HomeMy WebLinkAboutCOW 2021-07-26 Item 5C - Discussion - Impact Fee Exemptions for Early Learning FacilitiesCOUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayor's revie2v
Council revieav
7/26/21
BJM
8/9/21
BJM
8/16/21
BJM
ITEM INFORMATION
ITEM No.
5.C.
STAFF SPONSOR: BRANDON MILES
ORIGINAL AGENDA DATE: 7/26/21
AGENDA ITEM TITLE Impact Fees for Early Learning Facilities (Substitute House Bill 1331)
CATEGORY ® Discussion
Mtg Date 7/26/21
Motion
Mtg Date
Resolution
Mtg Date
® Ordinance
MtgDate 8/16/21
J Bid Award
Mtg Date
❑ Pub& Hearing
Mtg Date 8/9/21
❑ Other
ngDate
SPONSOR ❑ Council ® Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PIF
SPONSOR'S
SUMMARY
The State legislature recently enacted SHB 1331 which seeks to increase the number of
early learning facilities by authorizing local governments to exempt such facilities from
development impact fees and thus reducing the cost to develop such facilities. The City
would need to adopt amendments to three ordinances to allow the impact fee exemptions
to occur.
REVIEWED BY
❑ Trans&Infrastructure Svcs
❑ LTAC
DATE: 7/12/21
Community Svcs/Safety ® Finance & Governance ❑ Planning & Community Dev.
❑ Arts Comm.
❑ Parks Comm. ❑ Planning Comm.
COMMITTEE CHAIR: IDAN
RECOMMENDATIONS:
SPONsoR/ADMIN. Mayor's Office, Office of Economic Development
COMMII"IEE Unanimous Approval; Forward to Committee of the Whole
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED
$N/A
AMOUNT BUDGETED
$N/A
APPROPRIATION REQUIRED
$N/A
Fund Source: N/A
Comments: N/A
7/26/21
MTG. DATE
7/26/21
8/9/21
RECORD OF COUNCIL ACTION
ATTACHMENTS
Informational Memorandum, dated July 6
Substitute House Bill 1331
Info Memo, dated July 19 (Response to Question & Comments at Finance Committee)
Minutes from the 7/12 Finance & Governance Committee meeting
35
36
City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Finance and Governance Committee
FROM: Brandon Miles, Business Relations Manager
CC: Mayor Ekberg
DATE: July 6, 2021
SUBJECT: Impact Fees for Early Learning Facilities (Substitute House Bill 1331)
ISSUE
Should the City reduce the impact fees required to be paid for "Early Learning Facilities" as
permitted by Substitute House Bill (SHB) 1331?
BACKGROUND
The State legislature recently enacted SHB 1331 which seeks to increase the number of early
learning facilities by authorizing local governments to exempt such facilities from development
impact fees and thus reducing the cost to develop such facilities.
Impact Fees and Early Learning Facilities
The City of Tukwila collects Transportation, Parks, and Fire' impact fee from certain eligible
development projects within the city. Development impact fees are envisioned as a way that
"growth pays for growth." As a city grows and more people and businesses choose to call it
home, more city facilities and capital are needed to support this growth. More fire engines are
needed, more parks, and road improvements need to be made. Through impact fees, new
development pays for its proportional share of these new facilities and capital. A new
development can include new construction on vacant land or can also be a change of use in an
existing building. The impact fees are required to be collected at the time of issuance of the
building permit for the new development. If a city imposes impact fees, current state law only
allows an exemption for low-income housing and other development activities with broad public
purposes. In most cases, if a project is exempt from impact fees the City is required to make up
the difference with public funds other than impact fees, such as the City's General Fund.
