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Sultan City Zoning Code

Division V

Concurrency Management System

§ 16.70.010 Purpose.

The purpose and intent of this chapter is to provide a regulatory mechanism to ensure that a property owner meets the concurrency provisions of the comprehensive plan for development purposes as required in RCW 36.70A.070. This regulatory mechanism will ensure that adequate public facilities at acceptable levels of service are available to support the development's impact.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.70.020 Definitions.

A. 
"Certificate of concurrency"
is a document issued by the community development director indicating that capacity to serve a proposed development was available to that development when the certificate was issued. The certificate of concurrency identifies available capacity based on the information submitted by the applicant and capacity information available to the city at the time the certificate is issued. A certificate of concurrency is not a guarantee that capacity will be available at the time of development or vesting of system charges, connection fees and/or impact fees.
B. 
"Capacity"
refers to the ability or availability of the city's transportation, parks, water, and sewer facilities to accommodate new development or redevelopment without decreasing the city's adopted level of service standards.
C. 
"Available capacity"
represents a specific amount of capacity that may be needed by new users of the city's transportation, parks, water and sewer facilities.
D. 
"Needed capacity"
When a certificate of concurrency is issued, capacity is identified from the available capacity account to indicate the capacity needed to serve a particular development.
E. 
"Used capacity"
Capacity is considered used once the proposed development is constructed and an occupancy permit is issued.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.70.030 Exemptions.

Any development that is categorically exempt from the requirement to prepare a threshold environmental determination or an environmental impact statement (EIS) pursuant to the State Environmental Policy Act (SEPA)[1] is also exempt from the requirement to apply for or obtain a certificate of concurrency under this chapter.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)
[1]
Editor's Note: See RCW 43.21C.010 et seq.

§ 16.70.040 Applications.

A. 
Each applicant for a development approval, except those exempted from concurrency, shall submit an application for a certificate of concurrency along with the development approval application.
B. 
An application for a certificate of concurrency must be accompanied by the requisite fee, as determined by city council resolution. Applicants with projects requiring a certificate of concurrency are encouraged to schedule a preapplication meeting with city departments prior to submitting a development or certificate of concurrency application.
C. 
An applicant for a certificate of concurrency must submit the following information to the community development director ("director"), on a form provided by the city together with the underlying development permit application requiring concurrency:
1. 
Date of submittal.
2. 
Owner/applicant's name, address and telephone number and/or primary contact information if different from owner/applicant's contact information.
3. 
Project name.
4. 
Project development schedule.
5. 
Written consent of the property owner, if different from the developer.
6. 
Acreage of the property.
7. 
Legal description and parcel identification number(s) of property as required by the underlying development permit application together with an exhibit showing a map of the property.
8. 
Existing use of the property.
9. 
Proposed request of capacity by legal description, if applicable.
10. 
Proposed use(s) by land use category, square feet and number of units.
11. 
Proposed site design information, if applicable.
12. 
Phasing information by proposed uses, square feet and number of units, if applicable.
13. 
For transportation concurrency applications, a traffic study per SMC § 16.70.100.
14. 
The applicants' proposed mitigation, if any, for the impact on the city's transportation facilities.
15. 
Parks. The applicants' proposed mitigation, if any, for the impact on the city's parks facilities.
16. 
For water concurrency applications, a water hydraulic report prepared by a licensed professional engineer including fire flow requirements and water meter sizing for commercial projects.
17. 
For sewer concurrency applications, a sewer hydraulic report prepared by a licensed professional engineer including wastewater composition for commercial projects.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.70.050 Acceptance of a concurrency application.

A. 
The community development director or designee will notify an applicant for a certificate of concurrency within 28 days after receiving an application whether the concurrency application is complete or incomplete.
B. 
An application for a certificate of concurrency is "complete" when it meets the submission requirements listed in SMC § 16.70.040. The determination of completeness will be made when the application is sufficiently complete for review even though additional information may be required or project modifications may be undertaken subsequently. The community development director's determination of completeness will not preclude the official's ability to request additional information or studies.
C. 
Incomplete Applications. Whenever the city issues a determination that the certificate of concurrency application is not complete, the application will be returned to the applicant with a letter stating the application's deficiencies and measures necessary to submit a complete application.
D. 
Date of Acceptance. An application for a certificate of concurrency will not be officially accepted or processed until it is complete and the underlying development application has been determined to be complete. The community development director will accept and note the date of acceptance of the application for the certificate of concurrency.
E. 
No development approvals will be granted unless the applicant is eligible for and obtains a certificate of concurrency.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.70.060 Nonbinding determinations.

A. 
A nonbinding concurrency determination may be made by the city prior to a request for development action or approval by submitting a request and any applicable fee to the community development director. Information required to obtain a nonbinding concurrency determination is the same as that required by SMC § 16.70.040. The community development director may require additional information in order to make a nonbinding concurrency determination. The nonbinding concurrency determination may become a part of the staff recommendation regarding the requested development action.
B. 
Any nonbinding concurrency determination, whether requested as part of an application for development, is a determination of what public facilities and services are available at the date of inquiry, but does not reserve capacity for that development.
C. 
The city shall charge a processing fee to any individual who requests a nonbinding concurrency determination not associated with an application for development approval or development action. The processing fee shall be nonrefundable and nonassignable to any other fees. Such fee shall be determined by resolution of the city council. The following types of development shall be exempt from paying the concurrency determination fee:
1. 
Nonprofit agencies whose primary chartered purpose is to provide affordable housing; and
2. 
Other governmental agencies.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.70.070 Certificate of concurrency.

A. 
A certificate of concurrency shall be issued for a development approval, and remain in effect for the same period of time as the development approval with which it is issued. If the development approval does not have an expiration date, the certificate of concurrency shall be valid for 12 months.
B. 
A certificate of concurrency is valid for the same term as the underlying development approval. If a development approval is to be extended, the certificate of concurrency shall also be extended for the same period of time that the development approval is extended.
C. 
A certificate of concurrency may be extended by the community development director to remain in effect for the life of each subsequent development approval for the same parcel, as long as the applicant obtains a subsequent development approval prior to the expiration of the earlier development approval.
D. 
A certificate of concurrency runs with the land, is valid only for the subsequent development approvals for the same parcel, and is transferable to new owners of the original parcel for which it was issued; provided, however, that the certificate of concurrency will be valid only for subsequent development approvals for the same parcel that were obtained prior to expiration of a prior development approval as set forth in subsection C of this section.
E. 
A certificate of concurrency shall expire if the underlying development approval expires or is revoked by the city.
City of Sultan
Concurrency Review Process
Request for Development Approval Certificate of Concurrency (Binding)
Sultan16.16.23.1.tif
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.70.080 Standards for concurrency.

The City of Sultan shall review applications for development and a development approval will be issued only if the proposed development does not lower the existing level of service (LOS) of public facilities and services below the adopted LOS in the comprehensive plan. A project shall be deemed concurrent if one of the following standards is met:
A. 
The necessary public facilities and services are in place at the time the development approval is issued; or
B. 
The development permit is issued subject to the condition that the necessary public facilities and services will be in place concurrent with the impacts of development; or
C. 
The necessary public facilities and services are guaranteed in an enforceable development agreement to be in place concurrent with the development. "Concurrent with the development" shall mean that improvements or strategies are in place at the time of the development or that a financial commitment is in place to complete the improvements or strategies within six years of the time of the development. If the financial commitments that underwrite the planned public facilities include impact fees, the applicant shall have paid all impact fees when due under the applicable provisions of the Sultan Municipal Code.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.70.090 Facilities and services subject to concurrency.

