
9327900630 FTHL: SIERRA - MANGO ST IMPR 2013 125,000 125,000 764 124,236 100%
9390209630 I-10/ALDER INTERCHANGE On hold 332,000 12,000 12,000 0 4%
9391700630 I-15/DUNCAN CANYON INTERCHANGE On hold 44,673,000 1,239,970 0 1,239,970 3%
Projects
Government Code Section 66006(b)(1)(E)
City of Fontana
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2011
Project # Project
% From Dev
Impact Fees
Expended
Development
Impact Fees
Budgeted
Development
Impact Fees
Project
Completion
Total Project
Cost
Pending DIF
Expenditures
Section 4
Page 1 of 2
Projects
Government Code Section 66006(b)(1)(E)
City of Fontana
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2011
Project # Project
% From Dev
Impact Fees
Expended
Development
Impact Fees
Budgeted
Development
Impact Fees
Project
Completion
Total Project
Cost
Pending DIF
Expenditures
Fire Facility (631) 11,312,686
Due to Bondholders 11,128,918
9324000631 FIRE STATION #71 2012 7,513,000 960,337 776,569 183,768 13%
Public Facilities (632) 257,312
9320200632 CIVIC CTR CAMPUS PARKING 2011 4,179,000 1,400,000 1,142,688 257,312 34%
Median Landscaping (633) 482,331
9315100633 SIERRA: VALLEY TO SAN BERNARDINO 2011 2,509,062 400,000 11,821 388,179 16%
9327400633 FTHL: SIERRA-MANGO MEDIAN 2012 954,000 96,000 1,848 94,152 10%
Library Facility (634) 0
Park Development (635) 836,278
9421400635 MARTIN TUDOR PARK REDESGN 2011 472,925 472,925 36,647 436,278 100%
9424400635 CENTRAL PARK 2014 12,080,000 400,000 0 400,000 3%
Police Facilities (636) 801,832
9201100636 POLICE UPGRADE/EXPANSION 2012 13,723,000 1,101,900 486,605 615,295 8%
9202000636 PD FACILITIES UPGRADE 2012 418,000 418,000 231,463 186,537 100%
Sewer Connection (702) 7,720,074
Due to State Revolving loan for San Bernardino Trunk Sewer 7,490,074
9328800702 SIERRA @ 1-15 FWY 230,000 230,000 0 230,000 0%
Section 4
Page 2 of 2


City of Fontana
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2011

Report of Findings
(Government Code Section 66001(d))


Section 5
Page 1 of 3
San Sevaine Flood Control Fund 620
The purpose of the fee, the relationship between the fee and the purpose, the sources
of anticipated funding and the approximate dates on which funding is expected are set
forth in the Citys most recent Capital Improvement Plan for Fiscal Years 2011/2012
2017/2018, which is incorporated herein by reference. The San Sevaine Flood Control
fee is a pass-through fee to the San Bernardino County Flood Control District
(SBCFCD). The SBCFCD determines the project priorities and project expenditures
and by agreement the SBCFCD will request a draw of funds on a project priority basis.
Fees are currently being accumulated and are on reserve for these SBCFCD projects.

Upper Etiwanda Flood Control Fund 621
The purpose of the fee, the relationship between the fee and the purpose, the sources
of anticipated funding and the approximate dates on which funding is expected are set
forth in the Citys most recent Capital Improvement Plan for Fiscal Years 2011/2012
2017/2018, which is incorporated herein by reference. The Upper Etiwanda Flood
Control fee is a pass-through fee to the San Bernardino County Flood Control District
(SBCFCD). The SBCFCD determines the project priorities and project expenditures
and by agreement the SBCFCD will request a draw of funds on a project priority basis.
Fees are currently being accumulated and are on reserve for these SBCFCD projects.

Storm Drainage Fund 622
The purpose of the fee, the relationship between the fee and the purpose, the sources
of anticipated funding and the approximate dates on which funding is expected are set
forth in the Citys most recent Capital Improvement Plan for Fiscal Years 2011/2012
2017/2018, which is incorporated herein by reference.

Circulation Mitigation Fund 630
The purpose of the fee, the relationship between the fee and the purpose, the sources
of anticipated funding and the approximate dates on which funding is expected are set
forth in the Citys most recent Capital Improvement Plan for Fiscal Years 2011/2012
2017/2018, which is incorporated herein by reference. Many of the projects funded with
these fees are subject to a Measure I Agreement which identifies the Citys DIF share.
In order to move projects forward, funds have been borrowed from other sources. All
circulation mitigation fees collected are obligated to repay those other sources.





City of Fontana
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2011

Report of Findings
(Government Code Section 66001(d))


Section 5
Page 2 of 3
Fire Facility Fund 631
The purpose of the fee, the relationship between the fee and the purpose, the sources
of anticipated funding and the approximate dates on which funding is expected are set
forth in the Citys most recent Capital Improvement Plan for Fiscal Years 2011/2012
2017/2018, which is incorporated herein by reference. In order to fund the construction
of Fire Station No. 71, the Fontana Public Financing Authority issued Taxable Recovery
Zone Economic Development Bonds on December 8, 2010, in the amount of
$5,420,000. Bond debt service for Fiscal Year 2011/12 is $245,507, escalating to $
460,411 for Fiscal Year 2042/43. Fire facility fees as available will be used to service
this debt obligation, with the shortfall being paid by the Fontana Fire Protection District.

Public Facilities Fund 632
The purpose of the fee, the relationship between the fee and the purpose, the sources
of anticipated funding and the approximate dates on which funding is expected are set
forth in the Citys most recent Capital Improvement Plan for Fiscal Years 2011/2012
2017/2018, which is incorporated herein by reference.

Median Landscaping Fund 633
The purpose of the fee, the relationship between the fee and the purpose, the sources
of anticipated funding and the approximate dates on which funding is expected are set
forth in the Citys most recent Capital Improvement Plan for Fiscal Years 2011/2012
2017/2018, which is incorporated herein by reference.

Library Facility Fund 634
The purpose of the fee, the relationship between the fee and the purpose, the sources
of anticipated funding and the approximate dates on which funding is expected are set
forth in the Citys most recent Capital Improvement Plan for Fiscal Years 2011/2012
2017/2018, which is incorporated herein by reference.

Park Development Fund 635
The purpose of the fee, the relationship between the fee and the purpose, the sources
of anticipated funding and the approximate dates on which funding is expected are set
forth in the Citys most recent Capital Improvement Plan for Fiscal Years 2011/2012
2017/2018, which is incorporated herein by reference.





City of Fontana
Annual Report
Development Impact Fees
Fiscal Year Ended June 30, 2011

Report of Findings
(Government Code Section 66001(d))


Section 5
Page 3 of 3
Police Facilities Fund 636
The purpose of the fee, the relationship between the fee and the purpose, the sources
of anticipated funding and the approximate dates on which funding is expected are set
forth in the Citys most recent Capital Improvement Plan for Fiscal Years 2011/2012
2017/2018, which is incorporated herein by reference.


Sewer Connection Fund 702
The purpose of the fee, the relationship between the fee and the purpose, the sources
of anticipated funding and the approximate dates on which funding is expected are set
forth in the Citys most recent Capital Improvement Plan for Fiscal Years 2011/2012
2017/2018, which is incorporated herein by reference. In order to fund the San
Bernardino Trunk Sewer project, $8,322,304 was borrowed from the State Revolving
Loan Fund. The loan repayment is equal to $416,115 per year. Sewer connection fees
are obligated for one-half of this annual repayment amount.