HomeMy WebLinkAbout04/09/2024 - Regular - Additional Doc-2023 Impact Fee Annual ReportCITY OF PORT ORCHARD
Department of Community Development
a , ; :u ; , 216 Prospect Street
. ,.!:"' a . a. • Port Orchard, WA 98366
- s- Phone (360) 874-5533 - Fax (360) 876-4980
Memorandum
To: The City Council
From: Nicholas Bond AICP, DCD Director
Date: April 09, 2024
Re: 2023 Impact Fee Annual Report (Per POMC 16.70.130 E)
Port Orchard Municipal Code Section 20.182.130 (5) requires the DCD Director and the South Kitsap
School District to provide an annual report on the collection of park, transportation, and school impact
fees. This memo is written to satisfy the reporting requirement for the City's park and transportation
impact fees. The School District's report is to be provided separately pursuant to the Interlocal
Agreement (C035-22) between the District and the City concerning the collection of school impact fees.
Park Impact Fee:
Background: Park impact fees are assessed against all residential development and the fee amount is
based on housing type. 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 park impact fee revenue collected each year and
when those revenues were spent on park eligible projects. As of the end of 2023, the City has expended
all revenues collected from 2012-2022. 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 $1.945 million must be spent by 2033
Tracking
2019
2020
2021
2022
2023
Revenues
79,059
173,546
248,995
373,215
2,119, 842
Applied Expenses
(79,059)
(173,546)
(248,995)
(373,215)
(174,750)
Balance Available to Spend By Year Collected
-
-
-
-
1,945,092
2023 Financial Overview: On January 1, 2023, there was a parks impact fee balance of $808,518.
Revenue received during the year included park impact fees of $2,046,801 and interest of $73,042 for
a total revenue received of $2,119,842. Park impact fees were used to pay towards the McCormick
Village Park Splash Pad Retrofit Project in 2023 in the amount of $774,747, Community Events Center
of $142,325 and the Orchard Street Plaza for $66,196 leaving an ending balance of $1,872,050.
Page 1 of
The follow table represents the revenue and expense activity:
Parks Impact Fee
2021
2022
2023
Beginning Balance
255,009
472,322
808,518
Revenue
248,244
362,607
2,046,801
Interest
751
10,608
73,042
Expenses
(31,682)
(37,019)
(983,269)
Ending Balance
472,322
808,518
1,945,092
Park Impact Fee Detail History
Parks Impact Fees - Projects
City Expenses Paid
Developer
Credits Issued
Developer
Credits Issued
DA Maximum
Credit Allowed
Remaining
Available Credits
2012-2018
2019-2022
2023
FY 2022
FY 2023
MW Parks Impact Fee's- McCormick Village Park
$ 622,011
McCormick Village Park
$ 368,700
$ -
McCormick Village Splash Pad
$ -
$ 110,743
$ 774,747
Community Events Center
$ 142,325
Orchard Street Plaza
$ 66,196
McCormick Village Park Lump Sum per KC/PO ILA:
C110-22
$ 22,088
$ 273,088
$ 643,743
$ 348,567
McCormick Village Phase 3: C110-22
$ 1,250,000
$ 1,250,000
St. Andrews Mulit-Modal Trail: C110-22
$ 979,012
$ 979,012
McCormick West Mulit-Modal Trail PH 1: C110-22
$ 1,468,518
$ 1,468,518
McCormick West Mulit-Modal Trail PH 2: C110-22
$ 979,012
$ 979,012
Ruby Creek Regional Park (PK4)-Ord. 034-21: C076
21: Haven Apartments
$ 126,144
$ 126,144
Total
$ 990,711
$ 110,743
$ 983,269
$ 22,088
$ 273,088
$ 5,446,429
$ 5,151,253
Transportation Impact Fee:
Background: Prior to 2021, the City had two separate areas for the collection of impact fees due to the
2005 development agreement for transportation between the Kitsap County (assumed by Port Orchard)
and McCormick Communities. In 2015, the City adopted transportation impact fees (effective January
1, 2026) for all areas of the City other than the areas of McCormick woods governed by the 2005
agreement. In 2021, the City approved Ordinance 007-21 and a new Development Agreement for
Transportation between the City and McCormick Communities (C035-21). These two actions
consolidated the City into a single transportation impact fee assessment area and provided for the
combination of McCormick specific transportation impact fees and the non -McCormick specific impact
funds. However, pursuant to the 2005 and 2021 development agreements for transportation, the
McCormick specific impact fees that had been collected are not subject to RCW 82.02.070 requiring
that the funds be spent within 10 years. As such, these funds are and will continue to be tracked and
accounted for separately in annual reports until the funds have been spent in full.
