03/22/2022 - Regular - Additional Docs-Impact Fee ReportCITY OF PORT ORCHARD
Department of Community Development
a uu, 216 Prospect Street
. I Port Orchard, WA 98366
V Phone (36o) 874-5533 - Fax (36o) 876-4980
ter._
Memorandum
To: The City Council
From: Nicholas Bond AICP, DCD Director
Date: March 22, 2022
Re: 2021 Impact Fee Annual Report (Per POMC 16.70.130 E)
In November 2015, the City Council passed an Impact Fee Ordinance which took effect on January 1,
2016. This ordinance established Transportation Impact fees while continuing the collection of Park
Impact fees. Port Orchard Municipal Code Section 20.182.130 (5) requires the Director to provide an
annual report on the collection of Park and Transportation Impact fees. McCormick Park Impact Fees
were assigned to the City as part of the McCormick Woods annexation from County to City and were
fully expended in 2018. This memo is written to satisfy the reporting requirement.
In 2021, the City updated its traffic impact fee rate and adopted a new development agreement for
transportation with McCormick Communities. The development agreement allowed for the separate
McCormick transportation impact fee rates and accounting to be consolidated with the citywide impact
fees and impact fee program. As such, this report has been updated to consolidate these 2 separate
impact fee fund balances and project accounting. In addition, the new impact fee study updated the
total eligible costs for various projects to be contributed from the impact fee fund.
Park Impact Fee:
Background: Park Impact fees are assessed at $811 for new single-family residences and $584 for
new multifamily residences. Park impact fees are not assessed against non-residential development.
Impact Fee's are intended to be spent within a 10-year period of being collected for appropriate projects.
10-Year Trackin
The city tracks the total amount of Park Impact Fee Revenue collected each year and when those
revenues were spent on park eligible projects. As of the end of 2021, the City has expended all
revenues collected from 2012-2018. See the below table for current revenue received eligible for
projects by Fiscal Year. Pursuant to RCW 82.02.070 (3) Impact Fees must be spent within 10 years of
collection. The table below demonstrates $49,782 must be spent by 2029, $173,546 by 2030 and
$248,995 by 2031.
Page 1 of
Tracking
2019
2020
2021
Revenues
79,059
173,546
248,995
Applied Expenses
(29,278)
-
-
Balance Available to Spend By Year Collected
49,782
173,546
248,995
2021 Financial Overview:
On January 1, 2021, there was a Parks Impact Fee balance of $255,009. Revenue received during the
year included park impact fees of $248,244 and interest of $751 for a total revenue received of
$248,995. Parks Impact fees were used to pay towards McCormick Woods Splash Pad Retrofit Project
in 2021 in the amount of $31,682 leaving an ending balance of $472,322.
The follow table represents the revenue and expense activity:
Park Impact Fees
2019
2020
2021
Beginning Balance
44,266
123,325
255,009
Revenue
79,059
173,546
248,995
Expenditure
(41,862)
(31,682)
Ending Balance
1 123,325
1 255,009
1 472,322
Transportation Impact Fee:
Background: Transportation impact fees are assessed against all new development and are based on
the peak PM trip generation of a project. Impact Fees are intended to be spent within a 10-year period
of being collected for appropriate projects.
10-Year Tracking
The city tracks the total amount of Transportation Impact Fee Revenue collected each year and when
those revenues were spent on eligible projects. As of the end of 2021, the City has expended all
revenues collected from 2016-2018. See the below table for current revenue received eligible for
projects by Fiscal Year. Pursuant to RCW 82.02.070 (3) Impact Fees must be spent within 10 years of
collection. The table below demonstrates $27,451 must be spent by 2029, $498,544 by 2030 and
$1,205,887 by 2031.
10-Year Tracking
2019
2020
2021
Revenues
160,487
498,544
1,205,887
Applied Expenses
(133,036)
-
-
Balance Available to Spend By Year Collected
27,451
498,544
1,205,887
2
2021 Financial Overview:
On January 1, 2021 there was a balance of $944,142. Revenue received during the year included
impact fees of $1,203,165 and interest of $2,721 for a total of $1,205,887 in Transportation Impact Fee
Revenue. Transportation Impact fees were used to develop designs for the TIP 2.04 Bethel -Lincoln
corridor project in the amount of $345,001 for 2021. Additionally, Transportation Impact fees in the
amount of $73,146 were used to reimburse McCormick Land Co. (as assigned) for previously
constructed improvements pursuant to Development Agreement post the new agreement. The total
expenses for 2021 were $418,147. Transportation Impact Fees ended the year with a balance of
$1,731,882.
The follow table represents the revenue and expense activity:
Transportation
Impact
2019
2020
2021
Beginning Balance
542,494
702,981
944,142
Revenue
160,487
498,544
1,205,887
Expenditure
-
(257,383)
(418,147)
Ending Balance
702,981
944,142
1, 731, 882
McCormick Woods Transportation Impact Fee:
Background: In the following table, McCormick Woods Impact Fees are accounted for separately from
the City-wide transportation impact fees and can only be spent on a specific list of projects. Pursuant
to the 2007 Development Agreement for Transportation between McCormick Communities LLC and the
City, the McCormick Woods Transportation Impact Fee is not subject to the 10-year spending
requirements under RCW 82.02.070 (3).
