TO: Committee of the Whole - Finance, Administration, and Communications
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Finance |
Kelley Cochran |
425-556-2748 |
DEPARTMENT STAFF:
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Finance |
Nida Hermoso |
Accounting Manager |
|
Finance |
Haritha Narra |
Deputy Finance Director |
TITLE:
title
2024 Impact Fee Collection and Distribution Report
OVERVIEW STATEMENT:
recommendation
The Revised Code of Washington (RCW) and the City of Redmond Municipal Code (RMC) require an annual report to the Mayor and City Council on impact fee receipts, earnings, and system improvements financed in whole or part by impact fees. This report summarizes the 2024 impact fee activity and is presented for information purposes only.
The Impact Fee Report is provided to Council after the State Auditors complete the financial statement audit. The 2024 financial audit was delayed due to D365 system preparation and implementation in June 2023. The 2024 audit started in February and was finalized in early September 2026.
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☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☒ Receive Information ☐ Provide Direction ☐ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
N/A
• Required:
Revised Code of Washington (RCW) 82.02.070 Impact fees: Annually, each county, city, or town imposing impact fees shall provide a report on each impact fee account showing the source and amount of all moneys collected, fees shall provide a report on each impact fee account showing the source and amount of all moneys collected, earned, or received and system improvements that were financed in whole or in part by impact fees.
Redmond Municipal Code (RMC) 3.10.190 Annual Impact Fee Report: The provision requires the Finance Department to prepare a report on each impact fee account showing the source and amount of all money collected, earned, or received and the system improvements financed in whole or in part by the impact fees. This Impact Fee Report is presented to meet the reporting requirements of RMC 3.10.190.
• Council Request:
N/A
• Other Key Facts:
N/A
OUTCOMES:
The City collected $7,540,081 in impact fees (net of refund) in 2024 and spent $7,058,179. The total collected and spent for each category is shown in attachment A, Table 1 - 2024 Impact Fee Overview.
Overall impact fee collections for 2024 increased from 2023 collections by $5,655,815 or 300 percent (%). The increase is associated with development growth driven by population expansion and economic progress, resulting in a heightened demand for infrastructure and public services. A total of $487,167 was collected in 2024 for school impact fees and disbursed to Lake Washington School District. School impact fees are determined by the school district.
Transportation
Ten transportation projects received impact fee funding in 2024. The projects and amounts received are as follows, totaling $2,956,223:
• NE 40th Shared Use Path (156th NE - 163rd NE): $28,885
• NE 70th Improvements (Redmond Way to 180th NE): $57,820
• 156th NE Shared Use Path (NE 40th - NE 51st): $3,067
• Bed-Red Rd Bike Lanes (NE 40th - NE 24th): $247,073
• 156th Ave NE Shared Use Path (NE 28th - NE 40th): $518,204
• 152nd Ave NE Improvements: $1,501,005
• NE 40th Shared Use Path (163rd NE - 172nd NE): $462
• 172nd Ave NE Opening: $36,067
• 161st AVE NE Debt: $96,340
• Couplet Bond Debt: $467,300
Transportation impact fees remaining at the end of 2024 totaled $45,097,763.
Parks
Three parks projects received impact fee funding in 2024. The projects and amounts received are as follows, totaling $4,101,956:
• Senior & Community Center Renovation: $3,558,281
• Senior & Community Center Debt: $543,125
• Parks Property Purchase: $550
Parks impact fees remaining at the end of 2024 totaled $6,202,850.
Fire
Fire impact fees remaining at the end of 2024 totaled $2,444,145.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
N/A
• Outreach Methods and Results:
N/A
• Feedback Summary:
N/A
BUDGET IMPACT:
Total Cost:
N/A
Approved in current biennial budget: ☐ Yes ☐ No ☒ N/A
Budget Offer Number:
N/A
Budget Priority:
N/A
Other budget impacts or additional costs: ☐ Yes ☐ No ☒ N/A
If yes, explain:
N/A
Funding source(s):
N/A
Budget/Funding Constraints:
N/A
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
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Date |
Meeting |
Requested Action |
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N/A |
Item has not been presented to Council |
N/A |
Proposed Upcoming Contact(s)
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Date |
Meeting |
Requested Action |
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N/A |
None proposed at this time |
N/A |
Time Constraints:
Redmond Municipal Code section 3.10.190 Annual Impact Fee Report requires the Finance Department to report the revenues and expenditures associated with impact fees.
ANTICIPATED RESULT IF NOT APPROVED:
N/A
ATTACHMENTS:
Attachment A: Impact Fee Table for 2024
Attachment B: Impact Fee Annual Report - 2024 Impact Fee Summary
Attachment C: Impact Fee Activity Summary for 2024