The impact fees for Park and Fire are determined by classifying a use into one of several use
categories and then applying a multiplier to the total square footage or number of units. Traffic
impact fees are calculated based on the number of PM Peak2 trips for the use as cited in the
Institute for Traffic Engineers (ITE) manual multiplied by a cost per trip. The city uses nearly four
dozen use categories for traffic impact fees. The impact fees for a particular development may
be reduced by the City based on analysis of studies and other evidence provided by the
developer for that particular development showing lower demands on the City's parks, fire, and
transportation infrastructure.
The traffic impact fees charged for an early learning facility (ELF) can be considerable relative to
the physical size of the business. This is due to the fact that, based on the ITE manual, an ELF
1 While permitted by State law, the City does not collect School Impact fees.
2 The PM Peak is defined as the period between 4:00 P.M. and 6:00 P.M.
{EFM2440665.DOC;1/13175.000001/
37
38
INFORMATIONAL MEMO
Page 2
has a considerable number of PM peak trips. This is consistent with the overall function of ELFs
in that parents are typically picking up children between the hours of 4:00 P.M to 6:00 P.M., the
PM Peak.
As an example, the following outlines the impact fees that would be due for a new 2,000 square
foot development within the Tukwila International Boulevard neighborhood:
Proposed Use
of Building
Fire Impact Fee
Parks Impact
Fee
Traffic Impact
Fees (Zone 3)
Total
Early Learning
Facility
$4,010
$2,616
$123,500
$130,126
Office
$1,568
$2,358
$65,7603
$69,686
Retail
$4,010
$2,616
$31,2404
$37,866
As indicated above, ELFs would pay a considerable amount of traffic impact fees compared to
office and retail using the same size space. However, the developer could submit studies to the
City that provide evidence estimating fewer trips than reflected in the ITE manual and request a
reduction of the traffic impact fee.
Substitute House Bill (SHB) 1331
During the 2021 session the Washington State Legislature adopted SHB 1331 to provide relief
to ELFs with regards to impact fees charged by municipalities. The provisions of the bill will go
into effect on July 25, 2021. SHB 1331 provides new requirements on the application of impact
fees on ELFs that the City must follow. Staff believes the City already complies with the new
requirements. In addition, the Bill provides certain tools that the City can choose to allow to
reduce or eliminate impact fees for ELFs.
The Bill allows municipalities to exempt a portion, or even all, of the required impact fees for
ELFs. There are three options made available by SHB 1331:
(1) The City could choose to exempt up to 80% of the required impact fees for an ELF. If the
exemption is no more than 80% there is no requirement for the City to make up the
exempt impact fee with General Fund dollars.
(2) The City could exempt more than 80% of the impact fee provided the City pays the
exempted portion of the fee over 80% from public funds other than the impact fee fund,
such as the City's General Fund.
(3) The City could exempt over 80% of the impact fee without having to pay any amount
from other public funds, provided the property owner receiving the exemption records a
convent that requires the following:
• That at least 25 percent of the children and families using the early learning facility
qualify for state subsidized childcare, including early childhood education and
assistance under chapter 43.216 RCW; and
• Provides that if the property is converted to a use other than for an early learning
facility, the property owner must pay the applicable impact fees in effect at the time
3 The rate for administrative offices up to 9,999 square fee is being used.
4 The "miscellaneous retail" rate is being used.
{EFM2440665.DOC;1/13175.000001/ }
INFORMATIONAL MEMO
Page 3
of conversion; and
• Provides that if at no point during a calendar year does the early learning facility
achieve the required percentage of children and families qualified for state
subsidized child care using the early learning facility, the property owner must pay 20
percent of the impact fee that would have been imposed on the development had
there not been an exemption within 90 days of the local government notifying the
property owner of the breach, and any balance remaining thereafter shall be a lien
on the property.
If the City wants to exempt impact fees for ELFs it would have to amend the ordinances that
govern traffic, parks, and fire impact fees.