A concurrency test shall be made of the following public facilities and services for which level of service standards have been established in the comprehensive plan:
A. 
Transportation;
B. 
Potable water;
C. 
Wastewater;
D. 
Parks and recreation.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.70.100 Concurrency determination – Transportation.

A. 
Level of Service Standards. Transportation concurrency requires that the transportation impacts of land use development actions do not reduce the transportation levels of service (LOS) below the adopted standard.
1. 
The city's comprehensive plan adopts a level of service "D" standard for city arterials while retaining the Washington State adopted level of service "D" for US-2 in compliance with state requirements and standards for highways of statewide significance (HSS).
2. 
If the community development director determines the proposed land use action will reduce the LOS below the adopted standard, either the development as proposed must be modified to reduce its transportation impact, or the corrective transportation improvements must be identified and constructed at the time of the development or within a six-year period.
B. 
Traffic Study. The developer shall prepare a traffic study. The level of detail and scope of a traffic study may vary with the size, complexity and location of the proposed development. A traffic study shall be a thorough review of the immediate and long-range effects of the proposed development on the city's transportation system. The traffic study shall include the following basic data:
1. 
Provide a site plan drawn to appropriate scale of the proposal showing the road system, rights of-way, type of roads, access points and other features of significance in the road system;
2. 
Vicinity map showing transportation routes to be impacted by the development;
3. 
Type of dwelling units proposed (single-family, multiple-family, attached, detached, etc.) and trip generation rates for the development. In cases of activity other than residential, the same type of information will be required (commercial, industrial, etc.);
4. 
Volume of traffic expressed in terms of average daily traffic on the roadway network that can reasonably be expected to be used by existing traffic and traffic from the development expressed in terms of current average daily traffic along with directional distribution (D factor), peak hour demand (K ratio) and percentage of trucks (T factor), in the traffic stream;
5. 
Physical features of the road network involved, with regard to functional classification, capacity, safety and operations;
6. 
A level of service analysis of the road system that can reasonably be expected to bear traffic generated by the development:
a. 
The level of service may generally assume conditions for two-lane highways without access control and at-grade intersections as defined in the Highway Capacity Manual;
b. 
Level of service and volume to capacity ratio (v/c) is to be determined and indicated within the report, showing factors used and methodology;
c. 
Volume figures used shall consist of:
i. 
Current average daily traffic (ADT);
ii. 
Projected ADT at completion of proposal;
iii. 
Growth projection if completion is more than two years away.
7. 
The staged increase in traffic volumes on all transportation routes to be caused by the development as different phases are completed;
8. 
Traffic volumes shall be projected for 10 years into the future and, if a future phase of the development will extend beyond 10 years, to the time of completion of future phases of the development;
9. 
Other similar data that may be required to provide a complete and thorough analysis.
C. 
The city may also require that the traffic study include other information necessary for a thorough review of the immediate and long-range effects of the proposed development on the transportation system.
D. 
Procedures. The following procedures are used to determine transportation concurrency:
1. 
The community development director will determine whether a proposed development can be accommodated within the existing or planned capacity of transportation facilities.
2. 
The community development director will determine if the capacity of the city's transportation facilities, less the capacity which is needed, can be provided while meeting the level of service standards set forth in the city's comprehensive plan.
3. 
The community development director's determination of available capacity will be based on application materials, acceptable to the city, submitted by the applicant.
4. 
The community development director will issue a transportation certificate of concurrency if capacity is available.
5. 
The transportation certificate of concurrency and underlying development application will be denied if the community development director determines that the proposed development will cause the level of service of a city-owned transportation facility to decline below the standards adopted in the comprehensive plan, and improvements or strategies to accommodate the impacts of development are not planned concurrent with development.
6. 
If the level of service failure is on an arterial roadway, the applicant may perform one of the following measures: modify the development proposal to lessen the traffic impacts; volunteer to construct transportation improvements to mitigate the impacts; withdraw the certificate of concurrency application or take other corrective measures approved by the official. Other corrective measures may include:
a. 
Preparing a more detailed highway capacity analysis, as outlined in the Highway Capacity Manual, Special Report 20 (1985, as amended) or other traffic analysis following procedures outlined by the Washington State Department of Transportation (WSDOT).
This more detailed study may include demand management strategies to accommodate the impacts of the proposed development such as increased public transportation service and ride-sharing programs.
b. 
If the developer chooses to do a more detailed analysis as described above, the community development director will:
i. 
Meet with the developer to review and accept or deny the more detailed highway capacity analysis methodology;
ii. 
Review the completed alternative analysis for accuracy and appropriate application of methodology;
iii. 
If the alternative methodology, after review and acceptance by the community development director, indicates an acceptable LOS where the comprehensive plan indicates a LOS failure, the alternative methodology will be used, based on a binding or enforceable development agreement.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.70.110 Concurrency determination – Potable water.

A. 
The City of Sultan will provide level of service (LOS) information as set forth in the City of Sultan comprehensive plan.
B. 
Standards for water system facilities are defined by WAC 246-290-100 and the "Water System Design Manual" published by the Washington State Department of Health.
1. 
The Water System Design Manual specifies that the minimum operating pressure in the water distribution system will not fall below 30 pounds per square inch (PSI) at the water meter, which is normally the right-of-way line for the served property.
2. 
In accordance with the International Fire Code, the city has established the minimum fire flow standard as 1,000 gallons per minute for residential areas and 1,500 gallons per minute for nonresidential development.
C. 
The city will not extend water service to areas outside the urban growth area (UGA) except in the case where a property has a documented water supply emergency.
D. 
The following procedures are used for determining water concurrency:
1. 
The community development director or designee will determine whether a proposed development can be accommodated within the existing or planned capacity of the city's water system.
2. 
The community development director will determine if the capacity of the city's water facilities, less the capacity which is needed, can be provided while remaining within the city's level of service standards, and if so, will provide the applicant with a water certificate of concurrency.
3. 
The community development director will deny the water certificate of concurrency and underlying development application if there is no capacity in the city's water system for the proposed project, and improvements or strategies to accommodate the impacts of development are not planned concurrent with development.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.70.120 Concurrency determination – Wastewater.

