Chapter 16.74
SCHOOL IMPACT FEES
Sections:
16.74.010 Findings and authority.
16.74.030 School district eligibility.
16.74.040 School facilities plan requirements and procedures.
16.74.060 Impact fee accounting.
16.74.090 Adjustments, waivers, appeals and arbitration.
16.74.100 Existing authority unimpaired.
16.74.010 Findings and authority.
The city council of the city of Sultan hereby finds and determines that new residential development in the city of Sultan will create additional demand and need for school facilities in the city of Sultan and that new residential development should pay a proportionate share of the cost of the school facilities needed to serve new residential development. Therefore, pursuant to Chapter 82.02 RCW, the city council adopts this chapter to assess impact fees for school facilities. The provisions of this chapter shall be liberally construed in order to carry out the purposes of the city council in establishing the impact fee program. (Ord. 1244-16 § 3 (Exh. A))
16.74.020 Definitions.
The following definitions apply to this chapter:
A. “Act” means the Growth Management Act, Chapter 17, Laws of 1990, 1st Ex. Sess. Chapter 36.70A RCW et seq. and Chapter 32, Laws of 1991, 1st Sp. Sess. as now in existence or as hereafter amended.
B. “Building permit” means an official document or certification which is issued by the building official and which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, demolition, moving or repair of a building or structure, as specified in the Uniform Building Code.
C. “Capital facilities” means the facilities or improvements included in a capital budget.
D. “Capital facilities plan” means the capital facilities plan adopted by the board of directors of Sultan School District No. 311.
E. “Director” means the city of Sultan community development director.
F. “District capital facilities” means facilities owned or operated by District No. 311, or the facilities or improvements included in the district’s capital budget and/or capital facilities plan.
G. “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.
H. “Fee-payer” is the responsible party for a land use or construction permit for residential development.
I. “Impact fee” means a payment of money imposed by the city of Sultan on the development of all residential improvements pursuant to this chapter as a condition of granting a land use permit and/or a building permit in order to pay for the school facilities needed to serve new residential growth and development. “Impact fee” does not include any permit fees, an application fee, the administrative fee for collecting and handling school impact fees, the cost of reviewing independent fee calculations, or the administrative fee required for an appeal pursuant to this chapter.
J. “Impact fee account” means the account established for the school facilities for which impact fees are collected.
K. “Independent fee calculation” means the school impact calculation, and/or economic documentation prepared by a fee payer, or District No. 311, to support the assessment of an impact fee other than the fee schedule adopted in accordance with SMC 16.74.050(B).
L. “Interest” means the average interest rate earned by District No. 311 in the last fiscal year, if not otherwise defined.
M. “Land use permit” is a consolidated development approval or permit issued pursuant to the zoning code.
N. “Owner” means the owner of record of real property or the owner’s authorized agent.
O. “Residential development” means a house, apartment, mobile home, manufactured home, modular home or other dwelling unit used as a permanent or temporary place of residence.
P. “Sultan School District” or the “district” means Sultan School District No. 311, Snohomish County, Washington. (Ord. 1347-21 § 26; Ord. 1244-16 § 3 (Exh. A))
16.74.030 School district eligibility.
A. School Capital Facilities Plan Required. The Sultan School District shall be eligible to receive school impact fees upon adoption by the city council of a six-year school capital facilities plan (CFP). This action will also constitute adoption by the city of the schedule of school impact fees specified in such facilities plan as may be amended by the city council. The district’s plan shall meet the applicable requirements of the State Growth Management Act (GMA) and SMC 16.74.040(A).
B. Expiration of District Plan. For purposes of school impact fee eligibility, the district’s school CFP shall expire when an updated plan meeting the requirements of the GMA is adopted by the school district board.
C. Revising the School Facilities Plan (CFP).
1. The school district may initiate revisions to the school CFP or fee schedule prior to the expiration date of the city council adopted school CFP. The revised plan shall first be approved by the school board and then transmitted to the city. The district’s revised plan will then be considered by the city council as part of the city’s annual comprehensive plan amendment process, unless the school board of the district declares, and the city finds, that an emergency exists.
