HomeMy WebLinkAboutAgenda - 10-18-2016 - 7-a - School Impact Fee Updates 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 18, 2016
Action Agenda
Item No. 7-a
SUBJECT: School Impact Fee Updates
DEPARTMENT: Planning and Inspections
ATTACHMENT(S): INFORMATION CONTACT: (919)
1. Breakeven Analysis Craig Benedict, Planning Director, 245-
2. Proposed Ordinance — Charge Fees by 2592
Bedroom Counts Perdita Holtz, Planner III, 245-2578
3. Proposed Ordinance — Charge Fees by
"Average" Calculation
4. Summary of Proposed Amendments to
School Impact Fee
5. Current School Impact Fees
6. Historical Impact Fee Activity
PURPOSE: To consider adoption of updated school impact fee levels and amendments to the
General Code of Ordinances — Educational Facilities Impact Fees.
BACKGROUND: Since 1993, Orange County has levied school impact fees to help defray the
public costs of new development. The fee is charged once to all new residential development in
both school districts. Fees charged must be proportional to the actual impact caused which is
the reason a technical study is completed; the data-based study determines the proportional
impact of housing types and the "maximum supportable impact fee" (MSIF) that can be charged
for each type of housing. Proceeds from school impact fees can be used only to increase
student membership capacity (e.g., Capital Facilities — new or expanded school buildings) in the
school district in which the fee was collected. School impact fee proceeds cannot be used to
fund operations or repairs of existing facilities.
The Board of County Commissioners held a public hearing on school impact fee matters on
October 4, 2016. Agenda materials for this meeting are available
at: http://www.orangecountync.gov/document center/BOCCAgendaMinutes/161004.pdf.
Possible options for updated fee levels presented at the public hearing included:
1. As calculated, adopting at some percentage of the MSIF.
2. Collapsing the Single Family Detached category in the Orange County Schools district
(due to an unexpected result in this category), charging the "Average" for this housing
type in this district, charging fees as calculated for other housing types, and adopting at
some percentage of the MSIF.
3. Collapsing all housing type categories in both or either school districts, charging the
"Average" calculation by housing type, and adopting at some percentage of the MSIF.
2
a. Note for this option: Accessory dwelling units (e.g., granny flats) are included in
the multi-family category (0-2 bedrooms), so setting the fee for the "average"
calculation may result in an increase for accessory dwelling units, depending on
the percentage of MSIF chosen.
4. Options 1-3 can also be implemented by increasing the percentage of MSIF over a period
of time (e.g., adopt at x% effective 2017, y% effective 2018, and z% effective 2019).
It should be noted that the adopted percentage of MSIF must be the same for all housing types
(e.g., fees cannot be adopted at 40% MSIF for one housing type and 60% MSIF for a different
housing type).
Although no members of the public spoke at the public hearing, there was extensive discussion
on the impact fee topic. Discussion included:
• potential impacts on housing affordability;
• lack of availability of a regional school construction cost inflationary index;
• how units would qualify for the age restricted housing rate;
• how changes in demographics, including housing choices, have resulted in differences in
the impacts by housing types which could result in potential large increases in impact
fees for some housing types, particularly multi-family, due to the large increase in the
housing type's proportional impact on student membership; and
• comments about which potential option to choose, including potential phasing, and at
which percentage levels.
Additional information regarding the "breakeven point" between current and updated fees was
also requested by the BOCC. Details of this information, including assumptions regarding
projected dwelling unit counts and bedroom count splits, are included in Attachment 1. In order
to calculate the estimated impact fee collection amounts if fees are collected based on the
number of bedrooms a unit contains, staff assumed a 50/50 split between units with fewer
bedrooms and units with a greater number of bedrooms. If actual construction differs
significantly from assumptions, actual impact fee amounts collected would be different (either
higher or lower, depending on actual construction activity). The estimated breakeven point if
data is disaggregated to bedroom count levels is 37% of the MSIF. The estimated breakeven
point for the "calculated average" of housing types is 43.5%.
When updated impact fees were last adopted in 2008, the initial fee amount was set at a level
(32% of the 2008 MSIF) expected to collect $1.6 million in the Chapel Hill — Carrboro district in
order to reach the amount budgeted for debt service in that district. The "breakeven point" was
not calculated in 2008 (i.e., the MSIF percentage point was based on budget needs).
Additionally, a four-year implementation period was adopted since the starting point of 32% of
the MSIF provided a very low partial cost recovery. The fee started at 32% of the MSIF on
January 1, 2009 and moved to 40%, 50%, and 60% each January 1 of subsequent years,
completing the annual increases in 2012 (see Attachment 5).
Information addressing comments regarding affordability is included in Attachment 4.
This topic was also discussed at the joint BOCC/School Boards meeting on September 29
(agenda materials at
http://www.orangecountync.gov/document center/BOCCAgendaMinutes/160929.pdf). A few of
the topics discussed were construction inflation in the Triangle region, impact of class size
legislation, and level of service standards as they relate to portables.
3
The proposed Ordinances (Attachments 2 and 3) include the section of the County's General
Code of Ordinances that pertains to the Educational Facilities Impact Fee with proposed
amendments shown in "track changes" format. Proposed amendments to this section of the
Code of Ordinances include:
• Adding definitions for the various housing types.
• Updating the schedule of public school impact fees in Section 30-33.
• Adding language in Section 30-33 that would require age restricted units that do not
remain age restricted for at least 20 years to pay the difference between the age
restricted fee paid and the non-age-restricted fee in effect at the time a unit is no longer
age restricted.
• Adding language in Section 30-35(e) clarifying under what conditions a refund would be
issued if impact fees were reduced for a particular housing unit type.
• Adding language in Section 30-38 to recognize conditional zoning, which was adopted in
2011 when the UDO was adopted.
The proposed Ordinances differ as follows:
• Attachment 2 is the Ordinance that would charge fees by bedroom counts for the types of
units for which bedroom counts apply (namely, single-family detached, single-family
attached, and multi-family).
o Attachment 2 would adopt the impact fee levels at 37% of the MSIF, effective
January 1, 2017 with an increase to 47% of the MSIF on January 1, 2018 and a
final increase to 57% of the MSIF on January 1, 2019.
• Attachment 3 is the Ordinance that would charge fees at the "average" calculated MSIF
(i.e., all bedroom categories would be "collapsed" into one fee [the average] per housing
type).
o Attachment 3 would adopt the impact fee levels at 43.5% of the MSIF, effective
January 1, 2017 with an increase to 53.5%% of the MSIF on January 1, 2018 and
a final increase to 63.5% of the MSIF on January 1, 2019.
• The sole difference between the two Ordinances is the Schedule of Public School Impact
Fees in Section 30-33, reflecting the information in the above bullets.
The adopting Ordinance for both options contains language clarifying building permit application
deadlines and by when a building permit would have to be issued in order to pay the prior fee
(for housing unit types that had a lower prior fee). This language is included to ensure that
genuine projects are given ample time to go through the normal permitting process (which can
include required revisions prior to permit issuance) while discouraging premature applications
containing inadequate information but which are submitting for the purpose of beating fee
increase deadlines. These inadequate permit applications can sometimes remain in the
permitting system for more than a year before required materials are submitted and, in some
cases, are never acted on (Orange County does not charge an application fee; permitting fees
are paid at the time a permit is issued).
Since 1995, Orange County has offered an impact fee reimbursement program for school
impact fees paid on affordable housing units. From FY2009-10 through FY2015-16, $606,318
in collected impact fees was reimbursed for the 77 affordable single-family housing units and
one apartment building containing 6 affordable multi-family units constructed in that time period.
4
FINANCIAL IMPACT: Continued residential growth in both school districts is expected to result
in school capital costs which can be recouped by charging new residential development for its
proportional impacts on school facilities. Attachment 6 provides Historical Impact Fee Activity.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this agenda item:
• GOAL: ESTABLISH SUSTAINABLE AND EQUITABLE LAND-USE AND
ENVIRONMENTAL POLICIES
The fair treatment and meaningful involvement of people of all races, cultures, incomes
and educational levels with respect to the development and enforcement of
environmental laws, regulations, policies, and decisions. Fair treatment means that no
group of people should bear a disproportionate share of the negative environmental
consequences resulting from industrial, governmental and commercial operations or
policies.
