Chapter 21.04 SCHOOL IMPACT FEES

The Washington State Legislature, with the passage of Chapter 17, Laws of 1990 (Growth Management Act) has removed previously enacted restrictions and authorized development impact fees as an additional source of funding for common school facilities, in addition to local tax revenues and state grants from the Common School Construction Fund.

The Growth Management Act (GMA), also amended RCW 58.17.110, the Planning and Subdivision Act, to require written findings that "appropriate provisions are made for ... schools and school grounds."

Demands for construction of new school facilities will continue through the next decade because of increased population.

Cities are required to coordinate land use development and the provision of public facilities under mandates of the GMA.

While the general community benefits from new public facilities and should continue to pay the majority of facility costs, it is appropriate to require new development to pay some share of its proportional impact on the need for such facilities.

"Capital facilities plan"

Because the Washington State Constitution makes the education of its children the state's "paramount" duty, there continues to be a state responsibility for the construction of state facilities.

(G)

The formula adopted in this chapter accounts for existing and expected future public funding sources for schools, including the state funding and local bond issues or other revenues. It assumes that these sources will continue to provide a credit for these two funding sources against the calculated impact fees.

(H)

The adoption of this chapter and the capital facility plans of the school district, and the imposition of appropriate on-site impact provisions authorized in Chapters 43.21C (SEPA) and 58.17 RCW, constitutes "appropriate provision" of school sites and school facilities.

(I)

It is the desire of the city of Granite Falls to have new development assessed impact fees in uniform manner and will endeavor to have a common formula and administration process for the levying of this fee to the maximum degree possible.

(J)

The city council of the city of Granite Falls hereby finds and determines that new residential development in the city of Granite Falls will create additional demand and need for school facilities in the city of Granite Falls, and that new residential development should pay a proportionate share of the cost of school facilities needed to serve the new residential development. 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 purpose of the city council in establishing the impact fee program.

(Ord. 599 § 1, 1998; Ord. 639 § 1, 2001; Ord. 907 § 1 (Att. A), 2016)

§ 21.04.020 Definitions.

For the purpose of this chapter, the following terms shall have the indicated meanings:

"Act"

means the Growth Management Act, Chapter 17, Laws of 1990, First Ex. Sess., Chapter 36.70A RCW et seq., and Chapter 32, Laws of 1991, First Sp. Sess., as now in existence or as hereafter amended.

"Average assessed value"

means the district's average assessed value for the dwelling unit type.

"Boeckh index"

means the current construction trade index of construction costs for each school type.

"Building permit"

means the permit required for new construction and additions, pursuant to the Uniform Building Code. As used herein, the term shall not be deemed to include permits required for remodeling, rehabilitation or other improvements to an existing structure or rebuilding a damaged or destroyed structure, provided there is no increase in the number of dwelling units resulting therefrom.

"Capital facilities"

means school facilities identified in a school district's capital facilities plan and are "system improvements" as defined by the GMA as opposed to localized "project improvements."

means the capital facilities plan adopted pursuant to plans adopted by the district and submitted to the city.

"Concurrent" or "concurrency standards"

means that the permanent and interim improvements are planned to be or are in place at the time the impacts of development are expected to occur, and that the necessary financial commitments are in place to complete the improvement necessary to serve the development within six years of the time the impacts of the development are expected to occur.

"Construction cost per student"

means the estimated cost of construction of a school in the district for the grade level of the proposed school.

"Department"

means the public works department of the city of Granite Falls.

"Developer"

means the proponent of a development activity, such as any person or entity who owns or holds purchase options or other development control over property for which development activity is proposed.

"Development"

means all subdivisions, short subdivisions, conditional or special use permits, binding site plan approvals, rezones accompanied by an official site plan, or building permits (including building permits for multifamily and duplex residential structures, and all similar uses) and other applications requiring land use permits or approval by Granite Falls.

"Development activity"

means any residential construction or expansion of a building, structure or use of land, or any other change in use of building, structure, or land that creates additional demand and need for school facilities, but excluding building permits for attached or detached accessory apartments, and remodeling or renovation permits which do not result in additional dwelling units.

