Drafter

Clerk 04/22/2025

Title

AN ORDINANCE relating to school impact fees; amending Ordinance 13147, Section 22, as amended, and K.C.C. 20.18.060, Ordinance 10870, Section 292, and K.C.C. 21A.06.1260, Ordinance 11621, Section 89, as amended, and K.C.C. 21A.28.152, Ordinance 11621, Section 91, as amended, and K.C.C. 21A.28.156, Ordinance 11621, Section 112, as amended, and K.C.C. 21A.43.030, and Ordinance 11621, Section 114, as amended, and K.C.C. 21A.43.050, adding a new section to K.C.C. chapter 21A.43, and repealing Ordinance 11621, Attachment A.

Body

                     BE IT ORDAINED BY THE COUNCIL OF KING COUNTY:

                     SECTION 1.  Ordinance 13147, Section 22, as amended, and K.C.C. 20.18.060 are hereby amended as follows:

                     A.  Beginning in 2030, and every ten years thereafter, the executive shall initiate the ten-year update to the Comprehensive Plan required by K.C.C. 20.18.030.C.  The ten-year process shall occur as follows:

                       1.a.  By September 15, 2031, and every ten years thereafter, the executive shall transmit to the council a proposed motion specifying the scope of work for the proposed ten-year update to the Comprehensive Plan in subsection A.2. of this section.  The scoping motion shall include as an attachment to the motion the following:

                           (1)  topical areas relating to amendments to policies, the land use map, implementing development regulations, or any combination of those amendments that the executive intends to consider for recommendation to the council; and

                           (2)  the work program the executive intends to follow to accomplish State Environmental Policy Act review and public participation.

                         b.  the council shall have until December 31 of that year to approve the motion.  In the absence of council approval, the executive shall proceed to implement the scope of work as proposed in the motion transmitted by the executive.  If the motion is approved, the scope of work shall proceed as established by the approved motion.

                       2.  Except as otherwise provided in subsection B. of this section:

                         a.  By June 30, 2033, and every ten years thereafter, the executive shall transmit to the council a proposed ordinance for the ten-year Comprehensive Plan update.  All transmittals shall be accompanied by a public participation summary, identifying the methods used by the executive to ensure early and continuous public participation in the preparation of amendments; and

                       b.  The council shall have until June 30, 2034, and every ten years thereafter to adopt the ten-year update to the Comprehensive Plan, in accordance with RCW 36.70A.130.

                     B.  Separate from ten-year Comprehensive Plan updates required in subsection A. of this section:

                       1.  Except as otherwise provided in subsection B.2. of this section, in years when the fiscal period is biennial, the capital improvement program, an update or addendum where appropriate to the transportation needs report, and the school capital facility plans for updates allowed under K.C.C. 21A.28.152.F. shall be:

                         a.  transmitted by the executive to the council no later than transmittal of the biennial budget; and

                         b.  adopted by the council in conjunction with the biennial budget;

                       2.  Subsection B.1. of this section shall not apply to the transportation needs report in years when a transmitted ten-year Comprehensive Plan update is being reviewed by the council as required in subsection A.2. of this section; and

                       3.  In years when there is only a midbiennium review of the budget under K.C.C. 4A.100.010 or, under K.C.C. 4A.100.010.B., the fiscal period for some or all of the county funds is on an annual basis, the capital improvement program and the school capital facility plans shall be:

                         a.  transmitted by the executive to the council by October 1; and

                         b.  adopted by the council no later than adoption of the midbiennium review or in conjunction with the annual budget.

                     SECTION 2.  Ordinance 10870, Section 292, and K.C.C. 21A.06.1260 are hereby amended as follows:

                     Student factor:  the number derived by a school district to describe how many students of each grade span are expected to be generated by a dwelling unit.  Student factors shall be based on district records of average actual student generated rates for ((new developments)) a statistically valid sample of newly constructed residential units over a period of ((not more than)) between five years ((prior to)) and ten years before the date of the fee calculation((;)).  ((i))If such information is not available in the district, data from adjacent districts, districts with similar demographics, or ((county wide)) countywide averages shall be used; however, a district may use its calculated student generation rate for the multifamily stacked units category for the duplex-houseplex-townhouse units if there is insufficient data in the district to calculate a student factor for duplex-houseplex-townhouse units.  Student factors shall be separately determined for ((single detached and multiunit dwelling units,)) each residential unit type identified in K.C.C. 21A.42.030 and for grade spans.