2. The Sultan city council may, by resolution, recommend that the district initiate a review of the school CFP or impact fee schedule prior to the expiration date.
3. The school capital facilities plan may include revised data for the impact fee formula and/or calculations, and a corresponding modification to the fee schedule. (Ord. 1244-16 § 3 (Exh. A))
16.74.040 School facilities plan requirements and procedures.
A. Minimum Requirements for the District’s School Capital Facilities Plan. To be eligible for school impact fees, the district must submit a six-year school CFP to the city pursuant to the procedure established by this chapter. The plan shall be consistent with the city’s adopted comprehensive plan. The plan shall contain data and analysis necessary and sufficient to meet the requirements of the state GMA and Chapter 82.02 RCW. The plan must provide sufficient detail to allow computation of the fees according to the formula contained in the school CFP.
B. Council Adoption. Following receipt of the school district’s CFP or amendment thereto, the city council shall schedule a public hearing to consider adoption or amendment of said plan as part of the city’s annual comprehensive plan amendment process.
C. If an updated school facilities plan has not been adopted by the city council prior to the existing plan’s expiration date the district shall not be eligible to receive school impact fees until the updated plan has been adopted by the council. (Ord. 1244-16 § 3 (Exh. A))
16.74.050 School impact fee.
A. Fee Required. The city shall collect impact fees from any applicant seeking land use permit approval and/or a building permit from the city for any residential development within the city limits. This shall include, but is not limited to, the development of residential land, and may include the expansion of existing uses which creates a demand for additional school facilities. The school impact fee shall be calculated in accordance with the formula established in the school CFP adopted by the city council, and incorporated in full by this reference. The school impact fee due and payable shall be as shown in the school CFP. The city council may adjust the school impact fee, calculated in accordance with said formula, by a multiplier in order to determine the school impact fee due and payable by the applicant.
B. Impact Fee Schedule. The school impact fees specified in the district’s school capital facilities plan and adopted by the city council shall constitute the city’s schedule of school impact fees. The department of community development and the school district shall, for the convenience of the public, keep available an information sheet summarizing the schedule of school impact fees applicable in the city.
C. Impact Fee Limitations.
1. School impact fees shall be imposed for district capital facilities that are reasonably related to the development under consideration, shall not exceed a proportionate share of the costs of system improvements that are reasonably related to the development, and shall be used for system improvements that will reasonably benefit the new development.
2. School impact fees must be expended or encumbered for a permissible use within 10 years of receipt by the district.
3. To the extent permitted by law, school impact fees may be collected for district capital facilities costs previously incurred to the extent that new growth and development will be served by the previously constructed capital facilities; provided, that school impact fees shall not be imposed to make up for any existing system deficiencies.
4. An applicant required to pay a fee pursuant to RCW 43.21C.060 for district capital facilities shall not be required to pay a school impact fee pursuant to RCW 82.02.050 through 82.02.090 and this title for the same facilities.
D. Fee Determination.
1. For all land use and building permits issued by the city, the applicability of school impact fees will be determined at the time of building permit application. The amount of the school impact fee, and any administrative fee as set forth in the city of Sultan annual fee schedule, shall be based on the fee schedule in effect at the time of permit application.
2. The city’s cost of administering the impact fee program, as set forth in the annual fee schedule, shall be per dwelling unit and shall be paid by the applicant to the city as part of the development/building permit fee. Impact fee charges shall be collected at the time of building permit issuance.
E. SEPA Mitigation and Other Review.
1. The city shall review development proposals and development activity permits pursuant to all applicable state and local laws and regulations, including the State Environmental Policy Act, Chapter 43.21C RCW, the State Subdivision Law, Chapter 58.17 RCW, and the applicable sections of the Sultan Municipal Code. Following such review, the city may condition or deny development approval as necessary or appropriate to mitigate or avoid significant adverse impacts to school services and facilities, to assure that appropriate provisions are made for schools, school grounds, and safe student walking conditions, and to ensure that development is compatible and consistent with the district’s services, facilities and capital facilities plan.
