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Home My WebLink About00 - Non-Agenda - Toll Roads - Handout/PowerPointSeptember 25, 2018 Non -Agenda Development Impact Fees September 25, 203.8 Newport Beach City Council Meeting Development Impact Fee Program Toll Road funding sources include Revenue Bonds, Development Impact Fees (DIF), CA Transportation Commission Grants, State and Local Transportation Partnership funding programs. The funds the TCA uses are TAXES and public monies. The TCA was established by a Joint Powers Agreement (JPA), San Juan Capistrano, Santa Ana, Tustin and Yorba Linda on January 30, 1986. Purpose: Allow infrastructure to be built so OC could be developed at a time when Sacramento was ignoring the requests for OC infrastructure. TCA, a JPA, was created and Development Fees were allowed to be collected. DIF's contributed to up -front money to fund preliminary engineering, design and environmental work on the toll road projects. Supplemental revenue stream. Used to repay construction debt, fund additional improvements and cover cost of operating toll roads. What are Development Impact Fees? Fees (taxes) paid to the TCA anytime a new home is built/ remodeled or commercial space is constructed in the LOCAL Areas of Benefit of the 73, 133,24:L and 261 Toll Roads. New/ remodeled single or multi -family residential units: Fees are assessed on a per unit basis for single family and multi -family. New or additional non-residential units: fees assessed on a per square foot basis. TCA originally forecasted in 1985 that 48.5% of cost of TCA roads would be paid by development impact fees. Who Pays DiFs? The County of Orange and member cities collect fees when a building permit is issued and then pass along to the TCA. The County of Laguna Hills Rancho Santa Orange Margarita Lake Forest Aliso Viejo San Clemente Laguna Niguel Anaheim Laguna Woods San Juan Capistrano Costa Mesa Santa Ana Mission Viejo Dana Point Tustin Irvine Yorba Linda Orange Foothill Eastern Development Impact Fees by City As of 313112018 (in thousands) City Total (1985) - 03/3112018 Anaheim $ 24,201 Dana Point 26 Imine 212,088 Lake Forest 57,160 Mission Viejo 20,900 Orange 11,436 Rancho Santa Margarita 1,458 San Clemente 48,655 000 San Juan Capistrano 5,927 Santa Ana 7,776 Tustin 27,297 Yorba Linda 23,275 County of Orange 74,557 Total $ 514,8(]6 9� V10 l iVr*FlAlW 0 10 I• San Joaquin Bills Development impact Fees by City As of 3/3112018 (in thousands) Tota] City (1986) - 03/31/2018 Aliso Viejo $ 2,522 Costa Mesa 12,231 Dana Point 5,799 lrvine 61,316 Laguna hills 1,326 Laguna Niguel 20,225 Laguna Woods 1,571 M 5 Nelvporl Beach I1,551 San Juan Capistrano 14.072 Santa Ana 9,889 County of Orange 45,937 Total $ 191.528 What does this mean for Newport Beach? June i4TCA Board meeting - Director Moreno (Anaheim) refused to support FY2019TCA budget due to disagreement with automatic annual DIF increase. Who benefits from collection of these DIF taxes? Member cities and their taxpaying residents or the TCA? TCA is already funded with tax payer money. Residents don't need more taxes! MAJOR THOROUGHFARE AND BRIDGE FEE PROGRAM FY 2019 RATES EFFECTIVE JULY 1, 2018 — JUNE 30, 2019 SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY ZONE A: ZONE B: Single Family $5,591/unit Multi -Family $3,256/unit Nan -Residential $7.491sq. ft. Single Family $4,332/unit Multi -Family $2,528/unit Nan -Residential $5.531sq. ft. Local Areas ot Benefit (AOB) A & In &m,0 by .ddrea., ares .V—t .~ � aomo FacthMr"w1 m 6+E} EFFECTIVE JULY 1.2Ui7- JUNE 80.ZU18 dgr,orAPXp.raunumtHr. � C F'"3W,msuaare Cama o -meg San Jo nan HIM [SJH) SAN JOAQUIN HILLS TRANSPORTATION CORRIDOR AGENCY sa�c.a�e wiX-mn.w ,+c+w• rua.