RECOMMENDATION(S): The Manager recommends that the Board:
1. Receive a presentation by staff.
2. Discuss the topic as desired.
3. Authorize finalization of the school impact fee study reports by the consultant
(TischlerBise).
4. Adopt one of the proposed Ordinances as follows:
a. Attachment 2 if impact fees are to be charged by bedroom counts, if applicable, for
each housing type.
b. Attachment 3 of impact fees are to be charged using the calculated average for
each housing type.
c. Additionally, the BOCC can choose to adopt different MSIF percentage levels from
those listed in the ordinances and/or a different phasing timeline.
5
Attachment 1
Maximum Supportable Impact Fee (MSIF) Summary
The spreadsheets on the following pages show annual projected impact fee amounts at various MSIF
levels for both the updated fee amounts and the current fee amounts, when both are calculated at
estimated development levels (in order to "compare apples-to-apples"). The following table depicts the
estimated development levels:
Chapel Hill—Carrboro City School District Orange County School District
Estimated 341 new units per year Estimated 398 new units per year
Estimated Unit Types: Estimated Unit Types:
20%Single Family Detached 60%Single Family Detached
15%Single Family Attached 15%Single Family Attached
65% Multi Family 20% Multi Family
0%Manufactured Homes 5% Manufactured Homes
Estimated Annual Number of Units: Estimated Annual Number of Units:
• 60 Single Family Detached (assumed 50/50 • 230 Single Family Detached (assumed 50/50
split between 0-3 bedrooms and 4+ bedrooms) split between 0-3 bedrooms and 4+bedrooms)
• 8 Single Family Detached <800 sq. ft. • 9 Single Family Detached <800 sq. ft.
• 51 Single Family Attached (assumed 50/50 • 60 Single Family Attached (assumed 50/50
split between 0-2 bedrooms and 3+ bedrooms) split between 0-2 bedrooms and 3+ bedrooms)
• 222 Multi Family(assumed 50/50 split • 80 Multi Family(assumed 50/50 split between
between 0-2 bedrooms and 3+ bedrooms) 0-2 bedrooms and 3+ bedrooms)
• 0 Manufactured Homes • 20 Manufactured Homes
"Breakeven Points"(To collect approximately the same amount of revenue as generated with the
current fee):
• The collection "breakeven point" if fees were to be charged using bedroom counts is estimated
to be 37%of the MSIF.
• The collection "breakeven point" if fees were to be charged using the Average calculated MSIF is
estimated to be 43.5%.
By Bedroom Counts, if Applicable 6
Chapel Hill-Carrboro City Schools_
Current Fee
(adopted at 60%of
Single Family Detached MSIF 90%MSIF 80%MSIF 7091 MSIF 60%MSIF 57V.MSIF 5091 MSIF 47V.MSIF 40%MSIF 37%MSIF 30%MSIF 20%MSIF 1091 MSIF 091 MSIF 2007 MSIF)
0-3 BR $13,114 $11,803 $10,491 $9,180 $7,868 $7,475 $6,557 $6,164 $5,246 $4,852 $3,934 $2,623 $1,311 $0 $11,423
%Change from Current Fee 14.8% 3.3% -8.2% -19.6% -31.1% -34.6% 42.6% 46.0% -54.1% -57.5% -65.6% -77.0% -88.5% -100.0%
$11,423
Projected Annual Collections,
Updated Fee @ Projected
Development Levels $1,147,590 $1,032,831 $918,072 $803,313 $688,554 $654,126 $573,795 $539,367 $459,036 $424,608 $344,277 $229,518 $114,759 $0
Projected Annual Collections,
Current Fee @Projected
Development Levels $1,142,3001 $1,028,0701 $913,8401 $799,6101 $685,3801 $651,1111 $571,1501 $536,8811 $456,9201 $422,6511 $342,6901 $228,4601 $114,230 $0
Single Family Detached<800 sq.ft.
$3,848 $3,463 $3,078 $2,694 $2,309 $2,193 $1,924 $1,809 $1,539 $1,424 $1,154 $770 $385 $0 $11,423
Change from Current Fee -66.3% -69.7% -73.1% -76.4% -79.8% -80.8% -83.2% -84.2% -86.5% -87.5% -89.9% -93.3% -96.6% -100.0%
Projected Annual Collections,
Updated Fee @ Projected
Development Levels $30,784 $27,706 $24,627 $21,549 $18,470 $17,547 $15,392 $14,468 $12,314 $11,390 $9,235 $6,157 $3,078 $0
Projected Annual Collections,
Current Fee @ Projected
Development Levels 1 $152,3071 $137,0761 $121,8451 $106,6151 $91,3S41 $86,8151 $76,1531 $71,584 $60,9231 $56,353 $45,692 $30,461 $15,231 $0
Single Family Attached
0-2 BR $10,266 $9,239 $8,213 $7,186 $6,160 $5,852 $5,133 $4,825 $4,106 $3,798 $3,080 $2,053 $1,027 $0 $6,610
%Change from Current Fee 55.3% 39.8% 24.2% 8.7% -6.8% -11.5% -22.3% -27.0% -37.9% 42.5% -53.4% -68.9% -84.5% -100.0%
$6,610
Projected Annual Collections,
Updated Fee @ Projected
Development Levels $677,266 $609,539 $541,813 $474,086 $406,360 $386,042 $338,633 $318,315 $270,906 $250,588 $203,180 $135,453 $67,727 $0
Projected Annual Collections,
Current Fee @ Projected
Development Levels $561,850 $505,665 $449,480 $393,295 $337,110 $320,255 $280,925 $264,070 $224,740 $207,885 $168,555 $112,370 $56,185 $0
Multifamil
0-2 BR $4,441 $3,997 $3,553 $3,109 $2,665 $2,531 $2,221 $2,087 $1,776 $1,643 $1,332 $888 $444 $0 $1,286
%Change from Current Fee 245.3% 210.8% 176.3% 141.7% 107.2% 96.8% 72.7% 62.3% 38.1% 27.8% 3.6% -30.9% -65.5% -100.0%
MIl $1,286
Projected Annual Collections,
Updated Fee @ Projected
Development Levels $2,592,405 $2,333,165 $2,073,924 $1,814,684 $1,555,443 $1,477,671 $1,296,203 $1,218,430 $1,036,962 $959,190 $777,722 $518,481 $259,241 $0
Projected Annual Collections,
Current Fee @Projected
Development Levels $475,820 $428,238 $380,656 $333,074 $285,492 $271,217 $237,910 $223,635 $190,328 $176,053 $142,746 $95,164 $47,582 $0
Manufactured Home $6,9991 $6,2991 $5,5991 $4,8991 $4,1991 $3,9891 $3,5001 $3,2901 $2,8001 $2,3311 $2,1001 $1,400 $700 $0 $4,939
Change from Current Fee 41.7% 27.5% 13.4% -0.8% -15.0% -19.2% -29.1% -33.4% -43.3% -52.8% -57.5% -71.7% -85.8% -100.0%
Projected Annual Collections,
Updated Fee @ Projected $0-additional manufactured homes are not expected in the CHCCS district.
Development Levels
N/A-assessed by
Age Restricted Unit $756 $680 $605 $529 $454 $431 $378 $355 $302 $252 $227 $151 $76 $0 housingtype
%Change from Current Fee N/A-Current Fee depends on type of unit.Currently,there is not a separate fee category for age restricted units.
Projected Annual Collections,
Updated Fee @ Projected Expected annual number of units difficultto quantify.Past age restricted units did not achieve the age restriction using the methods required by the impact fee ordinance to ensure continued age restriction for a period of time
Development Levels (20 years minimum)(e.g.,current age restricted units are owned by entities that have rules in place but the rules are not recorded in restrictive covenants and/or homeowners association documents).