2. Impact fees required by this title for development activity, together with compliance with development regulations and other mitigation measures offered or imposed at the time of development review and development activity review, shall constitute adequate mitigation for all of a development’s specific adverse environment impacts on the school system for the purposes of this title. Nothing in this chapter prevents a determination of significance from being issued, the application of new or different development regulations, and/or requirements for additional environmental analysis, protection, and mitigation measures to the extent required by applicable law. (Ord. 1347-21 § 27; Ord. 1244-16 § 3 (Exh. A))
16.74.060 Impact fee accounting.
A. Collection and Transfer of Fees.
1. Except as otherwise provided in Chapter 16.76 SMC, school impact fees shall be due and payable to the city at the time of issuance of building permits for all development activities.
2. The district shall establish an interest-bearing account separate from all other district accounts in which to deposit the impact fees. The city will remit to the district all impact fees collected, with interest. The district shall deposit all impact fees received from the city in the impact fee account.
3. The district shall institute a procedure for the disposition of impact fees and providing for annual reporting to the city that demonstrates compliance with the requirements of RCW 82.02.070, and other applicable laws.
B. Use of Funds.
1. School impact fees may be used by the district only for capital facilities that are reasonably related to the development for which they were assessed and may be expended only in conformance with the district’s adopted school facilities plan.
2. In the event that bonds or similar debt instruments are issued for the advance provision of capital facilities for which school impact fees may be expended, and where consistent with the provisions of the bond covenants and state law, school impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the capital facilities provided are consistent with the requirements of this title.
3. The responsibility for assuring that school impact fees are used for authorized purposes rests with the district. All interest earned on a school impact fee account must be retained in the account and expended for the purpose or purposes for which the school impact fees were imposed, subject to the provisions of subsection (C) of this section.
4. The district shall provide the city an annual report showing the source and the amount of school impact fees received by the district and the capital facilities financed in whole or in part with those school impact fees.
C. Refunds.
1. School impact fees not spent or encumbered within 10 years after they were collected, or where extraordinary or compelling circumstances exist or if such other time periods as established pursuant to SMC 16.74.050 exist, then the current owner of the property upon which impact fees have been paid may receive a refund of such fees, upon receipt of a proper and accurate claim submitted to the city or the district, together with interest. In determining whether school impact fees have been encumbered, impact fees shall be considered encumbered on a first-in, first-out basis.
2. Refunds provided for under this section shall be paid only upon submission of a proper claim submitted to the city or the district pursuant to city or district claim procedures. Such claims must be submitted to the city or the district within one year of the date the right to claim the refund arises.
3. Any impact fees for which no application for a refund has been made within this one-year period shall be retained by the district and expended on the appropriate school facilities. (Ord. 1244-16 § 3 (Exh. A))
16.74.070 Exemptions.
A. The following shall be exempted from the payment of all school impact fees:
1. Any form of housing permanently dedicated for senior citizens, defined as over 55 years of age, with the necessary covenants or declarations of restrictions recorded on the property.
2. Replacement of a residential structure on a site within 12 months of the demolition or removal of the prior residence.
3. Alterations, expansion, enlargement, remodeling, rehabilitation, or conversion of an existing dwelling where no additional units are created.
4. All nonresidential construction.
B. The city community development director shall be authorized to determine whether a particular development activity falls within an exemption identified in this section, in any other section, or under other applicable laws. (Ord. 1347-21 § 28; Ord. 1244-16 § 3 (Exh. A))
16.74.080 Credits.
A. The fee payer shall direct the request for a credit or credits to the community development director who shall forward the request to the district. The district shall first determine the general suitability of the land improvements and/or construction for district purposes. The district shall then determine whether the land, improvements, and/or the facility constructed are included within the district’s adopted capital facilities plan or the board of directors for the district may make the finding that such land, improvements, and/or facilities would serve the goals and objectives of the district’s capital facilities plan. The district shall forward its determination to the community development director, including cases where the district determines that the dedicated land, improvements, and/or construction are not suitable for district purposes. The community development director shall adopt the determination of the district and shall inform the applicant in writing of the adoption of the district’s determination.