                     SECTION 3.  Ordinance 11621, Section 89, as amended, and K.C.C. 21A.28.152 are hereby amended to read as follows:

                     A.  ((On an annual basis)) Except as otherwise allowed in subsection F. of this section, for the update process occurring in 2026 for fees effective January 1, 2027, and every two years thereafter, each school district shall electronically submit the following materials to the chair of the school technical review committee created in accordance with K.C.C. 21A.28.154:

                       1.  The school district's capital facilities plan adopted by the school board that is consistent with the Growth Management Act;

                       2.  The school district's enrollment projections over the next six years, its current enrollment, and actual enrollment from the previous year;

                       3.  The school district's standard of service, which may include criteria such as class size, student-teacher ratios, sports field sizes, building requirements, or other criteria established by state statute or school district policy;

                       4.  An inventory and evaluation of school district facilities that address the school district's standard of service; and

                       5.  The school district's overall capacity over the next six years, which shall be a function of the school district's standard of service as measured by the number of students that can be housed in school district facilities.

                     B.  To the extent that the school district's standard of service reveals a deficiency in its current facilities, the school district's capital facilities plan shall demonstrate a plan for achieving the standard of service((,)) and shall identify the sources of funding for building or acquiring the necessary facilities to meet the standard of service.

                     C.  Facilities to meet future demand shall be designed to meet the adopted standards of service.  If sufficient funding is not projected to be available to fully fund a school district capital facilities plan that meets the standard of service, the school district's capital plan should document the reason for the funding gap.

                     D.  In accordance with RCW 82.02.070, if an impact fee ordinance has been adopted on behalf of a school district, the ((King County)) department of executive services, finance and business operations division, or successor agency, shall send the chair of the committee a report showing the source and amount of all fees collected, interest earned on behalf of each school district, the amount of moneys distributed to each school district, and the system improvements that were financed in whole or in part by impact fees and the amount of moneys expended as reported by the school district.  The chair of the committee shall provide a copy of each report to the respective school district.

                     E.  Each school district shall annually report on their use of moneys to the chair of the committee showing the capital improvements that were financed in whole or in part by the impact fees.  The chair of the committee shall use the information to confirm expenditures with the department of executive services, finance and business operations division, and to verify compliance with RCW 82.02.070.

                     F.  In 2027 and every two years thereafter, in the event a district needs the county to adopt an amendment to its capital facilities plan to address an unforeseen critical issue prior to the next update required in subsection A. of this section, the district may request an amendment to be considered by the county in accordance with the schedule in K.C.C. 20.18.060.B.1.  The capital facilities plan may only be amended once per calendar year unless the district’s board of directors declares, and the county finds, that an emergency exists consistent with the requirements in K.C.C. 20.18.030.A.1.

                     SECTION 4.  Ordinance 11621, Section 91, as amended and K.C.C. 21A.28.156, are hereby amended to read as follows:

                     A.  ((On at least an annual basis)) At least once every two years, in accordance with K.C.C. 20.18.060 and 20.18.070, the King County council shall adopt the school district's capital facility plans.

                     B.  The council shall review and consider any proposal or proposals submitted by the school technical review committee for amending the land use policies of the King County Comprehensive Plan, or the development regulations implementing the plan, including but not limited to requiring mandatory phasing of subdivisions or multiunit development when the committee is unable to recommend adoption for a specific school district in accordance with K.C.C. 21A.28.154.  Any proposed amendments to the Comprehensive Plan or development regulations shall be subject to the public hearing and other procedural requirements set out in K.C.C. Title 20.

                     C.  The council may initiate amendments to the land use policies of the King County Comprehensive Plan, or amendments to the development regulations implementing the plan, to more closely confirm county land use plans and school district capital facilities plans.