TOTAL PROJECTED ANNUAL COLLECTIONS,
Updated Fee $4,448,045 $4,003,241 $3,558,436 $3,113,632 $2,668,827 $2,535,386 $2,224,023 $2,090,581 $1,779,218 $1,645,777 $1,334,414 $889,609 $444,805 $0
TOTAL PROJECTED ANNUAL COLLECTIONS,
Current Fee $2,332,277 $2,099,049 $1,865,821 $1,632,594 $1,399,366 $1,329,398 $1,166,138 $1,096,170 $932,911 $862,942 $699,683 $466,455 $233,228 $0
By Bedroom Count, if Applicable 7
Orange County Schools
Current Fee
(adopted at 60%of
Single Fa mil Detached MSIF 90%MSIF 90%MSIF 70%MSIF 60%MSIF 57%MSIF 50%MSIF 47%MSIF 40%MSIF 37%MSIF 30%MSIF 20%MSIF 1D%MSIF D%MSIF 2007 MSIF)
0-3 BR $12,044 $10,840 $9,635 $8,431 $7,226 $6,865 $6,022 $5,661 $4,818 $4,456 $3,613 $2,409 $1,204 $0 $5,623
%Change from Current Fee 114.2% 92.8% 71.4% 49.9% 28.5% 22.1% 7.1% 0.7% -14.3% -20.7% -35.7% -57.2% -78.6% -100.0%
$5,623
Projected Annual Collections,
Updated Fee @ Projected
Develo meet levels $2,414,540 $2,173,086 $1,931,632 $1,690,178 $1,448,724 $1,376,288 $1,207,270 $1,134,834 $965,816 $893,380 $724,362 $482,908 $241,454 $0
Projected Annual Collections,
Current Fee @Projected
Develo meet Levels $2,155,483 $1,939,935 $1,724,387 $1,508,838 $1,293,290 $1,228,626 $1,077,742 $1,013,077 $862,193 $797,529 $646,645 $431,097 $215,548 $0
Single Family Detached c800 sq.ft.
$3,3171 $2,985 $2,654 $2,322 $1,990 $1,891 $1,659 $1,559 $1,327 $1,227 $995 $663 $332 $0 $5,623
%Chan efrom Current Fee -41.0% -46.9% -52.8% -58.7% -64.6% -66.4% -70.5% -723% -76.4% -78.2% -82.3% -88.2% -94.1% -100.0%
Projected Annual Collections,
Updated Fee @ Projected
Develo meet levels $29,853 $26,868 $23,882 $20,897 $17,912 $17,016 $14,927 $14,031 $11,941 $11,046 $8,956 $5,971 $2,985 $0
Projected Annual Collections,
Current Fee @Projected
Develo meet Levels $84,345 $75,911 $67,476 $59,042 $50,607 $48,077 $42,173 $39,642 $33,738 $31,208 $25,304 $16,869 $8,435 $0
Single Fa mil Attached
0-2 BR $3,665 $3,299 $2,932 $2,566 $2,199 $2,089 $1,833 $1,723 $1,466 $1,356 $1,100 $733 $367 $0 $1,743
%Change from Current Fee 110.3% 89.2% 68.2% 47.2% 26.2% 19.9% 5.1% -1.2% -15.9% -22.2% -36.9% -57.9% -79.0% -100.0%
$1,743
Projected Annual Collections,
Updated Fee @Projected
Develo meet levels $276,690 $249,021 $221,352 $193,683 $166,014 $157,713 $138,345 $130,044 $110,676 $102,375 $83,007 $55,338 $27,669 $0
Projected Annual Collections,
Current Fee @Projected
Develo meet Levels $174,300 $156,870 $139,440 $122,010 $104,580 $99,351 $87,150 $81,921 $69,720 $64,491 $52,290 $34,860 $17,430 $0
Multifamil
0-2 BR $2,656 $2,390 $2,125 $1,859 $1,594 $1,514 $1,328 $1,248 $1,062 $983 $797 $531 $266 $0 $1,743
%Change from Current Fee 52.4% 37.1% 21.9% 6.7% -8.6% -13.1% -23.8% -28.4% -39.0% -43.6% -54.3% -69.5% -84.8% -100.0%
$1,743
Projected Annual Collections,
Updated Fee @ Projected
Develo meet levels $933,320 $839,988 $746,656 $653,324 $559,992 $531,992 $466,660 $438,660 $373,328 $345,328 $279,996 $186,664 $93,332 $0
Projected Annual Collections,
Current Fee @Projected
Develo meet Levels $232,400 $209,160 $185,9201 $162,6801 $139,4401 $132,468 $116,2001 $109,2281 $92,960 $85,988 $69,7201 $46,480 $23,240 $0
Manufactured Home $8,1271 $7,314 $6,502 $5,689 $4,876 $4,632 $4,064 $3,820 $3,251 $3,007 $2,438 $1,625 $813 $0 $2,678
%Change from Current Fee 203.5% 173.1% 142.8% 112.4% 82.1% 73.0% 51.7% 42.6% 21.4% 12.3% -9.0% -39.3% -69.7% -100.0%
Projected Annual Collections,
Updated Fee @Projected
Develo meet Levels $162,540 $146,286 $130,032 $113,778 $97,524 $92,648 $81,270 $76,394 $65,016 $60,140 $48,762 $32,508 $16,254 $0
Projected Annual Collections,
Current Fee @Projected
Develo meet levels $89,267 $80,340 $71,413 $62,487 $53,560 $50,882 $44,633 $41,955 $35,707 $33,029 $26,780 $17,853 $4,463 $0
N/A-assessed by
Age Restricted Unit $623 $567 $498 $436 $374 $355 $312 $293 $249 $237 $187 $125 $62 $0 housing type
%Change from Current Fee N/A-Current Fee depends on type of unit.Currently,there is not a separate fee category for age restricted units.
Projected Annual Collections,
Updated Fee @ Projected Expected annual number of units difficult to quantify.Past age restricted units did not achieve the age restriction using the methods required by the impact fee ordinance to ensure continued age restriction for a period oftime(20
Develo meet Levels years minimum)e..,current age restricted units are owned by entities that have rules in place but the rules are not recorded in restrictive covenants and/or homeowners association documents)_
TOTAL PROJECTED ANNUAL COLLECTIONS,
UP dated Fee $3,816,943 $3,435,249 $3,053,554 $2,671,860 $2,290,166 $2,175,658 $1,908,472 $1,793,963 $1,526,777 $1,412,269 $1,145,083 $763,389 $381,694 $0
TOTAL PROJECTED ANNUAL COLLECTIONS,
Current Fee $2,735,795 $2,462,216 $2,188,636 $1,915,057 $1,641,477 $1,559,403 $1,367,898 $1,285,824 $1,094,318 $1,012,244 $820,739 $547,159 $269,116 $0
GRAND TOTAL,PROJECTED ANNUAL
COLLECTIONS,Both School Districts,
U dated Fee $8,264,988 $7,438,489 $6,611,990 $5,785,492 $4,958,993 $4,711,043 $4,132,494 $3,884,544 $3,305,995 $3,058,046 $2,479,496 $1,652,998 $826,499 $0
GRAND TOTAL,PROJECTED ANNUAL
COLLECTIONS,Both School Districts,
Current Fee $5,068,072 $4,561,265 $4,054,457 $3,547,650 $3,040,843 $2,888,801 $2,534,036 $2,381,994 $2,027,229 $1,875,187 $1,520,422 $1,013,614 $502,344 $0
Variance 4rom 60%MSIF(Updated Fee 3,305,995 2,479,496 1,652,998 826,499 (247,950} (826,499} (1,074,448} (1,652,998} (1,900,947} (2,479,496) (3,305,995} (4,132,494} (4,958,993)
Variance from 60%MSIF(Current Fee 5,224,145 4,397,646 3,581,148 2,844,649 1,918,150 1,670,200 1,091,651 843,701 265,152 1 17,203 1561,3471 x1,387,8451 x2,214,3441 x3,040,8431
Breakeven%
Calculated Average 8
Chapel Hill-Carrboro City Schools
Current Fee
(adopted at 60%
Single Family Detached MSIF 90%MSIF 80%MSIF 70%MSIF 63.5%MSIF 60%MSIF 53.5%MSIF 50%MSIF 43.5%MSIF 40%MSIF 30%MSIF 20%MSIF 10%MSIF 0%MSIF of 2007 MSIF)
Average $17,492 $15,743 $13,994 $12,244 $11,107 $10,495 $9,358 $8,746 $7,609 $6,997 $5,248 $3,498 $1,749 $0 $11,423
%Change from Current Fee 53.1% 37.8% 22.5% 7.2% -2.8% -8.1% -18.1% -23.4% -33.4% -38.7% -54.1% -69.4% -84.7% -100.0%
Projected Annual Collections,
Updated Fee @ Projected
Development Levels $1,049,520 $1,070,510 $951,565 $832,619 $755,305 $713,674 $636,359 $594,728 $517,413 $475,782 $356,837 $237,891 $118,946 $0
Projected Annual Collections,
Current Fee @ Projected
Development Levels 1 $1,142,3001 $1,028,0701 $913,8401 $799,6101 $725,3611 $685,3801 $611,1311 $571,1501 $496,9011 $456,9201 $342,6901 $228,4601 $114,2301 $0
Single Family Detached<800 sq.ft.
