City council schedules study session on traffic and park impact fees

Blaine City Council has scheduled a study session on increases to its unified fee schedule involving traffic and park impact fees developers will need to pay to fund capital improvements. The study session will be held before the Monday, April 25 city council meeting.
Six city councilmembers, with councilmember Garth Baldwin absent, discussed adopting Resolution 1883-22, which would increase traffic fees by 60.5 percent, from $1,588 to $2,500, and park fees by 50 percent, from $1,200 to $1,800.
Impact fees are one-time charges on development projects to pay for the increased demand on public service amenities such as roadways and parks. City staff recommended increasing the fees to maintain the city’s service levels during the March 28 study session.
“A percentage of the construction cost is paid for by the developers and a percentage is paid for by the existing taxpayers,” city finance director Daniel Heverling said. “How much of this percent is paid for by the developers and the existing taxpayers is completely up to council to decide. Neither side should pay 100 percent of the costs.”
The city’s traffic and park impact fees are low in comparison to other Whatcom County cities. For example, the city of Everson has the same park impact fee as Blaine, $1,200, but a traffic fee that’s 60 percent higher than Blaine’s, even though Everson’s population is almost half the size. Blaine’s traffic and park fees are currently less than Ferndale and Lynden. If raised as the city proposes, Blaine’s traffic fees would remain less than Ferndale but higher than Lynden, and park fees would remain less than both cities.
The city administration did not bring proposed impact fee increases before council annually in previous years, as required by city code, city manager Michael Jones said. He added impact fees should be increased with every 2-3 percent of growth, which is the typical growth the city sees in an average year.
Jones voiced concern that not increasing the fees could result in decreased city service levels established in the city’s comprehensive plan.
“If you have one acre of park for 100 people, then if you add another 100 people, you have one acre of park for 200 people. You have a lower level of service,” he said. “Sometimes it’s just not paid for and the service level goes down.”
Jones said not increasing the fees wouldn’t reduce city service levels within a year, but a change would be seen overtime.
Impact fees are calculated per residential unit, so the developer of a fourplex would go from paying $11,152 to $17,500 in park and traffic fees total. Councilmember Mike Hill showed concern that the city hadn’t consulted developers about the increase. 
Councilmember Rhyan Lopez said he struggled with finding the right answer.
“It’s the battle of wanting to encourage growth, but by the same token, to have enough money to pay for it. But we’re all shooting for attainable housing in Blaine and this kind of goes against that,” he said. “It’s got the good, it’s got the bad and we’re trying to find what’s going to work best for the citizens.”
Councilmember Richard May noted the city’s spending is barebones after the U.S./Canada border shutdown in March 2020.
“I don’t think we’re spending irresponsibly or too much on things,” he said. “It’s a matter of, this is the money we’re spending and somebody has to pay it, either the developer or every other citizen in Blaine pays a little more in aggregate to cover those costs. I think it’s hardly avoidable.”
Councilmember Kerena Higgins said she liked that council could lessen the impact fees if council found the increase was too much.
Councilmember Eric Davidson said he wanted to consider a smaller increase.
The motion was defeated by a 3-3 vote to increase the fees. Lopez, Hill and Davidson voted against raising fees, while mayor Mary Lou Steward, May and Higgins voted in favor. With council’s nod, May later withdrew his motion and asked city staff to return discussion on the impact fees in two weeks to receive more public input. A study session is set for the Monday, April 25 council meeting.
“No one will accuse us of rubber stamping everything,” Lou said of council’s debate.
If passed, the traffic and park fees would go into effect no later than August 1.

This article has been updated to correct that city council will hold a study session on the traffic and park impact fees. We regret the error.