"Development approval authority"

means the Granite Falls city council.

"Director"

means the city of Granite Falls planning commission chairman.

"District"

means the Granite Falls School District No. 332.

"District property tax levy rate"

means the district's current capital property tax rate per $1,000 of assessed value.

"Dwelling unit type"

means (1) single-family residences, (2) multifamily one-bedroom apartment or condominium units, and (3) multifamily multiple-bedroom apartment or condominium units.

"Encumber"

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.

"Estimated facility construction cost"

means the planned costs of new schools or the actual construction costs of schools of the same grade span recently constructed by the district, including on-site and off-site improvement costs. If the district does not have this cost information available, construction costs of school facilities of the same or similar grade span within another district are acceptable.

"Facilities credit"

means the per-dwelling-unit value of any facilities or sites provided directly by the development and accepted by the district.

"Facility design capacity"

means the number of students a school site and its school building is designed to accommodate.

"Feepayer"

means the responsible party for a land use or construction permit for residential development.

"Grade span"

means a category into which a district groups its grades of students (e.g., elementary, middle or junior high, and high school).

"Impact fee"

means the fee levied pursuant to this chapter as a condition of issuance of a building or mobile home permit.

"Impact fee account"

means the account established for the school facilities for which impact fees are collected.

"Independent fee calculation"

means the school impact calculation and/or economic documentation prepared by a feepayer, or Granite Falls School District No. 332, to support the assessment of an impact fee other than by the use of the schedule attached as Appendix A to the ordinance codified in this chapter.

"Interest rate"

means the current interest rate as stated in the Bond Buyer 20-Bond General Obligations Bond Index.

"Interlocal agreement"

means the school interlocal agreement by the city of Granite Falls and Granite Falls School District No. 332 as authorized in this chapter.

"Land cost per acre"

means the estimated average land acquisition cost per acre (in current dollars) based on recent site acquisition costs, comparisons of comparable site acquisition costs in other districts, or the average assessed value per acre of properties comparable to school sites located within the district.

"Land use permit"

is a consolidated development approval or permit.

"Multifamily unit"

means any residential dwelling unit that is not a single-family unit as defined by this section.

"Owner"

means the owner of record of real property or the owner's authorized agent.

"Permanent facilities"

means school facilities of the district with a fixed foundation.

"Public/private ratio"

means the ratio of public revenues to impact fees for financing the unfunded construction, site and temporary facilities costs after state funds are calculated.

"Relocatable facilities"

means factory-built structures, transportable in one or more sections, that are designed to be used as education spaces and are needed to prevent the overbuilding of school facilities, to meet the needs of service areas within a 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.

"Relocatable facilities cost"

means the total cost, based on actual costs incurred by the district, for purchasing and installing portable classrooms.

"Relocatable facilities student capacity"

means the rated capacity for a typical portable classroom used for a specified grade span.

"Residential structure"

means a house, apartment, mobile home, manufactured home or modular home used as a place of residence.

"SBE"

means the Washington State Board of Education.

"School facilities"

means facilities owned or operated by Granite Falls School District No. 332, or the facilities or improvements included in the district's capital budget and/or capital facilities plan.

"School 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. The school impact fee does not include a reasonable permit fee, application fee, the administrative fee for collecting and handling impact fees, or the cost of reviewing independent fee calculations.

"Service area"

means a geographic area described in the city capital facilities plan in which a defined site of public facilities provides service to development within the area. Service areas may be separately described for each type of public facility.

"Single-family unit"

means any detached residential dwelling unit designed for occupancy by a single family or household.

"Site cost per student"

means the estimated cost of a site in the district for the grade level of school to be provided, divided by the design capacity for the grade level of school.

"SPI"

means the Washington State Superintendent of Public Instruction.

"Standard of service"

means the standard adopted by each 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 in the district's capital facilities plan. 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 from any specialized facilities housed in relocatable facilities.