Since Ordinance 007-21 took effect, transportation impact fees are assessed against all new
development in the city and are based on the peak PM trip generation of a project. Impact Fees, other
than those collected pursuant to the 2005 McCormick development agreement for transportation, are
intended to be spent within a 10 -year period of being collected for appropriate projects.
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10 -Year Tracking (non -McCormick Woods Transportation Impact Fees): 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 2023, the City has expended all revenues collected from 2016-
2019. 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 $44,269 must be spent by 2030, $1,205,887 by 2031, $1,845,686 by 2032 and,
$2,317,602 by 2033
10 -Year Tracking
2020
2021
2022
2023
Revenues
498,544
1,205,887
1,845,686
2,317,602
Applied Expenses
(454,275)
-
-
-
Balance Available to Spend By Year Collected
44,269
1,205,887
1,845,686
2,317,602
2023 Financial Overview (Non -McCormick Transportation Impact Fees): On January 1, 2023 there was
a balance of $3,472,431. Revenue received during the year included impact fees of $2,115,701 and
interest of $201,901 for a total of $2,317,602 in transportation impact fee revenue. Transportation
impact fees were used as follows:
1) TIP 1.7 Bethel -Lincoln Corridor project (TIF 2.04E):
2) TIP 1.14 Sidney Road Non- Motorized (TIF 2.05):
3) TIP 1.15 Pottery Ave Non- Motorized (TIF 2.14):
$306,893
$221
$69,475
The total expenses paid for 2023 was $376,588. Transportation impact fees ended the year with a
balance of $5,413,445.
The follow table represents the revenue and expense activity:
Transportion Impact Fee
2020
2021
2022
2023
Beginning Balance
702,981
944,142
1,731,882
3,472,431
Revenue
492,001
1,203,166
1,800,222
2,115, 701
Interest
6,543
2,721
45,464
201,901
Expenses
(257,383)
(418,147)
(105,138)
(376,588)
Ending Balance
944,142
1,731,882
3,472,431
5,413,445
2023 Financial Overview (McCormick Transportation Impact Fees): In the following table, McCormick
Woods impact fees are accounted for separately from the citywide transportation impact fees. Pursuant
to a 2021 Development Agreement for Transportation (035-21), these funds may be spent on any
eligible impact fee project. On January 1, 2023 there was a balance of $691,644 for McCormick Woods
Transportation Fees. The City no longer collects McCormick specific transportation impact fees.
Revenue received during the year included interest of $28,178. In 2023 McCormick Woods impact fees
in the amount of $111,871 were used to reimburse McCormick Land Co. (as assigned) for previously
constructed improvements pursuant to the 2005 Development Agreement for Transportation between
McCormick Communities LLC and the City. Additionally, $188,484 was used to for TIP 1.18
Salmonberry Round About designs. The total expenses paid for 2023 was $300,356. The result of these
activities is an ending balance of $419,466
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The follow table represents the revenue and expense activity:
MW Transportion Impact Fee 2021 I 2022 I 2023
Beginning Balance 785,820
Revenue 29,244
Interest 1,946
788,899 691,644
11,232 28,178
Expenses (28,111) (108,487) (300,356)
Ending Balance
788,899 691,644 419,466
Restated Transportation Impact Fees:
In 2021 the McCormick Woods Transportation Impact Fees were merged with the City transportation
fee through a new agreement (C035-21). The following table restates the combined transportation
impact fee balances for 2021,2022 and 2023.
