Title
Approval of an Ordinance Updating Impact Fees
Recommended Action
Committee Recommendation:
The Finance Committee recommends move to approve the attached ordinance updating impact fees.
City Manager Recommendation:
Move to approve the ordinance updating impact fees on second reading.
Report
Issue:
Whether to approve the Ordinance updating impact fees on second reading.
Staff Contact:
Tim Smith, Community Planning & Development Deputy Director, 360.570.3915
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
There were no changes to the ordinance 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 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 2024-2029 Capital Facilities Plan, the attached 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 School District’s 2024-2029 Capital Facilities Plans; and
3. Amend Park Impact Fees to implement year 2 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 facilities to serve new development at urban densities and infill, consistent with the City’s Comprehensive Plan and are key climate mitigation strategies.
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 child care. In Olympia, roughly 37 percent of all households are cost burdened, with almost half of those households being severely cost-burdened. Approximately 42 percent of Olympians have a household income of less than $50,000.
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 the Ordinance on second reading.
2. Move to approve the Ordinance with modifications.
3. Do not approve Ordinance.
Attachments:
Ordinance