                     NEW SECTION.  SECTION 5.  There is hereby added to K.C.C. chapter 21A.43 a new section to read as follows:

                     Except as otherwise provided in K.C.C. chapter 21A.06, the definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

                     A.  "Apartment units" has the same meaning as that term is defined in K.C.C. chapter 21A.06 except that it does not include a townhouse.

                     B.  "Duplex-houseplex-townhouse units" has the same meaning as duplex, houseplex, townhouse, and cottage housing, as each of these terms is defined individually in K.C.C. chapter 21A.06.

                     C.  "Dwelling unit type" means apartment units, duplex-houseplex-townhouse units, and single detached units under K.C.C. 21A.43.030.B.

                     D.  "Single detached units" means single detached residences, manufactured home, and mobile home units.

                     SECTION 6.  Ordinance 11621, Section 112, as amended, and K.C.C. 21A.43.030 are hereby amended to read as follows:

                     A.  The fee for each district shall be calculated based on the formula set out in ((Attachment A to Ordinance 11621)) subsection F. of this section.

                     B.  Separate fees shall be calculated for the following dwelling unit types:  single detached ((and multiunit residential)) units ((and)) with three or more bedrooms; single detached units with two or fewer bedrooms; duplex-houseplex-townhouse units with three or more bedrooms; duplex-houseplex-townhouse units with two or fewer bedrooms; apartment units with two or more bedrooms; and apartment units with one bedroom or less.  ((s))Separate student generation rates shall be determined by the district for each ((type of residential unit.  For purposes of this chapter, "single detached units" means single detached residences, and "multiunit units" means duplexes, houseplexes, cottage housing, townhouses, and apartments)) dwelling unit type listed in this subsection.

                     C.  The fee shall be calculated on a district-by-district basis using the appropriate factors and data to be supplied by the district, as indicated in ((Attachment A to Ordinance 11621)) subsection F. of this section.  The fee calculations shall be made on a district-wide basis to assure maximum utilization of all school facilities in the district used currently or within the last two years for instructional purposes.

                     D.  The formula in ((Attachment A to Ordinance 11621)) subsection F. of this section also provides a credit for the anticipated tax contributions that would be made by the development based on historical levels of voter support for bond issues in the school district.

                     E.  The formula in ((Attachment A to Ordinance 11621)) subsection F. of this section also provides ((for)) a credit for school facilities or sites actually provided by an applicant that the school district finds to be acceptable.

                     F.  The fee for each dwelling unit type identified in subsection B. of this section shall be calculated based on the following formula:

IF:

A                     =                     Student Factor for dwelling unit type and grade span × site cost per student for sites for facilities in that grade span = full cost fee for site acquisition cost

B                     =                     Student factor for dwelling unit type and grade span × school construction cost per student for facilities in that grade span × ratio of district’s square footage of permanent facilities to total square footage of facilities = full cost fee for school construction

C                     =                     Student factor for dwelling unit type and grade span × relocatable facilities cost per student for facilities in that grade span × ratio of district’s square footage of relocatable facilities to total square footage of facilities = full cost fee for facilities construction

D                     =                     Student factor for dwelling unit type and grade span CCA × SPI square footage per student factor × SCAP %  = SCAP

A1, B1, C1, D1 means the A, B, C, D for elementary grade spans

A2, B2, C2, D2 means the A, B, C, D for middle/junior high grade spans

A3, B3, C3, D3 means the A, B, C, D for high school grade spans

Tax payment credit (TC) = The net present value of the average assessed value in the district for unit type × current school district capital property tax levy rate, using a 10-year discount period and current interest rate (based on the Bond Buyer 20-Bond General Obligation Index)

Facilities Credit (FC) = The per-dwelling-unit value of any site or facilities provided directly by the development

THEN the unfunded need (UN) = A1 + A2 + A3 + B1 + B2 + B3 + C1 +C2 + C3 - (D1-D2-D3) - TC

AND the developer fee obligation (F)  = UN ÷ 2

AND the net fee obligation (NF) = F - FC

Notes:

                       1.  The district student factors must be separately determined for each dwelling unit type identified in subsection B. of this section, and for grade spans;