A. 
Level of Service Standards. Standards for sewer system facilities are defined by WAC 173-240-050 and the "Criteria for Sewerage Works Design" published by the Washington State Department of Ecology. The Department of Ecology issues an NPDES permit to the city with requirements for wastewater effluent quality and monitoring to ensure compliance with receiving water standards.
1. 
Designs for increasing the wastewater treatment plant capacity in three phases are described in the 2006 City of Sultan WWTP Upgrade Engineering Report ("Engineering Report"). Until improvements are constructed, the size and design of the city's wastewater treatment plant limits the available sewer connections to accommodate future forecast flows and avoid violating the city's National Pollution Discharge Elimination System permit (NPDES) issued by the Department of Ecology.
2. 
The sewer system will be designed to contain all sewage and extraneous flow that enters during a 10-year, 24-hour storm event.
3. 
Sewer capacity will be calculated with the pipe flowing full at the design pipe slope under projected peak conditions. The minimum pipe slope will be sufficient to maintain a velocity of two feet per second under flowing full conditions.
B. 
No new on-site sewage systems will be allowed in the city limits except as provided under SMC § 16.20.045 where a property owner proposes to build one single-family home on an existing lot.
C. 
Where new sewer pipe is extended past a parcel with existing development using an on-site sewage system, the property owner will be required to pay the connection fee (general facilities charge) for the benefit conferred by the sewer pipe but will not be required to actually connect and pay monthly service charges unless or until the on-site system fails or the property owner wishes to connect.
D. 
The City of Sultan will provide level of service information as set forth in the city's comprehensive plan. In accordance with WAC 365-195-835 the following procedures are used to determine sewer concurrency:
1. 
The community development director or designee will determine whether a proposed development can be accommodated within the existing or programmed capacity of the city's sewer system.
2. 
The city will conduct an analysis of the remaining capacity of the city's sewer treatment facilities and the foreseeable demand. The proposed development will be analyzed with respect to its size and density, quantity of utility service required (average flow and peak periods), special treatment or hazards involved, and compliance with applicable requirements of the Sultan Municipal Code and other codes. Provision of sewer service to the property shall not jeopardize public health or safety.
3. 
The community development director will determine if the capacity of the city's sewer facilities and wastewater treatment plant, less the capacity which is needed, can accommodate the proposed development while allowing city sewer service to remain within the city's level of service standards. If so, the community development director will provide the applicant with a sewer certificate of concurrency.
4. 
The community development director will deny the sewer certificate of concurrency and underlying development application if there is insufficient capacity in the city's sewer system, and improvements or strategies to accommodate the impacts of development and provide the sewer capacity needed by the proposed development are not planned to be constructed concurrent with the development.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.70.130 Reserved.

(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.70.140 Concurrency determination – Parks and recreation.

A. 
The City of Sultan will provide level of service (LOS) information as set forth in the City of Sultan comprehensive plan.
B. 
The following procedures are used for determining park concurrency:
1. 
The community development director will determine whether a proposed development can be accommodated within the existing or planned capacity of parks facilities.
2. 
The community development director will determine if the capacity of the city's parks facilities, less the capacity which is needed, can be provided while meeting the level of service standards set forth in the city's comprehensive plan.
3. 
The community development director's determination of available capacity will be based on application materials, acceptable to the city, submitted by the applicant.
4. 
The community development director will issue a parks certificate of concurrency if capacity is available.
5. 
The parks certificate of concurrency and underlying development application will be denied if the community development director determines that the proposed development will cause the level of service of a city-owned parks facility to decline below the standards adopted in the comprehensive plan, and improvements or strategies to accommodate the impacts of development are not planned concurrent with development.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.70.150 Procedures for issuing a certificate of concurrency or denial letter.

A. 
Issuing a Certificate of Concurrency.
1. 
Prior to the issuance of a water and/or sewer certificate of concurrency, the applicant will pay an administrative fee, as determined by city council resolution, for each water and sewer connection required by the applicant.
2. 
A certificate of concurrency is a letter or other form prepared by the community development director and sent to the applicant. If the applicant is not the property owner, the letter will also be sent to the property owner. The certificate of concurrency will include:
a. 
Primary applicant contact information (name, address, phone number, email, etc.).
b. 
The property address.
c. 
The parcel identification number(s).
d. 
Name of project.
e. 
The number and type of dwelling units, square footage of commercial or industrial floor area, specific uses, densities, and intensities for which application(s) were approved.
f. 
The effective date of the certificate of concurrency.
g. 
The expiration date of the certificate of concurrency.
h. 
Any mitigation required by the applicant at the applicant's cost for concurrency.
i. 
The number of water and sewer connections, if any, allocated by the City of Sultan and any deposit payments made by the applicant.
3. 
If a proposed development project is modified during the review process and results in an increased capacity need, then a new concurrency application, application fee, evaluation, and approval will be required prior to development approval and issuance of certificate of concurrency.
B. 
Denial Letter.
1. 
If the community development director determines there is a lack of concurrency, the official will issue a denial letter which will advise the applicant that capacity is not available. If the applicant is not the property owner, the denial letter will also be sent to the property owner.
2. 
At a minimum, the denial letter will identify the application and options available to the applicant, such as the applicant's agreement to construct necessary facilities at the applicant's cost to maintain the city's adopted levels of service.
3. 
The denial letter will include a statement that the denial letter may be appealed to the hearing examiner in accordance with SMC Chapter 16.06 if the appeal is submitted to the community development director within 10 days after the issuance of the denial letter. If an appeal is filed, future processing on the underlying development application will be stopped until the final decision on the appeal.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.70.160 Reporting and monitoring.

A. 
The community development director or designee is responsible for completion of transportation, water and sewer capacity availability reports. These reports will evaluate reserved capacity and permitted development activity for the previous period, and determine existing conditions with regard to available capacity for road, parks, sewer and water facilities.
B. 
The capacity report will include capacity used for the previous period and capacity available based on level of service standards and available information.
C. 
Capacity forecasts will be based on the most recently updated schedule of capital improvements, growth projections, fire flow, limits of the NPDES permit, public road facility inventories, and revenue projections. At a minimum the report should include:
1. 
A summary of development activity;
2. 
The status of capacity accounts;
3. 
Recommendations on amendments to the capital improvement plan, annual budget, level of service standards, and/or other comprehensive plan;
4. 
Available water flow, plant capacity and fire flow measures; and
5. 
Limits in the city's NPDES permit and finding of available capacity in the city's wastewater treatment plant.
D. 
The findings of the annual capacity availability report may be considered by the council during the budget process.
E. 
The community development director will use the findings of the capacity availability report to review development permits and capacity evaluations during the next period.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.72.010 Purpose.

This chapter is enacted in accordance with RCW 82.02.050 and with the provisions of the Growth Management Act, Chapter 36.70A RCW.
It is the purpose of this chapter to:
A. 
To assess impact fees for parks and traffic within the City of Sultan;
B. 
Ensure that adequate facilities are available to serve new growth and development;
C. 
Promote orderly growth and development by requiring that new development pay a proportionate share of the cost of new facilities needed to serve growth; and
D. 
Ensure that impact fees are imposed through established procedures and criteria so that specific developments do not pay arbitrary fees or duplicate fees for the same impact.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1328-20 § 7 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.72.020 Scope.

A. 
The city shall collect impact fees as set forth in this chapter from any applicant seeking development approval from the city, for any development activity within the city where such development activity requires the issuance of a building permit or approval of site plan, development agreement, or long or short subdivision, except that nonresidential development shall not be assessed park impact fees.
B. 
Impact fees shall be collected from the applicant as set forth in SMC § 16.72.100.
(Ord. 1328-20 § 7 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.72.030 Definitions.

