Agenda - 09-06-2016 - 8-a - School Impact Fee Studies – Receive Draft Reports

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8 CHCCS School Impact Fees Report(DRAFT) Executive Summary OVERVIEW TischlerBise was retained by Orange County, North Carolina,to calculate impact fees for public schools to meet the demands generated by new residential development for school facilities in the county. The County has been granted authority by the State to implement impact fees for schools.1 The purpose of the legislation is to "help defray the costs to the county of constructing certain capital improvements,the need for which is created in substantial part by the new development that takes place within the county."' Impact fees are one-time payments used to defray the cost impacts of school facilities necessary to accommodate new development. The payment amount represents new growth's fair share of capital facility needs. TischlerBise evaluated possible methodologies and documented appropriate demand indicators by type of development for the fee amounts. Specific capital costs have been identified using local data and current dollars. Level-of-Service (LOS) standards and cost factors are presented in this report and are the basis for the calculations. It should be noted that although growth affects both capital and operating expenses incurred by schools,the impact fee analysis addresses new development's impact on capital facilities only. It is further limited to capital improvements that provide additional capacity as opposed to maintenance or rehabilitation. Orange County is served by two school systems, Orange County Schools (OCS) and Chapel Hill-Carrboro City Schools(CHCCS).TischlerBise analyzed and calculated school impact fees for each school system.This report details the results of the CHCCS impact fees.The OCS report is issued under separate cover. IMPACT FEE METHODOLOGIES There are three basic methodologies used to calculate impact fees. The incremental expansion method documents the current LOS for each type of public facility in both quantitative and qualitative measures. The intent is to use fee revenue to expand or provide additional facilities,as needed to accommodate new development, based on the current cost to provide capital improvements. The plan-based method is commonly used for public facilities that have adopted plans or engineering studies to guide capital improvements, such as utility systems.A third approach, known as the cost recovery method, is based on the rationale that new development is paying for its share of the useful life and remaining unused capacity of an existing facility or land. 1 S.L.1987-460("An Act Making Sundry Amendments Concerning Local Governments In Orange And Chatham Counties,Title VI: Orange County Impact Fees"). In addition to schools, other community service facility categories are allowed such as: the acquisition of land for open space and greenways,capital improvements to public streets,bridges,sidewalks,bikeways,on-and off-street surface water drainage ditches,pipes,culverts,other drainage facilities,water and sewer facilities and public recreation facilities.(See Appendix B for a copy of the applicable section of the Act.) 2!bid,Sec.17(b)(1). 1