Impact Fees 2008 - Background

The Process to Date

  • A workshop was held on November 13, 2008 to receive input on solutions for reducing the current proposal. Transportation staff facilitated a process to prioritize feedback for the Olympia City Council to consider.  Why was this workshop held? 
  • This was a result of the Public Hearing that was held on Tuesday, October 14, 2008.  At that time City Council received testimony on Transportation Impact Fees. Based on comments received, they asked that a workshop be held for the purpose of receiving input on possible options to consider for reducing the increase in Transportation Impact Fees.
  • A workshop is being help on May 27, 2009

What are Transportation Impact Fees? 

Transportation Impact Fees are a financing tool approved by the Washington State Legislature as part of the Growth Management Act of 1990. Impact fees are charged to developers of new construction to pay for part of the cost to build roads and other traffic improvements that are needed because of new growth in our community. Olympia has charged Transportation Impact Fees since 1995.

What was the Update About? 

There are three key issues in the proposed Transportation Impact Fee Update. They are:

  • The cost of Transportation Impact Fees are based on the cost of new transportation projects and how they attribute to new growth in the City and urban growth areas. Periodically, some projects are completed and new growth-related projects are identified. To ensure an accurate fee, the Impact Fee Cost Allocation formula is updated. Olympia last updated Transportation Impact Fees in 2006.
  • Review the Annual Impact Fee Cost Inflator Formula, which enables Transportation Impact Fees to adjust each year to reflect project cost increases as a result of Labor Cost, Construction Cost, and Land Value.
  • Review the split of impact fees to grants from the current 58% impact fees/42% grants to the proposed 64% impact fee/36% grants.

What Projects will be Deleted and Added From the Impact Fee Schedule?

  • Deleted: Yauger Way Extension; (West Olympia Access Study)
  • Added: Harrison Avenue/Mud Bay Road Phase III - widen to four lanes from Kaiser Road to the College Station Residential Development Street Improvements.

How Much was the Change?

The Transportation Impact Fee for a single-family home would raise from $2228 to $4,034 for 2009, based on early calculations. This is an 81 percent increase from the 2008 fee. For more detailed information, see the enclosed proposed rate schedule.

Contact Information:

Staff Contact: Dave Smith, Transportation Project Engineer II

  • Address: PO Box 1967, Olympia, WA 98507-1967
  • Phone: (360) 753-8496
  • Email: Public Works