$3,848 $3,463 $3,078 $2,694 $2,443 $2,309 $2,059 $1,924 $1,674 $1,539 $1,154 $770 $385 $0 $11,423
%Change from Current Fee -66.3% -69.7% -73.1% -76.4% -78.6% -79.8% -82.0% -83.2% -85.3% -86.5% -89.9% -93.3% -96.6% -100.0%
Projected Annual Collections,
Updated Fee @ Projected
Development Levels $30,784 $27,706 $24,627 $21,549 $19,548 $18,470 $16,469 $15,392 $13,391 $12,314 $9,235 $6,157 $3,078 $0
Projected Annual Collections,
Current Fee @ Projected
Development Levels $152,307 $137,076 $121,8451 $106,6151 $96,715 $91,3841 $81,484 $76,153 $66,253 $60,9231 $45,6921 $30,461 $15,231 $0
Single Family Attached
Average $14,608 $13,147 $11,686 $10,226 $9,276 $8,765 $7,815 $7,304 $6,354 $5,843 $4,382 $2,922 $1,461 $0 $6,610
%Change from Current Fee 121.0% 98.9% 76.8% 54.7% 40.3% 32.6% 18.2% 10.5% -3.9% -11.6% -33.7% -55.8% -77.9% -100.0%
Projected Annual Collections,
Updated Fee @ Projected
Development Levels $745,008 $670,507 $596,006 $521,506 $473,080 $447,005 $398,579 $372,504 $324,078 $298,003 $223,502 $149,002 $74,501 $0
Projected Annual Collections,
Current Fee @ Projected
Development Levels $561,850 $505,665 $449,4801 $393,2951 $356,7751 $337,110 $300,590 $280,925 $244,405 $224,740 $168,555 $112,370 $56,185 $0
Multifamily
Average $6,9901 $6,2911 $5,5921 $4,8931 $4,4391 $4,1941 $3,7401 $3,4951 $3,0411 $2,7961 $2,0971 $1,3981 $699 $0 $1,286
%Change from Current Fee 443.5% 389.2% 334.8% 280.5% 245.2% 226.1% 190.8% 171.8% 136.4% 117.4% 63.1% 8.7% -45.6% -100.0%
Projected Annual Collections,
Updated Fee @ Projected
Development Levels $1,551,780 $1,396,602 $1,241,424 $1,086,246 $985,380 $931,068 $830,202 $775,890 $675,024 $620,712 $465,534 $310,356 $155,178 $0
Projected Annual Collections,
Current Fee @ Projected
Development Levels $475,820 $428,238 $380,656 $333,074 $302,146 $285,492 $254,564 $237,910 $206,982 $190,328 $142,746 $95,164 $47,582 $0
Manufactured Home $6,9991 $6,2991 $5,5991 $4,8991 $4,4441 $4,1991 $3,7441 $3,5001 $3,0451 $2,8001 $2,1001 $1,400 $700 $0 $4,939
%Change from Current Fee 41.7% 27.5% 13.4% -0.8% -10.0% -15.0% -24.2% -29.1% -38.4% -43.3% -57.5% -71.7% -85.8% -100.0%
Projected Annual Collections,
Updated Fee @ Projected $0-additional manufactured homes are not expected in the CHCCS district.
Development Levels
N/A-assessed by
Age Restricted Unit $756 $680 $605 $529 $480 $454 $404 $378 $329 $302 $227 $151 $76 $0 housing type
%Change from Current Fee N/A-Current Fee depends on type of unit.Currently,there is not a separate fee category for age restricted units.
Projected Annual Collections,
Updated Fee @ Projected Expected annual number of units difficult to quantify. Past age restricted units did not achieve the age restriction using the methods required by the impact fee ordinance to ensure continued age restriction for a
Development Levels period of time(20 years minimum)(e.g.,current age restricted units are owned by entities that have rules in place but the rules are not recorded in restrictive covenants and/or homeowners association documents).
TOTAL PROJECTED ANNUAL COLLECTIONS,
Updated Fee $3,377,092 $3,165,325 $2,813,622 $2,461,920 $2,233,313 $2,110,217 $1,881,610 $1,758,514 $1,529,907 $1,406,811 $1,055,108 $703,406 $351,703 $0
TOTAL PROJECTED ANNUAL COLLECTIONS,
Current Fee $2,332,277 $2,099,049 $1,865,821 $1,632,594 $1,480,996 $1,399,366 $1,247,768 $1,166,138 $1,014,5401 $932,911 $699,683 $466,455 $233,228 $0
Calculated Average 9
Orange Count={Schools
Current Fee
(adopted at 60%
Single Fa mil Detached MSIF 9D%MSIF 90%MSIF 7D%MSIF 63.5%MSIF 60%MSIF 53.5%MSIF SD%MSIF 43.5%MSIF 40%MSIF 3D%MSIF 2D%MSIF 1D%MSIF D%MSIF of 2007 MSIF)
Avera e $10,959 $9,863 $8,767 $7,671 $6,959 $6,575 $5,863 $5,480 $4,767 $4,384 $3,288 $2,192 $1,096 $0 $5,623
%Change from Current Fee 94.9% 75.4% 55.9% 36.4% 23.8% 16.9% 4.3% -2.6% -15.2% -22.0% -41.5% -61.0% -80.5% -100.051.
Projected Annual Collections,
Updated Fee @Projected
Develo ment levels $2,520,570 $2,268,513 $2,016,456 $1,764,399 $1,600,562 $1,512,342 $1,348,505 $1,260,285 $1,096,448 $1,008,228 $756,171 $504,114 $252,057 $0
Projected Annual Collections,
Current Fee @ Projected
Develo ment Levels $2,155,483 $1,939,935 $1,724,387 $1,508,838 $1,368,732 $1,293,290 $1,153,184 $1,077,742 $937,635 $862,193 $646,645 $431,097 $215,548 $0
Single Family Detached<900 sq.ft.
$3,3171 $2,985 $2,654 $2,322 $2,106 $1,990 $1,775 $1,659 $1,443 $1,327 $995 $663 $332 $0 $5,623
%Change from Current Fee -41.0% -46.9% -52.8% -58.7% -62.5% -64.6% -68.4% -70.5% -74.3% -76.4% -82.3% -88.2% -94.1% -100.0%
Projected Annual Collections,
Updated Fee @ Projected
Development levels $29,853 $26,868 $23,882 $20,897 $18,957 $17,912 $15,971 $14,927 $12,986 $11,941 $8,956 $5,971 $2,985 $0
Projected Annual Collections,
Current Fee @ Projected
Development Levels $84,345 $75,911 $67,476 $59,042 $53,559 $50,607 $45,125 $42,173 $36,690 $33,738 $25,304 $16,869 $8,435 $0
Single Family Attached
Average $5,319 $4,787 $4,255 $3,723 $3,378 $3,191 $2,846 $2,660 $2,314 $2,128 $1,596 $1,862 $532 $0 $1,743
%Change from Current Fee 205.2% 174.6% 144.1% 113.6% 93.8% 83.1% 63.3% 52.6% 32.7% 22.1% -8.5% 6.8% -69.5% -100.0%
Projected Annual Collections,
Updated Fee @Projected
Develo ment levels $319,140 $287,226 $255,312 $223,398 $202,654 $191,484 $170,740 $159,570 $138,826 $127,656 $95,742 $111,699 $31,914 $0
Projected Annual Collections,
Current Fee @ Projected
Development Levels $174,300 $156,870 $139,440 $122,010 $110,681 $104,580 $93,251 $87,150 $75,821 $69,720 $52,290 $34,860 $17,430 $0
Multifamily
Average $5,498 $4,948 $4,398 $3,849 $3,491 $3,299 $2,941 $2,749 $2,392 $2,199 $1,649 $1,100 $550 $0 $1,743
%Change from Current Fee 215.4% 183.9% 152.3% 120.8% 100.3% 89.3% 68.8% 57.7% 37.2% 26.2% -5.4% -36.9% -68.5% -100.09'.
