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Home My WebLink AboutFIN 2017-11-21 Item 2B - Public Safety Plan - Handout Distributed at Meeting - Parks and Fire Impact FeesTukwila Fire and Parks Impact Fees Update Finance Committee November 21, 2017 :ill BERK m• act Fee Anal sis Process and Land Use Patterns and Growth Projections Level of Service Methodology Application Identify Future Need, the Lesser of: • Response to Growth from LOS • Identified Capital Needs in CFP/GIP' Estimate Proportionate Share • Response to Growth • New and Existing Funding Potentia Exemptions • Low -Income Housing • Development with Broad Public Purposes Impact Fee Purpose At the heart of impact ees is the idea that growth should pay for growth For the purposes of the City of Tukwila's impact fees, growth is the expected addition of residents and employees ❑ However, impact fees are charged during the permitting process, so residential units and commercial square feet are used as a proxy for growth 1 Growth Assum • tions 4.- • The City responds to growth targets set in the Countywide Planning Policies 1:3 The CPP set housing and employment targets From these targets, we used linear extrapolation to find annual estimates Expected City Demographics Housing Units Population Employment Expected Growth Housing Units Population Employment 2017 Estim 7,833 19,660 50,330 2018-2027 2,916 4,707 6,269 2018 Estimate 8,085 19,695 50,924 2013-2030 Target 4,765 13,530 2027 Estimate Sources: City of Tukwila, 2017; Washington OFM, 2008-2017; Puget Sound Regional Council, 2017; BERK Consulting, 2017. 10,749 24,367 56,559 2030 Target 11,820 58,628 Level of Service Methodolo • The level of service (LOS) standards adopted in the Parks Element of the Comprehensive Plan (or document incorporated therein) dictate how the City should respond to growth u The LOS standards are the goal the City has set for providing fire and parks services to users • Impact fees cannot address existing deficiencies; if an LOS is not being met for current users, impact fees cannot be used to fill the gap o Tukwila Fire Department LOS Standard: ■ Time -based response standard o Tukwila Parks and Recreation LOS Standards: II All residents and visitors should be within 1/4 to 1/2 mile of a City -owned park The investment per capita in the City's park systems (including land and facilities) • LOS standards suggest the system additions necessary to respond to the anticipated growth, but capital projects are the realization of the need ❑ There can be misalignment between identified LOS need and the projects the City believes can actually be accomplished • The Tukwila Fire Department and City identify capital projects as part of the Comprehensive Plan process Washington State law requires that impact fees can only fund projects from the Capital Facilities Element of a Comprehensive Plan ❑ The lesser of the need identified by the LOS standard or the identified project list will become the binding impact fee LOS -identified Needed Response to Growth 1 Scenario 1 Project List Need Land -rich, built -out, restricted opportunities for acquisition Sources: BERK Consulting, 2017. Related to Growth Base Fee LOS -identified Needed Response to Growth Project List Need Related to Growth Scenario 2 Less developed, high need community with a range of development opportunities CIP Proects & Im.act Fees Any system capital improvement project intended to serve new growth can be funded by growth -based fee, though only the portion directly addressing growth can be funded by impact fees Projects must be in a published Capital Facilities Plan Element; Tukwila's incorporates the recently completed 20 ] 7-2022 Financial Planning Model and Capital Improvement Program ❑ 16 fire and parks projects were identified as growth related and impact fee eligible 111 36% CIP Pr&ects & Im• act Fees oject Description qtti ua Relocate Fire Station 51 Replace Fire Station 52 Replace Fire Station 54 Fire Apparatus & Equipment EOC to Relocate to Justice Center Total Fire Projects Lake to Sound Trail Park Improvements Fort Dent Park Duwamish Hill Preserve Phases II & III Dog Park Projects Tukwila Pond Trail & Boardwalk Tukwila South Trail Macadam Winter Garden & Wetland Open Space Improvements Tukwila Urban Center Pedestrian Bridge Synthetic Turf Field (TCC