The following definitions apply to this chapter:
A. 
"Act"
means the Growth Management Act, Chapter 17, Chapter 36.70A RCW.
B. 
"Applicant"
means the named applicant on a development or building permit application and includes an entity that controls the named applicant, is controlled by the named applicant, or is under common control with the named applicant.
C. 
"Building permit"
means an official document of certification which is issued by the building official and which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, erection, demolition, moving or repair of a building or structure, as specified in the Uniform Building Code.
D. 
"Capital facilities"
means the facilities or improvements included in a capital budget.
E. 
"Designated city official"
shall be the public works director or his or her designee.
F. 
"Director"
means the City of Sultan community development director.
G. 
"Fee payer"
is the responsible party for a land use or construction permit for residential development.
H. 
"Frontage"
means that portion of the development property adjacent to an existing or future roadway where access to the site or individual properties is permitted by the city.
I. 
"Frontage improvements"
shall include all improvements as designed in the city comprehensive plan, city standards, or other adopted plan that can include roadway surfacing, curb and gutter, sidewalk, drainage, lighting, landscaping, and signs.
J. 
"Impact fee"
means payment of money imposed by the City of Sultan on the development of all residential improvements pursuant to this chapter as a condition of granting a land use permit and/or a building permit in order to pay for the park and transportation facilities and improvements needed to serve new residential growth and development. "Impact fee" does not include any permit fees, an application fee, the administrative fee for collecting and handling school impact fees, the cost of reviewing independent fee calculations, or the administrative fee required for an appeal pursuant to this chapter.
K. 
"Impact fee account"
means the account established for parks and traffic for which impact fees are collected.
L. 
"Independent fee calculation"
means the school impact calculation, and/or economic documentation prepared by a fee payer to support the assessment of an impact fee other than the adopted fee schedule as adopted by city council.
M. 
"Interest"
means the average interest rate earned by the city in the last fiscal year, if not otherwise defined.
N. 
"Land use permit"
is a consolidated development approval or permit issued pursuant to the zoning code.
O. 
"Local access classified roadway"
means the designated roadway cross-section as included in the city's adopted standards, comprehensive plan, or a city area master plan.
P. 
"Owner"
means the owner of record of real property or the owner's authorized agent.
Q. 
"Project improvements"
means site improvements and facilities that are planned and designed to provide service for a particular development project and that are necessary for the use and convenience of the occupants or users of the project, and are not system improvements.
R. 
"Residential development"
means a house, apartment, mobile home, manufactured home, modular home or other dwelling unit used as a permanent or temporary place of residence.
S. 
"System improvements"
means transportation capital improvements that are identified in the city's latest adopted 20-year comprehensive plan and are designed to provide services to the community at large.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1328-20 § 7 (Exh. A); Ord. 1347-21 § 24; Ord. 1418-25, 7/24/2025)

§ 16.72.040 Use of funds.

A. 
Impact fees collected for community parks and transportation shall only be used in accordance with RCW 82.02.050.
B. 
Impact fees collected for transportation projects are further subject to the provisions of Chapter 39.92 RCW.
(Ord. 1328-20 § 7 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.72.050 Exemptions.

A. 
The following development activities shall be exempt from the payment of all impact fees:
1. 
The impact fees imposed by this chapter shall not apply to replacement of a residential structure within 12 months of the demolition or removal of the prior residence on the same site;
2. 
Alteration, expansion, enlargement, remodeling, rehabilitation or conversion of an existing dwelling unit where no additional units are created and the use is not changed;
3. 
Alterations of an existing nonresidential structure that do not expand the usable space;
4. 
Miscellaneous improvements, including but not limited to fences, walls, swimming pools and signs;
5. 
Demolition or moving of a structure;
6. 
Nonresidential new development will not be charged a community park impact fee; provided, however, that a nonresidential development may still be required to dedicate land for parks under the State Environmental Policy Act (SEPA), Chapter 43.21C RCW;
7. 
Construction of municipal or district facilities (school, fire, library, etc.)
8. 
Any other development or construction activity which falls within an exemption identified in this section, or any other section, or under other applicable laws, as determined by the director.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1328-20 § 7 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.72.060 Impact fee calculation.

Based on the information reviewed and discussed during the preapplication meeting, and as part of an application submittal, the applicant will provide requested information which may include:
A. 
An impact fee calculation in accordance with the fee schedule as approved by city council;
B. 
Where applicable, an independent fee calculation along with supporting traffic studies or other analytical requirements may be determined based on the results of the preapplication meeting;
C. 
If applicable, a development credit calculation which itemizes the estimated value of any dedicated lands or improvements which the applicant has or will make as a condition of a subdivision or site plan approval. Dedicated lands or improvements must be identified as system-wide improvements in the city's comprehensive plan;
D. 
The city's cost of administering the impact fee program shall be established by resolution.
(Ord. 1328-20 § 7 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.72.070 Calculation of park impact fee.

A. 
Findings and Authority. The demand for parks and recreation facilities is proportionate to the size of the user population. The larger a population grows, the greater the demand for city parks and recreation facilities. In order to offset the impacts of new residential development on the city's park system, the city has determined to adjust the current park impact fee consistent with city standards as new development occurs. Impact fees are authorized under the State Environmental Policy Act (SEPA) and the Growth Management Act (GMA) to help offset the cost of capital facilities brought about by new growth and development. Impact fees imposed will be used to acquire and/or develop parks, open space and recreation facilities that are consistent with the capital facilities and park and recreation elements of the Sultan comprehensive plan.
B. 
Calculation of Park Impact Fee. The impact fee for parks and recreation facilities shall be calculated using the following formula:
1. 
"Fee" means the park impact fee.
2. 
"T" means the total development cost of new facilities. Such costs shall be adjusted periodically, but not more than once every year.
3. 
"P" means the new population to be served.
4. 
"U" means the average number of occupants per dwelling unit.
5. 
"A" means an adjustment for the portion of anticipated additional tax revenues resulting from a development that is proratable to facility improvements contained in the capital facilities plan.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1328-20 § 7 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.72.080 Calculation of traffic impact fee.

The impact fee for roads and traffic infrastructure shall be calculated using the following formula:
TIF = F x T
A. 
"TIF" means the traffic impact fee.
B. 
"F" means the traffic impact fee rate per trip in dollar amounts. Such rate shall be established by estimating the cost of anticipated growth-related roadway projects contained in the capital facilities plan divided by the projected number of growth-related trips, as adjusted for other anticipated sources of public funds. Such rates shall be adjusted periodically, but not more often than once every year, to reflect changes in the prevailing construction cost index, facility plan projects, and anticipated growth.
C. 
"T" means the trips generated by a proposed development.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1328-20 § 7 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.72.090 Impact fee schedules.

A. 
Park and traffic impact fees will be based on the Sultan comprehensive plan and supporting documentation. Traffic impact fees for residential uses shall be based on the type of residential use, single-family, multifamily, or mobile home. Traffic impact fees for nonresidential uses will be based on the number of p.m. peak trips generated by the development.
B. 
The determination of the number of p.m. peak hour trips shall be made as follows: The City's consultant shall determine traffic generation. If the applicant wishes to provide an alternative analysis for consideration, the applicant shall retain, at the applicant's expense, a traffic consultant approved by the city to establish the p.m. peak trip generation for the development. The public works director shall review the consultant's report, request such additional information as may be needed to establish the trip generation and make a determination as to the traffic impact fee for the project. The applicant shall be notified in writing of the impact fee.
C. 
Park and traffic impact fees shall be set by city resolution.
D. 
The impact fee schedule set out in accordance with this chapter and approved by resolution shall be reviewed by the city council as it may deem necessary and appropriate and/or in conjunction with the annual update of the capital facilities plan of the city's comprehensive plan.
E. 
Where the hearing examiner determines that there is a flaw in the impact fee program or that a specific exemption or credit should be awarded on a consistent basis or that the principles of fairness require amendments to this chapter, the hearing examiner may advise the city council as to any question or questions that the hearing examiner believes should be reviewed as part of the council's annual or other periodic review of the fee schedule as mandated by this chapter.
(Ord. 1328-20 § 7 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.72.100 Assessment of impact fees.

