HomeMy WebLinkAbout03/22/2022 - Regular - Additional Docs-Impact Fee Report
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CITY OF PORT ORCHARD
Department of Community Development
216 Prospect Street
Port Orchard, WA 98366
Phone (360) 874-5533 Fax (360) 876-4980
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 Tracking
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.
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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:
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.
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
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 123,325 255,009 472,322
Park Impact Fees
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
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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:
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 $788,898
The follow table represents the revenue and expense activity:
2019 2020 2021
Beginning Balance 542,494 702,981 944,142
Revenue 160,487 498,544 1,205,887
Expenditure - (257,383) (418,147)
Ending Balance 702,981 944,142 1,731,882
Transportation Impact
2019 2020 2021
Beginning Balance 536,834 610,659 785,820
Revenue 124,868 222,471 31,190
Expenditure (51,043) (47,310) (28,111)
Ending Balance 610,659 785,820 788,898
McCormick Woods
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Restated Transportation Impact Fees:
In 2021 the McCormick Woods Transportation Impact Fees were merged with the City Transportation
Fee through a new agreement. The following table restates the Combined Transportation Impact Fee’
balances for 2021. Going forward the city will only report on the combined amounts.
Transportation Impact Fee Detail History
Transportation Impact
2021*
Beginning Balance 1,729,962
Revenue 1,237,077
Expenditure (446,258)
Ending Balance 2,520,781
*2021 Re-stated to reflect New McCormick Agreement
2021 Project Description TIF 2021 TIF Expenses Paid Growth Share Certified
2021 Growth Share 2008-2015 2016 2017 2018 2019 2020 2021 Remaining Project Cost
Glenwood Connector Roadway DA 2,000,000$ 391,612$ 33,799$ 11,843$ 45,976$ 51,043$ 47,310$ 101,257$ 1,440,983$ 2,123,823$
Tremont St Widening CN Phase 1.1 1,851,656$ 47,000$ 1,804,656$
Bethel/Sedgwick Corridor Ph. 1 Design 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$
Sedgwick Rd West Design/ROW 2.02 722,000$ 722,000$
Sedgwick Rd West Construction 2.03 2,165,500$ 2,165,500$
Bethel/Sedgwick Corridor Ph. 1 ROW/Construction 2.04A 1,740,094$ 1,740,094$
Bethel/Sedgwick Corridor Ph. 2 2.04B 1,464,306$ 1,464,306$
Bethel/Sedgwick Corridor Ph. 3 2.04C 97,776$ 97,776$
Bethel/Sedgwick Corridor Ph. 4 2.04D 2,067,975$ 2,067,975$
Bethel/Sedgwick Corridor Ph. 5 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 St Widening 2.09 25,279 25,279$
Fireweed Rd Widening 2.1 11,700 11,700$
Sherman Ave Widening 2.12 16,400 16,400$
Tremont St Widening 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$
Piperberry Way 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 36,343,224$ 468,086$ 152,722$ 40,605$ 179,606$ 51,043$ 304,693$ 446,258$ 34,824,033$