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ELF Financing Strategy San Mateo County ELF Study‐2016 February 21, 2017 Prepared by Brion Economics Team Final Report 16 and project administration fees. Also at that time, the City was running two licensed child care programs, with 640 people on the waitlist with a four year wait. The City also anticipates an additional 5,000 residents in the City over the next five years, which will compound the child care demand issue. The impact fee fund has helped to complete four projects since its inception. As designated, the $2.5 million in the fund will be spent to build additional child care facilities in the City, though additional funds will be required, either through the General Fund or other sources. General fund monies need to be designated and approved by the City Council. Additionally, the City passed Measure W to build a new recreational facility and the City is considering using child care impact fee funds to create child care space at the new facility. City of San Mateo Impact Fee Program The City of San Mateo adopted a Commercial Development Fee for child care in 2004, which was amended in 2005. The fee is assessed on projects over 10,000 sqft that are either a new commercial development, an addition of sqft to an existing commercial development, or commercial tenant improvements (TIs) requiring planning approval. The fee rate as of FY 2016‐17, per the Comprehensive Fee Schedule, is $1.08 per sqft. The current balance of the impact fee fund is approximately $950,000 and the large bulk of those funds (approximately $875,000) were generated in the last three to four years, 15 as the market rebounded and building in Silicon Valley growth increased substantially. The City is interested in and obligated to spend these funds within five years. The City will may decide to put out a Request For Proposals if no projects come forward soon. PROPOSED MECHANISMS For this analysis, we have not assumed that any employer‐based child care will be provided although we know that some new centers are likely to occur in the future. The analysis below assumes that all demand from employers is funded through the impact fee option on new residential development. In practice, an impact fee would apply to non‐residential development as well. In this section, possible funding mechanisms are tested and quantified for use in funding child care in the County. Some mechanisms are appropriate for existing development or shortfalls, while others are appropriate for new development, given existing State laws and other regulations. 15 Information on the City of San Mateo’s child care fee program provided by Heather Stewart, Senior Program Analyst, Community Development Department via email on August 11, 2016. 8.C. - Page 35