Orange County NC Website
Browse       Search
33 <br /> o We propose a 5% annual increase in fee cost each year (not 5 percentage <br /> points of MSIF) <br /> For the purposes of providing an example,this table illustrates the fee <br /> amounts over a period of 3 years, beginning at 43% of the MSIF, for multi- <br /> family units in the CHCCS district if the fee increases by 5 percent each <br /> year: <br /> Multifamily Bedrooms 43% MSIF +5% + additional 5% <br /> (year 1) (year 2) (year 3) <br /> 0-2 $1,910 $2,005 $2,105 <br /> 3+ $8,133 $8,540 $8,967 <br /> This table shows the fee amounts over a period of 3 years beginning at 43% <br /> of the MSIF, for multi-family units in the CHCCS district if the fee increases by <br /> 5 percentage points of the MSIF each year: <br /> Multifamily Bedrooms 43% MSIF 48% MSIF 53% MSIF <br /> (year 1) (year 2) (year 3) <br /> 0-2 $1,910 $2,132 $2,354 <br /> 3+ $8,133 $9,079 $10,024 <br /> The BOCC could potentially choose to increase the fees by a certain percent <br /> each year, using a specific MSIF percentage of the 2016 studies as the <br /> starting point. The method would have to be the same for all housing types <br /> within both school districts. Depending on the starting point chosen, the <br /> amount of impact fees collected could vary significantly between the two <br /> methods. Based on the 75/25 split for multi-family bedroom counts, and a <br /> starting point of 43% of the MSIF for all unit types, increasing the rates by <br /> 5% per year would result in $556,885 less revenue in Year 2 than increasing <br /> the fee by 10 percentage points of the maximum supportable amount(i.e., <br /> increasing from 43% to 53% of the MSIF for the first increase). <br /> o We encourage planning staff analyze the final percentage of MSIF for the final <br /> fee to be based on the anticipated construction costs). <br /> School construction costs are factored in to the MSIF calculation. The <br /> maximum allowable fee (100%) would represent the full cost recovery of <br /> new school construction. <br /> • We support giving developers and home builders the option to distribute the <br /> payment of school impact fees over five years, rather than to pay the fee prior to <br /> construction (and any project revenue). <br />