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Council adopts discounted ADU fees and revised plan‑review charges to encourage accessory dwelling units
Summary
Poulsbo’s City Council voted July 16 to adopt a resolution and ordinance that lower several development fees for accessory dwelling units, including 50% discounts on transportation and park impact fees and a reduced water/sewer charge approach for units requiring separate connections.
The Poulsbo City Council on July 16 approved two related measures to lower some development fees for accessory dwelling units (ADUs).
What passed: Council approved Resolution 2025‑7, which amends the city fee schedule, and Ordinance 2025‑12, which amends several code chapters to adjust fees and general facilities charges tied to ADU construction and permit review. Staff said the new schedule discounts transportation and park impact fees and stormwater general facilities charges by 50% compared with single‑family rates. Water and sewer general facilities charges would be assessed at 85% of a standard ERU only when a separate connection is required; not all internal ADUs will require a separate connection.
Why it matters: Staff and council framed the fee reductions as an incentive to increase housing supply by making ADUs more affordable to build, while maintaining utility solvency through careful calibration of facilities charges. Staff noted that broad policy and utility‑funding decisions can be revisited during future utility comprehensive planning cycles.
Implementation and flexibility: Staff told council the discounts and fee adjustments can be amended later if council wants to change incentives; any further changes would come back as workshop items and ordinance amendments. Engineers also outlined reduced plan‑review time/costs for pre‑approved ADU plan sets (50% plan‑review fee discount and lower engineering review hours).
Vote and outcome: Council approved both the resolution and the ordinance during the July 16 meeting by recorded vote; the measures will take effect per the ordinance language and staff will incorporate the updated fees into the permitting and billing systems.
Ending: Councilmembers thanked staff for clarifying a complicated fee package and noted the city can change the discounts in future ordinance cycles if council chooses to adjust incentives or to preserve utility revenue balance.
