Chapter 20.10
SCHOOL IMPACT FEES
Sections:
20.10.010 Findings and authority.
20.10.030 Impact fee program elements.
20.10.050 Assessment of impact fees.
20.10.060 Adjustments, exceptions, and appeals.
20.10.070 Impact fee account, uses of impact fees, and refunds.
20.10.080 Interlocal agreement.
20.10.090 Submission of district capital facilities plan and data.
20.10.010 Findings and authority.
A. The city council of the city of Snoqualmie hereby finds and determines that new growth and development in the city of Snoqualmie will create additional demand and need for school facilities, and the council finds that new growth and development should pay a proportionate share of the cost of new facilities needed to serve the new growth and development.
B. The provisions of this chapter for the assessment and collection of school impact fees are adopted pursuant to Chapter 82.02 RCW. The provisions of this chapter shall be liberally construed in order to carry out the purposes of the council in establishing the school impact fee program. (Ord. 826 § 1, 1998).
20.10.020 Definitions.
The following words and terms shall have the following meanings for the purposes of this chapter, unless the context clearly requires otherwise. Terms otherwise not defined herein shall be defined pursuant to RCW 82.02.090, or given their usual and customary meaning.
A. “Accessory dwelling unit” means a separate, complete dwelling unit attached to or contained within the structure of the primary dwelling, or contained with a separate structure that is accessory to the primary dwelling unit on the premises.
B. “Capital facilities plan” means the district’s capital facilities plan adopted by the school board consisting of:
1. A forecast of future needs for school facilities based on the district’s enrollment projections;
2. The long-range construction and capital improvements projects of the district;
3. The schools under construction or expansion;
4. The proposed locations and capacities of expanded or new school facilities;
5. At least a six-year financing plan component, updated as necessary to maintain at least a six-year forecast period, for financing needed school facilities within projected funding levels, and identifying sources of financing for such purposes, including bond issues authorized by the voters and projected bond issues not yet authorized by the voters; and
6. Any other long-range projects planned by the district.
C. “City” means the city of Snoqualmie, King County, Washington.
D. “Classrooms” means educational facilities of the district required to house students for its basic educational program. The classrooms are those facilities the district determines are necessary to best serve its student population. Specialized facilities as identified by the district, including but not limited to gymnasiums, cafeterias, libraries, administrative offices, and child care centers, shall not be counted as classrooms.
E. “Community residential facility” or “CRF” means living quarters meeting applicable federal and state standards that function as a single housekeeping unit and provide supportive services including, but not limited to, counseling, rehabilitation, and medical supervision, excluding drug and alcohol detoxification.
F. “Construction cost per student” means the estimated cost of construction of a permanent school facility in the district for the grade span of school to be provided, as a function of the district’s design standard per grade span and taking into account the requirements of students with special needs.
G. “Design standard” means the space required, by grade span and taking into account the requirements of students with special needs, which is needed in order to fulfill the educational goals of the district as identified in the district’s capital facilities plan.
H. “Developer” means the person or entity who owns or holds purchase options or other development control over property for which development activity is proposed.
I. “Development activity” means any residential construction or expansion of a building, structure or use, any change in use of a building or structure, or any change in the use of land that creates additional demand for school facilities.
J. “District” means the Snoqualmie Valley School District No. 410, King County, Washington.
K. “Encumbered” means to reserve, set aside, or otherwise earmark the impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for public facilities.
L. “Fee schedule” means the schedule set forth as SMC 20.10.050 indicating the standard fee amount per dwelling unit that shall be paid as a condition of residential development within the city.
M. “Grade span” means the categories into which a district groups its grade of students, i.e., elementary school, middle or junior high school, and high school.
N. “Interlocal agreement” means the interlocal agreement by and between the city of Snoqualmie and the Snoqualmie Valley School District No. 410 as authorized in SMC 20.10.080.
O. “Permanent facilities” means the facilities of the district with a fixed foundation which are not relocatable facilities.
