Orange County NC Website
Technical Report 5 <br />Use of Impact Fees <br />Impact fees are generally confined to payments for capital facilities and allow the community to <br />provide the capital facilities that new development will require. Nationwide, impact fees have been <br />established to pay for capital improvements to the following facilities and services: <br />Potable Water <br />Solid Waste <br />Arterial Roads <br />Local Roads <br />Parks <br />Fire Protection <br />Public Buildings <br />Emergency Medical Services <br />Sewers <br />Drainage <br />Collector Roads <br />Public Schools <br />Public Libraries <br />Law Enforcement <br />Public Cemeteries <br />Under Title VI, Chapter 460, of the 1987 Session Laws, Orange County may impose impact fees <br />within its planning jurisdiction for land acquisition for open space and greenways, capital <br />improvements to public streets, schools, bridges, sidewalks, bikeways, on and off - street surface <br />water drainage ditches, pipes, culverts, other drainage facilities, water and sewer facilities, and <br />public recreation facilities. Chapter 324 of the 1991 Session Laws enables Orange County to <br />impose impact fees for school capital improvements countywide. Chapter 642 of the 1993 Session <br />Laws enables Orange County to use impact fees to finance debt service payments and payments <br />under leases. <br />DETERMINING THE QUANTITY OF NEEDED IMPROVEMENTS <br />The objective of determining a proportionate share of costs is to ensure fairness in impact fees. <br />Proportionality calculations begin with a determination of physical quantities of facilities that new <br />development will require. The need for such facilities can be expressed mathematically in terms of <br />demand units and standards of service: <br />Needed Improvements = Demand Unit x Service Standard <br />Demand Units <br />A "demand unit" is a unit associated with new development that generates the need for <br />improvements in public facilities. For purposes of identifying school capital outlay needs, the <br />demand unit most often used is the average number of school -age children per residential housing <br />unit, commonly referred to as a "student generation rate ". <br />In previous reports, student generation rates were calculated using 1990 census data. In 1994, <br />however, a survey in the Carrboro area suggested that the use of student generation rates based on <br />1990 household data could be resulting in lower impact fees than justified. The survey of six single - <br />family residential subdivisions revealed an average of 0.68 pupils per dwelling. That number was <br />over twice the 1990 Census figure of 0.29 school age children per household in Chapel Hill <br />Township. <br />