Agenda - 09-30-1997 - V - Laserfiche WebLink

Browse Search

MEMORANDUM TO: Orange County Commissioners John Link, County Manager FROM: 4 od Visser, Assistant County Manager DATE: September 26, 1997 RE: Impact Fee Collections This memo provides a brief update on impact fee collections since Orange County `s ordinance took effect on July 1, 1993. Ken Chavious has prepared the attached spreadsheet, which shows collections in, and disbursements from,the trust funds that have been established to account for impact fees collected from new residential dwelling units in each school system. Impact fee collections in both systems have been sufficient to meet the portion of each system's CIP that was to be funded from impact fees. Both systems have a positive balance in their trust funds as of June 30, 1997. For OCS, the balance is $427,107. For CHCCS, the balance is $355,931. The trend in OCS impact fee collection has been consistent with the impact fee revenue budgeted in the CIP. For example, collections in 1996-97 were about$330,000, with programmed disbursements of$337,500. The CHCCS impact fee collection trends were also generally consistent with the CIP budgets during the first several years, but in 1996-97, there was a significant dropoff from 1995-96 collections (down from $851,000 to $480,000). One possible explanation for this dropoff is related to a change in when impact fees are being collected in the development process. For example, we understand that when impact fees were implemented, it was the Town of Chapel Hill's practice to collect the impact fee when the building permit was issued. Since the impact fee was increased to $3,000 in the CHCCS district effective July 1, 1996, we understand that the Town generally collects the impact fee later in the process, when the certificate of occupancy is issued (this practice is consistent, with the requirements of the County's impact fee ordinance, and the interlocal agreement between the County and the towns of Carrboro and Chapel Hill regarding impact fee collections). In that there is a lag of many months between the issuance of a building permit and a certificate of occupancy, it is possible that the drop in 1996-97 impact fee collections will be offset by greater collections in 1997-98 for buildings permitted in 1996- 97, but for which impact fees have not yet been collected. County staff have begun a detailed review of building permit records and the impact fee collection process to ensure that procedures for the accurate and timely collection of all impact fees due throughout the County are working. We will be working with the town and schools staffs as needed during the next several months on checking impact fee trends as we work together to develop the 1998-2008 Capital Improvements Plan for the Board's consideration next Spring.