Minutes - 02-26-2001 - Laserfiche WebLink

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VOTE: UNANIMOUS 4. PUBLIC SCHOOL IMPACT FEE The County Commissioners heard a report from the consultant, Mr. Paul Tischler, on the calculation of maximum permissible public school impact fees that consider differentiated fees based on housing type. After the report, public comment was received on the amount of the impact fee and anything related thereto. At the conclusion of the public comment period, the County Commissioners considered referring the report to the administration for a recommendation on whether the impact fees should be changed or not, and if so, to what amounts. That recommendation is to come back to the Board as the Board decides in the context of the Board's deliberation leading to the adoption of the July 1, 2001 budget. Planning Director Craig Benedict made introductory remarks. He said that the public school impact fee in Orange County is unique. In 1987, the North Carolina legislature gave Orange County the opportunity to assess impact fees. Impact fees are used to receive additional revenue to help offset the capital casts of certain types of facilities. In 1993 the first Impact Fee was enacted in Orange County. This fee was set at $750.00 for both school systems. Over the last few years, Chapel Hill-Carrboro City School District has requested an increase in the impact fee for their district from $750 to $1,500 to $3,000. This report is an analysis that the County does on a regular basis. As part of this mechanism to reevaluate the student generation rate and the costs of providing schools, the County also wanted to look at the number of students being generated. The two school systems are being evaluated independently because there are different growth rates. Overall, there has been a lot of work done over the last three years to determine the level of service standards. The County chase to hire a consultant, Paul Tischler and Associates, to conduct the school impact fee study because of the consultant's expertise in this area. Questions from the Orange County Commissioners and members of the Planning Board In answer to a question from Commissioner Gordon, Craig Benedict said that if there were not an impact fee the property tax rate for existing properties would likely be higher. In brief, the impact fee is having new growth pay a portion of school capital needs associated with that growth. Also, impact fees are not used for renovations of existing schools. Commissioner Brown asked who pays impact fees and for what. Craig Benedict said that impact fees are paid for residential construction. Some of the exemptions are dormitory housing that has no student impacts that has been deed restricted, office development, or commercial development. He clarified that anyone putting an addition onto a house would not pay the impact fee; it is only for new construction. New growth pays for new capital improvements. Chair Halkiotis verified with Craig Benedict that if a house is burned to the ground and rebuilt that person would not have to pay impact fees. Paul Tischler from Paul Tischler and Associates said that impact fees are for new growth to help pay for school capital needs. He spoke about revenues and why impact fees were becoming increasingly popular throughout the country. There are increased mandates in the schools and the school systems must come up with the additional funds to pay for the increased level of service. There are five components to the school impact fee: 1) the land cost per student; 2) the local share of a student's space in the two districts; 3) any relocatable classroom cost; 4) vehicle cost; and 5) the support buildings. The total cost is calculated on aper-student basis and is netted out for principal payments. The maximum amount is not what the total cast is, but it is what the maximum impact fees could be. He said that it was also important to note that impact fees have nothing to do with operating expenses, only capital casts. The revenue received from the impact fee pays for 10-20% of the total costs of schools as illustrated on pages 34 and 36 of the report. The maximum supportable impact fee for the Orange County School district far single-family detached dwellings is $5,364 and for all other residential housing $2,539. The maximum supportable impact fee for the Chapel Hill-Carrboro City School district far single-family detached is $7,345 and for all other residential is $3,298. These are the maximum amounts that can be supported. The County could set the amount anywhere below these figures and it would be supportable. The reason for the differential between the two districts is primarily due to pupil generation rates being higher in the Chapel Hill Carrboro School District than in