Transportation Impact
2021*
2022*
2023*
Beginning Balance
1,729,962
2,520,781
4,164,074
Revenue
1,237,077
1,856,918
2,345,780
Expenditure
(446,258)
(213,625)
(676,944)
Ending Balance
2,520,781
4,164,074
5,832,910
*2021,2022,2023 Re -stated to reflect New
McCormick Agreement
Transportation Impact Fee Detail History
2021 Project Description
TIF
2021
2021TIFGrowth
Share (Adjusted for
Annual Inflation)
City Expenses Paid
Developer
Credits
Developer
Credits issued
Developer
Credits issued
Growth Share
Remaining
Certified
ProjectCost
DAAllowed
Maximum
Credit
Remaining
Available Credits
2008-2015
2016-2021
2022
2023
P02021
P02022
FY2023
Glenwood Connector Roadway (C035-21)
DA
$ 2,225,432
$ 391,612
$ 291,228
$ 103,640
$ 111,872
$ 1,225,471
$ 2,123,823
$
Tremont St Widening CN Phase
1.1
$ 2,060,367
$ 47,000
$ 2,013,367
$
Bethel/Sedgwick Corridor Ph. 1 Design
1.3
$ 326,570
$ 326,570
$ -
Old Clifton Rd/Anderson Hill Rd Roundabout
1.4
$ 874,719
$ 147,685
$ 727,034
Old Clifton Rd Design - 50%
1.5A
$ 625,346
$ 4,847
$ 620,499
Old Clifton Rd/Campus Pkwy Roundabout (C035-21)
DA -1.5C
$ 1,780,346
$ 81,360
$ 144,849
$ 155,205
$ 1,320,636
$ 1,702,051
$ 1,702,051
$ 1,320,636
VallorCt Connector
1.7
$ 107,596
$ 107,596
-
SidneyAve(N)Widening
2.01
$ 3,498,873
$ 3,498,873
$
Sedgwick Rd West Design/ROW
2.02
$ 803,381
$ 803,381
Sedgwick Rd West Construction
2.03
$ 2,409,586
$ 2,409,586
$ -
Bethel/Sedgwick Corridor Ph, 140W/Construction,
2.04A
$ 1,663,342
$ 188,484
$ 1,474,858
$ -
Bethel/Sedgwick Corridor Ph. 1ROW/Construction- (C039-23)
DA -2.04A
$ 272,888
$ 272,888
$ 245,245
$ 245,245
Bethel/Sedgwick Corridor Ph. 2
2.048
$ 1,629,357
$ 1,629,357
$
Bethel/Sedgwick Corridor Ph. 3
2.04C
$ 108,797
$ 108,797
-
Bethel/Sedgwick Corridor Ph. 4
2.040
$ 2,301,069
$ 2,301,069
$
Bethel/Sedgwick Corridor Ph. 5
2.04E
$ 6,152,763
$ 602,384
$ 96,089
$ 306,893
$ 5,147,397
$
Sidney Rd (5) Widening
2.05
$ 2,011,365
$ 221
$ 2,064,099
$
Sidney Rd (S) Widening (C076-21)
DA -2.05
$ 522,754
$ 469,800
$ -
$ 580,085
$ 469,800
$ -
Sidney Rd (S) Widening(C070-22)
DA -2.05
$ 351,561
$ 351,561
$ 315,949
$ 315,949
Pottery Ave (N) Widening
2.06
$ 308,779
$ 308,779
$
Old Clifton Rd Shoulder& Pod Improvements
2.07
$ 1,876,039
$ 86,630
$ 1,789,409
$
Old Clifton Rd/McCormick Woods Dr Roundabout (C035-21)
DA -2.08
$ 1,780,346
$ 1,780,346
$
MelcherSt Widening
2.09
$ 28,128
$ 28,128
Fireweed Rd Widening
2.1
$ 13,019
$ 13,019
Sherman Ave Widening
2.12
$ 18,249
$ 18,249
Tremont St Widening Ph. 2- PO Blvd
2.13
$ 5,944,129
$ 5,944,129
Pottery Ave (S) Widening
2.14
$ 461,910
$ 9,049
$ 69,475
$ 383,386
Blueberry Rd Widening
2.16
$ 89,594
$ 89,594
Geiger Rd Widening
2.17
$ 13,019
$ 13,019
Salmonberry Rd Widening
2.18
$ 32,050
$ 32,050
Piperberry Way Extension
2.19
$ 28,558
$ 28,558
Old Clifton Rd/Feigley Rd Roundabout
2.21
$ 34,661
$ 34,661
DA Feigley Rd Improvements*
DA
$ 85,094
76,474
$
$ 76,474
$
Totals
$ 40,439,686
$ 468,086
$ 1,174,927
$ 213,625
$ 676,945
$ 81,360
$ 614,649
$ 155,205
$ 36,866,365
$ 4,482,432
$ 2,733,045
$ 1,881,830
4