"State match percentage"

means the proportion of funds that are provided to the district for specific capital projects from the state's Common School Construction Fund. These funds are disbursed based on the formula which calculates district assessed valuation per pupil relative to the whole state assessed valuation per pupil to establish the maximum percentage of the total project eligible to be paid by the state.

"Student factor (student generation rate)"

means the number of students of each grade span (elementary, middle/junior high, high school) that a district determines are typically generated by different dwelling unit types within the district.

"Temporary facilities cost per student"

means the cost of purchasing and siting a portable classroom unit divided by the number of students the units are designed for and discounted to reflect multiple site uses.

"Voluntary agreement"

means an agreement between a developer and Granite Falls School District No. 332 as authorized by RCW 82.02.020.

(Ord. 599 § 2, 1998; Ord. 639 § 2, 2001; Ord. 907 § 1 (Att. A), 2016)

§ 21.04.030 Assessment of impact fee.

Assessment of impact fees shall be determined as follows:

No building permit shall be issued for a development in the city unless the impact fee is calculated and imposed pursuant to this chapter.

The city shall impose and the school district shall collect impact fees, based on the schedule in Appendix A, as determined from Appendices B and C, all attached to Ordinance 709, codified in this section, from any applicant seeking a land use permit or approval and/or a building permit for the city for any residential development activity within the city; provided, that the city shall reevaluate the fees at the time school impact fees are considered by Snohomish County for the remainder of the district.

Impact fees shall be paid at the time of building permit issuance, based on the fee schedule in place at the time of permit application. The city staff shall verify that all required school impact fees and/or credits have been collected prior to permit issuance.

The fee will be collected by the school district as per interlocal agreement on collection procedures adopted by the city and the school district on July 25, 1998, as a part of Ordinance 599.

The impact mitigation fee shall be based on a capital facilities plan approved by the district, and adopted by the city.

(Ord. 599 § 3, 1998; Ord. 639 § 3, 2001; Ord. 709 § 2, 2005; Ord. 907 § 1 (Att. A), 2016)

§ 21.04.040 Exemptions.

The following shall be exempted from the payment of all school impact fees:

(1)

Any form of housing permanently and exclusively 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 or expansion or enlargement or remodeling or rehabilitation or conversion of an existing dwelling unit when no additional units are created.

(4)

All nonresidential construction.

The 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 law.

(Ord. 599 § 4, 1998; Ord. 639 § 4, 2001; Ord. 907 § 1 (Att. A), 2016)

§ 21.04.050 Credits.

The fee payer shall direct the request for a credit or credits to the director, who shall forward the request to Granite Falls School District No. 332. 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 Granite Falls School District No. 332 may make the findings 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 director, including cases where the district determines that the dedicated land, improvements, and/or construction are not suitable for the district purposes. The director shall adopt the determination of Granite Falls School District No. 332 and shall inform the applicant, in writing, of the adoption of the district's determination.

For each request for a credit or credits, once the school district has determined that the land, improvements, and/or construction would be suitable for district purposes, Granite Falls School District No. 332 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.

The fee payer shall pay for the cost of the appraisal or request that the costs 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.

After receiving the appraisal, Granite Falls School District No. 332 shall provide the applicant with a letter or certificate setting 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 other 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 documents within 60 calendar days shall nullify the credit. The district shall notify the director of the credit so that appropriate conditions can be placed on the approved plans and permit.

Any claims for credit must be made no later than 20 calendar days after the submission of an application for a building permit.

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 pro-ratable to the particular school system improvements.

(Ord. 599 § 5, 1998; Ord. 639 § 5, 2001; Ord. 907 § 1 (Att. A), 2016)

§ 21.04.060 Tax adjustments.

Pursuant to and consistent with the requirements of RCW 82.02.060, the capital facilities plan has provided adjustments for future taxes to be paid by the new development which are earmarked or pro-ratable to the particular school system improvements which will serve the new development. The impact fee schedule in Appendix A, attached to the ordinance codified in this chapter, has been reasonably adjusted for taxes and other revenue sources which are anticipated to be available to fund particular school system improvements.

(Ord. 599 § 6, 1998; Ord. 639 § 6, 2001; Ord. 907 § 1 (Att. A), 2016)

§ 21.04.070 Appeals.

