Capital Facilities Plan in Sultan School District 311

SULTAN SCHOOL DISTRICT #311 2 0 2 4 - 2 0 2 9 C A P I TA L FA C I L I T I E S P L A N

1. Purpose of Capital Facilities Plan (CFP) 2. CFP History in Sultan School District 3. CFP Update Process AGENDA 4. 2024-2029 Capital Facilities Plan 5. Common Questions Answered 6. Close

What is the overall purpose of having a Capital Facilities Plan and collecting impact fees? What is the overall purpose of having a Capital Facilities Plan and collecting impact fees? P Plan for new student enrollment growth in the District lan for new student enrollment growth in the District P Provide a basis for securing impact fees from new residential development rovide a basis for securing impact fees from new residential development Other Facts Other Facts To be eligible to request impact fees, the District needs to: 1) demonstrate expected enrollment To be eligible to request impact fees, the District needs to: 1) demonstrate expected enrollment growth 2) have lack of capacity to serve expected growth 3) develop a plan for providing that growth 2) have lack of capacity to serve expected growth 3) develop a plan for providing that capacity capacity By law, impact fees cannot be the sole source of capacity funding; there must be other sources By law, impact fees cannot be the sole source of capacity funding; there must be other sources The impact fee is specific to the impact per dwelling unit and can t be more The impact fee is specific to the impact per dwelling unit and can t be more District fees are high because there is demonstrated student generation at all three school levels District fees are high because there is demonstrated student generation at all three school levels 10 10- -year limit from the date paid for expending the impact fees year limit from the date paid for expending the impact fees

1. The initial planning discussion occurred in December 2023 2. January-April: factors such as student generation calculation, space needs, and CFAC- recommended projects at all levels are considered PROCESS FOR UPDATING THE CAPITAL FACILITIES PLAN 3. Updated factors are integrated into Draft 1 of the Capital Facilities Plan (CFP) 4. Impact fees are calculated based on updated input factors 5. The initial draft of the CFP was submitted to Snohomish County by April 30, 2024 deadline 6. After responding to comments from Snohomish County Planning, Draft 2 submitted back to Snohomish County by June 7. Must be adopted by the school board by August

1. We have utilized CFPs for at least the last 24 years 2. Updated every two years to capture changes in the factors that affect impact fees by increasing or decreasing them HISTORY OF CAPITAL FACILITY PLANS IN SSD 3. The Citizen Facility Advisory Committee helps develop projects that are considered in the Capital Facilities Plan 4. Impact fees have been used to buy portable classrooms, portable restrooms, land, and other items related to adding space for unhoused students 5. Factors that have increased impact fees dramatically in the last two cycles

Impact Fee History 2002-2024

$250,000,000 $250,000,000 increase in increase in construction construction

Student Generation Growth is shown at all three levels in new housing K Student Generation Growth is shown at all three levels in new housing K- -5, 6 5, 6- -8, 9 8, 9- -12. 12.

Projects Considered for Unhoused Students Projects Considered for Unhoused Students The CFAC developed a multi-phase facilities plan that included projects, additions, and portable classrooms at all three school levels to address needed space for unhoused students. It also includes the purchase of land for future space needs.

2024 2024- -2029 Capital Facilities Plan 2029 Capital Facilities Plan Approved by Sultan School Board July 22, 2024 Approved by Sultan School Board July 22, 2024 Approved by Snohomish County Council November 25, 2024 Approved by Snohomish County Council November 25, 2024

Questions regarding the 2024 Questions regarding the 2024- -2029 Capital Facilities Plan 2029 Capital Facilities Plan 1. Why did the Single-Family impact fees drop? The Single-Family fee dropped by just over $800 this year primarily due to a combination of: (1) increases in the State Construction Assistance Program funding and (2) a higher tax credit in the formula given the District s average assessed value increased in 2024. The amount of the other funding sources credits that are legally required in the formula increased over the credits included in the 2022 fee calculation. The State Legislature provided in the 2024 Session a historic boost to the amount of SCAP funding toward eligible projects. This boost increases the SCAP credit, which offsets the per dwelling unit cost, from that in the 2022 fee calculation. In addition, the District s property tax levy rate increased from 0.52/1,000 in 2022 to 0.92/1,000 in 2024, and the District s average assessed value for single-family homes increased from 2022, with those two factors increasing the tax credit over the 2022 fee calculations. Both factors are updated in each CFP update. As a result, the per dwelling unit construction cost is offset by a greater amount than it was in 2022. However, our single-family student generation rates at all three grade levels (K-5, 6-8, 9-12) went up enough to offset much of the increase in credit amounts that led to the decrease in impact fee collection. The single-family fee has been very stable in the last two cycles in comparison to other school districts.

2. Why did the Multi-Family impact fees drop? The Multi-Family fee dropped by a larger amount because of: (a) the increases in the SCAP and Tax Credit described above; and (b) primarily because our student generation rates dropped for all three grade levels in multi family housing but especially at the elementary and high school levels. There are fewer students residing in multi-family units today than in the previous plan. The District has to rely on the county-wide average for the multi-family student generation rates because there aren t many options in our district to sample. Countywide, there has been a decline in the number of students residing in townhome/duplex/ apartment/condo units. Especially at the elementary and high school level. Thus, a drop in the impact fee.

3. How much did SSD pay for the new property and does it figure into impact fee collection? We paid $455,000 for a little more than 49 acres. The property was purchased from the Department of Natural Resources using impact fees. It is included in the impact fee formula but it doesn t have a dramatic effect when the total paid is about $9,200 per acre. 4. What does Capital Facility coordination between the City and School District look like as we move forward in the future? (1) Informing one another as to key priorities annually, over the 20-year planning horizon to 2044. (2) This helps both jurisdictions plan for street improvements, sidewalk improvements, future trail improvements, arterial investments, and even coordinating with transit in the future. (3) Informed and coordinated planning can strengthen our capital facilities applications in a very competitive arena where school districts and cities are competing for dollars to support capital projects of all kinds with other cities applying for the same dollars at the state level.

Dan Chaplik, Superintendent Dan Chaplik, Superintendent Sultan School District #311 Sultan School District #311 360 360- -793 793- -9801 9801 dan.chaplik@sultan.k12.wa.us dan.chaplik@sultan.k12.wa.us Sultanschools.org Sultanschools.org THANK YOU