A. 
Parks. The city shall collect impact fees for parks from any applicant seeking residential development approval from the city where such development activity requires final short or long plat approval, final binding site plan approval, or the issuance of a residential building permit or a mobile home permit. Nonresidential development shall not be assessed a park impact fee. Impact fees shall be collected from the applicant when the building permit is issued, using the fee schedule then in effect or as determined through a development agreement. There shall be no impact fees for accessory dwelling units.
B. 
Traffic. The city shall collect impact fees for roads from any applicant seeking residential or commercial development approval where such development activity requires a short or long subdivision, site plan, development agreement, conditional use permit or the issuance of a residential or commercial building permit or mobile home permit. Impact fees shall be collected from the applicant when the building permit is issued, using the fee schedule then in effect or as determined through a development agreement. There shall be no impact fees for accessory dwelling units.
C. 
Collection. Except as otherwise provided in Chapter 16.76 SMC, impact fees imposed by this chapter shall be due and payable at the time of issuance of a building permit, or in the case of manufactured homes at the time of issuance of an installation permit.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1328-20 § 7 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.72.110 Independent fee calculations.

A. 
Parks and Traffic.
1. 
If the public works director determines that none of the fee categories set forth in this chapter accurately describe or capture the impacts of the new development, he or she may conduct independent fee calculations and impose alternative fees on a specific development based on those calculations. For example, with respect to group homes, the fees imposed may take into account the size and number of residents proposed to be housed in such group homes, and the public works director may determine the fees to be imposed based on this judgment of the approximate equivalent number of residents that would be generated compared to single-family dwellings.
2. 
If an applicant can demonstrate that none of the fee categories set forth in this chapter accurately capture the impacts of a new development, then the applicant may prepare and submit to the public works director an independent fee calculation for the development activity for which a building permit is sought. The documentation submitted shall show the basis upon which the independent fee calculation was made.
3. 
While there is a presumption that the fees set forth by resolution by the city council are valid for each form of development, the public works director shall consider the independent fee calculation documentation submitted by the applicant. However, the public works director is not required to accept any documentation which he or she reasonably deems to be inaccurate or unreliable and may, in the alternative, require the applicant to submit additional or different documentation for consideration. Based on the information in the public works director's possession, the public works director is authorized to adjust the impact fee calculation to the specific characteristics of the development activities, and/or according to principles of fairness.
(Ord. 1328-20 § 7 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.72.120 Impact fee credits.

An applicant can request that a credit or credits be awarded for the value of required dedicated land for system improvements, or for construction of system improvements, if the land and/or improvements constructed are identified in the current city capital facilities plan. Applicants for projects for which roads or parks fees have been collected by voluntary agreement or pursuant to the city's general platting authority, may request a credit for the amount of such fees paid.
A. 
Credits in General.
1. 
A credit shall be allowed only to the extent necessary to offset impact fees that would otherwise be charged to the development. The city is not liable to refund the developer any excess credit over impact fees.
2. 
Park impact credits may be applied only to park impact fees, and traffic impact credits applied only to traffic impact fees. Credits shall not be transferred from one property, project or development activity to another without approval of the director.
B. 
Park Impact Fee Credits.
1. 
Pursuant to RCW 82.02.060(3), a credit against the applicable impact fee component for the value of any dedication of land for, improvement to, or new construction of any park system improvements provided by the fee payer, to facilities that are identified in the parks, recreation and open space plan of the comprehensive plan and that are required by the city as a condition of approving the development activity.
2. 
All land proposed to be conveyed to the city in exchange for a credit against impact fees shall meet all of the following requirements:
a. 
The land must be conveyed free and clear of all liens and encumbrances;
b. 
The land must be readily accessible to the general public;
c. 
The land must have a site, size, and location consistent with a park system improvement described in the comprehensive plan; and
d. 
The land must be suitable for the proposed park uses and for inclusion in the city's park system, as determined by the community development director.
The city may decide to accept land which does not meet all of these standards in unusual circumstances where the land to be conveyed provides a unique benefit, such as where the land has waterfront access, or provides significant open space or trail corridor.
3. 
The amount of the credit shall be the value of the land and improvements conveyed to the city; provided that in no case shall the amount of the credit exceed the amount of the impact fee imposed on the development activity. If the value of the land and improvements exceeds the total park impact fees to be paid by the development, no impact fees shall be due. If the value of the land and improvements is less than the impact fees due, the developer will be required to pay the difference.
C. 
Traffic Impact Fee Credits.
1. 
An applicant may request a credit against the amount of impact fees otherwise applicable to a development activity for the total value of dedicated land, improvements, or construction provided by the applicant as a condition of development approval. Credits will apply only if and to the extent that the land dedicated, improvements provided, and/or facilities constructed are:
a. 
For transportation facilities constituting system improvements that are funded in whole or in part by impact fees; and
b. 
Located at suitable sites and constructed at an acceptable quality level as determined by the city.
2. 
The city engineer shall determine if a request for credits satisfies the criteria contained in subsection C.1 of this section.
3. 
The value of credits for structures, facilities or other improvements shall be established by documentation provided to the city engineer by the applicant.
4. 
The value of a credit for land, including but not limited to right-of-way and easements, shall be determined on a case-by-case basis by an appraiser selected by, or acceptable to, the city engineer.
5. 
The cost of any appraisal under this section shall in the city's discretion either be (a) borne exclusively by the applicant, or (b) deducted from the otherwise applicable impact fee credit.
6. 
After receiving the appraisal and/or improvement cost documentation from the applicant, the city engineer shall provide the applicant with a written statement setting forth the dollar amount of the credit, the basis for the credit, the legal description of any dedicated real property, and a description of the development activity to which the credit shall be applied. The applicant shall sign and date a duplicate copy of said statement indicating his/her consent to the terms thereof and shall return the signed document to the city engineer prior to application of the impact fee credit. The applicant's failure to sign, date, and return said statement within 60 calendar days may nullify the credit.
7. 
No credit shall be given for dedications for, contributions toward or construction of project improvements.
8. 
If the amount of the credit is less than the calculated fee amount, the difference remaining shall be chargeable as an impact fee and paid at the time of application for the building permit. In the event the amount of the credit is calculated to be greater than the amount of the impact fee due, the applicant shall forfeit such excess credit.
9. 
In the event that the city adopts impact fees that are less than the amount determined in the rate study; and provided that the amount of the reduction is achieved by a discount or similar policy determination to reduce the fee without revising the underlying studies, data, or assumptions, then credits shall be given only in an amount by which the value of the credit exceeds the value of the discount used to adopt the impact fees.
10. 
Any request for a credit must be submitted in writing to the city engineer within 60 calendar days of the city's receipt of the building permit application for the underlying development activity. An applicant's failure to file a request by said deadline shall conclusively waive the applicant's entitlement to any such credit.
11. 
Determinations made by the city engineer pursuant to this section shall be subject to appeal pursuant to SMC § 16.72.130.
D. 
School impact fee credits shall be administered as codified in SMC § 16.74.080.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1328-20 § 7 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.72.130 Adjustments, waivers, and appeals.