                       2.  The "Construction Cost Allocation" or "CCA" means the maximum cost per square foot of construction that the state will recognize for purposes of the state School Construction Assistance Program as administered by the state Office of Superintendent of Public Instruction.  This amount is established by the state legislature in the biennium budget;

                       3.  "School Construction Assistance Program" or "SCAP" funding means the anticipated funding the district expects to receive from the state toward a capacity project included in the formula;

                       4.  SPI square footage per student means the space allocations per grade span determined by WAC 180-27-035;

                       5.  The district shall provide its own site and facilities standards and projected costs to be used in the formula, consistent with the requirements of K.C.C. 21A.28.152 and K.C.C. chapter 21A.43; and

                       6.  The formula in subsection F. of this section can be applied using the following table:

                     SECTION 7.  Ordinance 1162, Section 114, as amended, and K.C.C. 21A.43.050 are hereby amended to read as follows:

                     A.  In school districts where impact fees have been adopted by county ordinance and except as provided in K.C.C. 21A.43.080, the county shall collect impact fees, based on the schedules in each ordinance establishing the fee to be collected for the district, from any applicant seeking ((development approval from the county where such development activity requires final plat approval or the issuance of)) a residential building permit or a manufactured home permit, and the fee for the lot or unit has not been previously paid.  The fee shall be calculated based on the district's impact fee schedule adopted in accordance with K.C.C. Title 27 and in effect at the time a complete building permit application is filed, except for fees deferred pursuant to subsection C. of this section.  Approval shall not be granted and a permit shall not be issued until the required school impact fees in the district's impact fee schedule contained in K.C.C. Title 27 have been paid.

                     B.  ((For a subdivision applied for on or after the effective date of the ordinance adopting the fee for the district in question receiving final approval, fifty percent of the impact fees due on the subdivision shall be assessed and collected from the applicant at the time of final plat approval, using the impact fee schedules in effect when the plat was approved.  The balance of the assessed fee shall be allocated to the dwelling units in the project, and shall be collected when the building permits are issued.  Residential developments proposed for short subdivisions shall be governed by subsection D. of this section.

                     C.  If, on the effective date of an ordinance adopting an impact fee for a district, a subdivision has already received preliminary approval, such subdivision shall not be required to pay fifty percent of the impact fees at the time of final approval, but the impact fees shall be assessed and collected from the lot owner at the time the building permits are issued, using the impact fee schedules in effect at the time of building permit application.  If, on the effective date of a district's ordinance, an applicant has applied for preliminary subdivision approval, but has not yet received such an approval, the applicant shall follow the procedures in subsection B. of this section.

                     D.  For existing lots or lots not covered by subsection B. of this section, application for single detached and multiunit residential building permits, manufactured home permits, and site plan approval for manufactured home communities, the total amount of the impact fees shall be assessed and collected from the applicant when the building permit is issued, using the impact fee schedules in effect at the time of permit application.

                     E.  Any application for preliminary subdivision approval or rezone that has been approved subject to conditions requiring the payment of impact fees established in accordance with this chapter)) The impact fee for the construction of any dwelling units within a recorded plat or subject to a development agreement approved before the effective date of this ordinance, shall be ((required to pay the fee)) in accordance with the condition of approval of the recorded plat or development agreement.

                     ((F.)) C.  In lieu of impact fee payment under subsections A. ((through E.)) and B. of this section, each applicant for a single detached residential construction permit may request deferral of impact fee collection for up to the first twenty single detached residential construction building permits per year.  Applicants shall be identified by their contractor registration numbers.  Deferred payment of impact fees shall occur either at the time of final permit inspection by the department of local services, permitting division, or eighteen months after the building permit is issued, whichever is earlier.

                     SECTION 8.  Ordinance 11621, Attachment A, is hereby repealed.

                     SECTION 9.  This ordinance applies to the capital facilities plans submitted for the update process commencing in 2026 and to plans submitted thereafter and the resulting fee schedules adopted in accordance with K.C.C. Title 27.

                     SECTION 10.  Severability. If any provision of this ordinance or its application

to any person or circumstance is held invalid, the remainder of the ordinance or the application of the provision to other persons or circumstances is not affected.