P. “Relocatable facility” means any factory-built structure, transportable in one or more sections, that is designed to be used as an education space and is needed to prevent the overbuilding of school facilities, to meet the needs of service areas within the district, or to cover the gap between the time that families move into new residential developments and the date that construction is completed on permanent school facilities.
Q. “Relocatable facilities cost per student” means the estimated cost of purchasing and siting a relocatable facility in the district for the grade span of school to be provided, as a function of the district’s design standard per grade span and taking into account the requirements of students with special needs.
R. “Senior citizen” means a person aged 62 or older.
S. “Site cost per student” means the estimated cost of a site in the district for the grade span of school to be provided, as a function of the district’s design standard per grade span and taking into account the requirements of students with special needs.
T. “Standard of service” means the standard adopted by the district which identifies the program year, the class size by grade span and taking into account the requirements of students with special needs, the number of classrooms, the types of facilities the district believes will best serve its student population, and other factors as identified by the district. The district’s standard of service shall not be adjusted for any portion of the classrooms housed in relocatable facilities which are used as transitional facilities or for any specialized facilities housed in relocatable facilities. Except as otherwise defined by the school board pursuant to a board resolution, transitional facilities shall mean those facilities that are used to cover the time required for the construction of permanent facilities; provided, that the district has the necessary financial commitments in place to complete the permanent facilities called for in the capital facilities plan.
U. “Student factor” means the number derived by the district to describe how many students of each grade span are expected to be generated by a dwelling unit. Student factors shall be based on district records of average actual student generation rates for new developments constructed over a period of not more than five years prior to the date of the fee calculation; provided, that if such information is not available in the district, data from adjacent districts, districts with similar demographics, or countywide averages may be used. Student factors must be separately determined for single-family and multifamily dwelling units, and for grade spans. (Ord. 826 § 1, 1998).
20.10.030 Impact fee program elements.
A. Impact fees will be assessed on every new dwelling unit in the district for which a fee schedule has been established.
B. Impact fees will be imposed on behalf of the district so long as the district provides to the city a capital facilities plan, the standards of service for the various grade spans, estimates of the cost of providing needed facilities and other capital improvements, and the data from the district called for in SMC 20.10.040. The actual fee schedule for the district will be adopted by ordinance based on this information and the fee calculation set out in Exhibit A to the ordinance codified in this chapter. Any impact fee imposed shall be reasonably related to the impact caused by the development and shall not exceed a proportionate share of the cost of system improvements that are reasonably related to the development. The impact fee formula shall account in the fee calculation for future revenues the district will receive from the development. The ordinance adopting the fee schedule shall specify under what circumstances the fee may be adjusted in the interest of fairness.
C. The impact fee shall be based on a capital facilities plan developed by the district and approved by the school board, and adopted by reference by the city as part of the capital facilities element of the city’s comprehensive plan for the purposes of establishing the fee program. (Ord. 826 § 1, 1998).
20.10.040 Fee calculations.
A. The fee for the district shall be calculated based on the formula set forth in Exhibit A to the ordinance codified in this chapter and applied by the table set forth in Exhibit C to the ordinance codified in this chapter.
B. Separate fees shall be calculated for single-family and multifamily residential units, and separate student generation rates must be determined by the district for each type of residential unit. For purposes of this chapter, single-family units shall mean single detached dwelling units, and multifamily units shall mean townhouses and apartments.
C. The fee shall be calculated using the appropriate factors and data to be supplied by the district, as indicated in Exhibit A to the ordinance codified in this chapter. The fee calculations shall be made on a district-wide basis to assure maximum utilization of all school facilities in the district used currently or within the last two years for instructional purposes.
D. The formula in Exhibit A to the ordinance codified in this chapter provides a credit for the anticipated tax contributions that would be made by the development based on historical levels of voter support for bond issues in the district.
E. The formula also provides for a credit for school facilities or sites actually provided by a developer which the school district finds to be acceptable. (Ord. 826 § 1, 1998).