Appeals regarding the impact fees imposed on any development activity may only be taken by the fee payer of the property where such development activity will occur. No appeal shall be permitted unless and until the impact fees at issue have been paid.

Determinations with respect to the applicability of the impact fees to a land use permit and/or building permit, the availability of an exemption, the availability or value of a credit, or the decision concerning the independent fee calculation, or the fees imposed, or any other determination made pursuant to this chapter, can be appealed to the city council.

Appeals shall be filed within 15 working days of the issuance of a written determination by filing a notice of appeal specifying the grounds thereof, and depositing an administrative fee in the amount of $300.00. The director and the district shall transmit to the city council all papers constituting the record for the determination.

The city council shall fix a time for the hearing of the appeal, give notice to the parties of record, and decide the same. At the hearing, any party may appear in person or by agent or attorney.

The action of the city council shall be taken by the adoption of a motion by the city council. When taking any such final action, the city council shall make and enter findings of fact from the record and conclusions thereof, which support its action.

§ 21.04.080 Authorization for the school interlocal agreement and the establishment of the school's impact fee account.

The action of the city council approving, modifying, or rejecting a decision of the director and/or district shall be final and conclusive, unless within 20 calendar days from the date of the city council action, Granite Falls School District No. 332 or any fee payer applies for a writ of certiorari to the superior court of Washington for Snohomish County, for the purpose of review of the action taken.

(Ord. 599 § 7, 1998; Ord. 639 § 7, 2001; Ord. 907 § 1 (Att. A), 2016)

The interlocal agreement contains a hold harmless and indemnification provision which states that the district shall indemnify and hold the city harmless for all costs and attorney's fees associated with challenges to the fee amounts, the calculations and formula regarding impact fees, request for credit under GFMC § 21.04.050, independent fee calculations under GFMC § 21.04.130, the district capital facilities plan, the record keeping by the district, the expenditure of funds collected, and for request for refunds under GFMC § 21.04.090.

As a condition of the interlocal agreement, Granite Falls School District No. 332 shall establish a school impact fee account. This account shall be an interest bearing account.

Funds withdrawn from the schools impact account for Granite Falls School District No. 332 must be used in accordance with the provisions of this chapter. The interest earned shall be retained in this account and expended for the purposes for which the school impact fees were collected.

On an annual basis, pursuant to the interlocal agreement, Granite Falls School District No. 332 shall provide a report to the city council on the school's 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.

School impact fees shall be expended or encumbered within six years of receipt, unless the city council identifies in written findings extraordinary and compelling reason or reasons for Granite Falls School District No. 332 to hold the fees beyond the six-year period. Under such circumstances, the city council shall establish the period of time within which the impact fee shall be expended or encumbered, after consultation with Granite Falls School District No. 332.

(Ord. 599 § 8, 1998; Ord. 639 § 8, 2001; Ord. 907 § 1 (Att. A), 2016)

§ 21.04.090 Refunds.

If Granite Falls School District No. 332 fails to expend or encumber the impact fees within 10 years of when the fees were paid, or where extraordinary compelling reason exists, the current owner of the property on which the impact fees have been paid may receive a refund of such fees. In determining whether impact fees have been expended or encumbered, impact fees shall be considered expended or 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 at the last known address of such claimants. A potential claimant or claimants must be the owner of the property.

Owners seeking a refund of impact fees must submit a written request for a refund of the fees to the director within one year of the date the right to claim the refund arises or the date that notice is given, whichever is later.

Any impact fees for which no application for a refund has been made within this one-year period shall be retained by the school district and expended on the appropriate school facilities.

Refunds of impact fees under this section shall include any interest earned on the impact fees by the school district.

When the city seeks to terminate any or all components of the impact fee program, all unexpended or unencumbered funds, from any terminated component or components, including interest earned, shall be refunded pursuant to this section. 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, two times, and shall notify all potential claimants by first class mail at the last known address of the claimants. 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 school district, but must be expended for the appropriate school facilities. This notice requirement shall not apply if there are no unexpended or unencumbered balances within the account or accounts being terminated.

