11-04-2020 School Impact FeesPresentation to
City Council
November 4, 2020
1
2021 School Impact Fee Options
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Background
Federal Way Revised Code 19.95.010 states that “new
growth and development should pay a proportionate
share of the cost of new facilities needed to serve the
new growth and development.”
With respect to School Impact Fees, this means new
housing units should pay for a portion of the cost of
new capacity demands on the District resulting from
the housing development
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Background
Between 2013 and 2015, the City saw an
unprecedented boom in multi-family housing projects
with approximately 800 units receiving permits
Once the units were occupied, new student
enrollment in Federal Way schools was
disproportionately higher than the impact fees
intended to serve those students
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Background
The School District and City Council adjusted the fees
based on future school facility demand and estimated
student generation rates
The new impact fees provided a more accurate
proportionate share to help the School District provide
space to deliver educational services to its students
At the same time, the increased fees effectively stopped
all multi-family development
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School Impact Fee History
(Multi-family)
School Impact
Fee
Multi-family units
permitted
2013 $1,253 29
2014 $1,562 293
2015 $1,934 473
2016 $9,273 0
2017 $8,386 0
2018 $20,086 0
2019 $19,454 0
2020 $20,768 0
54 one-and two-bedroom units, ground floor retail, elevated parking,
Soundview residences within 20-minute walk of future light rail
Lost opportunity at 288th and Pac Hwy
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Need for a Change
The City and School District agreed that a mutually
beneficial change to the impacts fees was in order to
account for both the District’s need to deliver
educational services and the City’s need to provide a
better mix of housing units
The City and School District looked at other impact
fee models used by other jurisdictions within the
District’s Boundaries
8
School District’s Jurisdiction Fees
(Multi-family)
Jurisdiction Impact Fee Model
Algona No Discount
Auburn Per Bedroom Discount
Federal Way No Discount
Des Moines No Discount
Kent Cap at $9,193
King County No Discount
Milton No Discount
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Options for Federal Way
Using the current methodology to determine multi-
family school impact fees for 2021, the fees would be
$16,003 per unit
There are three immediate options for the City
No change = keep $16,003 for 2021
Impose a cap
Provide per bedroom discounts
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Proposal
The 2021 Fee Schedule set for FEDRAC review in
November and Council adoption in December will
have a per bedroom discount for multi-family school
impact fees as follows:
Studio: $6,001 (62.5% discount)
1 bedroom: $8,002 (50.0% discount)
2 bedroom: $11,010 (31.2% discount)
3 bedroom: $14,003 (12.5% discount)
4+ discount: $16,003 (0% discount)
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Proposal
The 2021 Fee Schedule will have no change to the
School District’s proposed impact fee of $3,243 for
single-family units, a rate that is among the lowest in
King County
Questions?