Agenda - 12-01-2008 - 5a - Laserfiche WebLink

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2 The fee level ranges proposed by staff to be considered for the public hearing are as follows: • $5,069 - $11,423 for a new single-family detached dwelling in the Chapel Hill — Carrboro City Schools (CHCCS) district, and • $3,000 - $5,623 for a new single-family detached dwelling in the Orange County Schools (OCS) district. As is shown in Attachment 4A, the projected impact fee required in the CHCCS district to generate the budgeted amount of $1.6 million to offset a portion of CHCCS debt service is $5,069. This is the staff-recommended lower end of the impact fee range. The staff- recommended upper end of the range ($11,423) is 60% of the Maximum Supportable Impact Fee (MSIF), which is consistent with the adopted percentage of the 2001 MSIF. In the OCS district, the lower end of the staff-recommended range is the current impact fee of $3,000 and the upper end of the range ($5,623) is 60% of the MSIF. The MSIF is the highest amount feasible to be charged and represents new residential growth's fair share of the capital costs to provide school capacity (the Executive Summary of each technical report further details this concept). Attachment 4B shows impact fee levels in relation to the sales price of new single family detached dwellings. In CHCCS, the 2001-adopted impact fee of $4,407 is 1.21% of the 2001 median sales price of a new single family detached dwelling. If the impact fee were to be increased to 1.21% of the 2007 median sales price of a new single family detached dwelling, the corresponding impact fee would be $9,249. In OCS, the 2001-adopted impact fee of $3,000 is 1.32% of the median sales price of a new single family detached dwelling. If the impact fee were to be increased to 1.32% of the 2007 median sales price of a new single family detached dwelling, the corresponding impact fee would be $3,762. Attachment 4C is an example of cost recovery on 1,000 new single family detached dwellings in the CHCCS District. The example shows the impact fee collected and deficit in funding the cost of school construction with impact fee levels at 100%, 60%, and 27% of the MSIF. The impact fee level for housing types other than single family detached dwellings would be set at the same percentage of maximum supportable impact fee for the particular type of dwelling as the percentage set for single family detached dwellings. For example, if impact fees were to be set at 60% of the maximum supportable impact fee for single family detached dwellings, the impact fee for a manufactured home would be set at 60% of the maximum supportable impact fee for manufactured homes. Changes in the present fees would be determined by the Board of Commissioners following public comment at the public hearing and otherwise. In no event would educational facilities impact fees be changed to an amount or amounts that exceed the maximums determined by the 2007 Technical Reports. Ms. Julie Herlands of TischlerBise, Inc. will be in attendance at the public hearing to give a presentation and to answer questions regarding the reports (see Attachment 2 for the basics of the presentation). The consultant's role relates to the technical aspects of determining the MSIF and not aspects regarding what the County decides on the MSIF or percentage thereof. FINANCIAL IMPACT: Other than staff time and the consultant contract, there is no financial impact in conducting a public hearing on this issue. As Attachment 4A shows, an increase in impact fees to $5,069 per new single family detached dwelling is projected to be necessary to generate the budgeted amount of$1.6 million to offset part of the CHCCS debt service.