-xa,.e ZONE A: Single Family 55,4461unit —:j Multi-Family$3,i71lunit 14- FM -z— p Non -Residential 57.301sq, tt. vmg - ZONE B: " Single Family $4.2191unn Multl-Family $2,4521unK Non-R"identiel $5.391$4. Q. Hun p " FOOTHI LLIEASTERNTRAN S P ORTAT IO N CORRIDOR AGENCY X-xw,ea • 2one A i.'• � ZONE A: Single Famlly $5,6731uni1 xonns Multi -Family $3,312lunil Non-Reaidentlal $7.69 sq. N. • lana A ' ZONE B: Single Family $4,0371unil Mulll-Family $2,354/unit Non -Residential $4.571sq. n. 97N -Z B ._ pn Juy 4 W arch year, lh. Fe. rete rchYdulY will 3nCre!!. hy: a.� � • San Joaquin Hila FCA 2-BB7% FooThYVEastam TGA 2.206% TCA Funded with Tax payer money? TCA relies on public subsidies: TCA received $153. million in public funding during the construction phase. TCA was the recipient of a $i.i Billion tax payer bailout when they were at risk of bankrupcy in 2oo8. TCA has collected over $2 BILLION in Development Fees —this is a TAX collected from OC homeowners and businesses. Over the life of DIF Program, F/ETCA alone has collected close to 1/2 Billion dollars ($462.7 Million)! Caltrans maintains the toll roads using our tax dollars. Toll rates continue to increase! If they can afford it, residents have to pay outrageously high rates to drive the toll roads. Tax payers pay for the Toll Roads regardless if they can afford to use them through Caltrans and First Responders that service the Tol I Roads. TCA Funded with Tax payer money? The $z.3 BILLION of actual costs incurred by the TCA for construction of the toll roads is the original cost estimate of 6858 million. With the 241 south extension, the estimated cost of $1.7 billion would result in total costs of over $4 billion forTCA roads beyond original cost of $858 million. Bonds refinanced and "Toll free" date being pushed back again — drivers will pay tolls to 2053, another 35 years! Agency is carrying over $4 BILLION in debt, the highest / mile in the country! *Average debt/ mile: - F/ETCA (36.6 miles): s64M - SJHTCA (15 miles): $136M - US toll Roads: $17.1M *Source: Moody's Investor Service, 2013 (Pacific Research Institute) TCA a FAILED experiment The TCA has not built anything in over 20 years — why is the agency still allowed to collect these development fees? Agency benefits financially from DIFs (new/ remodeled construction), CA and State Federal taxes, drivers paying toll and non -compete with Caltrans. Where is the money going? According top the Pacific Research Institute report which was published 5 years go, funds being spent on generous compensation packages, marketing, consultants and legal fees relating to the 24i extension (over i/3 of F/ETCH expenses.) Its time for the TCA to pay off the debt and make the roads free, as originally planned! OC cities and residents are not a piggy bank and the TCA should not be looking into Regional Mobility — it was formed solely for LOCAL AREA BENEFIT. San Joaquin Hills Development Impact Fees by City As of 3/31/2018 (in thousands) Total City (1986) - 03/31/2018 Aliso Viejo Costa Mesa Dana Point Irvine Laguna Hills Laguna Niguel Laguna Woods Mission Viejo Newport Beach San Clemente San Juan Capistrano Santa Ana County of Orange Total 2,522 12,231 5,799 61,316 1,326 20,225 1,571 65 11,551 5`,024 14,072 9,889 45,937 $ 191,528 Foothill Eastern Development Impact Fees by City As of 3/31/2018 (in thousands) Total City (19$6) - 43/31/2418 Anaheim Dana Point Irvine Lake Forest Mission Viejo Orange Rancho Santa Margarita San Clemente San Juan Capistrano Santa .Ana Tustin Yorba Linda County of Orange Total $ 24,241 26 212,4$8 57,164 20,940 11,486 1,458 48,655 5,927 7.776 27,297 23,275 74,557 514,806 San Joaquin Hills Development Impact Fees by City As