Agenda - 11-17-1998 - 10b - Laserfiche WebLink

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Technical Report 25 payment of $122, thus reducing the impact fee to $7,201. The calculation of "credits" for Public School Building Fund revenues by school district is shown on Table 12. Projected Impact Fee Amounts Based on the foregoing analysis, it is possible to calculate projected impact fees for different housing types in Orange County. These calculations are shown on Table 13 and simply involve subtracting credits for property tax, sales tax, and Public School Building Fund contributions from the total capital cost, per dwelling unit, of needed school improvements. The projected impact fees, by dwelling unit, are as follows: Orange County $4,404 Chapel Hill- Carrboro $10,320 In the sections that follow, final adjustments will be made to the fees, based on the benefit received by new development and credits to the developer for constructing capital improvements. BENEFIT CONSIDERATIONS The amount of an impact fee is only one factor considered in terms of the legality of any impact fee program. The sufficiency of the benefits that are received by fee payers is another criterion for determining the reasonableness of an impact fee. There are three standards that may be used in determining sufficiency of benefit. The main difference among these standards is just who will benefit from (make use of) the facilities to be financed, in whole or in part, with the impact fees. The first standard is exclusive benefit, the second is substantial benefit, and the third is reasonable benefit. In practice, the methods of implementing the latter two are almost identical. A benefit would be exclusive if no one other than the occupants of the development that paid the impact fee could use the facilities provided with those fees. Complying with this standard would imply that the improvements be on -site or in close proximity to the development. Minimal distance between facility and development becomes the indicator of the degree of benefit to the individuals in that development as opposed to those in other developments. When facilities such as public schools are provided, it is impossible to see how use could be confined to individual developments. To a great extent, the provision of exclusive benefit and impact fees are not compatible. However, few jurisdictions employ a strict exclusive benefit rule. Rather, the standard is what may be considered to be a preponderance of benefit going to the development paying the fees. In such cases, consideration should be given to the use of relatively small geographic areas for both the collection and expenditure of impact fees. Such small areas would be the evidence of benefit (use). This would involve identifying a number of subareas of the community and establishing impact fee trust funds for each subarea. All receipts coming from such subareas would be spent within those areas.