The City Council of Port Orchard, WA, convened on March 18, 2025, for a work study session focused on school impact fees, following a recent amendment to park impact fees earlier in the month. The meeting addressed necessary adjustments to comply with new state legislation regarding impact fees, specifically Senate Bill 5258 and House Bill 1337, which mandate that fees be based on square footage, number of bedrooms, or traffic generated by housing units.

Commissioner Bach presented a detailed overview of the changes required by these laws, emphasizing the deadline for compliance set for June 30, 2025. The discussion highlighted the unique interlocal agreement between the City and the South Kitsap School District, which outlines the responsibilities of both parties in managing and reporting on impact fees. This agreement allows the school district to adopt its annual capital facilities plan and manage the collection and spending of impact fees in accordance with state law.

Currently, the school impact fee structure includes a rate of $1,370 for single-family homes and approximately $861 for multifamily units, which has remained unchanged since February 2008. The proposed changes would implement a new fee structure based on square footage, with a recommended rate of 56 cents per square foot, and a maximum fee of $2,009.27 for larger homes. This adjustment aims to ensure that the fees reflect the actual impact of new housing on school resources.

To facilitate the implementation of the new fee structure, two amendments to the Municipal Code were proposed. These amendments define how square footage will be measured and require applicants to provide specific information regarding their properties. The FCS Group has been engaged to conduct a comprehensive study of school impact fees, with a report expected by the end of the year, which may lead to further adjustments in the fee structure.

The council plans to schedule a public hearing on the proposed changes for April 8, 2025, allowing time for public notice and compliance with legal requirements. The interim fee structure will be in effect from July 1, 2025, until any further changes are adopted by the council. The meeting concluded without questions from council members, indicating a consensus on the need for these adjustments to align with state mandates and improve the funding mechanism for local schools.