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

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pRA~ SCHOOL IMPACT FEES: CHAPEL HILL-CARRBORO Cmr SCHOOLS Orange County, North Carolina SITE-SPECIFIC CREDITS A site-specific credit should be considered for contributions of system improvements that have been included in the impact fee calculations: If a developer constructs the type of system improvements included in the fee calculations, it will be necessary to either reimburse the developer or provide a credit against. the fees for that portion of the fee. The latter option is more difficult to administer because it creates unique fees for specific geographic areas. Based on TischlerBise's experience, it is better for the County to establish a reimbursement agreement with the developer constructing the system improvement. The reimbursement agreement should be limited to a payback period of no more than ten years and the County should not pay interest on the outstanding balance. The developer must provide sufficient documentation of the actual cost incurred for the system improvement. The County should only agree to pay the lesser of the actual construction cost or the estimated cost used in the impact fee analysis. If the County pays more than the cost used in the fee analysis, there will be insufficient fee revenue. Reimbursement agreements should only obligate the County to reimburse developers annually according to actual fee collections from the benefiting area. COLLECTION AND EXPENDITURE ZONES The reasonableness of impact fees is determined in part by their relationship to the local government's burden to provide necessary public facilities. The need to show a substantial benefit usually requires communities to evaluate collection and expenditure zones for public facilities that have distinct geographic service areas. TischlerBise analyzed school impact fees in the County separately for each school system that serves residential development in Orange County-Orange County Schools and Chapel Hill- Carrboro City Schools. The end result is two separate fee studies with two impact fee schedules. For the Chapel Hill-Carrboro School system, one area within the school district is appropriate because capacity improvements are needed at all levels throughout the system and CHCCS will occasionally re-district to accommodate growth and available capacity. IMPACT FEE ACT The Act providing Orange County with the authority to collect school impact fees is provided in Appendix B. Tischler~6se 26 f iscc, Ccaiarcic& Plinnfii~ Censutian ti.