Agenda - 09-16-2008 - 6d - Laserfiche WebLink

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pRA~' SCHOOL IMPACT FEES: CHnret Hiu-Ca~aORO Cmr SCHOOLS Orange County, North Carolina the cost recovery approach, the facility cost is divided by ultimate number of demand units the fatality will serve. Incremental Expansion Fee Calculation. The incremental expansion method documents the current level of service (LOS) for each type of public facility in both quantitative and qualitative measures, based on an existing service standard (such as square feet per student). The level of service standards are determined in a manner similar to the current replacement cost approach used by property insurance companies. However, in contrast to insurance practices, the fee revenues would not be for renewal and/or replacement of existing facilities. Rather, revenue will be used to expand or provide additional facilities, as needed, to accommodate new development. An incremental expansion cost method is best suited for public facilities that will be expanded in regular increments, with LOS standards based on current conditions in the community. Credits. Regardless of the methodology, a consideration of "credits" is integral to the development of a legally valid impact fee methodology. There are two types of "credits" each with specific, distinct characteristics, but both of which should be addressed in the development of impact fees. The first is a credit due to possible double payment situations. 'This could occur when contributions are made by the property owner toward the capital costs of the public facility covered by the impact fee. This type of credit is integrated into the impact fee calculation. The second is a credit toward the payment of a fee for dedication of public sites or improvements provided by the developer and for which the impact fee is imposed. This type of credit is addressed in the administration and implementation of a impact fee program. CHAPEL HILL-CARRBORO CITY SCHOOLS IMPACT FEE OVERVIEW Orange County has seen significant residential growth over the past several years and with it increased enrollment in both school systems. Growth is expected to continue in the future. Appendix A provides detail on land use and demographic assumptions and projections. To ensure that Chapel Hill-Carrboro City Schools have adequate capacity to accommodate growth, Orange County is considering implementation of impact fees for schools. The County has been granted authority by the State to implement impact fees for Schools 3 The purpose of the legislation is to "help defray the costs to the County of constructing certain capital a S.L. 1987-460 ("An Act Making Sundry Amendments Concerning Local Governments In Orange And Chatham Counties, Title VI: Orange County Impact Fees"). In addition to schools, other community service facility categories aze allowed such as: the acquisition of land for open space and greenways, capital improvements to public streets, bridges, sidewalks, bikeways, on and off street surface water drainage ditches, pipes, culverts, other drainage facilities, water and sewer facilities and public recreation facilities. (See Appendix B for a copy of the applicable section of the Act.) Tischlerl~ise ~ Flul, [cdianicar.PlSnnin~ Cen:ptiants.