B. For each request for a credit(s), once the district has determined that the land, improvements, and/or construction would be suitable for district purposes, the district shall select an appraiser. The appraiser shall be directed to determine for the district the value of the dedicated land, improvements, or construction provided by the fee payer on a case-by-case basis.
C. The fee payer shall pay for the cost of the appraisal or request that the cost of the appraisal be deducted from the credit which the district may be providing to the fee payer in the event that a credit is awarded.
D. After receiving the appraisal, the district shall provide the applicant with a letter or certificate setting forth the dollar amount of the credit, the reason for the credit, where applicable, the legal description of the site donated, and the legal description or another adequate description of the project or development to which the credit may be applied. The applicant must sign and date a duplicate copy of such letter or certificate indicating his/her agreement to the terms of the letter or certificate, and return such signed document to the district before the impact fee credit will be awarded. The failure of the applicant to sign, date, and return such document within 60 calendar days shall nullify the credit. The district shall notify the community development director of the credit so that appropriate conditions can be placed on the approved plans and permit.
E. Any claim for credit must be made no later than 20 calendar days after the submission of an application for a building permit.
F. For each request for a credit for significant past tax payments made for particular school system improvements, the fee payer shall submit receipts and a calculation of past tax payments earmarked for or proratable to the particular school system improvements. (Ord. 1347-21 § 29; Ord. 1244-16 § 3 (Exh. A))
16.74.090 Adjustments, waivers, appeals and arbitration.
A. Administrative Adjustment of Fee Amount.
1. An applicant for a building permit or the school district may, within 21 days of acceptance by the city of a complete building permit application, submit a letter to the community development director requesting an adjustment to the impact fees imposed by this title. The director may adjust the amount or waive the entire fee, in consideration of studies and data submitted by the applicant and the district, if one of the following circumstances exists:
a. It can be demonstrated that the school impact fee assessment was incorrectly calculated; and/or
b. Unusual circumstances of the development activity demonstrate that application of the school impact fee to the development would be unfair or unjust.
2. To avoid delay pending resolution of the adjustment or appeal, school impact fees may be paid under protest in order to obtain a development approval.
3. Failure to exhaust this administrative remedy shall preclude appeals of the school impact fee pursuant to subsection (B) of this section.
B. Appeals of Decisions – Procedure.
1. The director’s final impact fee determination and/or any mitigation requirements imposed pursuant to this chapter may be appealed in accordance with SMC 16.80.090.
2. At the hearing, the appellant shall have the burden of proof, which shall be met by a preponderance of the evidence. The impact fee may be modified upon a determination that it is proper to do so based on the application of the criteria contained in subsection (A) of this section. Appeals shall be limited to application of the impact fee provisions to the specific development activity and the provisions of this title shall be presumed valid.
C. Arbitration of Disputes. With the consent of the developer and the district, a dispute regarding imposition or calculation of a school impact fee may be resolved by arbitration. (Ord. 1347-21 § 30; Ord. 1244-16 § 3 (Exh. A))
16.74.100 Existing authority unimpaired.
Nothing in this chapter shall preclude the city from requiring the fee payer or the proponent of a development activity to mitigate adverse environmental impacts of a specific development pursuant to the State Environmental Policy Act, Chapter 43.21C RCW, based on the environmental documents accompanying the underlying development approval process, and/or Chapter 58.17 RCW, governing plats and subdivisions; provided, that the exercise of this authority is consistent with this chapter and with RCW 43.21C.065 and 82.02.100. (Ord. 1244-16 § 3 (Exh. A))
16.74.110 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. 1244-16 § 3 (Exh. A))