Title
Approval of an Ordinance Relating to Impact Fees
Recommended Action
Committee Recommendation:
The Finance Committee recommends approval of an Ordinance revising impact fees.
City Manager Recommendation:
Move to approve on second reading, an Ordinance revising impact fees.
Report
Issue:
Whether to approve on second reading, an Ordinance revising impact fees.
Staff Contact:
Tim Smith, Interim Director, Community Planning & Development, 360.570.3915
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
Background and analysis did not change from first to second reading.
State law authorizes cities to collect impact fees to ensure that adequate facilities are available to serve new growth and development. The City has adopted impact fees including Park Impact Fees, School Impact Fees and Transportation Impact Fees. The City uses impact fees as a funding mechanism to help build new transportation and parks infrastructure. School impact fees help the Olympia School District and North Thurston Public Schools build infrastructure. The City Council conducts an annual review of impact fees concurrent with the review of the Capital Facilities Plan element of the City’s Comprehensive Plan.
Following a review of the 2025-2030 Capital Facilities Plan, the ordinance proposes to:
1. Amend Transportation Impact Fees for inflation in costs of labor, construction materials, and real property;
2. Revise School Impact Fees as adopted in the Olympia School District’s and North Thurston Public Schools’ 2025-2030 Capital Facilities Plans; and
3. Amend Park Impact Fees to implement year 3 of a 3-year phasing plan to implement impact fee rates identified in the 2022 Parks Impact Fee Rate Study.
Climate Analysis:
Impact fees pay for capital facilities to serve new development at urban densities and infill, consistent with the City’s Comprehensive Plan and Thurston Climate Mitigation Plan.
Equity Analysis:
The City’s impact fee ordinance provides several exemptions and partial exemptions for certain types of new development including low-income housing, assisted living facilities, senior housing, and early learning facilities for children and families that qualify for state subsidized childcare.
Neighborhood/Community Interests (if known):
Members of the community may have an interest in this agenda item. Impact fees help address the costs of infrastructure to serve new development, but they also add to the overall cost of developing land within the City of Olympia.
Financial Impact:
Impact fees support capital projects in the City’s and school districts’ Capital Facilities Plans that are needed to serve new development in the City.
Options:
1. Move to approve on second reading, the Ordinance revising impact fees on second reading.
2. Move to approve on second reading, the Ordinance with modifications.
3. Do not approve Ordinance.
Attachments:
Ordinance