A. 
Administrative Adjustment of Fee Amount.
1. 
An applicant for a building permit may, within 21 days of acceptance by the city of a complete building permit application, submit a letter to the city community development director requesting an adjustment to the impact fees imposed by this chapter. The director may adjust the amount or waive the entire fee, in consideration of studies and data submitted by the applicant and the district, if one of the following circumstances exists:
a. 
It can be demonstrated that the impact fee assessment was incorrectly calculated; and/or
b. 
Unusual circumstances of the development activity demonstrate that application of the impact fee to the development would be unlawful, unfair or unjust.
2. 
To avoid delay pending resolution of the adjustment or appeal, impact fees may be paid under protest in order to obtain a development approval.
3. 
Failure to exhaust this administrative remedy shall preclude appeals of the impact fee pursuant to subsection B of this section.
B. 
Appeals of Decisions – Procedure.
1. 
The community development director's final impact fee determination and/or any mitigation requirements imposed pursuant to this chapter may be appealed in accordance with SMC Chapter 16.06.
2. 
At the hearing, the appellant shall have the burden of proof, which shall be met by a preponderance of the evidence. The impact fee may be modified upon a determination that it is proper to do so based on the application of the criteria contained in subsection A of this section. Appeals shall be limited to application of the impact fee provisions to the specific development activity and the provisions of this title shall be presumed valid.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1328-20 § 7 (Exh. A); Ord. 1347-21 § 25; Ord. 1418-25, 7/24/2025)

§ 16.72.140 Impact fee fund.

Impact fee funds will be created and established under SMC Title 3. The finance department will establish separate accounts and maintain records for each type of impact fee.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1328-20 § 7 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.72.150 Expenditures.

Impact fees for system improvements shall be expended only in conformance with the capital facilities plan. Impact fees shall be expended or encumbered for a permissible use within 10 years of receipt, unless there exists an extraordinary and compelling reason for fees to be held longer than 10 years. Such extraordinary and compelling reasons shall be identified in written findings by the city planning board.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1328-20 § 7 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.72.160 Refunds – Parks and traffic.

A. 
The current owner of property on which an impact fee has been paid may receive a refund of such fee if the city fails to expend or encumber the impact fees within 10 years of collection, or such greater time as may be established in written findings by the city Planning Board documenting extraordinary or compelling reasons for extension beyond 10 years. In determining whether there has been an encumbrance, impact fees shall be considered encumbered on a first-in-first-out basis. The current owner likewise may receive a proportionate refund when the public funding of applicable service area projects by the end of such 10-year period has been insufficient to satisfy the ratio of public to private funding. The city shall notify potential claimants by certified mail (return receipt requested) deposited with the United States Postal Service at the last known address of each claimant.
B. 
The request for a refund must be submitted to the city council in writing within one year of the date the right to claim a refund arises or within one year of the date notice is given, whichever is later. Any impact fees that are not expended within these time limitations, and for which no application for refund has been made as herein provided, shall be retained and expended on the indicated capital facilities. Refunds of impact fees under this subsection shall include any interest earned on the impact fees.
C. 
The current owner of property for which impact fees have been paid may request and shall receive a refund, including any interest earned on the impact fees, when the developer does not proceed with the development activity and no impact has resulted. City administrative costs to process the refund shall be deducted from the refund amount.
D. 
Schools. School impact fees shall be refunded as codified in Chapter 16.74 SMC and determined appropriate by the district.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1328-20 § 7 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.72.170 Impact fee as additional and supplemental requirement.

The impact fee is additional and supplemental to, and not substitution for, any other requirements imposed by the city on the development of land or the issuance of building permits; provided that any other such city development regulation which would require the developer to undertake dedication or construction of a facility contained within the city capital facility plan shall be imposed only if the developer is given a credit against impact fees as provided for herein.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1328-20 § 7 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.74.010 Findings and authority.

The city council of the City of Sultan hereby finds and determines that new residential development in the City of Sultan will create additional demand and need for school facilities in the City of Sultan and that new residential development should pay a proportionate share of the cost of the school facilities needed to serve new residential development. Therefore, pursuant to Chapter 82.02 RCW, the city council adopts this chapter to assess impact fees for school facilities. The provisions of this chapter shall be liberally construed in order to carry out the purposes of the city council in establishing the impact fee program.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.74.020 Definitions.

The following definitions apply to this chapter:
A. 
"Act"
means the Growth Management Act, Chapter 17, Laws of 1990, 1st Ex. Sess., Chapter 36.70A RCW et seq., and Chapter 32, Laws of 1991, 1st Sp. Sess., as now in existence or as hereafter amended.
B. 
"Building permit"
means an official document or certification which is issued by the building official and which authorizes the construction, alteration, enlargement, conversion, reconstruction, remodeling, rehabilitation, erection, demolition, moving or repair of a building or structure, as specified in the Uniform Building Code.
C. 
"Capital facilities"
means the facilities or improvements included in a capital budget.
D. 
"Capital facilities plan"
means the capital facilities plan adopted by the board of directors of Sultan School District No. 311.
E. 
"Director"
means the City of Sultan community development director.
F. 
"District capital facilities"
means facilities owned or operated by District No. 311, or the facilities or improvements included in the district's capital budget and/or capital facilities plan.
G. 
"Encumbered"
means to reserve, set aside, or otherwise earmark the impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for public facilities.
H. 
"Fee-payer"
is the responsible party for a land use or construction permit for residential development.
I. 
"Impact fee"
means a payment of money imposed by the City of Sultan on the development of all residential improvements pursuant to this chapter as a condition of granting a land use permit and/or a building permit in order to pay for the school facilities needed to serve new residential growth and development. "Impact fee" does not include any permit fees, an application fee, the administrative fee for collecting and handling school impact fees, the cost of reviewing independent fee calculations, or the administrative fee required for an appeal pursuant to this chapter.
J. 
"Impact fee account"
means the account established for the school facilities for which impact fees are collected.
K. 
"Independent fee calculation"
means the school impact calculation, and/or economic documentation prepared by a fee payer, or District No. 311, to support the assessment of an impact fee other than the fee schedule adopted in accordance with SMC § 16.74.050B.
L. 
"Interest"
means the average interest rate earned by District No. 311 in the last fiscal year, if not otherwise defined.
M. 
"Land use permit"
is a consolidated development approval or permit issued pursuant to the zoning code.
N. 
"Owner"
means the owner of record of real property or the owner's authorized agent.
O. 
"Residential development"
means a house, apartment, mobile home, manufactured home, modular home or other dwelling unit used as a permanent or temporary place of residence.
P. 
"Sultan School District" or the "district"
means Sultan School District No. 311, Snohomish County, Washington.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1347-21 § 26; Ord. 1418-25, 7/24/2025)

§ 16.74.030 School district eligibility.

A. 
School Capital Facilities Plan Required. The Sultan School District shall be eligible to receive school impact fees upon adoption by the city council of a six-year school capital facilities plan (CFP). This action will also constitute adoption by the city of the schedule of school impact fees specified in such facilities plan as may be amended by the city council. The district's plan shall meet the applicable requirements of the State Growth Management Act (GMA) and SMC § 16.74.040A.
B. 
Expiration of District Plan. For purposes of school impact fee eligibility, the district's school CFP shall expire when an updated plan meeting the requirements of the GMA is adopted by the school district board.
C. 
Revising the School Facilities Plan (CFP).
1. 
The school district may initiate revisions to the school CFP or fee schedule prior to the expiration date of the city council adopted school CFP. The revised plan shall first be approved by the school board and then transmitted to the city. The district's revised plan will then be considered by the city council as part of the city's annual comprehensive plan amendment process, unless the school board of the district declares, and the city finds, that an emergency exists.
2. 
The Sultan city council may, by resolution, recommend that the district initiate a review of the school CFP or impact fee schedule prior to the expiration date.
3. 
The school capital facilities plan may include revised data for the impact fee formula and/or calculations, and a corresponding modification to the fee schedule.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.74.040 School facilities plan requirements and procedures.

