File #: 21-0992    Version: 1
Type: report Status: Filed
File created: 10/11/2021 In control: Finance Committee
Agenda date: 10/20/2021 Final action: 10/20/2021
Title: Special Budget Topics - Development Permit Fees and Impact Fees
Attachments: 1. Proposed 2022 Development Permit Fees, 2. Proposed 2022 Transportation Impact Fees, 3. Proposed 2022 Olympia School District Impact Fees
Related files: 21-1162
Title
Special Budget Topics - Development Permit Fees and Impact Fees

Recommended Action
Committee Recommendation:
Receive briefing and direct staff to proceed with drafting an ordinance for City Council consideration that implements the proposed fees.

City Manager Recommendation:
Receive briefing and direct staff to proceed with drafting an ordinance for City Council consideration that implements the proposed fees.

Report
Issue:
Briefing and discussion of proposed 2022 development permit fees and impact fees.

Staff Contact:
Leonard Bauer, Director, Community Planning and Development, 360.753.8206

Presenter(s):
Leonard Bauer, Director, Community Planning and Development
Mark Russell, Deputy Director, Public Works
Tammy LeDoux, Finance & Policy Coordinator, Parks Arts & Recreation

Background and Analysis:
Washington state law [RCW 36.70B] provides direction for local government review of development project proposals. Cities and counties are authorized to charge fees for the cost of reviewing applications for new development, and inspections of new construction. State law also authorizes collection of impact fees to address the impacts of new development on transportation, parks, fire services, and schools [RCW 82.02.050]. The City of Olympia collects impact fees for transportation and parks impacts, and on behalf of the Olympia School District for school impacts.

Development Permit Fees
The City of Olympia collects fees to offset a portion of the cost of reviewing applications for new development and inspecting new construction. Fee amounts are adopted by the City Council and codified in Olympia Municipal Code Title 4. They include Engineering Fees (OMC 4.04), Building Code Review and Permit Fees (OMC 4.36), and Land Use Application Review (OMC 4.40).

In 2004, the City Council conducted a Permit Cost Recovery Study and established a goal to recover 85% of the cost of delivering development review services from permit fees.

In 2015, the City co...

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