Orange County NC Website
K <br />However, the County did receive authority in the 1991 Session to impose <br />impact fees for school capital needs throughout the county, not just within. <br />the County's planning jurisdiction. Impact fees are still a relatively new <br />funding mechanism, and case law concerning them is still developing. There <br />are some complicated statutory and constitutional considerations involving <br />setting an impact fee. For this reason, the County staff prepared a <br />technical report which outlined the methodology for calculating a system of <br />fees. The initial draft of the report was presented to the Board of <br />Commissioners in January of 1992. Subsequently, the draft report was <br />distributed to the municipalities in the county, the two school boards, the <br />Homebuilders Association, the Board of Realtors, the Community Housing <br />Corporation, and the Chambers of Commerce. In March, 1992, meetings were <br />held with representatives of the organizations to discuss impact fee levels, <br />methods of collection, and other concerns. Upon request, presentations were <br />also made to municipal governing boards. In April, 1992, a report <br />summarizing the results of the meetings was presented to the Board of <br />Commissioners, including options for raising specific amounts of capital to <br />finance public school improvements. In May, 1992, a public hearing was held <br />to give the citizens of Orange County an opportunity to voice their opinion <br />on establishing a system of impact fees. <br />The technical report provided with the agenda materials represents <br />a revision to the initial draft. It seeks to address the discussion, debate, <br />and concerns identified during the series of meetings held in March, April, <br />and May of 1992. In addition, the methodology and calculations used in the <br />initial draft have been reviewed to insure consistency and accuracy. At the <br />conclusion of the hearing and upon receipt of the Planning Board's <br />recommendation, the Board of Commissioners may decide on whether or not to <br />include a schedule of impact fees in the FY 1992 -93 budget. <br />QUESTIONS AND COMMENTS FROM THE BOARD OF COMMISSIONERS AND PLANNING BOARD <br />JAMES GRAY stated he understands a mobile home owner would be <br />paying the largest percentage of impact fees. He feels the property tax is <br />more equitable. Mr. Collins indicated that because the property tax is <br />geared to a specific type of structure, it is a more equitable tax. The <br />rationale for using an impact fee is that what a family actually uses in <br />terms of services will determine the amount they pay. The assumption is that <br />more children live in homes with a larger number of bedrooms. He also <br />mentioned that the Courts have interpreted the law in such a way that the <br />impact fee cannot address differences in the value of housing units. <br />BILL WADDELL asked if a retirement community would be expected to <br />pay impact fees if they did not allow children as residents? He feels that <br />affordable housing will be even more difficult to achieve if the impact fee <br />is approved. Also, capital expenditures in the school system are often used <br />for replacement facilities as well as for new construction. He asked how <br />that would be taken into account when the monies are allocated? Mr. Collins <br />indicated that only skilled nursing care centers would be exempt from this <br />fee. He also reiterated that the money collected from the impact fees would <br />be used for new construction. He agreed that a system of impact fees would <br />have some negative effect on affordable housing and that that issue needs to <br />be discussed further. He also mentioned that residential communities do not <br />pay for the full cost of services provided to them in Orange County. The <br />