DISCUSSION
In passing this law, the State's expressed intent is to expand the number of early learning
facilities. Other organizations have expressed the importance of early learning facilities. For
example, as part of its May 2021 report "Partners for Prosperity: An Economic Recovery
Framework for Recovery", Greater Seattle Partners noted that the lack of affordable childcare in
low-income communities in King County impacts the abilities of community members to access
high paying jobs or to start and run their own businesses. These impacts disproportionally
impact women, specifically women of color, hindering their ability to generate generational
wealth.
In addition to supporting community members who need childcare, ELFs also benefit
surrounding businesses, by providing childcare to their employees thus helping the businesses
to attract and retain employees.
Reducing the impact fees paid by ELFs would make it less expensive for facilities to begin
operating in the City of Tukwila. Based upon the options outlined in SHB 1331, the City has the
following options:
1. Make No Changes to Current Policy
The City would continue to impose impact fees on ELFs according to our current municipal
code.
2. Allow an Impact Fee Exemption for ELFs up to 80%
Under this option the City would exempt up to 80% of the required impact fee for ELFs. The
City would not be required to pay the exemption with General Fund dollars. Using the 2,000
square foot example outlined above and assuming an 80% exemption, the new impact fee due
is shown.
Proposed Use
of Building
Fire Impact Fee
Parks Impact
Fee
Traffic Impact
Fees (Zone 3)
Total
Early Learning
Facility
$4,010
$2,616
$123,500
$130,126
80% Reduction:
New Total:
$104,100
$26,026
{EFM2440665.DOC;1/13175.000001/ }
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INFORMATIONAL MEMO
Page 4
3. Allow an Impact Fee Exemption for ELFs over 80%.
The City could allow an exemption greater than 80% of the required impact fees, provided the
City pays the exempted portion of the fee over 80% from public funds other than the impact fee
fund, such as the City's General Fund.
4. Allow an Impact Fee Exemption for ELFs over 80% and Require Covenants.
The City could also allow an exemption greater than 80% of the required impact fees without
paying other public funds into the impact fee fund, provided the property owner agrees to record
a covenant against the property with the restrictions outlined above. There are two issues with
this higher exemption and required covenant to consider:
1. In many cases the ELF will be operated by someone leasing a property versus the
actual property owner. An owner may not agree to have a covenant recorded against
their property. The required covenant shifts the payment of the impact fee from the
tenant to the property owner if the terms of the covenant are not met.
2. It creates additional work for the City to approve the covenant, perform annual
monitoring, and enforce payment through liens or other mechanisms.
It is important to note that early learning facilities do have impacts on fire, parks, and
transportation services. If the City chooses to exempt a portion of the impact fees for early
learning facilities, it could reduce the amount of funding available to pay for those impacts,
assuming the ELF would have been built anyway.
FINANCIAL IMPACT
Staff believes that exempting ELFs from impact fees would not have a significant impact on
revenue for City's impact fee programs because it would only apply to new ELFs. A review of
the City's permit history shows that the City has not permitted a new ELF in a commercial zone
over the last ten years. Possibly there is either little demand or other barriers for establishing an
ELF in the City. The City would only be losing revenue in the impact fee program if the City
thought it would still get an ELF without adopting an exemption program. Staff is aware of an
ELF that has applied for permits and a second ELF looking for a site.
RECOM MENDATION
Staff recommends that the City adopt option 2 above and is looking for input from the
Committee. Staff would like to draft ordinances to take to the July 26 Committee of the Whole
meeting that reflects the Committee's recommendation, with possible adoption of the Ordinance
occurring on August 2.
ATTACH MENTS
• Substitute House Bill 1331
• Draft Ordinance, Traffic Impact Fees (to be added after Committee meeting).
• Draft Ordinance, Park Impact Fees (to be added after Committee meeting).
• Draft Ordinance, Fire Impact Fees (to be added after Committee meeting).
