Title
Approval of an Ordinance to Adopt Code Amendments Related to Olympia Municipal Code Chapters 15.04, 15.08, and 15.16 Related to Park Impact Fees
Recommended Action
Committee Recommendation:
The Finance Committee recommends approval of an ordinance amending the Olympia Municipal Code (OMC) chapters 15.04, 15.08, and 15.16 related to Park Impact Fees in compliance with State law.
City Manager Recommendation:
Move to approve, on first reading and forward to second reading, an ordinance amending the OMC chapters 15.04, 15.08, and 15.16 related to Park Impact Fees in compliance with State law.
Report
Issue:
Whether approve, on first reading and forward to second reading, an ordinance amending the OMC chapters 15.04, 15.08, and 15.16 related to Park Impact Fees in compliance with State law.
Staff Contact:
Laura Keehan, Director of Parks Planning & Maintenance, Parks Arts and Recreation, 360.570.5855
Tammy LeDoux, Finance & Policy Coordinator, Parks, Arts and Recreation, 360.753.8053
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The proposed changes to OMC Chapters 15.04, 15.08, and 15.16 are to update code sections related to the new park impact fee methodology approved by City Council on June 2, 2026. These revisions address administrative updates and clarify existing language.
In 2023, the Washington State Legislature adopted Senate Bill 5258, amending RCW 82.02.060 to require park impact fee schedules to reflect the proportionate impact of different housing unit types. The law requires lower park impact fees for smaller housing units based on square footage, number of bedrooms, or trips generated. The City must adopt a compliant methodology within six months of adoption of the Comprehensive Plan, requiring implementation by June 30, 2026.
The City hired FCS Group to scale the current park impact fees to comply with this recent change in State law. The existing methodology determines fees by dwelling type; the proposed methodology shifts the basis of the fee calculation to the dwelling’s square footage. An update of the fees is not included as a part of this study as this change is only to the methodology and is intended to be revenue neutral. The next park impact fee rate study will be completed in Fall 2028 after the next Parks Plan is adopted.
Climate Analysis:
Park impact fees pay for park facilities to serve new residential development at urban densities and infill, which is consistent with the City's Comprehensive Plan and is a key climate mitigation strategy.
Equity Analysis:
This new methodology is designed to fairly fund park infrastructure while reducing the cost burden on smaller-sized dwelling units, to support community needs and housing affordability. Also, dwelling units that meet low-income housing criteria are given an 80% discount on their park impact fees in Olympia.
Parks play an important role in the community as places that are free and accessible to the public for social connection and gathering, physical and mental health, and preservation and connection with nature.
Financial Impact:
None identified. The new park impact methodology and subsequent code changes are intended to be revenue neutral.
Neighborhood/Community Interests (if known):
Olympians have shown a strong level of community support for Parks, Arts and Recreation services, as demonstrated by two voted funding measures and strong participation in the development of the Parks Plan. The YES Olympia Parks Coalition was heavily involved in the formation of the Olympia Metropolitan Park District and members continue to take a strong interest in the parks system.
The Olympia Master Builders (OMB) and housing community may have interest in the changes in the code for park impact fees rates. Staff has informed the OMB about the proposed park impact fee methodology change.
Options:
1. Move to approve, on first reading and forward to second reading, an ordinance amending the OMC chapters 15.04, 15.08, and 15.16 related to Park Impact Fees in compliance with State law.
2. Do not approve the proposed Ordinance to amend the Olympia Municipal Code relating to Park Impact Fees. Park Impact Fees would no longer be collected.
3. Take other action.
Attachments:
Ordinance