or Foster most likely locations) Total Parks Projects otal Fire and Parks Pro'ects Sources: City of Tukwila, 2017; BERK Consulting, 2017. Total Project Cost •45 $8,832,000 $13,755,000 $9,665,000 $29,932,500 $8,099,500 70,284,000. Impact Fee -Eligible Project Cost $86,000 $1,835,000 $2,695,000 $1 1,738,000 $80,000 $3,904,000 $1,000,000 $1,000,000 $1,275,000 $10,741,000 $2,000,000 6,354,000 $106,638,001 $4,504,400 $7,015,000 $4,929,300 $7,483,100 $4,130,700 28,062,500 $ 20,400 $458,750 $625,000 $4,500,000 $40,000 $ 2,400,000 $500,000 $237,200 $318,750 $500,000 $800,000 $1.0,400,100 $38,462,60 % of Project Cost from Impact Fees 51% 51% 51% 25% 51% 40% 24% 25% 23% 38% 50% 61% 50% 24% 25% 5% 40% 29% 111 Pro.ortionate Share • Proportionate share has two considerations: o The share of the each identified project that responds o growth Some projects may be planned solely as a response to growth, such as new connecting trails for green field developments • Most projects are likely to be growth related, where added capacity is needed because of additional users u The share of new revenues the City expects from new users • New residents and employees provide tax revenues for the City • They can also increase success rates at securing other funding, such as Washington State RCO grants Pro • ortionated Share: Other Fundin • State law requires that cities' ``financing for system improvements to serve new development must provide for a balance between impact fees and other sources of public funds" (RCW 82.02.050(2)) ❑ Impact fees cannot be sole source of funding for system improvements that address growth impacts ❑ There is no specific legal requirement regarding exactly how this balance is achieved Some portion of the anticipated revenue will need to be applied to system improvements to serve new development Draft Fee Schedules for Fire and Parks Fire Impact Fee Schedule Parks Impact Fee Schedule MINIMMINEMESEINIMMINN ttin 2016 Units 2016 Incidents per Property Type Incidents per Unit Cost per Incident Unadjusted per Unit Fee Expected Revenue per Capita People per Unit Expected Revenue per Unit 4 $ 8 3,569 4,004 7,573 Growth in Population 729 886 1,615 Identified Capital Need from Growth 0.204 0.221 Per Capita Investment Needed to Respond to Growth $11,218 Household Size 52,291.31 52,482.23 Unadjusted per Unit Fee 534.08 Expected Revenue per Capita 2.89 2.51 People per Unit $98.35 585.67 Expected Revenue per Unit 2.89 2.51 52,734.35 52,381.97 2.89 2.51 539.74 534.62 4,707 $10,400,100 5947.53 $13.77 2016 Built Square Fee 2016 Incidents per Property Type Incidents per Built 1,000 Square Feet Cost per Incident Unadjusted Fee per 1,000 Gross Square Feet Expected Revenue per Employee Employees per T,000 Gross Square Feet Expected Revenue per 1,000 Gross Square Feet 7,087,600 7,183,598 13,778,128 28,049,326 2016 Built Square Fee 1,213 251 163 1,627 Identified Capital Need from Growth 0.171 0.035 0.012 Per Capita Investment Needed to Respond 10 Growth 511,218 Expected Employees per 1,000 Square Feet 51,919.84 5391.95 5132.71 Unadjusted Fee per 1,000 Gross Square Feet 534.08 2.49 2.18 1.24 $84.86 574.15 542.18 Sources: City of Tukwila, 2017; BERK Consulting, 2017. Expected Revenue per Employee Employees per 1,000 Gross Square Feet Expected Revenue per 1,000 Gross Square Feet 7,087,600 7,183,598 13,778,128 28,049,326 $10,400,100 5947.53 2.49 2.18 1.24 52,359.34 52,061.50 51,172.75 2.49 2.18 1.24 $34.29 529.96 517.05 $13.77 111 Draft Residential Fire Impact Fee Schedule MEM Residential 2016 Units 2016 Incidents per Property Type Incidents per Unit Cost per Incident Unadjusted per Unit Fee Expected Revenue per Capita People per Unit Expected Revenue per Unit 3,569 729 0.204 4,004 886 0.221 $2,291.31 $2,482.23 2.89 2.51 $85.67 $98.35 7,573 1,615 $11,218 $34.08 111 Draft Commercial Fire Impact Fee Schedule ' u; urn ,t?:L" i. k,u. ,Etw:,: ;mn, ;EMIRU ':ISU?P IETOZWER ie 2016 Built Square Fee 2016 Incidents per Property Type Incidents per Built 1,000 Square Feet Cost per Incident Unadjusted Fee per 1,000 Gross Square Feet $1,919.84 $391.95 $132.71 Expected Revenue per Employee Employees per 1,000 Gross Square Feet Expected Revenue per 1,000 Gross Square Feet 7,087,600 7,183,598 13,778,128 28,049,326 1,213 251 163 1,627 0.171 0.035 0.012 2.49 2.18 1.24 $84.86 $74.15 $42.18 $1 1,218 $34.08 Draft Residential Parks Impact Fee Schedule ' iMU"ttAi ; TSINTR ....9„(PE? a3i,aRmgooffi'w Residential Growth in Population Identified Capital Need from Growth Per Capita Investment Needed to Respond to Growth Household Size Unadjusted per Unit Fee Expected Revenue per Capita People per Unit Expected Revenue per Unit 2.89 2.51 $2,734.35 $2,381.97 2.89 $39.74 2.51 $34.62 4,707 $10,400,100 $947.53 $13.77 Draft Commercial Parks Impact Fee Schedule FRENEVEMStakkamag,omErar4, 2016 Built Square Fee Identified Capital Need from Growth Per Capita Investment Needed to Respond to Growth 7,087,600 7,183,598 13,778,128 28,049,326 $10,400,100 $947.53 Expected Employees per 1,000 Square Feet 2.49 2.18 1.24 Unadjusted Fee per 1,000 Gross Square Feet $2,359.34 $2,061.50 $1,172.75 Expected Revenue per Employee Employees per 1,000 Gross Square Feet Expected Revenue per 1,000 Gross Square Feet 2.49 2.18 1.24 $34.29 $29.96 $17.05 $13.77 Draft Fee Schedules for Fire and Parks ,cl,kM510211lho;�,5 xiz.:�^,+' ,4, N i 15.,,,., ftai4 nagr. o',. t4`; ins. Fire Impact Fee Schedule Parks Impact Fee Schedule 2016 Units 2016 Incidents per Property Type Incidents per Unit Cost per Incident Unadjusted per Unit Fee Expected Revenue per Capita People per Unit Expected Revenue per Unit 3,569 4,004 7,573 729 886 1,615 0.204 0.221 511,218 52,291.31 52,482.23 $34.08 2.89 2.51 598.35 585.67 Growth in Population Identified Capital Need from Growth Per Capita Investment Needed to Respond to Growth Household Size Unadjusted per Unit Fee Expected Revenue per Capita People per Unit Expected Revenue per Unit 2.89 2.51 52,734.35 $2,381.97 2.89 2.51 539.74 534.62 P. 4,707 $10,400,100 5947.53 513.77 2016 Built Square Fee 2016 Incidents per Property Type Incidents per Built 1,000 Square Feet Cost per Incident Unadjusted Fee per 1,000 Gross Square Feet Expected Revenue per Employee Employees per 1,000 Gross Square Feet Expected Revenue per 1,000 Gross Square Feet 7,087,600 7,183,598 13,778,128 28,049,326 2016 Built Square Fee 1,213 251 163 1,627 Identified Capital Need from Growth 0.171 0.035 0.012 $11,218 51,919.84 5391.95 $132.71 534.08 2.49 2.18 1.24 584.86 574.15 $42.18 Sources: City of Tukwila, 2017; BERK Consulting, 2017. Per Capita Investment Needed to Respond to Growth 7,087,600 7,183,598 13,778,128 28,049,326 510,400,100 $947.53 Expected Employees per 1,000 Square Feet 2.49 2.18 1.24 Unadjusted Fee per 1,000 Gross Square Feet $2,359.34 52,061.50 51,172.75 Expected Revenue per Employee Employees per 1,000 Gross Square Feet Expected Revenue per 1,000 Gross Square Feet 2.49 2.18 1.24 534.29 529.96 $17.05 513.77 fz Two types of residentia exe ptions ❑ Low-income housing • Development with broad public purposes For Iow-income housing, the City can set a partial or complete exemption for residential impact fees ❑ However, to portion of any Iow-income exemption above 80% must be paid by the City using public funds other than impact fees CI In the existing ordinances, the City elected to provide a sliding scale reduction based on the affordability of the units Afford Two or more bedrooms Two or more bedrooms' Any size The r s ordinances continues this syste.....:.. November the City it Co mittee of the __.:le Meeting: public r December the City Council Regular Meeting: ordinance adoption January: Ordinance effective 1 Questions 1 END FIRE AND PARK IMPACT FEE UPDATE 2017 Comparision of Existing Fees with Proposed Fees ARE Comparison to Existing Impact Fees * Single Family Multi -Family * Retail Office Industrial Hospital/Med/Civic/ School Assisted Care * PARKS 2008 Fee DRAFT w, , Incre 2018 Fees { (Decrease) 922 1,200 580 1,624 127 Comparison to Existing Impact Fees Single Family Multifamily Retail Office Industrial 2,193 2,397 1,835 318 91 1,271 1,197 1,255 (1,306) (36) 138% 100% 216% -80% -29% 200! $ 1,426 $ 2,861 $ $ 1,398 $ 2,492 $ $ 419 $ 2,469 $ $ 837 $ 2,157 $ $ 262 $ 1,227 $ 1,435 1,094 2,050 1,320 965 101% 78% 489% 158% 368% Comparison to Other Agencies Update Year-> 2017 2016 2017 2017 2014 onds $ 1,741 1,639 1,210 1,210 1,210 $ 810 $ 161 719 719 880 210 120 Comparison to Other Agencies Update Year-> 2017 2016 2017 2017 2014 n/a n/a n/a $ n/a $ n/a $ $ 2,740 $ 1,405 $ 2,224 $ 1,238 $4,047 $ 3,574 $ 2,734 $3,075 $ 2,873 $ 2,340 $ $ $ 530 $ 1,340 $ $ - $ 1,220 $ 1,340 $ $ $ 540 $ 1,340