{EFM2440665.DOC;1/13175.000001/ }
CERTIFICATION OF ENROLLMENT
SUBSTITUTE HOUSE BILL 1331
67th Legislature
2021 Regular Session
Passed by the House February 24, 2021 CERTIFICATE
Yeas 73 Nays 25
Speaker of the House of
Representatives
Passed by the Senate April 5, 2021
Yeas 35 Nays 13
President of the Senate
I, Bernard Dean, Chief Clerk of the
House of Representatives of the
State of Washington, do hereby
certify that the attached is
SUBSTITUTE HOUSE BILL 1331 as
passed by the House of
Representatives and the Senate on
the dates hereon set forth.
Approved FILED
Governor of the State of Washington
Chief Clerk
Secretary of State
State of Washington
41
SUBSTITUTE HOUSE BILL 1331
Passed Legislature - 2021 Regular Session
State of Washington
67th Legislature 2021 Regular Session
By House Local Government (originally sponsored by Representatives
Harris -Talley, Senn, Berry, Callan, Fitzgibbon, Wicks, Ortiz -Self,
Chopp, Davis, Valdez, Bateman, Eslick, Ormsby, Lovick, Fey, Berg,
Rule, Lekanoff, Frame, Duerr, Pollet, Macri, Slatter, and Peterson)
READ FIRST TIME 02/12/21.
1 AN ACT Relating to early learning facility impact fees; and
2 amending RCW 82.02.060.
3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
4 Sec. 1. RCW 82.02.060 and 2012 c 200 s 1 are each amended to
5 read as follows:
6 The local ordinance by which impact fees are imposed:
7 (1) Shall include a schedule of impact fees which shall be
8 adopted for each type of development activity that is subject to
9 impact fees, specifying the amount of the impact fee to be imposed
10 for each type of system improvement. The schedule shall be based upon
11 a formula or other method of calculating such impact fees. In
12 determining proportionate share, the formula or other method of
13 calculating impact fees shall incorporate, among other things, the
14 following:
15 (a) The cost of public facilities necessitated by new
16 development;
17 (b) An adjustment to the cost of the public facilities for past
18 or future payments made or reasonably anticipated to be made by new
19 development to pay for particular system improvements in the form of
20 user fees, debt service payments, taxes, or other payments earmarked
21 for or proratable to the particular system improvement;
42
p. 1 SHB 1331.PL
(c) The availability of other means of funding public facility
improvements;
(d) The cost of existing public facilities improvements; and
(e) The methods by which public facilities improvements were
financed;
(2) May provide an exemption for low-income housing, and other
development activities with broad public purposes, including
development of an early learning facility, from these impact fees,
provided that the impact fees for such development activity shall be
paid from public funds other than impact fee accounts;
(3) (a) May not impose an impact fee on development activities of
an early learning facility greater than that imposed on commercial
retail or commercial office development activities that generate a
similar number, volume, type, and duration of vehicle trips;
(b) When a facility or development has more than one use, the
limitations in this subsection (3) or the exemption applicable to an
early learning facility in subsections (2) and (4) of this section
only apply to that portion that is developed as an early learning
facility. The impact fee assessed on an early learning facility in
such a development or facility may not exceed the least of the impact
fees assessed on comparable businesses in the facility or
development;
(4) May provide an exemption from impact fees for low-income
housing or for early learning facilities. Local governments that
grant exemptions
facilities under
partial exemption
which case there
for low-income housing or for early learning
this subsection (((3))) (4) may either: Grant a
of not more than eighty percent of impact fees, in
is no explicit requirement to pay the exempted
portion of the fee from public funds other than impact fee accounts;
or provide a full waiver, in which case the remaining percentage of
the exempted fee must be paid from public funds other than impact fee
accounts((—)), except as provided in (b) of this subsection. These
exemptions are subject to the following requirements:
(a) An exemption for low-income housing granted under subsection
(2) of this section or this subsection (((3))) (4) must be
conditioned upon requiring the developer to record a covenant that,
except as provided otherwise by this subsection, prohibits using the
property for any purpose other than for low-income housing. At a