of 3/31/2018 (in thousands) Total City (1986) - 031311.2018 Aliso Viejo Costa Mesa Dana Point Irvine Laguna Hills Laguna Niguel Laguna Woods Mission Viejo Newport Beach San Clemente San Juan Capistrano Santa Ana County of Orange 2,522 12,231 5,799 61,316 1,326 20,225 1,571 65 11,551 5,024 14,0772 9,889 45,937 Total S 191,528 Foothill Eastern Development Impact Fees by City As of 3/3112018 (in thousands) Total City (1986) - 03/3112018 Anaheim $ 24,201 Dana Point Irvin Lake Forest Mission Viejo Orange Rancho Santa Margarita San Clemente San Juan Capistrano Santa Ana Tustin Yorba Linda County of Orange Total 26 2.12,488 57,154 20,900 11,486 1,458 48,655 5,927 7,776 27,297 23,275 74,557 514,806 San .Joaquin Hills Development Impact Fees by City As of 3/3112018 (in thousands) Total City (1986) - 03/31/2018 Aliso View Costa Mesa Dana Paint Irvine Laguna Hills Laguna Niguel Laguna Woods Mission Viejo Newport Beach San Clemente San Juan Capistrano Santa Ana County of Orange Total 2,522 12,231 5,799 61,316 1,326 20,225 1,571 65 11,551 5,024 14,072 9,889 45,937 $ 191,528 Foothill Eastern Development Impact Fees by City As of 3/31/2118 (in thousands) Total City (1986) - 43/31/2418 Anaheim Dana Paint Irvine Lake Forest Mission Viejo }range Rancho Santa Margarita San Clemente San Juan Capistrano Santa Ana Tustin Yorba Linda County of Orange Total 24,241 26 2.12;488 57,164 24.900 11,486 1,458 48,655 5,927 7,776 27,297 23,275 74,557 514,806 San Joaquin Hills Development Impact Fees by City As of 3/31/2018 (in thousands) Total City (1986) - 03/31/2418 Aliso Viejo Costa Mesa Dana Point Irvine Laguna. Hills Laguna Niguel Laguna Woods Mission Viejo Newport Beach San Clemente San Juan Capistrano Santa Ana County of Orange Total 2,522 12,231 5,799 61,316 1,326 20,225 1,571 65 11,551 5,024 14,072 9,889 45,937 191,528 Foothill Eastern Development Impact Fees by City As of 3/31/2018 (in thousands) Total City (1986) - 03/31/2018 Anaheim Dana Point Irvine Lake Forest Mission 'Viejo Orange Rancho Santa Margarita San Clemente San Juan Capistrano Santa Ana Tustin Yorba Linda County of Orange Total 24,201 26 2.1.2,088 57,1511 2+0,944 11,4801 1,458 48,555 5,927 7,776 27,297 23,275 74,557 514,806 San Joaquin Hills Development Impact Fees by City As of 3/31/2018 (in thousands) Total City (1986) - 03131/2018 Aliso Viejo Costa Mesa Dana Point Irvine Laguna Hills Laguna Niguel Laguna Woods Mission Viejo Newport Beach San Clemente San Juan Capistrano Santa Ana County of Orange Total 2,522 12,231 5,799 61,316 1,3326 20,225 1,571 65 11,(55 1 5,024 14,072 9,889 45,937 $ 191,528 Foothill Eastern Development Impact Fees by City As of 3/31/2018 (in thousands) Total City (1986) 033/31/20318 Anaheim Dana Point Irvine Lake Forest Mission Viejo Orange Rancho Santa Margarita San Clemente San .Tuan Capistrano Santa Ana Tustin Yorba Linda County of Orange Total 24,2031 26 212.0388 57,1603 203,90}03 11,486 1,458 48,655 5,927 7,776 27,297 23,275 74,557 514,806 San Joaquin :Hills Development Impact Fees by City As of 3131/2018 (in thousands) Total City (1986) - 03/311.2018 Aliso Viejo Costa Mesa Dana Point Irvine Laguna Hills Laguna Miguel Laguna Woods Mission Viejo Newport Beach San Clemente San Juan Capistrano Santa Ana County of Orange 2,522 12,231 5,799 61,316 1,326 20,225 1,571 65 11,551 5,024 14,072 9,889 45,937 Total $ 191,528 Foothill Eastern Development Impact Fees by City As of 3/31/2018 (in thousands) Total City (1986) 03/3112018 Anaheim Dana Point Irvine Lake Forest Mission Viejo Orange Rancho Santa .Margarita San Clemente San Juan Capistrano Santa Ana Tustin Yorba Linda County of Orange Total 24,201 26 212,088 57,160 20,900 11,486 1,458 48,655 5,927 7,776 27,297 23,275 74,557 514.806