20.10.050 Assessment of impact fees.
A. The city shall collect school impact fees pursuant to the most recent table of school impact fees adopted by ordinance, as provided by this chapter.
B. Using the fee schedule in effect at the time of permit application, school impact fees shall be collected from the applicant:
1. When the building permit is issued; or
2. As provided in Chapter 20.15 SMC. (Ord. 1179 § 1, 2016; Ord. 992 § 1, 2006; Ord. 826 § 1, 1998).
20.10.060 Adjustments, exceptions, and appeals.
A. The following are excluded from the application of the impact fees:
1. Reconstruction, remodeling, or replacement of existing dwelling units which does not result in additional new dwelling units. In the case of replacement of a dwelling, a complete application for a building permit must be submitted within three years after it has been removed or destroyed;
2. Shelters for temporary placement, relocation facilities, transitional housing facilities, and community residential facilities;
3. Any development activity that is exempt from the payment of an impact fee pursuant to RCW 82.02.100, due to mitigation of the same system improvement under the State Environmental Policy Act;
4. Any development activity for which school impacts have been mitigated pursuant to a condition of plat or PUD approval to pay fees, dedicate land, or construct or improve school facilities, unless the condition of the plat or PUD approval provides otherwise; provided, that district’s fee implementing the condition of the plat or PUD approval predates the effective date of the ordinance codified in this chapter;
5. Any development activity for which school impacts have been mitigated pursuant to a voluntary agreement entered into with a school district to pay fees, dedicate land, or construct or improve school facilities, unless the terms of the voluntary agreement provide otherwise; provided, that the agreement predates the effective date of the ordinance codified in this chapter;
6. Housing units which fully qualify as housing for persons age 62 and over meeting the requirements of the Federal Housing Amendments Act of 1988, 42 U.S.C. 3607(b)(2)(c) and (b)(3), as subsequently amended, and which have recorded covenants approved by the district precluding school-aged children as residents in those units; and
7. Accessory dwelling units;
8. Low-Income Housing:
a. Low-income housing projects that are constructed by public housing agencies or private nonprofit housing developers;
b. Low-income residential units, rented or purchased, that are dedicated and constructed by private developers;
c. For purposes of this subsection, a low-income housing project unit or a low-income residential rental unit is one that has a maximum rent and a maximum income level for tenants equal to or less than 80 percent of the Upper Snoqualmie Valley median household income, adjusted for household size. For housing that is purchased, the purchaser’s family income cannot exceed 80 percent of the Upper Snoqualmie Valley median household income, adjusted for household size;
d. The city shall review requests for exemptions from impact fees under subsections (A)(8)(a) and (b) of this section, and shall advise the developer in writing of the granting or denial of the request. Prior to the city granting an exemption, the developer shall execute such agreements and restrictive covenants as provided by the district to ensure that the units are maintained as low-income housing. The city shall notify the district of all applications for exemption when they are received and shall notify the district when such requests are granted or denied;
e. When a low-income purchased unit is sold or rented to a person who does not quality as a low-income purchaser or tenant, an amount equal to the impact fee on the date of the sale or rental shall be paid by the seller or the property owner to the city;
f. When a low-income purchased unit has received a building permit, the city shall record a notice of the exemption and the income qualification requirements for such unit with the King County auditor.
B. Arrangement may be made for later payment with the approval of the district only if the district determines that it will be unable to use or will not need the payment until a later time, provided, that sufficient security, as defined by the district, is provided to assure payment. Security shall be made to and held by the district, which will be responsible for tracking and documenting the security interest.
C. The fee amount established in the schedule shall be reduced by the amount of any payment previously made for the lot or development activity in question, either as a condition of approval or pursuant to a voluntary agreement with the district entered into after the effective date of the ordinance codified in this chapter.
