SENATE BILL REPORT

SB 6429

BYSenators Talmadge and Murray

Authorizing cities and towns to impose costs of public facilities upon land development activities.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 16, 1990

Senate Staff:Eugene Green (786-7410); Barbara Howard (786-7410)

AS OF FEBRUARY 15, 1990

BACKGROUND:

The justification for the bill is summarized in the legislative findings section.

SUMMARY:

Legislative Findings.  Land use development should only proceed if adequate provision is made for public facilities to support a high quality of life, including roads, highways, storm and sanitary sewage systems, water supply systems, parks and recreational facilities, open space, libraries, and police and fire protection.  Because rapid development has placed severe strain on local fiscal resources to provide such facilities, local governments should be authorized to impose some or all of the costs of necessary public facilities upon the land development activities responsible for those costs.

Development Fee Authority.  A city or county may impose a fee or charge on the construction or reconstruction of residential, commercial, industrial or any other buildings and appurtenances, or on the development or subdivision of land.  The development fee may be in addition to or in combination with the dedication of land, the provision of public facilities, or both, by the builder or developer.  As an alternative to the fee, the city or county may charge a bond, irrevocable letter of credit, or other acceptable method of assuring payment.

The total amount of the fee must bear a reasonable relationship to the additional costs of public facilities attributable to the proposed construction or development project.  Costs for land acquisition and facility construction, as well as maintenance and operation costs for up to five years, may be included in the fee.

General Facilities Plan.  Any city or county seeking to impose development fees must first adopt a general facilities plan consistent with the local comprehensive plan.  In addition to describing the nature and extent of needed public facilities, the plan must also establish standards for service levels required for different levels of development.  The facilities plan must also contain policies and standards for imposition of the fees and for provision of public facilities or land dedication.

Expenditure.  Revenues from development fees must be committed for expenditure within 10 years from the date of collection.  However, fees or charges for subdivision approval must be committed for expenditure no later than the date when building permits have been issued for half of the lots within the subdivision.  Fees not committed as required must be returned to the record title owner of the land.  In the case of a subdivision, the fees shall be distributed to the owners within the subdivision in proportion as the area of each lot bears to the total area.

Credits.  Credits may be granted against a fee or charge for (1) the value of a public facility acquired or constructed by the landowner and transferred to the city or county; (2) the value of open space or park facilities retained in private ownership if a conservation easement is granted to the appropriate government for open space or park uses in perpetuity; (3) the value of land or other public facilities provided in excess of that attributable to the development or subdivision; (4) the amount of fees or charges imposed by a transportation benefit district for transportation improvements; and (5) the amount of fees or assessments by special districts, local utility districts, or utility local improvement districts serving the purposes for which development fees may be charged.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 9, 1990