Orange County NC Website
Browse       Search
1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: November 15, 2016 <br /> Action Agenda <br /> Item No. 7-a <br /> SUBJECT: School Impact Fee Updates <br /> DEPARTMENT: Planning and Inspections <br /> ATTACHMENT(S): INFORMATION CONTACT: (919) <br /> 1. Breakeven Analyses (Two Scenarios) Craig Benedict, Planning Director, 245- <br /> 2. Proposed Ordinance —Assumes 50/50 2592 <br /> Multi-Family Bedroom Split in Perdita Holtz, Planner III, 245-2578 <br /> Breakeven Analysis <br /> 3. Proposed Ordinance —Assumes 75/25 <br /> Multi-Family Bedroom Split in <br /> Breakeven Analysis <br /> 4. E-Mail from Stakeholders and Staff <br /> Response <br /> PURPOSE: To consider adoption of updated school impact fee levels and amendments to the <br /> General Code of Ordinances — Educational Facilities Impact Fees. <br /> BACKGROUND: Since 1993, Orange County has levied school impact fees to help defray the <br /> public costs of new development. The fee is charged once to all new residential development in <br /> both school districts. Fees charged must be proportional to the actual impact caused which is <br /> the reason a technical study is completed; the data-based study determines the proportional <br /> impact of housing types and the "maximum supportable impact fee" (MSIF) that can be charged <br /> for each type of housing. Proceeds from school impact fees can be used only to increase <br /> student membership capacity (e.g., Capital Facilities — new or expanded school buildings) in the <br /> school district in which the fee was collected. School impact fee proceeds cannot be used to <br /> fund operations or repairs of existing facilities. <br /> It should be noted that people's housing choices over time can change and those choices are <br /> reflected in the data used in the technical studies. Variance from study-to-study is to be <br /> expected due to demographic and housing trends that are captured in the data. Impact fees are <br /> paid once (when units are constructed) and cover the entire life of each housing unit. Housing <br /> often displays a cyclical nature of occupancy through the decades that a unit exists. This is one <br /> of the reasons school impact fee studies necessarily consider the entire housing stock when <br /> determining student generation rates; the entirety of the housing stock provides a reasonable <br /> snapshot in time of how all units will be occupied during their existence. Additionally, <br /> redevelopment projects of existing housing units do not pay additional impact fees unless the <br /> number of new units exceeds the number of existing units, in which case impact fees are due <br /> only on the number of new units that exceeds the existing number (e.g., 200 housing units being <br />