D. After the effective date of the ordinance codified in this chapter, whenever a development is granted approval subject to a condition that the developer actually provide school sites, school facilities, or improvements to school facilities acceptable to the district, or whenever the developer has agreed, pursuant to the terms of a voluntary agreement with the district, to provide land, provide school facilities, or make improvements to existing facilities, the developer shall be entitled to a credit for the value of the land or actual cost of construction against the fee that would be chargeable under the formula provided by Exhibit A to the ordinance codified in this chapter. The land value or cost of construction shall be estimated at the time of approval, but must be documented. If construction costs are estimated, the documentation shall be confirmed after the construction is completed to assure that an accurate credit amount is provided. If the land value or construction costs are less than the calculated fee amount, the difference remaining shall be chargeable as a school impact fee. Irrespective of the land value or construction costs, the credit amount shall not exceed the calculated fee amount.
E. Impact fees may be adjusted by the city, at the city’s discretion, if one of the following circumstances exist; provided, that the discount set forth in the fee formula fails to adjust for the error in the calculation or fails to ameliorate for the unfairness of the fee:
1. The developer demonstrates that an impact fee assessment was incorrectly calculated; or
2. Unusual circumstances identified by the developer demonstrate that if the standard impact fee amount was applied to the development, if would be unfair or unjust.
F. A developer may provide studies and data to demonstrate that any particular factor used by the district may not be appropriately applied to the development proposal, but the district’s data shall be presumed valid unless clearly demonstrated to be otherwise by the proponent.
G. Any appeal of the decision of the director or the hearing examiner with regard to imposition of an impact for or fee amounts shall follow the appeal process for the underlying permit and not be subject to a separate appeal process. Where no other administrative appeal process is available, an appeal may be taken to the hearing examiner using the appeal procedures for variances. Any errors in the formula identified as a result of an appeal should be referred to the council for possible modification.
H. Impact fees may be paid under protest in order to obtain a building permit or other approval of development activity, when an appeal is filed. (Ord. 826 § 1, 1998).
20.10.070 Impact fee account, uses of impact fees, and refunds.
A. Impact fee receipts shall be earmarked specifically and retained in a special interest-bearing account established by the district solely for the district’s school impact fees as provided for in SMC 20.10.080. All interest shall be retained in the account and expended for the purpose or purposes identified in subsection B of this section. Annually, the city, based on the report submitted by the district pursuant to SMC 20.10.080, shall prepare a report on school impact fees showing the source and amount of all moneys collected, earned or received, and capital or system improvements that were financed in whole or in part by impact fees.
B. Impact fees for the district’s system improvements shall be expended by the district for capital improvements, including but not limited to school planning, land acquisition, site improvements, necessary off-site improvements, construction, engineering, architectural, permitting, financing, and administrative expenses, relocatable facilities, capital equipment pertaining to educational facilities, and any other expenses which could be capitalized, and which are consistent with the district’s capital facilities plan.
C. Impact fees may also be spent to recoup school district facilities improvement costs previously incurred by the district to the extent that new growth and development will be served by the previously constructed improvements or incurred costs.
D. In the event that bonds or similar debt instruments are issued for the advanced provision of capital facilities for which impact fees may be expended and where consistent with the provisions of the bond covenants, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the facilities or improvements provided are consistent with the requirements of this section.
E. School impact fees shall be expended or encumbered within six years of receipt, unless the council identifies in written findings an extraordinary and compelling reason or reasons for the district to hold the fees beyond the six-year period. The district may petition the council for an extension of the six-year period and the district shall set forth any such extraordinary or compelling reason or reasons in its petition. Where the council identifies the reason or reasons in written findings, the council shall establish the period of time within which the impact fees shall be expended or encumbered, after consultation with the district.
F. The current owner of property on which an impact fee has been paid may receive a refund of such fees if the impact fees have not been expended or encumbered within six years of receipt of the funds by the city, except as provided for in subsection E of this section. In determining whether impact fees have been encumbered, impact fees shall be considered encumbered on a first-in, first-out basis. The city shall notify potential claimants by first class mail deposited with the United States postal service addressed to the owner of the property as shown in the city’s tax records.