minimum, the covenant must address price restrictions and household
income limits for the low-income housing, and that if the property is
p. 2
SHB 1331.PL43
1 converted to a use other than for low-income housing, the property
2 owner must pay the applicable impact fees in effect at the time of
3 conversion((. C vcnants rcquircd by this subsccti n must be rcc rdcd
4 with thc applicablc c unty audit r r rcc rding fficcr. A 1 cal
5 g vcrnmcnt granting an cxcmpti n undcr subsccti n (2) f this sccti n
6 r this subsccti n (3) f r 1 w inc mc h using may n t c llcct rcvcnuc
7 1 st thr ugh granting an cxcmpti n by incrcasing impact fccs
8 unrclatcd t thc cxcmpti n. A sch 1 district wh rcccivcs sch 1
9 impact fccs must appr vc any cxcmpti n undcr subsccti n (2) f this
10 sccti n r this subsccti n (3)));
11 ((44})) (b) An exemption for early learning facilities granted
12 under subsection (2) of this section or this subsection (4) may be a
13 full waiver without an explicit requirement to pay the exempted
14 portion of the fee from public funds other than impact fee accounts
15 if the local government requires the developer to record a covenant
16 that requires that at least 25 percent of the children and families
17 using the early learning facility qualify for state subsidized child
18 care, including early childhood education and assistance under
19 chapter 43.216 RCW, and that provides that if the property is
20 converted to a use other than for an early learning facility, the
21 property owner must pay the applicable impact fees in effect at the
22 time of conversion, and that also provides that if at no point during
23 a calendar year does the early learning facility achieve the required
24 percentage of children and families qualified for state subsidized
25 child care using the early learning facility, the property owner must
26 pay 20 percent of the impact fee that would have been imposed on the
27 development had there not been an exemption within 90 days of the
28 local government notifying the property owner of the breach, and any
29 balance remaining thereafter shall be a lien on the property; and
30 (c) Covenants required by (a) and (b) of this subsection must be
31 recorded with the applicable county auditor or recording officer. A
32 local government granting an exemption under subsection (2) of this
33 section or this subsection (4) for low-income housing or an early
34 learning facility may not collect revenue lost through granting an
35 exemption by increasing impact fees unrelated to the exemption. A
36 school district who receives school impact fees must approve any
37 exemption under subsection (2) of this section or this subsection
38 (4) ;
39 (5) Shall provide a credit for the value of any dedication of
40 land for, improvement to, or new construction of any system
44
p. 3
SHB 1331.PL
1 improvements provided by the developer, to facilities that are
2 identified in the capital facilities plan and that are required by
3 the county, city, or town as a condition of approving the development
4 activity;
5 (((5))) (6) Shall allow the county, city, or town imposing the
6 impact fees to adjust the standard impact fee at the time the fee is
7 imposed to consider unusual circumstances in specific cases to ensure
8 that impact fees are imposed fairly;
9 ((+6})) (7) Shall include a provision for calculating the amount
10 of the fee to be imposed on a particular development that permits
11 consideration of studies and data submitted by the developer to
12 adjust the amount of the fee;
13 (((7))) (8) Shall establish one or more reasonable service areas
14 within which it shall calculate and impose impact fees for various
15 land use categories per unit of development; and
16 ((+8-)-)) (9) May provide for the imposition of an impact fee for
17 system improvement costs previously incurred by a county, city, or
18 town to the extent that new growth and development will be served by
19 the previously constructed improvements provided such fee shall not
20 be imposed to make up for any system improvement deficiencies.
21 For purposes of this section, "low-income housing" means housing
22 with a monthly housing expense, that is no greater than thirty
23 percent of eighty percent of the median family income adjusted for
24 family size, for the county where the project is located, as reported
25 by the United States department of housing and urban development.
26 For the purposes of this section, "early learning facility" has
27 the same meaning as in RCW 43.31.565.
