TO: Committee of the Whole - Planning and Public Works
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Planning and Community Development |
Seraphie Allen |
425-556-2450 |
DEPARTMENT STAFF:
|
Planning and Community Development |
Philly Marsh |
Interim Deputy Director |
|
Planning and Community Development |
Beckye Frey |
Interim Long-Range Planning Manager |
|
Planning and Community Development |
Glenn Coil |
Senior Planner |
TITLE:
title
Amending RMC 3.10 - Development Impact Fees, and Amending Contract 5251 - an Interlocal Agreement on the Collection, Distribution, and Expenditure of School Impact Fees with Lake Washington School District No. 414
OVERVIEW STATEMENT:
recommendation
Staff is requesting that Council adopt an ordinance amending RMC 3.10, namely to index transportation impact fees for inflation, as well as adopt a revised school impact fee schedule on behalf of the Lake Washington School (LWSD). Staff is also requesting that they approve an amendment to contract 5251, an interlocal agreement with LWSD regarding the collection of fees in support of this revised school impact fee schedule.
This ordinance will also include proposed amendments that revise the fee schedules for Parks and Fire. These updates are being reviewed by Council in separate processes.
For fire impact fees see CM 26-572 <https://redmond.legistar.com/LegislationDetail.aspx?ID=8206056&GUID=87C8A234-1709-4303-953B-A29AC3449F55&Options=&Search=>.
For Park impact fees, see CM 26-466 <https://redmond.legistar.com/LegislationDetail.aspx?ID=8206495&GUID=6B26E21A-42AD-47B9-8182-1E59A7AE03C2>.
Impact fees are one-time charges collected by the City from new commercial and residential developments to fund fire, park, school, and transportation facilities needed to accommodate growth. Impact fees are authorized in RMC 3.10.
Indexing or updating Redmond’s impact fees annually allows the rates to keep pace with inflation to maintain the purchasing power of these impact fees and to help provide the capital facilities necessary to serve growth in Redmond. RMC 3.10 establishes the indexes and procedures that the City Council may apply annually to index or update Redmond’s impact fees.
Impact fee schedules may also be updated periodically to support revised projects identified in adopted capital facilities plans, also known as functional plans. The Park and Fire fee amendments support updates to capital projects lists identified in the 2023 PARRC Plan and the 2025 Fire Functional Plan.
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☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☐ Receive Information ☒ Provide Direction ☐ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
Comprehensive Plan policies CF-13, CF-15, and CF-16 concerning impact fees
CF-13: Follow the principle that growth shall pay for the growth-related portion of capital facilities. When imposing impact fees on new development:
• Impose fees only for system improvements that are reasonably related to growth;
• Structure the impact fee system so that impact fees do not exceed the proportionate share of the costs of system improvements attributable to growth and are reasonably related to the new development;
• Balance impact fee revenues with other public revenue sources to finance system improvements that serve new development;
• Use fee proceeds for system improvements that will reasonably benefit the new development;
• Prohibit the use of impact fee proceeds for correcting existing capital facility deficiencies;
• Maintain an annual adjustment to impact fees based on an appropriate capital cost index and other relevant local construction data, subject to annual City Council approval;
• Review the impact fees and the indices used periodically to ensure that the fees reflect the cost of planned system improvements related to growth; and
• Pool fees to more efficiently fund capital facilities resulting from new growth.
CF-15: Consider exempting from payment of impact fees certain developments that have broad public purpose.
CF-16: Require school districts that propose to have the City of Redmond impose impact fees for them to prepare capital facility plans that include:
• Plans for capital improvements and construction over a 20-year horizon,
• A demonstration of how facility and service needs are determined,
• An annually updated six-year (or longer) finance plan that demonstrates how capital needs are to be funded,
• Population and demographic projections consistent with those used in developing the City’s Comprehensive Plan, and
• An assessment and comparison of the condition and functional characteristics of school facilities across the entire district.
RCW 82.02.050-.110 and WAC 365-196-850 authorize counties, cities, and towns planning under the Growth Management Act (GMA) to impose impact fees
• Required:
N/A
• Council Request:
N/A
• Other Key Facts:
RMC 3.10 authorizes the annual indexing of impact fees.
2006 interlocal agreement (Contract 5251 <https://www.redmond.gov/DocumentCenter/View/10502/5251?bidId=>) between the City and LWSD governs the collection, distribution, and expenditure of school impact fees.
OUTCOMES:
Impact fees:
• Contribute toward public infrastructure that is needed to accommodate population and employment growth.
• Can only be used to pay for system improvements. System improvements must be reasonably related to the new development and must benefit the new development.
• Cannot be used to pay for private facilities that solely benefit the development or to correct existing deficiencies in public infrastructure.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
October - December 2026, separate processes for LWSD, Parks, and Fire.
• Outreach Methods and Results:
Staff will inform the development community about the recommended changes on the Development Service Center webpage and in the city’s Planning e-news.
• Feedback Summary:
N/A
BUDGET IMPACT:
Total Cost:
$5,350,743 is the total value of the Community and Economic Development offer, which funds staff work related to indexing impact fees.
Approved in current biennial budget: ☒ Yes ☐ No ☐ N/A
Budget Offer Number:
0000304
Budget Priority:
Vibrant and Connected
Other budget impacts or additional costs: ☐ Yes ☐ No ☒ N/A
If yes, explain:
N/A
Funding source(s):
General Fund
Budget/Funding Constraints:
N/A
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
|
Date |
Meeting |
Requested Action |
|
N/A |
Item has not been presented to Council |
N/A |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
11/2/2026 |
Committee of the Whole - Planning and Public Works |
Provide Direction |
|
11/17/2026 |
Business Meeting |
Approve |
Time Constraints:
N/A
ANTICIPATED RESULT IF NOT APPROVED:
Changes to impact fees are effective January 1, 2027. Timely adoption of the fees provides staff, developers, residents, and other interested parties an opportunity to prepare for fee changes associated with the development review process and ensures that new system improvements can be funded through impact fees. Updated fee schedules will be consistent with state law regarding the collection of impact fees tied to capital facility plans.
ATTACHMENTS:
Attachment A: Amendment to Contract 5251, an Interlocal Agreement with LWSD
Attachment B: Proposed fee schedules for indexed transportation fees, and updated LWSD fees