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HomeMy WebLinkAbout2013-06-25; Agricultural Conversion Mitigation Fee Committee Ad Hoc; ; Receive Report on the Available Fund BalanceAgenda Item #4 CITY OF CARLSBAD AGRICULTURAL CONVERSION MITIGATION FEE (ACMF) AD HOC CITIZENS ADVISORY COMMITTEE Subject: Receive Report on the Available Fund Balance Meeting Date: June 25, 2013 Since 2009 the City Council has awarded a total of $7,415,393 in ACMF grant funding for 20 projects. Of that amount, approximately $4.8 million has been disbursed to grantees, while approximately $2.6 million remains to be disbursed. As of the date of preparation of this report, the available/unencumbered balance within the ACMF account that may be awarded to future grant projects is $511,668.53 This available balance has a potential to increase due to the return of unused ACMF funds previously awarded for AGP 06-10—Carlsbad Beach Nourishment. The City of Carlsbad has fulfilled its financial obligation to SANDAG pursuant to the Memorandum of Understanding (and subsequent amendments) entered into between both parties. The project was completed in December 2012 and a five-year monitoring effort is currently underway. As a result of partnering with SANDAG to complete the work as part of a regional effort, the project has been completed under the $1.5 million that the city awarded from the ACMF fund. As a result, the Committee may recommend that the City Council reprogram $615,940 in unused funds previously awarded for AGP 06-10. If the unused portions of awarded funding are reprogramed from AGP 06-10 it would increase the available fund balance to $1,127,608.53. The fund balance additionally has potential to increase in the future due to the following: Accrual of Interest Income—Although approximately $3.1 million exists within the ACMF account, the majority of that (approximately $2.6) is encumbered and available for disbursement to grantees of previously awarded projects. The City of Carlsbad, however, is accruing interest income on the total balance within the ACMF account. During the month of May 2013, interest income deposited into the account totaled $2,686. Potential Conversion of Agricultural Land to Urban Uses—As coastal agricultural land is developed and converted to urban uses, developers can mitigate the loss of the agricultural land by paying a fee at a rate of $10,000 per acre of converted land (the fee is then deposited into the ACMF account). The last deposit to the account that was made due to the conversion of coastal agricultural land took place in November 2011, Agenda Item #4 which totaled $79,000 in agriculture conversion mitigation fees paid for the Muroya Subdivision project. Respectfully Submitted, PLANNING DIVISION