--- END ---
p. 4
SHB 1331.PL45
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City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Committee of the Whole
FROM: Brandon Miles, Business Relations Manager
CC: Mayor Ekberg
DATE: July 19, 2021
SUBJECT: Impact Fees for Early Learning Facilities (Substitute House Bill 1331)
Follow Up to Discussion Items at the July 12 Finance and Governance
Committee
ISSUE
Staff provided Finance and Governance Committee a briefing on Substitute House Bill 1331 and
the options to reduce impact fees for Early Learning Facilities. This memo is responding to the
questions and comments raised in the meeting. F&G forwarded the item to the full council for
discussion. Staff's briefing memo to F&G, dated July 6, 2021, is attached.
RESPONSE TO QUESTIONS AND COMMENTS AT FINANCE AND GOVERNANCE
Provide Context of Project Affordability at the 80% level.
It is difficult to determine if an early learning facility would be financially feasible at either the
80% or 100% level. Staff does believe that charging the full amount (no exemption provided)
would significantly impact the ability of early learning facilities to establish in existing commercial
buildings since the impact fee would make up a larger percentage of the total project costs.
With regards to new construction, the impact fees have less of an impact on a project feasibility
since new construction has a much high total cost.
Provide Information on other cities impact fees for early childhood learning facilities.
The following outlines the square footage rate charged for traffic impact fees for daycares in
surrounding cities. Not all surrounding cities have Parks and Fire impact fees. In addition, as
indicated in the staff July 6 memo the traffic impact fee is responsible for nearly 95% of the total
impact fee due.
City
Traffic Impact Fee
Rates
Hypothetical 2,000
square foot
development.
Notes
Tukwila
Zone 1: $49.36 per
square foot.
Zone 1: $98,720
For the hypothetical
development not
credit is being
Zone 2: $54.08 per
square foot.
Zone 2: $108,160
provided for previous
uses on the site nor
does in include any
Zone 3: $59.44 per
square foot.
Zone 3: $$118,880
reduction for impact
fees by providing a
study to the City. The
Zone 4: $22.88 per
Zone 4: $45,760
fees could be lower
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INFORMATIONAL MEMO
Page 2
• Draft Ordinances for 80% and 100% waiver reduction for full Council discussion.
While not legally required, the City has historically conducted a public hearing when considering
ordinances related to impact fees. Staff has scheduled the public hearing for August 9. Staff
would like input from the Council at the July 26 meeting on the amount, if any, of the impact fee
exemption for early learning facilities. Staff would present ordinances to the City Council on
August 9 for discussion and a public hearing, with final action scheduled to occur on August 16.
• Consider using American Rescue Plan Act (ARPA) funds to make the difference for the
impact fees required to be paid to the City.
The July 6, 2021 memo to F&G outlined several options the City could consider regarding
exempting impact fees for early learning facilities. F&G focused discussion on two specific
options:
(1) The City could choose to exempt up to 80% of the required impact fees for an ELF. If the
exemption is no more than 80% there is no requirement for the City to make up the
exempt impact fee with General Fund dollars.
(2) The City could exempt more than 80% of the impact fee provided the City pays the
exempted portion of the fee over 80% from public funds other than the impact fee fund,
such as the City's General Fund.
If option 2 is selected, the City would have to make up anything above the 80% reduction. For
example, if the impact fees due for an early learning facility were $30,000 the City could waive
$24,000 (80%) with no need to make up the lost revenue. However, the remaining $6,000 (20%)
would need to be made up from public funds, other than impact fees.
The Committee asked if ARPA funds could be used to make up the 20% requirement. It does
not appear that this is a permitted use of ARPA funds. The use of ARPA funds is fluid and this
could change as the Federal Government clarifies the use of the funds. However, for now this
does not appear to be an option.
C:\Users\andy-y\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\R1NYNLZP\Info Memo Additional Info DRAFT.doc
square foot.
Kent
$21.66 per square
foot outside of
downtown
$16.03 per square
foot inside of
downtown.