Projected Annual Collections,
Updated Fee @ Projected
Development Levels $439,840 $395,856 $351,872 $307,888 $279,298 $263,904 $235,314 $219,920 $191,330 $175,936 $131,952 $87,968 $43,984 $0
Projected Annual Collections,
Current Fee @ Projected
Development Levels $232,400 $209,160 $185,920 $162,680 $147,574 $139,440 $124,334 $116,200 $101,094 $92,960 $69,720 $46,480 $23,240 $0
Manufactured Home $8,127 $7,314 $6,502 $5,689 $5,161 $4,876 $4,348 $4,064 $3,535 $3,251 $2,438 $1,625 $813 $0 $2,678
%Change from Current Fee 203.5% 173.1% 142.8% 112.4% 92.7% 82.1% 62.4% 51.7% 32.0% 21.4% -9.0% -39.3% -69.7% -100.0%
Projected Annual Collections,
Updated Fee @Projected
Develo ment levels $162,540 $146,286 $130,032 $113,778 $103,213 $97,524 $86,959 $81,270 $70,705 $65,016 $48,762 $32,508 $16,254 $0
Projected Annual Collections,
Current Fee @ Projected
Development Levels $89,267 $80,340 $71,413 $62,487 $56,684 $53,560 $47,758 $44,633 $38,831 $35,707 $26,780 $17,853 $4,463 $0
N/A-assessed by
Age Restricted Unit $623 $561 $498 $436 $396 $374 $333 $312 $271 $249 $187 $125 $62 $0 housing type
11 Change from Cunt Fee N/A-Current Fee depends on type of unit.Currently,there is not a separate fee category for age restricted units.
Projected Annual Collectiorrens,
Updated Fee @ Projected Expected annual number of units difficult to quantify.Past age restricted units did not achieve the age restriction using the methods required by the impact fee ordinance to ensure continued age restriction for a
Development Levels period of time(20 years minimum)(e.g.,current age restricted units are owned by entities that have rules in place but the rules are not recorded in restrictive covenants and/or homeowners association documents).
ITO PROIECFED ANNUAL COLLECTIONS,
L dated Fee $3,471,943 $3,124,749 $2,777,554 $2,430,360 $2,204,684 $2,083,166 $1,857,490 $1,735,972 $1,510,295 $1,388,777 $1,041,583 $742,260 $347,194 $0
TOTAL PROIECTED ANNUAL COLLECTIONS,
Current Fee $2,735,795 $2,462,216 $2,188,636 $1,915,057 $1,737,230 $1,641,477 $1,463,650 $1,367,898 $1,190,071 $1,094,318 $820,739 $547,159 $269,116 $0
GRAND TOTAL,PROJECTED ANNUAL
COLLECTIONS,Both School Districts,
U dated Fee $6,849,035 $6,290,074 $5,591,177 $4,892,280 $4,437,997 $4,193,383 $3,739,099 $3,494,486 $3,040,202 $2,795,588 $2,096,691 $1,445,665 $698,897 $0
GRAND TOTAL,PROJECTED ANNUAL
COLLECTIONS,Both School Districts,
Current Fee $5,068,072 $4,561,265 $4,054,457 $3,547,650 $3,218,226 $3,040,843 $2,711,418 $2,534,036 $2,204,611 $2,027,229 $1,520,422 $1,013,614 $502,344 $0
Variance from 60%MSIF(Updated Fee $2,655,6521$2,096,6911$1,397,794 1 $698,897 1 $244,614 5454,283 5698,897 51,153,180) 51,397,794 52,096,691 52,747,717 53,494,486 54,193,383
Variance from 60%MSIF Current Fee $3,808,192 $3,249,231 $2,550,334 $1,851,437 $1,397,154 $1,152,540 $698,256 $453,643 5641 5245,255 5944,152 51,595,178 52,341,946 53,040,843
Breakeven%
Attachment 2 10
Ordinance#: ORD-2016-033
AN ORDINANCE AMENDING
CHAPTER 30, ARTICLE II - EDUCATIONAL FACILITIES IMPACT FEE
OF THE ORANGE COUNTY CODE OF ORDINANCES
WHEREAS, Orange County Chapter 460, House Bill 917 of the 1987 Session of the General
Assembly of North Carolina authorized Orange County to provide by ordinance for a system of impact
fees to help defray the costs to the County of constructing certain capital improvements, including
schools, and
WHEREAS, Orange County initially adopted educational facilities impacts fees in 1993 and has
amended the ordinance from time-to-time to since 1993, and
WHEREAS, to ensure impact fees remain proportional to actual impacts caused, the County
initiated a technical study in 2015 to study the school impact fees and determine the "maximum
supportable impact fee" that could be charged for various new housing types, and
WHEREAS, said technical study was completed in August 2016, and
WHEREAS, the County has held the required public hearing on the proposed amendments to
Chapter 30, Article II of the Code of Ordinances and the impact fee studies.
BE IT ORDAINED by the Board of Commissioners of Orange County that Chapter 30, Article II
— Educational Facilities Impact Fee is hereby amended as depicted in the attached pages.
BE IT FURTHER ORDAINED THAT persons submitting a building permit application prior to
January 1, 2017 may choose to pay either the previous public school impact fee for the housing type(s)
proposed in the application or the fee required by the updated public school impact fee schedule in the
attached pages, provided the building permit is issued no more than 120 calendar days after the
application submittal date. The fee for building permits issued more than 120 calendar days after the
application submittal date shall be the fee listed in the updated impact fee schedule.
BE IT FURTHER ORDAINED THAT this ordinance be placed in the book of published ordinances
and that this ordinance is effective upon its adoption.
Upon motion of Commissioner , seconded by Commissioner
, the foregoing ordinance was adopted this day of
, 2016.
I, Donna S. Baker, Clerk to the Board of Commissioners for Orange County, DO HEREBY
CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board at a meeting
held on , 2016 as relates in any way to the adoption of the foregoing and
that said proceedings are recorded in the minutes of the said Board.
WITNESS my hand and the seal of said County, this day of , 2016.
1
11
SEAL
Clerk to the Board of Commissioners
12
ARTICLE II. - EDUCATIONAL FACILITIES IMPACT FEE
Sec. 30-31. - Legislative findings.
The Orange County Board of Commissioners makes the following legislative findings:
(1) Orange County public school facilities are vital to the health, safety, welfare, and economic
prosperity of Orange County;
(2) That public school facilities in Orange County must be expanded in order to maintain current
levels of service if new development is to be accommodated without decreasing current levels
of service;
(3) To finance the expansion of the public school facilities in Orange County necessary to maintain
current levels of service while accommodating new residential growth, several methods of
finance will be employed, one of which will require new residential development to pay an
appropriate share of the reasonably anticipated new educational facilities in the form of school
impact fees; and
(4) These school impact fees will provide, in a reasonable manner, for the public health, safety, and
welfare of persons residing within Orange County by providing a portion of the costs of new
school facilities which bears a relationship to the benefits of the new school facilities to the new
residential growth in Orange County.
(Ord. of 6-7-1993, § 1, ef£ 7-1-1993)
Sec. 30-32. - Definitions.
For the purposes of this Ordinance, the following terms shall have the following definitions:
Accessory Dwelling Unit. A dwelling unit located on the same lot as another dwelling unit and
recognized as an accessory use by the local zoning code.
Certificate of Occupancy. A certificate issued by Orange County or a municipality located therein
allowing the occupancy or use of a dwelling unit and certifying that the building or structure has been
constructed and will be used in compliance with all applicable codes and ordinances.
Dwelling Unit. A room or group of rooms forming a single independent habitable unit with facilities
used or intended to be used for living, sleeping, cooking, and eating by one family. Types of dwelling
units include Manufactured Homes, Multifamily, Single Family Attached, and Single Family Detached.
