TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Planning and Community Development |
Carol Helland |
425-556-2107 |
DEPARTMENT STAFF:
|
Planning and Community Development |
Beverly Mesa-Zendt |
Deputy Director |
|
Planning and Community Development |
Jeff Churchill |
Planning Manager |
|
Planning and Community Development |
Glenn Coil |
Senior Planner |
TITLE:
title
Adoption of an Ordinance for the Development Impact Fees - 2022 Annual Indexing
a. Ordinance No. 3071: An Ordinance of the City of Redmond, Washington, Amending Redmond Municipal Code Chapter 3.10, Subsection 3.10.080(B), Fire Impact Fee Schedule, Subsection 3.10.080(C), Park Impact Fee Schedule, Subsection 3.10.080(D), School Impact Fees, and Subsection 3.10.100(C), Transportation Impact Fee Schedule; Providing for Severability; and Establishing an Effective Date
OVERVIEW STATEMENT:
recommendation
Impact fees are one-time charges collected by the City from new commercial and residential developments to fund fire, park, and transportation facilities needed to accommodate growth and 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.
The City also collects school impact fees on behalf of the Lake Washington School District (LWSD) by interlocal agreement. School impact fees, calculated by LWSD, reflect a proportionate share of the costs of school-related system improvements that are reasonably related to new development.
For 2022,
• Fire impact fees will increase by 3.34%,
• Park impact fees will increase by 5.64%,
• Transportation impact fees will increase by 5.38, and
• School impact fees for single-family homes will increase by 21%, and for multifamily, will increase by 23%.
Staff requests that Council adopt an ordinance to index impact fees for 2022.
body
☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☐ Receive Information ☐ Provide Direction ☒ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
Comprehensive Plan policy CF-14
• Required:
Redmond Municipal Code 3.10 Impact Fees
2006 Interlocal Agreement between the City and LWSD for the Collection, Distribution, and Expenditure of School Impact Fees
• Council Request:
N/A
• Other Key Facts:
RMC 3.10 authorizes the annual indexing of 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 - November 2021
• Outreach Methods and Results:
Staff informed the development community about the recommended impact fee adjustments. This included direct outreach to OneRedmond, the Master Builders Association, the Parks and Trails Commission, and posting notices at the Development Services Center and on the City website.
• Feedback Summary:
• Concerns about school impact fees, and the amount of increase from last year.
• Interest in schedule and process for updating /resetting impact fees.
• Questions about how impact fees are calculated, indexed, and why certain indices were used.
• Comments regarding consideration of lowering and/or capping impact fees, including school impact fees, and phasing-in impact fee increases.
BUDGET IMPACT:
Total Cost:
Staff working on Development Impact Fees - 2022 Annual Indexing are funded through the adopted budget.
Approved in current biennial budget: ☒ Yes ☐ No ☐ N/A
Budget Offer Number:
000250
Budget Priority:
Vibrant and Connected
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)
|
Date |
Meeting |
Requested Action |
|
11/9/2021 |
Committee of the Whole - Planning and Public Works |
N/A |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
N/A |
None proposed at this time |
N/A |
Time Constraints:
Changes to impact fees are scheduled to be effective January 1, 2022. 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.
ANTICIPATED RESULT IF NOT APPROVED:
If the Council chooses not to index impact fees for 2022, the fees will remain at 2021 levels, resulting in underfunding new system improvements needed to address population and employment growth.
ATTACHMENTS:
Attachment A: Ordinance to Index Impact Fees for 2022
Attachment B: Proposed 2022 Transportation, Fire, Parks and School Impact Fee Rates
Attachment C: Presentation Slides (provided as supplemental reading material)