Agenda - 08-20-1991 - Laserfiche WebLink

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12' generated-by developments within those districts or zones must be spent on improvements that are located within or that benefit property located within those districts or zones." For public schools in Orange County, the creation of such geographic districts or zones could be undertaken with little difficulty. If two districts were desired, the Chapel Hill- Carrboro School District could be one, while Orange County School District could be the other. If further distinctions were necessary, the attendance or service areas of individual schools or types of schools could be investigated. All of the benefit tests look for a rationale that establishes how the benefit is to be received. The greater the distance between the point of collection and the point of expenditure, the greater the chance that insufficient benefit will be found. Having improvements that are needed set forth in the Capital Improvements Program (CIP) would be the best demonstration of benefit. The Anne Arundel County school impact fee provides a good example of the relationship between development location and benefit received. For the entirety of Anne Arundel County, there was a surplus of approximately 12,000 student stations. The School Board was having to close schools due to insufficient numbers in some parts of the large county. However, the location of excess or surplus classrooms was at a substantial distance from the parts of the county experiencing rapid growth. In growing areas, there was a substantial need for classroom space. Thus, Anne Arundel County imposed no school impact fees in the areas of the county with excess school capacity. This exemption implemented the rational nexus test and provided areas of the county where no fee would be imposed. Additionally, it encouraged growth toward those areas of the county where the infrastructure was already in place. Another benefit criterion is the timing of improvements. Expected use is the overwhelming criterion in matters of benefit. If improvements are in the remote future, benefits will be lessened and perhaps insufficient. The benefit from improvements declines exponentially with respect to time. Facilities improvements usually require large expenditures that can only be met through gradual accumulation of impact fees. In small jurisdictions and those experiencing modest growth, the period of time may be substantial. Most impact fee ordinances have provisions that stipulate the maximum period of time within which the fees must be spent on facilities that benefit the particular development. Once this maximum period is reached, the fees would have to be refunded with interest to the fee payer or successor in title. The most common period is six years, which is based on the normal five -year capital improvements cycle, plus one year to integrate the receipts into the CIP.