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Submitted by emmettoconnell on Tue, 10/14/2008 - 8:27pm.

The city of Olympia was part of a performance audit by the State Auditor on a handful of local governments and how they collect and use impact fees. I won't have time to read the entire report tonight (warning big pdf file), so if anyone else wants to take a crack at it before I get to, have at it.

Sorry for not posting the the entire report on scribd, but for some reason, the publicly paid for report is password protected and won't convert.

Here are some highlights though.

On fire fees:

Olympia’s fire impact fee schedule/calculation does not effectively demonstrate the connection between growth and system improvements. Olympia does not take into account the cost of public facilities necessitated by new development or the availability of other financing.

On park fees:

Olympia may not be spending park impact fees as effectively as it could, based on the results of a citizen survey and based on other cities’ use of multiple park zones.

• Olympia should consider removing the “one-half to one mile” and “10- to 20-minute walk” from its definition of a “Neighborhood Park.”
• Olympia should consider dividing the City into two park zones to demonstrate a clear relationship between where impact fees are collected and spent. Two zones for park impact fees would appear to be reasonable, as the City is approximately six miles across.

»

Me and EFF

Looks like me and the Evergreen Freedom Foundation were waiting for this report to come out. Here's their report, which is not Olympia centric.

»

A start...

Total cost of the audit - $726,466
Total possible real savings located - $76,000 over ten years (not taking into consideration any costs of implementing the changes in software systems required to produce this possible savings). Hmmm...

Other suggestions made about possible changes in how impact fees are collected -

1. Under the phrasing of the current law, it's possible that cities should not be spending impact fees for covering increased fire protection costs on trucks, but only on buildings.

2. It's possible that Olympia doesn't spend the part of its impact fees that's intended to cover new neighborhood parks on parks that are sufficiently close to the new developments that are producing the impact fees - though they didn't look at whether those areas get their share of parks over time.

3. Cities may not be keeping the interest earned on impact fees divided up so each kind of fee keeps its own interest.

4. Maybe Olympia's current way of calculating the impact fees for fire protection collects more than the increases in costs for new developments, or maybe it collects less.

Plus some rather complicated stuff about the best way to calculate transportation impact fees that I gave up on...

Best,
Thad


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