Orange County NC Website
Browse       Search
23 <br /> UNDERSTANDING IMPACT FEES IN ORANGE COUNTY <br /> What are public school impact fees? <br /> A public school impact fee is charged for every new residential dwelling unit constructed in <br /> Orange County after July 1, 1993.A newly constructed single-family house,individual <br /> condominium unit,or a mobile home newly installed on a lot or on a trailer park rental space is <br /> charged an impact fee. Duplexes pay fees for two units. Apartment buildings and complexes <br /> pay fees for however many rental units they contain.The current fee is$750 per dwelling unit, <br /> although the County Commissioners are considering raising it to$1,000.Legally, there is no <br /> limit to how high the impact fee can be,as long as the Commissioners can demonstrate that it <br /> does not exceed the financial impact of new dwellings. <br /> What is the reason for charging a public school impact fee on new dwellings? <br /> Residential development fuels population growth.Impact fees require new residential <br /> development to pay a share of the costs of new school buildings needed to maintain current <br /> levels of educational service in the face of increasing enrollments. <br /> What is the financial impact of a new dwelling on school construction costs? <br /> In 1992,county staff estimated that$3,400 was the average financial impact of a new dwelling <br /> on school construction costs (using building costs at that time of$65/sq. ft.). This figure is not <br /> very useful for current purposes,however,in part because of the dramatic rise in construction. <br /> costs since 1992. Undoubtedly,the current fee of$750 is far below the current financial impact <br /> of a new dwelling. <br /> How can the county use money collected from impact fees? <br /> The county can use the money only to pay for construction costs of new public school space, <br /> where expansion is related to new residential growth.Costs may include building construction, <br /> design,engineering and/or legal fees;land acquisition and site development;equipment and . <br /> furnishings;and/or debt service payment to finance such costs.Funds must be spent on projects <br /> within the school district where the fees are collected,and collected fees must be expended <br /> within a limited time(currently,five years)or else returned,with interest,to the fee payer. <br /> What does the county do with.money collected from impact fees until the funds are spent? <br /> Public school impact fees collected by Orange County are kept separate from other county <br /> revenue. Two trust funds have been established,one for each of the two "benefit areas" (defined <br /> by the boundary between the two school districts).Fees collected from each area are deposited in <br /> the appropriate trust find.Funds on deposit are invested,as allowed by N.C. statute, and all <br /> derived income is deposited into the applicable trust fund. <br /> (over) <br />