A. 
Minimum Requirements for the District's School Capital Facilities Plan. To be eligible for school impact fees, the district must submit a six-year school CFP to the city pursuant to the procedure established by this chapter. The plan shall be consistent with the city's adopted comprehensive plan. The plan shall contain data and analysis necessary and sufficient to meet the requirements of the state GMA and Chapter 82.02 RCW. The plan must provide sufficient detail to allow computation of the fees according to the formula contained in the school CFP.
B. 
Council Adoption. Following receipt of the school district's CFP or amendment thereto, the city council shall schedule a public hearing to consider adoption or amendment of said plan as part of the city's annual comprehensive plan amendment process.
C. 
If an updated school facilities plan has not been adopted by the city council prior to the existing plan's expiration date the district shall not be eligible to receive school impact fees until the updated plan has been adopted by the council.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.74.050 School impact fee.

A. 
Fee Required. The city shall collect impact fees from any applicant seeking land use permit approval and/or a building permit from the city for any residential development within the city limits. This shall include, but is not limited to, the development of residential land, and may include the expansion of existing uses which creates a demand for additional school facilities. The school impact fee shall be calculated in accordance with the formula established in the school CFP adopted by the city council, and incorporated in full by this reference. The school impact fee due and payable shall be as shown in the school CFP. The city council may adjust the school impact fee, calculated in accordance with said formula, by a multiplier in order to determine the school impact fee due and payable by the applicant.
B. 
Impact Fee Schedule. The school impact fees specified in the district's school capital facilities plan and adopted by the city council shall constitute the city's schedule of school impact fees. The department of community development and the school district shall, for the convenience of the public, keep available an information sheet summarizing the schedule of school impact fees applicable in the city.
C. 
Impact Fee Limitations.
1. 
School impact fees shall be imposed for district capital facilities that are reasonably related to the development under consideration, shall not exceed a proportionate share of the costs of system improvements that are reasonably related to the development, and shall be used for system improvements that will reasonably benefit the new development.
2. 
School impact fees must be expended or encumbered for a permissible use within 10 years of receipt by the district.
3. 
To the extent permitted by law, school impact fees may be collected for district capital facilities costs previously incurred to the extent that new growth and development will be served by the previously constructed capital facilities; provided that school impact fees shall not be imposed to make up for any existing system deficiencies.
4. 
An applicant required to pay a fee pursuant to RCW 43.21C.060 for district capital facilities shall not be required to pay a school impact fee pursuant to RCW 82.02.050 through 82.02.090 and this title for the same facilities.
D. 
Fee Determination.
1. 
For all land use and building permits issued by the city, the applicability of school impact fees will be determined at the time of building permit application. The amount of the school impact fee, and any administrative fee as set forth in the City of Sultan annual fee schedule, shall be based on the fee schedule in effect at the time of permit application.
2. 
The city's cost of administering the impact fee program, as set forth in the annual fee schedule, shall be per dwelling unit and shall be paid by the applicant to the city as part of the development/building permit fee. Impact fee charges shall be collected at the time of building permit issuance.
E. 
SEPA Mitigation and Other Review.
1. 
The city shall review development proposals and development activity permits pursuant to all applicable state and local laws and regulations, including the State Environmental Policy Act, Chapter 43.21C RCW, the State Subdivision Law, Chapter 58.17 RCW, and the applicable sections of the Sultan Municipal Code. Following such review, the city may condition or deny development approval as necessary or appropriate to mitigate or avoid significant adverse impacts to school services and facilities, to assure that appropriate provisions are made for schools, school grounds, and safe student walking conditions, and to ensure that development is compatible and consistent with the district's services, facilities and capital facilities plan.
2. 
Impact fees required by this title for development activity, together with compliance with development regulations and other mitigation measures offered or imposed at the time of development review and development activity review, shall constitute adequate mitigation for all of a development's specific adverse environment impacts on the school system for the purposes of this title. Nothing in this chapter prevents a determination of significance from being issued, the application of new or different development regulations, and/or requirements for additional environmental analysis, protection, and mitigation measures to the extent required by applicable law.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1347-21 § 27; Ord. 1418-25, 7/24/2025)

§ 16.74.060 Impact fee accounting.

A. 
Collection and Transfer of Fees.
1. 
Except as otherwise provided in Chapter 16.76 SMC, school impact fees shall be due and payable to the city at the time of issuance of building permits for all development activities.
2. 
The district shall establish an interest-bearing account separate from all other district accounts in which to deposit the impact fees. The city will remit to the district all impact fees collected, with interest. The district shall deposit all impact fees received from the city in the impact fee account.
3. 
The district shall institute a procedure for the disposition of impact fees and providing for annual reporting to the city that demonstrates compliance with the requirements of RCW 82.02.070, and other applicable laws.
B. 
Use of Funds.
1. 
School impact fees may be used by the district only for capital facilities that are reasonably related to the development for which they were assessed and may be expended only in conformance with the district's adopted school facilities plan.
2. 
In the event that bonds or similar debt instruments are issued for the advance provision of capital facilities for which school impact fees may be expended, and where consistent with the provisions of the bond covenants and state law, school impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the capital facilities provided are consistent with the requirements of this title.
3. 
The responsibility for assuring that school impact fees are used for authorized purposes rests with the district. All interest earned on a school impact fee account must be retained in the account and expended for the purpose or purposes for which the school impact fees were imposed, subject to the provisions of subsection C of this section.
4. 
The district shall provide the city an annual report showing the source and the amount of school impact fees received by the district and the capital facilities financed in whole or in part with those school impact fees.
C. 
Refunds.
1. 
School impact fees not spent or encumbered within 10 years after they were collected, or where extraordinary or compelling circumstances exist or if such other time periods as established pursuant to SMC § 16.74.050 exist, then the current owner of the property upon which impact fees have been paid may receive a refund of such fees, upon receipt of a proper and accurate claim submitted to the city or the district, together with interest. In determining whether school impact fees have been encumbered, impact fees shall be considered encumbered on a first-in-first-out basis.
2. 
Refunds provided for under this section shall be paid only upon submission of a proper claim submitted to the city or the district pursuant to city or district claim procedures. Such claims must be submitted to the city or the district within one year of the date the right to claim the refund arises.
3. 
Any impact fees for which no application for a refund has been made within this one-year period shall be retained by the district and expended on the appropriate school facilities.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.74.070 Exemptions.

A. 
The following shall be exempted from the payment of all school impact fees:
1. 
Any form of housing permanently dedicated for senior citizens, defined as over 55 years of age, with the necessary covenants or declarations of restrictions recorded on the property.
2. 
Replacement of a residential structure on a site within 12 months of the demolition or removal of the prior residence.
3. 
Alterations, expansion, enlargement, remodeling, rehabilitation, or conversion of an existing dwelling where no additional units are created.
4. 
All nonresidential construction.
B. 
The city community development director shall be authorized to determine whether a particular development activity falls within an exemption identified in this section, in any other section, or under other applicable laws.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1347-21 § 28; Ord. 1418-25, 7/24/2025)

§ 16.74.080 Credits.

