Title 19 (Impact Fees) of the Auburn City Code contains standards and regulations pertaining to the collection of impact fees in the City of Auburn. Impact fees are authorized by state law.  Specifically, Chapter 19.02 (School Impact Fees) addresses the establishment, calculation, collection and amendment of school impact fees within the municipal boundaries of the City of Auburn.  The city originally established school impact fees in 1998 by Ordinance No. 5078.  Portions of four school districts occur within the City limits. 

Pursuant to Code Section 19.02.060 (Annual Council Review) of the Auburn City Code, on at least an annual basis, the Auburn City Council shall review the information submitted by the Districts pursuant to ACC 19.02.050. The review shall be in conjunction with any update of the capital facilities plan element of the city's comprehensive plan. The City Council may also at this time determine if an adjustment to the amount of the impact fees is necessary.

The City of Auburn Annual Comprehensive Plan Amendment process for 2018 included requests for City approval of the Capital Facilities Plans of the four districts as follows:

*  2019-2025 Auburn School District Capital Facilities Plan;                             

*  2020-2025 Dieringer School District Capital Facilities Plan;                           

*  2020 Federal Way School District Capital Facilities Plan;

*  2018 - 2019 through 2024 - 2025 Kent School District Capital Facilities Plan.

These requests were submitted in accordance with the provisions of Section 19.02.050 (Submission of District Capital Facilities Plan and Data) of the Auburn City Code.

The School Districts’ Capital Facilities Plans are contained in the working notebooks (three-ring binders) for the 2019 Annual Comprehensive Plan Amendments, distributed to the City Council prior to the November 25, 2019 study session.

Definition

The city’s code section 19.02 contains the city’s regulations governing school impact fees.  It provides the following definition:

"Impact fee" means a payment of money imposed upon development as a condition of development approval to pay for school facilities needed to serve new growth and development that is reasonably related to the new development that creates additional demand and need for public facilities, that is a proportionate share of the cost of the school facilities, and that is used for such facilities that reasonably benefit the new development.

Related Authority

Other key points of the city’s regulations include:

• RCW 82.02.050 - .110 and WAC 365-196-850 authorize cities (towns & counties) planning under the Growth Management Act (GMA) to impose impact fees.

• The impact fee shall be based on a capital facilities plan adopted by the school district and incorporated by reference by the city as part of the capital facilities element of the city's comprehensive plan, adopted pursuant to Chapter 36.70A RCW, for the purpose of establishing the fee program.

• Separate fees shall be calculated for single-family and multifamily types of dwelling units, and separate student generation rates must be determined by the district for each type of dwelling unit.

• The fee shall be calculated on a district-wide basis using the appropriate factors and data supplied by the district. The fee calculations shall also be made on a district-wide basis to assure maximum utilization of all available school facilities in the district which meet district standards.

• As a condition of the city's authorization and adoption of a school impact fee ordinance, the city and the applicable district shall enter into an interlocal agreement governing the operation of the school impact fee program, and describing the relationship and liabilities of the parties.  The agreement must provide that the district shall hold the city harmless for all damages.

• On an annual basis (by July 1st or on a date agreed to by district and the city and stipulated in the interlocal agreement), any district for which the city is collecting impact fees shall submit the Capital facilities plan and supporting information to the city.

• Applicants for single-family and multifamily residential building permits shall pay the total amount of the impact fees assessed before the building permit is issued, using the impact fee schedules in effect, unless the fee has been deferred pursuant to City Ordinance No. 6341.

• The impact fee calculation shall be based upon the formula set forth in ACC 19.02.110, “Impact fee formula”.  The formula is the city's determination of the appropriate proportionate share of the costs of public school capital facilities needed to serve new growth and development to be funded by school impact fees based on the factors defined in ACC 19.02.020.  Based on this formula, the “Fee Obligation” is the “Total Unfunded Need” x 50% = Fee Calculation.