G. An owner’s request for a refund must be submitted to the council in writing within one year of the date the right to claim the refund arises or the date that notice is given, whichever date is later. Any impact fees that are not expended or encumbered within the limitations in subsection E of this section, and for which no application for a refund has been made within this one-year period, shall be retained and expended consistent with the provisions of this section. Refunds of impact fees shall include any interest earned on the impact fees.
H. Should the city seek to terminate any or all school impact fee requirements, all unexpended or unencumbered funds, including interest earned, shall be refunded to the current owner of the property for which a school impact fee was paid. Upon the finding that any or all fee requirements are to be terminated, the city shall place notice of such termination and the availability of refunds in a newspaper of general circulation at least two times and shall notify all potential claimants by first-class mail addressed to the owner of the property as shown in the city’s tax records. All funds available for refund shall be retained for a period of one year. At the end of one year, any remaining funds shall be retained by the city, but must be expended for the district, consistent with the provisions of this section. The notice requirement set forth above shall not apply if there are no unexpended or unencumbered balances within the account being terminated.
I. A developer may request and shall receive a refund, including interest earned on the impact fees, when:
1. The developer does not proceed to finalize the development activity as required by statute or city code or the Uniform Building Code; and
2. No impact on the district has resulted. “Impact” shall be deemed to include cases where the district has expended or encumbered the impact fees in good faith prior to the application for a refund. In the event that the district has expended or encumbered the fees in good faith, no refund shall be forthcoming. However, if within a period of three years the same or subsequent owner of the property proceeds with the same or substantially similar development activity, the owner shall be eligible for a credit. The owner must petition the city and provide receipts of impact fees paid by the owner for a development of the same or substantially similar nature on the same property or some portion thereof. The city shall determine whether to grant a credit, and such determinations may be appealed by following the procedures set forth in SMC 20.10.060.
J. Interest due upon the refund of impact fees required by this section shall be calculated according to the average rate received by the city or the district on invested funds throughout the period during which the fees were retained. (Ord. 826 § 1, 1998).
20.10.080 Interlocal agreement.
A. The mayor is authorized to execute, on behalf of the city, an interlocal agreement for the collection, expenditure, and reporting of school impact fees; provided, that such interlocal agreement complies with the provisions of this section.
B. The district shall establish a school impact fee account with the office of the King County treasurer, who serves as the treasurer for the district. The account shall be an interest-bearing account, and the school impact fees received shall be prudently invested in a manner consistent with the investment policies of the district.
C. For administrative convenience while processing the fee payments, school impact fees may be temporarily deposited in a city account, with interest earned retained by the district. Within 10 days after receipt, the city shall deposit the school impact fees collected for the district in the district’s school impact fee account. (Ord. 826 § 1, 1998).
20.10.090 Submission of district capital facilities plan and data.
On an annual basis, the district shall submit the following materials to the city:
A. The annual update of the district’s capital facilities plan;
B. An updated fee calculation based on the formula in Attachment A attached to the ordinance codified in this chapter, and a revised fee schedule (Attachment B);
C. An annual report on the school impact fee account, showing the source and amount of all moneys collected, earned, or received, and the public improvements that were financed in whole or in part by impact fees. (Ord. 826 § 1, 1998).
20.10.100 Review.
The fee schedule set forth in SMC 20.10.050 shall be reviewed and updated by the council on an annual basis after the council receives the district’s plan and data required under SMC 20.10.090; provided, the fees established therein shall remain in effect notwithstanding the failure to update the fee schedule as required by this section. The review may occur in conjunction with the annual update of the capital facilities plan element of the city’s comprehensive plan. (Ord. 826 § 1, 1998).
20.10.110 Severability.
If any portion of this chapter is found to be invalid or unenforceable for any reason, such finding shall not affect the validity or enforceability of any other section of this chapter. (Ord. 826 § 1, 1998).