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Kennewick staff outline South Ridge fire impact fee; council to decide April 15
Summary
City staff presented methodology and two scenarios for a proposed fire impact fee to help fund Fire Station 6 and associated equipment in the South Ridge area. Council held a public hearing but took no final action; the item will return April 15 for possible adoption.
Kennewick City staff presented a proposed fire impact fee for new development in the South Ridge area during the April 1 City Council meeting and closed the public hearing without taking action. The council directed staff to return the item for possible final action at the April 15 meeting.
The presentation identified the capital needs tied to growth in the South Ridge service area as construction of Fire Station 6, a fire engine, a medic unit and the equipment to outfit those vehicles. Staff said the capital cost estimate for those items is $15,000,000; when financing costs are included staff presented a total project cost of about $23,300,000. Finance Director Jessica Platt described the anticipated financing as a 20-year limited tax general obligation bond with an estimated interest rate of 4.5 percent and an annual debt service around $1,100,000.
Staff presented two scenarios for allocating costs between existing revenue and new development through impact fees. Under “scenario 1,” which does not roll bond debt service into the fee calculation, staff estimated impact-fee collections of $7,500,000 over a 20-year period. Under “scenario 2,” which rolls debt service into the fee calculation, estimated impact-fee collections rose to $10,500,000. Chief Michael (Fire Department) and staff said the two approaches produce the same total project cost but change how much of the project is funded by impact fees versus existing capital funds.
Staff also provided supporting analysis used in the fee calculation: service-area boundaries limited to South Ridge, call-rate estimates by occupancy type, and a comparison of per-unit fees against four neighboring jurisdictions. Julie Passi and Anthony (data analysts) prepared occupancy and call-rate breakdowns used in the model. Jessica Platt presented the city’s remaining debt capacity, which staff reported as roughly $96,100,000 after accounting for existing nonvoted debt.
Council members asked whether higher collections from impact fees would reduce the city’s borrowing; staff clarified that collecting more via impact fees shifts the allocation of project funding and reduces the portion the city must fund from general capital, but noted the city would still finance the construction and the fees would be used to offset the financing burden. Council asked about residential care and multifamily facility assumptions; staff said they corrected a spreadsheet error that produced only small adjustments to the percentages previously shown.
No members of the public testified at the public hearing. Mayor Crawford closed the hearing and the council scheduled the item for further consideration and possible action at the April 15, 2025 meeting.
Why this matters: If adopted, the fee would require an ordinance and a demonstrated nexus between new development and the capital investments described; it would affect developers and new residential and nonresidential projects inside the South Ridge service area and shift a portion of the station cost onto future development rather than the city’s general fund.
