Title
Agenda Item:
Park Impact Fee Rate Study Review
Body
Issue:
This is a briefing to inform Council of the draft Park Impact Fee Rate Study that will be presented at an upcoming public meeting on July 26.
Committee Recommendation:
Not referred to a committee. The Parks and Recreation Advisory Committee will make a recommendation at their meeting on August 2.
City Manager's Recommendation:
None - information sharing only.
Staff Contact:
Jonathon Turlove, Associate Planner, Parks, Arts and Recreation, 360.753.8068
Presenter(s):
Jonathon Turlove, Associate Planner, Parks, Arts and Recreation, 360.753.8068
John Ghilarducci, Principal, FCS Group
Background and Analysis:
The City of Olympia began collecting park impact fees in 1992. A total of $7.4 million in park impact fees have been collected to date. The City collects approximately $500,000 in park impact fees in an average year. Approximately $1 million in park impact fees were collected in 2011, the highest year on record.
The City is currently working with a consultant to complete a new park impact fee rate study. The draft study is complete (Attachment #1) and will be presented for public review on July 26. The study proposes a fee of $5,263 for a single family residence (a 4% increase), $3,368 for a multifamily unit (a 10% increase), and $2,126 for a downtown multifamily unit (a 23% increase).
(Note that the proposed rates are not a uniform increase for each housing type. This is due to a different methodology that this study used for accounting for other revenue streams such as the private utility tax and SEPA mitigation fees that are used for park land acquisition and development.)
The public will have an opportunity to provide feedback on the draft study at a public meeting on July 26, 6:30PM at the Olympia Center. The Parks and Recreation Advisory Committee will provide a recommendation at their meeting on August 2. Based on feedback from those meetings, the study will be finalized, and an ordinance with the new rate will come before City Council for approval at the end of the year.
In order for a new rate to be adopted at the beginning of next year, a minor amendment to the existing parks and recreation chapter of the Olympia Comprehensive Plan is proposed. This amendment is scheduled for a briefing and hearing before the Olympia Planning Commission on August 6.
Neighborhood/Community Interests (if known):
Neighborhood/Community feedback will be solicited at the public meeting on July 26.
Options:
None - information sharing only.
Financial Impact:
Adoption of the proposed rate would result in an increase of the park impact fee rate of approximately 4 to 23% depending on housing type. Impact fee collections fluctuate significantly from year to year based on residential building activity. Assuming an average level of building, this increase would result in approximately $20,000 - $115,000 more in annual park impact fees that could be utilized for park land acquisition and development.