$43,320 outside of
downtown.
$32,060 inside of
downtown.
SeaTac
$43.294 per square
foot.
$86,588
Renton
$70.39 per square
feet.
$140,780
Seattle
$0.00.
$0.00
Seattle does not
charge a traffic impact
fee.
• Draft Ordinances for 80% and 100% waiver reduction for full Council discussion.
While not legally required, the City has historically conducted a public hearing when considering
ordinances related to impact fees. Staff has scheduled the public hearing for August 9. Staff
would like input from the Council at the July 26 meeting on the amount, if any, of the impact fee
exemption for early learning facilities. Staff would present ordinances to the City Council on
August 9 for discussion and a public hearing, with final action scheduled to occur on August 16.
• Consider using American Rescue Plan Act (ARPA) funds to make the difference for the
impact fees required to be paid to the City.
The July 6, 2021 memo to F&G outlined several options the City could consider regarding
exempting impact fees for early learning facilities. F&G focused discussion on two specific
options:
(1) The City could choose to exempt up to 80% of the required impact fees for an ELF. If the
exemption is no more than 80% there is no requirement for the City to make up the
exempt impact fee with General Fund dollars.
(2) The City could exempt more than 80% of the impact fee provided the City pays the
exempted portion of the fee over 80% from public funds other than the impact fee fund,
such as the City's General Fund.
If option 2 is selected, the City would have to make up anything above the 80% reduction. For
example, if the impact fees due for an early learning facility were $30,000 the City could waive
$24,000 (80%) with no need to make up the lost revenue. However, the remaining $6,000 (20%)
would need to be made up from public funds, other than impact fees.
The Committee asked if ARPA funds could be used to make up the 20% requirement. It does
not appear that this is a permitted use of ARPA funds. The use of ARPA funds is fluid and this
could change as the Federal Government clarifies the use of the funds. However, for now this
does not appear to be an option.
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INFORMATIONAL MEMO
Page 3
If the Council desires to do the full 100% exemption staff suggests that the City tracks the
exemptions and makes a transfer into the impact fee funds at part of the annual budget process.
For 2021 and 2022 since this is unbudgeted the City would have to do a budget amendment.
C:\Users\andy-y\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\R1NYNLZP\Info Memo Additional Info DRAFT.doc
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City of Tukwila
City Council Finance & Governance Committee
Meeting Minutes
July 12, 2021 - 5:30 p.m. - Electronic Meeting due to COVID-19 Emergency
Councilmembers Present:
Staff Present:
Zak Idan, Chair; Kathy Hougardy, Cynthia Delostrinos Johnson
Tony Cullerton, Brandon Miles, Derek Speck, Vicky Carlsen, Laurel
Humphrey
Chair Idan called the meeting to order at 5:30 p.m.
I. BUSINESS AGENDA
A. Early Learning Facilities Impact Fee Waivers
Staff is seeking Committee direction on implementation of Substitute House Bill 1331 which
provides impact fee relief options for Early Learning Facilities.
Item(s) for follow-up:
• Provide context around project affordability at 80% waiver.
• Provide information on other cities' impact fees for Early Learning Facilities.
• Draft ordinance reflecting both 80% and 100% waiver options for full Council discussion.
• Consider use of ARPA funds to make up the difference.
Committee Recommendation
Forward draft legislation with options to July 26, 2021 Committee of the Whole.
B. Councilmember Onboarding
Committee members and staff discussed materials and process for onboarding new
Councilmembers. Additional suggestions included providing updates on the Equity Policy
Implementation Committee, more information about regional associations from those
Councilmembers involved, and standardizing the information shared by Department
Directors.
Committee Recommendation
Discussion only.
C. 2021 Committee Work Plan
Committee members and staff discussed the status of work plan items for the year. Chair Idan
noted the importance of reflecting all the work done in committee.
Committee Recommendation.
Discussion only.
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