  The Capital Facilities Plans that were approved by each of the school boards contain proposed school impact fees for each of the Districts.  The requests for adjustment of the school impact fees are required to be submitted concurrent with the submittal of the Capital Facilities Plans.  Under City regulations a separate letter request is only required to be submitted to the city when the fee adjustment is requesting an increase. 

  Council Review and Decision

  The establishment of the actual fee amount occurs through separate Council action amending Chapter 19.02 of the Auburn City Code.  Section 19.02.060, (Annual Council Review) specifies the following:

  “On at least an annual basis, the city council shall review the information submitted by the district pursuant to ACC 19.02.050. The review shall be in conjunction with any update of the capital facilities plan element of the city's comprehensive plan. The city council may also at this time determine if an adjustment to the amount of the impact fees is necessary; provided, that any school impact fee adjustment that would increase the school impact fee shall require the submittal of a written request for the adjustment by the applicable school district concurrent with the submittal of the annual capital facilities plan pursuant to ACC 19.02.050. In making its decision to adjust impact fees, the city council will take into consideration the quality and completeness of the information provided in the applicable school district capital facilities plan and may decide to enact a fee less than the amount supported by the capital facilities plan.”

  This Section provides the Auburn City Council is not obligated to accept the fees proposed by the School Districts within their submitted Capital Facilities Plans and may establish fees that the Council determines are more appropriate and consistent with the public’s interest in reasonably mitigating school impacts within the affected portion of the City. 

  Recommendation (Contained in draft Ordinance No. 6745)

  Dieringer School District: 

  The Dieringer School District is requesting an increase for year 2020.  The year 2020 fees for single-family dwellings is proposed to be $7,729.00, an increase of $4,513.00 and the requested fee for multiple family dwellings is $3,514.00; an increase of $3,064.00. 

  Historically, the City has established fee rates for the Dieringer School district that is the same as the fee implemented in Pierce County’s fee since it is more appropriate and consistent with the public’s interest in reasonably mitigating school impacts within the affected portion of the City.  Both the school district fee calculations exceed the maximum fee obligation obligations established by Pierce County Ordinance by No. 2019-92s which was passed with one amendment at the November 18, 2019 regular council hearing; to be effective February 1, 2020.  An adjustment by the City of Auburn is necessary for the fee to be consistent with Pierce County. The proposed ordinance identifies a maximum impact fee obligation for single family dwelling units of $3,815, and for multi-family dwelling units of $2,025.  The Dieringer School District is the only school district common to both the jurisdictions of the City of Auburn and Pierce County.

  Auburn School District: 

  The Auburn School District indicated by letter submitted with their Capital Facilities Plan, that they are requesting an increase in school impact fees for the year 2019.  The year 2020 fees for single-family dwellings is proposed to be $6,905.31, an increase of $1,189.63 and the requested fee for multiple-family dwellings is $14,667.45, an increase of $10,179.02. Subsequent discussions amongst city leadership and school district leadership has led to a recommended tiered distribution of multifamily residential school impact fees as follows:

               Studio                       $4,667.45

               1 Bedroom               $6,667.45

               2 Bedroom               $9,667.45

               3 Bedroom              $12,667.45

               4+ Bedroom             $14,667.45

  Federal Way School District:

  The Federal Way School District indicated by letter submitted with their Capital Facilities Plan that they are requesting an increase in school impact fees for year 2020.  The year 2020 fees for single-family dwellings is proposed to be $5,035.00, representing a decrease of $2,186.00 and the requested fee for multi-family dwellings is $20,768.00, an increase of $1,314.00.

  Kent School District

  The Kent School District indicated by letter submitted with their Capital Facilities Plan that they are requesting a 2.9 percent increase in school impact fees for year 2020.  The year 2020 fees for single-family dwellings is proposed to be $5,554.00, representing an increase of $157.00 and the requested fee for multi-family dwellings is $2,345.00, an increase of $66.00.