A. 
The fee payer shall direct the request for a credit or credits to the community development director who shall forward the request to the district. The district shall first determine the general suitability of the land improvements and/or construction for district purposes. The district shall then determine whether the land, improvements, and/or the facility constructed are included within the district's adopted capital facilities plan or the board of directors for the district may make the finding that such land, improvements, and/or facilities would serve the goals and objectives of the district's capital facilities plan. The district shall forward its determination to the community development director, including cases where the district determines that the dedicated land, improvements, and/or construction are not suitable for district purposes. The community development director shall adopt the determination of the district and shall inform the applicant in writing of the adoption of the district's determination.
B. 
For each request for a credit(s), once the district has determined that the land, improvements, and/or construction would be suitable for district purposes, the district shall select an appraiser. The appraiser shall be directed to determine for the district the value of the dedicated land, improvements, or construction provided by the fee payer on a case-by-case basis.
C. 
The fee payer shall pay for the cost of the appraisal or request that the cost of the appraisal be deducted from the credit which the district may be providing to the fee payer in the event that a credit is awarded.
D. 
After receiving the appraisal, the district shall provide the applicant with a letter or certificate setting forth the dollar amount of the credit, the reason for the credit, where applicable, the legal description of the site donated, and the legal description or another adequate description of the project or development to which the credit may be applied. The applicant must sign and date a duplicate copy of such letter or certificate indicating his/her agreement to the terms of the letter or certificate, and return such signed document to the district before the impact fee credit will be awarded. The failure of the applicant to sign, date, and return such document within 60 calendar days shall nullify the credit. The district shall notify the community development director of the credit so that appropriate conditions can be placed on the approved plans and permit.
E. 
Any claim for credit must be made no later than 20 calendar days after the submission of an application for a building permit.
F. 
For each request for a credit for significant past tax payments made for particular school system improvements, the fee payer shall submit receipts and a calculation of past tax payments earmarked for or proratable to the particular school system improvements.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1347-21 § 29; Ord. 1418-25, 7/24/2025)

§ 16.74.090 Adjustments, waivers, appeals and arbitration.

A. 
Administrative Adjustment of Fee Amount.
1. 
An applicant for a building permit or the school district may, within 21 days of acceptance by the city of a complete building permit application, submit a letter to the community development director requesting an adjustment to the impact fees imposed by this title. The director may adjust the amount or waive the entire fee, in consideration of studies and data submitted by the applicant and the district, if one of the following circumstances exists:
a. 
It can be demonstrated that the school impact fee assessment was incorrectly calculated; and/or
b. 
Unusual circumstances of the development activity demonstrate that application of the school impact fee to the development would be unfair or unjust.
2. 
To avoid delay pending resolution of the adjustment or appeal, school impact fees may be paid under protest in order to obtain a development approval.
3. 
Failure to exhaust this administrative remedy shall preclude appeals of the school impact fee pursuant to subsection B of this section.
B. 
Appeals of Decisions – Procedure.
1. 
The director's final impact fee determination and/or any mitigation requirements imposed pursuant to this chapter may be appealed in accordance with SMC Chapter 16.06.
2. 
At the hearing, the appellant shall have the burden of proof, which shall be met by a preponderance of the evidence. The impact fee may be modified upon a determination that it is proper to do so based on the application of the criteria contained in subsection A of this section. Appeals shall be limited to application of the impact fee provisions to the specific development activity and the provisions of this title shall be presumed valid.
C. 
Arbitration of Disputes. With the consent of the developer and the district, a dispute regarding imposition or calculation of a school impact fee may be resolved by arbitration.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1347-21 § 30; Ord. 1418-25, 7/24/2025)

§ 16.74.100 Existing authority unimpaired.

Nothing in this chapter shall preclude the city from requiring the fee payer or the proponent of a development activity to mitigate adverse environmental impacts of a specific development pursuant to the State Environmental Policy Act, Chapter 43.21C RCW, based on the environmental documents accompanying the underlying development approval process, and/or Chapter 58.17 RCW, governing plats and subdivisions; provided that the exercise of this authority is consistent with this chapter and with RCW 43.21C.065 and RCW 82.02.100.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.74.110 Severability.

If any portion of this chapter is found to be invalid or unenforceable for any reason, such finding shall not affect the validity or enforceability of any other section of this chapter.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.76.010 Purpose.

The purpose of this chapter is to comply with the requirements of RCW 82.02.050, as amended by ESB 5923, Chapter 241, Laws of 2015, to provide an impact fee deferral process for single-family residential construction, in order to promote economic recovery in the construction industry.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.76.020 Applicability.

A. 
The provisions of this chapter shall apply to all impact fees established and adopted by the city pursuant to Chapter 82.02 RCW, including park and traffic impact fees (Chapter 16.72 SMC) and school impact fees (Chapter 16.74 SMC).
B. 
Subject to the limitations imposed in SMC § 16.76.060, the provisions of this chapter shall apply to all building permit applications for single-family detached and single-family attached residential construction. For the purposes of this chapter, an "applicant" includes an entity that controls the named applicant, is controlled by the named applicant, or is under common control with the named applicant.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.76.030 Impact fee deferral.

A. 
Deferral Request Authorized. Applicants for single-family attached or single-family detached residential building permits may request to defer payment of required impact fees until the closing of the first sale of the property occurring after the issuance of the applicable building permit, which request shall be granted so long as the requirements of this chapter are satisfied. If a deferral request is granted under this section, payment of the impact fees shall be due to the city within seven calendar days after the date of sale or transfer of ownership of the property. Unless an agreement to the contrary is reached between the buyer and seller, the payment of impact fees due at closing of a sale must be made from the seller's proceeds. In the absence of an agreement to the contrary, the seller bears strict liability for the payment of the impact fees.
B. 
Method of Request. A request for impact fee deferral shall be made in writing on a form provided by the city, and submitted contemporaneously with the associated building permit application. Any request for impact fee deferral must be accompanied by an administrative fee in an amount determined by resolution of the city council.
C. 
Calculation of Impact Fees. The amount of impact fees to be deferred under this chapter shall be determined as of the date the request for deferral is submitted.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.76.040 Deferral term.

The term of an impact fee deferral granted under this chapter may not exceed 12 months from the date the building permit is issued ("deferral term"). If the condition triggering payment of the deferred impact fees does not occur prior to the expiration of the deferral term, then full payment of the impact fees shall be due on the last date of the deferral term. Payment of impact fees deferred under this chapter shall be made by cash, escrow company check, cashier's check, or certified check.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.76.050 Deferred impact fee lien.

A. 
Applicant's Duty to Record Lien. An applicant requesting a deferral under this chapter must, at his or her own expense, grant and record a deferred impact fee lien, in an amount equal to the deferred impact fees as determined under SMC § 16.76.030C, against the property in favor of the city in accordance with the requirements of RCW 82.02.050(3)(c). The applicant or seller shall provide written disclosure of the deferred impact fee lien to a purchaser or prospective purchaser of the property, including the amount of impact fees payable and the requirement that the impact fees be paid at the time of sale.
B. 
Satisfaction of Lien. Upon receipt of final payment of all deferred impact fees for the property, the city shall execute a release of deferred impact fee lien for the property. The property owner at the time of the release is responsible, at his or her own expense, for recording the lien release.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)

§ 16.76.060 Limitation on deferrals.

The deferral entitlements allowed under this chapter shall be limited to the first 20 single-family residential construction building permits per applicant, as identified by contractor registration number or other unique identification number, per year.
(Ord. 1244-16 § 3 (Exh. A); Ord. 1418-25, 7/24/2025)