Valley Regional Fire Authority proposes new impact-fee methodology: residential fees move to per-square-foot basis

At the Oct. 13 study session the Valley Regional Fire Authority (VRFA) presented the results of a statutory review and an updated impact-fee calculation intended to align fee methodology with recent state law changes and projected service demands.

Deputy Chief Tim Day and Mark Horoski, VRFA chief financial officer, described a multi-step approach: (1) estimate future call-volume growth and the proportional demand new development places on current apparatus and stations; (2) identify capital items needed to serve growth (two engines, three aid cars, a brush truck, a tender and an additional fire station among other items); (3) allocate the proportionate costs of current and future assets to land-use categories; and (4) compute per-unit impact fees.

Horoski explained that a 2023 revision to state law (RCW) requires residential impact fees to be calculated so smaller units are charged proportionally less, which led VRFA to move to a per-square-foot residential charging model rather than a flat per-unit fee. The VRFA—s proposed approach blends single- and multifamily calculations (a combined residential rate) and charges residential impact fees on a square-foot basis. As an example given in the meeting, the presenters discussed a per-square-foot rate of approximately $0.72; at that rate a 1,000-square-foot unit would incur roughly $720 in impact fees while a 2,000-square-foot unit would be roughly $1,440. Presenters emphasized the fees apply to new construction.

The VRFA also noted statutory guidance for accessory dwelling units (ADUs): fees for ADUs may be no more than 50% of the fee for the primary unit, per state direction.

Council members raised concerns about housing affordability and how the change might affect small units and affordable-housing development. VRFA staff said the square-foot approach is more proportional and that state law drove parts of the change; they also noted the authority undertook the study to maintain statutory compliance and to fund the capital plan that supports projected service levels.

Ending: VRFA requested council review and provided comparative visualizations of how the new per-square-foot rates compare to existing per-unit rates and neighboring jurisdictions. Staff said the model will be part of fee-adoption discussions and noted that the fees are intended to shift the cost of growth to new development rather than to existing taxpayers.