Title
Approval of an Ordinance Regarding the Timing of Impact Fee Payment
Recommended Action
Finance Committee Recommendation:
On August 11, 2014, the Council's Finance Committee reviewed and recommended approval of the proposal described below.
City Manager Recommendation:
Move to approve on second reading an ordinance amending Olympia Municipal Code 15.04.040(H) to revive the impact fee deferral option.
Report
Issue:
From July 2009 until August of 2011, the City of Olympia offered an option to defer the payment of impact fees - normally due when building permits are issued - until final inspection of the building. Should the City amend the development code to again offer this option to building permit applicants?
Staff Contact:
Keith Stahley, Director, Community Planning and Development Department, 360.753.8227
Presenter:
None - Consent Calendar Item
Background and Analysis:
The background and analysis have not changed from first reading to second reading.
In the early 1990s the State Growth Management Act authorized cities to collect "impact fees" as one means of financing infrastructure improvements needed to accommodate population growth. Impact fee programs are limited by statute to funding only transportation, school, fire protection, and parks and recreation facilities. Olympia was an 'early adopter' of impact fees. (Note: The City also collects comparable fees for utility capacity improvements - these are termed "facility charges" and are not included in this deferral proposal.)
Olympia's impact fee program provides that impact fees are ordinarily due and payable when a related building permit is issued. These fees are relatively substantial. For example, in 2014 the impact fees for a new single-family home totaled over $14,000. (See Attachment 2 for a summary of the impact fee program.) Impact fees are also a relatively large source of the City's and Olympia School District capital budget revenue. Depending on t...
Click here for full text