Pasco adopts changes to school and transportation impact fees and raises development review rates

The Pasco City Council on June 16 approved a package of fee and process changes the city says will simplify permitting and realign impact fees with the school district’s capital plan.

Council unanimously approved a revised interlocal agreement with Pasco School District (resolution 4617) that removes a hard-coded fee amount from the contract and clears the way for the city’s ordinance change to take effect. The council then adopted ordinance 4774 to change the school impact fee schedule: the single-family fee will be lowered from $4,700 to $0 and the multifamily fee will be changed from $4,525 to $2,595, with the ordinance effective June 25.

On transportation fees, council chose a five-district model for the transportation impact fee program (ordinance 4767). The five-district option passed on a 6-1 vote; councilmember Harpster had argued the five-district approach created a “stronger and more specific nexus” between projects and improvements.

Council also approved changes to the city’s development review and inspection fees (ordinance 4775). Staff said the city’s plan-review and inspection rate will be a flat $105 per hour (replacing prior, more-complex billing) and proposed a refundable deposit system designed to reduce monthly invoicing and delays. Council adopted a code change authorizing community development staff to require a deposit of up to $3,000 per project, with the director allowed to reduce that amount for simpler work. The ordinance passed 6-1.

City staff and councilmembers described the package as an interim step to match the school district’s capital facilities plan and to create more predictable timelines for developers. Interim city staff explained that larger increases to fees would require a comp-plan amendment or additional technical work; staff said the current actions are intended to lower uncertainty and administrative burden while studies continue.

Miss Segnell (city staff) summarized the school-fee change in council chambers: “changing our fee schedule which changes just the numbers, from 4,700 for single family residence to $0 and, 4,525 for multifamily residence to $2,595.” On development review deposits she said: “We request at least a $3,000 deposit. This can be reduced.”

Council direction included next steps to review traffic-impact analysis thresholds, pursue in‑house review options for small projects, and publish clearer pre-application guidance for deposit expectations. The effective date for the fee changes is June 25; staff said they will follow up with a rubric for deposit levels and track refund processing and audit requirements.