Title
Approval of an Ordinance relating to Impact Fees
Recommended Action
Committee Recommendation:
Move to approve on first reading, and forward to second reading, the Finance Committee recommendation to approve an Ordinance revising impact fees.
City Manager Recommendation:
Move to approve on first reading, and forward to second reading, an Ordinance revising impact fees.
Report
Issue:
Whether to approve on first reading, and forward to second reading, an Ordinance revising impact fees.
Staff Contact:
Tim Smith, Community Planning & Economic Development Deputy Director, 360.570.3915
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
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 such impact fees including Park Impact Fees, School Impact Fees and Transportation Impact Fees, which the City uses as a funding mechanism to help build new transportation and parks infrastructure, as well as help the Olympia School District and the North Thurston School District 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 2026-2031 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 Capital Facilities Plans; and
3. Amend Park Impact Fees for inflation in costs of labor, construction and materials.
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.
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 revising impact fees
2. Move to approve the Ordinance with modifications.
3. Do not approve Ordinance.
Attachments:
Ordinance