Each dwelling type may be Age Restricted or not.
Dwelling Unit, Age Restricted Unit. A dwelling unit, regardless of type (detached, attached, multi-
family, etc.), located in a development that restricts the number of units with occupants aged under 55
years old and whereby the age restriction is achieved by deed restrictions, homeowners association
documents, and/or restrictive covenants.
Dwelling Unit, Manufactured Home. A dwelling unit built in a factory in accordance with the federal
Manufactured Home Construction and Safety Standards, commonly referred to as the `THUD' Code.
Dwelling Unit, Multifamily. A group of dwelling units which share a common floor-to-ceiling wall or
share the wall of an attached garage or porch with an adjacent dwelling, but not otherwise defined as a
Single Family Attached Dwelling Unit.
Dwelling Unit, Single Family Attached. A group of dwelling units which share a common floor-to-
ceiling wall or share the wall of an attached garage or porch with an adjacent dwelling and in which all
Page 1
13
units have a ground-floor living space. Units located above ground floor non-residential (i.e. retail or
office) uses are not included in this definition.
Dwelling Unit, Single Family Detached. . A dwelling unit which is neither a Manufactured Home
Dwelling Unit, Accessory Dwelling Unit, or attached to other dwelling units (as with Multifamily or Single
Family Attached).
Feepayer. The person constructing or responsible for having constructed a new dwelling unit or new
dwelling units. In the case of a mobile home, the person installing or responsible for having installed a
new mobile home or new mobile homes.
(Ord. of 6-7-1993, § 2, eff. 7-1-1993)
Sec. 30-33. - School impact fees imposed on new residential dwelling units.
In addition to all other charges prescribed by ordinance or resolution now or hereafter in effect, there
shall be public school impact fees charged to new residential dwelling units located within Orange
County, and within the municipalities and their extraterritorial planning jurisdictions located within Orange
County. No person may occupy any new residential dwelling unit until all applicable public school impact
fees contained in the following schedule have been paid in full. No certificate of occupancy or other type
of occupancy permit shall be issued for any new residential dwelling unit until the public school impact
fees hereby required have been paid in full. Payment of such fees shall not relieve the feepayer from the
obligation to comply with applicable land development regulations of Orange County or the municipalities
located within Orange County.
Schedule of Public School Impact Fees
The amount of public school impact fee shall be as shown in the following tables:
Chapel Hill Carrboro City Schools District
Effective January 1, Effective January 1, Effective January 1, Effective January 1,
11•• 2010 X914 2012
Single Family
$6,092 $7,616 $9,520 ,+ }
Single Family
$3,525 ,41 $5,508 , -,-
Attached
-M a It ifa m i l y • $858 $1,072 $1,286
Manufactured
$2,631 $3,293 $4,116 $4,939
Orange County Schools District
Page 2
14
Effective January - • - •.. Effective January - • - •..
1, 2009 1, 2010 1, 2011 1, 2012
$930 $1,162 $1,453 $1,743
-Manufactured Homes $1,428 $1,785 $2,232
Chapel Hill Carrboro City Schools District
Fee Effective Fee Effective Fee Effective
Dwellina Unit Type
January 1. 2U17 January 1. 2U18 January 1. 2U1Q
Single Family Detached, U-3
' $4,852 $6,164 $7,475
Bedrooms ' ' '
Single Family Oetached 4+
Detached, $9,301 $11,815 $14,329
Bedrooms
' ' '
Sinqle Family Detached <800 s .
$1,424 �1 8UQ $2,193
ft. ' ' '
Single Family Attached O��
Attached, $3,798 $4,825 $5,852
Bedrooms
' ' '
Single Family Attached 3+
Attached, $6,073 $7,715 $9,356
Bedrooms
' ' '
Multifamily, 0-2 Bedrooms &
Accessory Dwelling Units, 0-2 $1.643 $2.087 $2,531
Bedrooms
Multifamily, 3+ Bedrooms &
Accessory DwellinQ Units, 3+ $6.998 $8.890 $10.781
Bedrooms
Manufactured Home $2,331 $3,290 $3.989
Aqe Restricted Unit $252 $$355 $431
Page 3
15
Orange County Schools District
Dwelling Unit Type Fee Effective Fee Effective Fee Effective
January 1, 2017 January 1, 2018 January 1, 2019
Single Family Detached, 0-3 $4,456 $5,661 $6,865
Bedrooms
Single Family Detached, 4+
Bedrooms $3,321 $4,207 $5,103
Single Family Detached <800 sq. $1,227 $1,559 $1,891
ft.
Single Family Attached, 0-2 $1,356 $1,723 $2,089
Bedrooms
Single Family Attached, 3+
Bedrooms $2,056 $2,612 $3,168
Multifamily, 0-2 Bedrooms &
Accessory Dwelling Units, 0-2 $983 $1,248 $1,514
Bedrooms
Multifamily, 3+ Bedrooms &
Accessory Dwellinq Units, 3+ $7,650 $9,718 $11,786
Bedrooms
Manufactured Home $3,007 $3,820 $4,632
Age Restricted Unit $231 $293 $355
New residential dwelling units qualifying for the age restricted impact fee must remain age restricted for a
minimum period of 20 years after the impact fee is paid. The owner of any age restricted dwelling unit
changed to a non-age-restricted unit before the 20-year period expires shall be required to pay the
difference between the age restricted impact fee paid and the impact fee in effect for the dwelling unit
type at the time of the change.
(Ord. of 6-7-1993, § 3, eff. 7-1-1993; Amend. of 6-5-1995, eff. 7-1-1995; Amend. of 6-26-1996,
eff. 7-1-1996; Amend. of 6-25-2001, eff. 7-1-2001; Amend. of 12-11-2008, eff. 1-1-2009, 6-1-
2009, 1-1-2011, and 1-1-2013)
Sec. 30-34. - Public school impact fee exceptions.
Public school impact fees as provided in Section 30-33 shall not be imposed in the following
circumstances:
(1) Buildings or structures, including alterations, repairs, renovations or additions thereto, which are
to be occupied and used solely for non-residential purposes.
(2) Residential dwelling units for which a building permit was obtained prior to the effective date of
this Ordinance.
(3) Alterations, repairs, renovations or additions to a residential dwelling unit.
(4) Replacement of a building, structure or mobile home used for residential purposes, including the
following:
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16
a. Installation of a replacement mobile home on a separate lot or mobile home park space
when an educational facilities impact fee for such lot or space has been previously paid
pursuant to this Ordinance or where a residential mobile home legally existed on such lot
or space on or before the effective date of this Ordinance. For the purposes of this
Ordinance, "legally existed" shall mean that a mobile home was located on the lot or space
during the five-year period prior to the date of adoption of this Ordinance.
b. Replacement of a building, structure or mobile home damaged, destroyed or partially
destroyed by: the exercise of eminent domain; human acts, such as riot, fire, accident,
explosion; or flood, lightning, wind or other natural calamity, with a new building, structure
or mobile home.
A residential building, structure or mobile home may be replaced with a new building, structure or
mobile home of the same or dissimilar dwelling type. For example, a mobile home may be replaced with a
mobile home. Likewise, a mobile home may be replaced with a stick-built structure. In either case,
however, the number of dwelling units may not be increased.
(5) Accessory buildings and structures, including, but not limited to, garages, decks, storage
buildings, and similar structures, provided they are not used for residential purposes.
(6) Temporary buildings and structures, provided they are not used for residential purposes.
However, public school impact fees shall not be levied in the following cases:
a. A mobile home being used to provide custodial care under the provisions of an approved
Special Use Permit.
b. A mobile home being used as a temporary residential dwelling during the installation of a
replacement mobile home or the construction of a stick-built dwelling unit.
(Ord. of 6-7-1993, § 4, eff. 7-1-1993; Amend. of 6-5-1995, eff. 7-1-1995)
Sec. 30-35. -Collection of fees.
(a) Creation of public school benefit area trust funds. Public school impact fees collected by Orange
County pursuant to this Ordinance shall be kept separate from other revenue of the County. There
shall be one trust fund established for each of the benefit areas. The benefit areas correspond to the
school district boundaries as determined by the School Districts and as illustrated on the attached
map labeled Public School Benefit Areas.
