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32 <br />5/26/99 <br />An impact fee requires the developer to pay a fee representing the <br />prorated cost of providing community -wide and area -wide recreational <br />facilities required by this new development. The use of the fee <br />requires authority from. the legislature through enabling legislation, <br />and Orange County currently has the authority to levy such impact <br />fees. Orange County also has a Public School Facilities Impact Fee, but <br />no other impact fee is currently in use in the county for any other <br />services. In using these fees, there must be exhibited a correlation <br />showing the (1) actual need created by the impact of the development <br />and (2) benefits provided to the particular subdivision.. <br />By contrast, an impact tax allows for recognition that all impacts are <br />not equal. Impact taxes may be assessed in graduated levels and do <br />not require the "one size fits ail" regressive nature fee scale that exists <br />for impact fees. Orange County has, In previous years, sought impact <br />tax legislation from the State to provide for possible reassessment of <br />the Public School Impact Fee program. <br />C. Current Status of Payment -in -Lieu Throughout <br />the County <br />Methods of assessing a development's recreation impact vary across <br />the different jurisdictions within Orange County. Appendix G indicates <br />the method by which Orange County and Carrboro calculate their <br />payment required for the payment -in -lieu program. Orange County <br />also has special legislation which allows payments to be collected and <br />spent on a "district" basis. Instead of using a set schedule of <br />payments, Chapel Hill negotiates based on individual development <br />proposals while Hillsborough seeks dedication of land Instead of <br />payments. The appendix also shows the efforts of other-selected <br />jurisdictions throughout the country in acquiring land for recreation <br />and open space needs. <br />In terms of the reality of the programs, in Carrboro, many <br />developments choose to provide private recreation facilities rather <br />than payment -in -lieu. Carrboro has collected $453,000 to date. Both <br />Chapel Hill and Hillsborough do not have detailed central records of the <br />results of payments or individually negotiated fees and land donations. <br />Orange County has required payments since 1988, and has <br />accumulated these payments in a fund totaling $488,000. <br />It is clear in a broad overview, however, that the current system of <br />land acquisition has been insufficient to meet citizens' needs. Several <br />problems arise in assessing the current adequacy of our parklands and <br />30 <br />