2021 Financial Overview:
On January 1, 2021 there was a balance of $785,820 for McCormick Woods Transportation Fees.
Revenue received during the year included impact fees of $29,244 and interest of $1,946 for a total of
$31,190. In 2021 McCormick Woods Impact fees in the amount of $28,111 were used to reimburse
McCormick Land Co. (as assigned) for previously constructed improvements pursuant to the 2007
Development Agreement for Transportation between McCormick Communities LLC and the City. The
result of these activities is an ending balance of $788,898
The follow table represents the revenue and expense activity:
McCormick Woods
2019
2020 2021
Beginning Balance
536,834
610,659
785,820
Revenue
124,868
222,471
31,190
Expenditure
(51,043)
(47,310)
(28,111)
Ending Balance
1 610,659
785,820
788,898
3
Restated Transportation Impact Fees:
In 2021 the McCormick Woods Transportation Impact Fees were merged with the City Transportation
Fee through a new agreement. The following table restates the Combined Transportation Impact Fee'
balances for 2021. Going forward the city will only report on the combined amounts.
Transportation Impact
2021*
Beginning Balance 1,729,962
Revenue 1,237,077
Expenditure (446,258)
Ending Balance 2,520,781
*2021 Re -stated to reflect New McCormick Agreement
Transportation Impact Fee Detail History
2021 Project Description
TIF
2021
2021TIF
Growth Share
Expenses Paid
Growth Share
Remaining
Certified
Project Cost
2008-2015
2016
2027
2018
2019
2020
2021
Glenwood Connector Roadway
DA
$ 2,000,000
$ 391,612
$ 33,799
$ 11,843
$ 45,976
$ 51,043
$ 47,310
$ 101,257
$ 1,440,983
$ 2,123,823
Tremont St Widenin CN Phase
1.1
$ 1,851,656
$ 47,000
$ 1,804,656
Bethel/Sed wick Corridor Ph.l Desi n
1.3
$ 293,489
$ 293,489
Old Clifton Rd/Anderson Hill Rd Roundabout
1.4
$ 786,112
$ 118,923
$ 28,762
$ 638,427
Old Clifton Rd Design - 60%
1.5A
$ 562,000
$ 562,000
Old Clifton Rd/Campus Pkwy Roundabout
1.5C
$ 1,600,000
$ 1,600,000
Vallair Ct Connector
1.7
$ 96,697
$ 96,697
Sidney Ave N Widening
2.01
$ 3,144,444
$ 3,144,444
Sed wick Rd West Desi n/ROW
2.02
$ 722,000
$ 722,000
Sed wick Rd West Construction
2.03
$ 2,165,500
$ 2,165,500
Bethel/Sed wick Corridor Ph. 1 ROW/Construction
2.04A
$ 1,740,094
$ 1,740,094
Bethel/Sed wick Corridor Ph. 2
2.04B
$ 1,464,306
$ 1,464,306
Bethel/Sed wick Corridor Ph.3
2.04C
$ 97,776
$ 97,776
Bethel/Sed wick Corridor Ph.4
2.04D
$ 2,067,975
$ 2,067,975
Bethel/Sed wick Corridor Ph. S
2.04E
$ 5,529,500
$ 257,383
$ 345,001
$ 4,927,116
Sidney Rd S Widening
2.05
$ 2,593,367
$ 2,593,367
Pottery Ave N Widening
2.06
$ 277,500
$ 277,500
Old Clifton Rd Shoulder &Ped Improvements
2.07
1,686,000
$ 86,630
$ 1,599,370
Old Clifton Rd/McCormick Woods Dr Roundabout
2.08
1,600,000
$ 1,600,000
Melcher S!Widenin
2.09
25,279
$ 25,279
Fireweed Rd Wden!ng
2.1
11,700
$ 11,700
Sherman Ave Widening
2.12
16,400
$ 16,400
Tremont St Widenin g Ph. 2-PO Blvd
2.13
5,342,000
$ 5,342,000
Pottery Ave S Widening
2.14
415,119
$ 415,119
Blueberry Rd Widening
2.16
80,518
$ 80,518
Geiger Rd Widening
2.17
11,700
$ 11,700
Salmonberry Rd Widening
2.18
28,803
$ 28,803
PiperberryWay Extension
2.19
25,665
$ 25,665
Old Clifton Rd/Feigley Rd Roundabout
2.21
31,150
$ 31,150
DA Feigley Rd Improvements*
DA
76,474
76,474
$
$ 76,474
Totals
1 $ 36,343,224
$ 468,086
$ 152,722
$ 40,605
$ 179,606
$ 51,043
$ 304,693
$ 446,258
1 $ 34,824,033
4