(G)

Granite Falls School District No. 332 shall also refund to the current owner of property for which impact fees have been paid all impact fees paid, including interest earned on the impact fees, if the residential development for which the impact fees were imposed did not occur; provided, that a request for a refund shall be made within 30 days following the expiration of the building permit. If within three years the project proceeds with the same or substantially similar residential development, the owner can petition the school district for an offset. Granite Falls School District No. 332 shall determine whether to grant an offset, based on receipts provided by the petitioner of impact fees previously paid for the same or substantially similar residential development project.

(Ord. 599 § 9, 1998; Ord. 639 § 9, 2001; Ord. 907 § 1 (Att. A), 2016)

§ 21.04.100 Use of funds.

Pursuant to this chapter, impact fees:

(1)

Shall be used for school improvements of Granite Falls School District No. 332 that will reasonably benefit the new development; and

(2)

Shall not be imposed to make up for deficiencies in District No. 332 school facilities serving existing developments; and

(3)

Shall not be used for maintenance or operation.

§ 21.04.110 School impact fees and administrative fees.

Impact fees may be spent for Granite Falls School District No. 332 improvements, including but not limited to school planning, land acquisition, site improvements, necessary off-site improvements, construction, engineering, architectural, permitting, financing and administration expenses, applicable fees or mitigation costs, capital equipment pertaining to educational facilities, and any other expenses which can be capitalized.

(Ord. 599 § 10, 1998; Ord. 639 § 10, 2001; Ord. 907 § 1 (Att. A), 2016)

The school impact fees set forth in Appendix A, attached to the ordinance codified in this chapter, are generated from the formula for calculating impact fees set forth in District No. 332's capital facilities plan. Except as otherwise provided in this chapter, all land use and building permits issued by the city will be charged the school impact fee in Appendix A.

§ 21.04.130 Independent fee calculations.

The city's cost of administering the impact fee program shall be $15.00 per dwelling unit and shall be paid by the applicant to the city as part of the development application fee.

(Ord. 599 § 11, 1998; Ord. 639 § 11, 2001; Ord. 907 § 1 (Att. A), 2016)

§ 21.04.120 Fee adjustments.

The adjustments to the impact fees reflect the legislative determination that while the full impact fees per dwelling unit accurately characterize the cost of the school facilities required for each new development, as documented in District No. 332's capital facilities plan, the city council has, as a matter of policy and at the request of the school district, decided to provide discretionary adjustments for local bond issues. The city council is authorized to reduce or to increase the adjustments as part of its annual or periodic review of the fee schedule, or at any other time, by adopting an amendatory ordinance. No additional technical analysis is required for reductions to or increases in the amount of the adjustments.

(Ord. 599 § 12, 1998; Ord. 639 § 12, 2001; Ord. 907 § 1 (Att. A), 2016)

If District No. 332 believes in good faith that none of the fee categories or fee amounts set forth in the schedule in Appendix A, attached to the ordinance codified in this chapter, accurately describe or capture the impacts of a new development on school, Granite Falls school district may conduct independent fee calculations and submit such calculations to the director. The alternative fees and the calculations shall be set forth in writing and shall be mailed to the fee payer.

If a fee payer opts not to have the impact fees determined according to the schedule set forth in Appendix A, attached to the ordinance codified in this chapter, then the feepayer shall prepare and submit to the school district an independent fee calculation for the development activity for which approval is sought. The documentation submitted shall show the basis upon which the independent fee calculation was made. School District No. 332 shall review the independent fee calculation and provide an analysis to the director concerning whether the independent fee calculation should be accepted, rejected, or accepted in part. The fees or alternative fees and the calculations shall be set forth in writing and shall be mailed to the feepayer.

Any feepayer submitting an independent fee calculation will be required to pay the district a fee to cover the cost of reviewing the independent fee calculations. The fee shall be $500.00 plus any additional staff time spent in the review and the cost of consultant services if the district deems these services to be necessary. The district shall require the feepayer to post a cash deposit of $500.00 prior to initiating the review.