(b) Responsibility for fee collection.
(1) All public school impact fees are due to Orange County and shall be paid to Orange County
prior to a certificate of occupancy being issued for a dwelling unit. The fees will be collected by
Orange County and/or by interlocal agreement between Orange County and a municipality
located therein. All public school impact fees shall be properly identified by the appropriate
benefit area and transferred for deposit in the appropriate trust account.
(2) Where there is an interlocal agreement in effect for collection of the public school impact fees by
a municipality, the municipality shall remit the fees to Orange County as provided in the
agreement, including a report of the amount of funds collected and the benefit area from which
the fees were collected. Upon receipt, the County shall deposit the fees in the appropriate trust
fund.
(c) Limitation on expenditure of funds. Funds withdrawn from public school impact fee trust accounts
shall be used solely in accordance with the following provisions:
(1) Funds shall be used for capital costs associated with the construction of new public school
space, including new buildings or additions to existing buildings or otherwise converting existing
buildings into new public school space where the expansion is related to new residential growth.
Such capital costs include actual building construction; design, engineering, and/or legal fees;
Page 5
17
land acquisition and site development; equipment and furnishings; infrastructure improvements;
and/or debt service payments and payments under leases through which to finance such costs.
(2) Funds shall be used exclusively for capital improvements within the benefit area from which the
funds were collected.
(3) Funds may be used for providing reimbursements as permitted in subsection (e)of this Section.
(4) No funds shall be used for public school operating expenses, periodic or routine maintenance,
or the administration of this public school impact fee program.
(5) Following their collection, funds shall be expended within ten (10) years, the time frame
coinciding with the public school facilities capital improvements program (CIP)school impact fee
period.
The disbursal of public school impact fee funds shall require the approval of the Board of County
Commissioners upon recommendation of the County Manager.
(d) Interest on fees. Any public school impact fee funds on deposit and not immediately necessary for
expenditure shall be invested as allowed in N.C. General Statute 159-30 for other public moneys. All
income derived shall be deposited in the applicable trust fund.
(e) Reimbursement of fees.
(1) Any funds not expended within the time frame established in subsection (c)(5) of this Section.
shall be returned to the feepayer, or the land owner if the address of the feepayer provided to
Orange County is not current, with interest at a rate not to exceed that being paid on public
school impact fees deposited in accordance with subsection (d)of this Section.
(2) If the Schedule of Public School Impact Fees as contained in Section 30-33 is reduced due to
an updated school impact fee study that results in changes to impact fee levels charged, no
refund of previously paid fees shall be made. if the Schedule of Public School impact Fees as
contained in Section 30-33 is reduced due to reasons other than an updated school impact fee
study, the difference between the old and new fees shall be returned to the feepayer, or the
land owner if the address of the feepayer provided to Orange County is not current, with interest
at a rate not to exceed that being paid on public school impact fees deposited in accordance
with subsection (d)of this Section. If the Schedule of Public School Impact Fees as contained in
Section 30-33 is increased, no additional fees shall be collected from new construction for which
certificates of occupancy have been issued.
(3) Where an impact fee has been collected erroneously, or where an impact fee has been paid,
and the feepayer subsequently files for and is granted an exception as permitted in Section 30-
34, the fee shall be returned to the feepayer.
(f) Annual report. A report shall be made to the Board of County Commissioners each year showing
where public school impact fees have been collected, what projects have been constructed with such
fees, and what reimbursements have been made. The report shall also include an evaluation of this
Ordinance, including its effectiveness and enforcement, and the methods and data used to calculate
the Schedule of Public School impact Fees contained in Section 30-33.
The Board of County Commissioners shall review the report to determine if, within each benefit area,
all areas of new construction are being benefited by the fees. If the Board of County Commissioners
determines that areas of new construction are not being benefited, then it shall readjust the capital
improvements program to correct this condition. If, after review of the methods and data used to calculate
the Schedule of Public School Impact Fees, the Board of County Commissioners determines that
adjustments are required in the Schedule, then it shall direct the County Manager and staff to prepare a
report which outlines recommended changes for its consideration.
(Ord. of 6-7-1993, § 5, eff. 7-1-1993; Amend. of 6-5-1995, eff. 7-1-1995; Amend. of 6-26-1996,
eff. 7-1-1996)
Page 6
18
Sec. 30-36. -Credits.
(a) Any conveyance of land for a public school site or construction of new school facilities received and
accepted by Orange County, a municipality located in Orange County, and/or the Orange County or
Chapel Hill-Carrboro School Board from a landowner may, at the election of the landowner, be
credited against the public school impact fee due if the conveyance or construction meets the same
needs as the public school impact fee in providing new public school facilities. If the landowner elects
to receive credit against the amount of the public school impact fee due for such conveyance or
construction, the landowner shall, prior to the agreement to convey land for or construct new public
school facilities, or the conveyance of land for or construction of new school facilities, enter into a fee
agreement with the County. The fee agreement shall provide for the establishment of credits and
payment of the fee in a specified manner and time, and shall, upon its execution by the landowner
and the County, be binding upon the heirs and assigns of the landowner.
(b) The value of land conveyed or facilities constructed by a landowner and accepted by the County,
municipality or school board for purposes of this Section shall be determined by an appraisal based
on the fair market value of the land or facilities as established by the County. Construction shall be in
accordance with applicable County, municipal, school board, and State standards. Any land
conveyed for credit under this Section shall be conveyed no later than the time at which public
school impact fees are required to be paid. The portion of the public school impact fee represented
by a credit for construction shall be deemed paid when the construction is completed and accepted
for maintenance or when adequate security for the completion of the construction has been provided.
(Ord. of 6-7-1993, § 6, eff. 7-1-1993; Amend. of 6-26-1996, eff. 7-1-1996)
Sec. 30-37. - Penalties.
(a) In addition to any other remedy allowed by N.C. General Statute 153A-123, the failure to pay a public
school impact fee is hereby declared to subject the person responsible for payment of the public
school impact fee to a civil penalty. The amount of the penalty shall be equal to the amount of the
unpaid school impact fee, plus an interest charge of one-half percent (1/2%) per month compounded
monthly and a service charge of one hundred dollars ($100.00).
(b) The County may assess this penalty against the landowner whereon new construction has occurred
without payment of the public school impact fee. However, no service charge will be assessed when
the County staff has made an error in the fee determination. Furthermore, no penalty shall be
assessed until the person or persons alleged to be in violation are served by registered mail, certified
mail - return receipt requested, or personal service with notice to pay.
(c) The County Attorney is hereby authorized to institute a civil action in the name of Orange County in
the appropriate division of the General Court of Justice in Orange County for recovery of the penalty.
All moneys recovered shall be deposited in the appropriate trust fund.
(Ord. of 6-7-1993, § 7, eff. 7-1-1993)
Sec. 30-38. - Legal status provisions.
(a) All ordinances and clauses in conflict herewith are hereby repealed to the extent of said conflict. If
any clause or Section of this Ordinance or application thereof to any person or circumstance is held
invalid, such invalidity shall not affect other provisions or application of this ordinance which can be
given separate effect, and, to this end, the provisions of this Ordinance are declared to be severable.
(b) This Ordinance shall not diminish any prior contractual, conditional zoning, or special or conditional
use district zoning obligation to pay for or install road, park or other improvements required by
Orange County or a municipality located therein, nor shall the fulfillment of those obligations diminish
Page 7
19
any applicable public school impact fee owed to the County. This Ordinance shall not diminish any
prior obligation of the County or a municipality located therein to reimburse persons for road, parks
or other improvements, nor shall the fulfillment of those obligations by the County or a municipality
diminish any applicable credit owed to the feepayer.
(Ord. of 6-7-1993, § 8, eff. 7-1-1993)
Secs. 30-39-30-70. -Appeal to the Orange County Board of Adjustment [Reserved].
Sec. 30-80. - Effective date.
This Ordinance shall be effective from and after the 1st day of July, 1993. This Ordinance shall only
apply to residential dwelling units for which building permits are issued on and after the effective date of
the Ordinance or any amendment thereto.
