Minutes 11-15-2016 - Laserfiche WebLink

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12 — Carrboro district; expectation that more 0-2 bedroom units will be constructed than 3+ bedroom units. • A 75/25 multi-family bedroom split (0-2 bedrooms/3+ bedrooms) yields a breakeven point of 43% of the MSIF. Note that some stakeholders have indicated this bedroom split may still be on the high side for 3+ bedroom units. Staff notes that if this indication is correct, the starting point of the MSIF would need to be higher if the County wishes to "breakeven" on school impact fee collections the first year. The breakeven analyses are based on the construction assumptions included in Attachment 1. If actual construction differs significantly from assumptions, actual impact fee amounts collected would be different (either higher or lower, depending on actual construction activity). When updated impact fees were last adopted in 2008, the initial fee amount was set at a level (32% of the 2008 MSIF) expected to collect $1.6 million in the Chapel Hill — Carrboro district in order to reach the amount budgeted for debt service in that district. The "breakeven point" was not calculated in 2008 (i.e., the MSIF percentage point was based on budget needs). Additionally, a four-year implementation period was adopted since the starting point of 32% of the MSIF provided a very low partial cost recovery. The fee started at 32% of the MSIF on January 1, 2009 and moved to 40%, 50%, and 60% each January 1 of subsequent years, completing the annual increases in 2012. The proposed Ordinances (Attachments 2 and 3) include the section of the County's General Code of Ordinances that pertains to the Educational Facilities Impact Fee with proposed amendments shown in "track changes" format. Proposed amendments to this section of the Code of Ordinances include: • Adding definitions for the various housing types. • Updating the schedule of public school impact fees in Section 30-33. • Adding language in Section 30-33 that would require age restricted units that do not remain age restricted for at least 20 years be required to pay the difference between the age restricted fee paid and the non-age-restricted fee in effect at the time a unit is no longer age restricted. • Adding language in Section 30-35(e) clarifying under what conditions a refund would be issued if impact fees were reduced for a particular housing unit type. • Adding language in Section 30-38 to recognize conditional zoning, which was adopted in 2011 when the UDO was adopted. The proposed Ordinances differ as follows: • Attachment 2 is the Ordinance that assumes a multi-family bedroom split of 50/50 (0- 2/3+ bedrooms) o Attachment 2 would adopt the impact fee levels at 37% of the MSIF, effective January 1, 2017 with an increase to 47% of the MSIF on January 1, 2018 and a final increase to 57% of the MSIF on January 1, 2019. • Attachment 3 is the Ordinance that assumes a multi-family bedroom split of 75/25 (0-2/3+ bedrooms) o Attachment 3 would adopt the impact fee levels at 43% of the MSIF, effective January 1, 2017 with an increase to 53%% of the MSIF on January 1, 2018 and a final increase to 63% of the MSIF on January 1, 2019.