(Ord. of 6-7-1993, eff. 6-7-1993)
Page 8
Attachment 3 20
Ordinance#: ORD-2016-034
AN ORDINANCE AMENDING
CHAPTER 30, ARTICLE II - EDUCATIONAL FACILITIES IMPACT FEE
OF THE ORANGE COUNTY CODE OF ORDINANCES
WHEREAS, Orange County Chapter 460, House Bill 917 of the 1987 Session of the General
Assembly of North Carolina authorized Orange County to provide by ordinance for a system of impact
fees to help defray the costs to the County of constructing certain capital improvements, including
schools, and
WHEREAS, Orange County initially adopted educational facilities impacts fees in 1993 and has
amended the ordinance from time-to-time to since 1993, and
WHEREAS, to ensure impact fees remain proportional to actual impacts caused, the County
initiated a technical study in 2015 to study the school impact fees and determine the "maximum
supportable impact fee" that could be charged for various new housing types, and
WHEREAS, said technical study was completed in August 2016, and
WHEREAS, the County has held the required public hearing on the proposed amendments to
Chapter 30, Article II of the Code of Ordinances and the impact fee studies.
BE IT ORDAINED by the Board of Commissioners of Orange County that Chapter 30, Article II
— Educational Facilities Impact Fee is hereby amended as depicted in the attached pages.
BE IT FURTHER ORDAINED THAT persons submitting a building permit application prior to
January 1, 2017 may choose to pay either the previous public school impact fee for the housing type(s)
proposed in the application or the fee required by the updated public school impact fee schedule in the
attached pages, provided the building permit is issued no more than 120 calendar days after the
application submittal date. The fee for building permits issued more than 120 calendar days after the
application submittal date shall be the fee listed in the updated impact fee schedule.
BE IT FURTHER ORDAINED THAT this ordinance be placed in the book of published ordinances
and that this ordinance is effective upon its adoption.
Upon motion of Commissioner , seconded by Commissioner
, the foregoing ordinance was adopted this day of
, 2016.
I, Donna S. Baker, Clerk to the Board of Commissioners for Orange County, DO HEREBY
CERTIFY that the foregoing is a true copy of so much of the proceedings of said Board at a meeting
held on , 2016 as relates in any way to the adoption of the foregoing and
that said proceedings are recorded in the minutes of the said Board.
WITNESS my hand and the seal of said County, this day of , 2016.
1
21
SEAL
Clerk to the Board of Commissioners
22
ARTICLE II. - EDUCATIONAL FACILITIES IMPACT FEE
Sec. 30-31. - Legislative findings.
The Orange County Board of Commissioners makes the following legislative findings:
(1) Orange County public school facilities are vital to the health, safety, welfare, and economic
prosperity of Orange County;
(2) That public school facilities in Orange County must be expanded in order to maintain current
levels of service if new development is to be accommodated without decreasing current levels
of service;
(3) To finance the expansion of the public school facilities in Orange County necessary to maintain
current levels of service while accommodating new residential growth, several methods of
finance will be employed, one of which will require new residential development to pay an
appropriate share of the reasonably anticipated new educational facilities in the form of school
impact fees; and
(4) These school impact fees will provide, in a reasonable manner, for the public health, safety, and
welfare of persons residing within Orange County by providing a portion of the costs of new
school facilities which bears a relationship to the benefits of the new school facilities to the new
residential growth in Orange County.
(Ord. of 6-7-1993, § 1, ef£ 7-1-1993)
Sec. 30-32. - Definitions.
For the purposes of this Ordinance, the following terms shall have the following definitions:
Accessory Dwelling Unit. A dwelling unit located on the same lot as another dwelling unit and
recognized as an accessory use by the local zoning code.
Certificate of Occupancy. A certificate issued by Orange County or a municipality located therein
allowing the occupancy or use of a dwelling unit and certifying that the building or structure has been
constructed and will be used in compliance with all applicable codes and ordinances.
Dwelling Unit. A room or group of rooms forming a single independent habitable unit with facilities
used or intended to be used for living, sleeping, cooking, and eating by one family. Types of dwelling
units include Manufactured Homes, Multifamily, Single Family Attached, and Single Family Detached.
Each dwelling type may be Age Restricted or not.
Dwelling Unit, Age Restricted Unit. A dwelling unit, regardless of type (detached, attached, multi-
family, etc.), located in a development that restricts the number of units with occupants aged under 55
years old and whereby the age restriction is achieved by deed restrictions, homeowners association
documents, and/or restrictive covenants.
Dwelling Unit, Manufactured Home. A dwelling unit built in a factory in accordance with the federal
Manufactured Home Construction and Safety Standards, commonly referred to as the `THUD' Code.
Dwelling Unit, Multifamily. A group of dwelling units which share a common floor-to-ceiling wall or
share the wall of an attached garage or porch with an adjacent dwelling, but not otherwise defined as a
Single Family Attached Dwelling Unit.
Dwelling Unit, Single Family Attached. A group of dwelling units which share a common floor-to-
ceiling wall or share the wall of an attached garage or porch with an adjacent dwelling and in which all
Page 1
23
units have a ground-floor living space. Units located above ground floor non-residential (i.e. retail or
office) uses are not included in this definition.
Dwelling Unit, Single Family Detached. . A dwelling unit which is neither a Manufactured Home
Dwelling Unit, Accessory Dwelling Unit, or attached to other dwelling units (as with Multifamily or Single
Family Attached).
Feepayer. The person constructing or responsible for having constructed a new dwelling unit or new
dwelling units. In the case of a mobile home, the person installing or responsible for having installed a
new mobile home or new mobile homes.
(Ord. of 6-7-1993, § 2, eff. 7-1-1993)
Sec. 30-33. - School impact fees imposed on new residential dwelling units.
In addition to all other charges prescribed by ordinance or resolution now or hereafter in effect, there
shall be public school impact fees charged to new residential dwelling units located within Orange
County, and within the municipalities and their extraterritorial planning jurisdictions located within Orange
County. No person may occupy any new residential dwelling unit until all applicable public school impact
fees contained in the following schedule have been paid in full. No certificate of occupancy or other type
of occupancy permit shall be issued for any new residential dwelling unit until the public school impact
fees hereby required have been paid in full. Payment of such fees shall not relieve the feepayer from the
obligation to comply with applicable land development regulations of Orange County or the municipalities
located within Orange County.
Schedule of Public School Impact Fees
The amount of public school impact fee shall be as shown in the following tables:
Chapel Hill Carrboro City Schools District
Effective January 1, Effective January 1, Effective January 1, Effective January 1,
11•• 2010 X914 2012
Single Family
$6,092 $7,616 $9,520 ,+ }
Single Family
$3,525 ,41 $5,508 , -,-
Attached
-M a It ifa m i l y • $858 $1,072 $1,286
Manufactured
$2,631 $3,293 $4,116 $4,939
Orange County Schools District
Page 2
24
1, 2009 1, 2010 1, 2011 1, 2012
$930 $1,162 $1,453 $1,743
| Chapel Hill Carrboro City Schools District
Fee Effective Fee Fee
|
Dwelling - Effective Effective
| � January 1, 2017 January 1, 2018 January 1. 2U1Q
| Sinqle Family Detached $7.609 $9.358 $11.107
Sinqle Family Detached <800 s .
$1,674 $2,059 $2,443
f
ft. ' ' '
| Sinqle Family Attached $6.354 $7,815 $9.276
Multifamily Q Accessory Dwelling
$3,041 $3,740 $4,439
Units ' . .
�
Manufactured Home $3.045 $3,744 $4,444
| Aqe Restricted Unit $329 $404 $480
Page 3
25
Orange County Schools District
Dwelling Unit Type Fee Effective Fee Effective Fee Effective
January 1, 2017 January 1, 2018 January 1, 2019
Single Family Detached $4,767 $5,863 $6,959
Single Family Detached <800 sq. $1,443 $1,775 $2,106
ft.
Single Family Attached $2,314 $2,846 $3,378
Multifamily& Accessory Dwelling
$2,392 $2,941 $3,491
Units
Manufactured Home $3,535 $4,348 $5,161
Age Restricted Unit $271 $333 $396
New residential dwelling units qualifying for the age restricted impact fee must remain age restricted for a
minimum period of 20 years after the impact fee is paid. The owner of any age restricted dwelling unit
changed to a non-age-restricted unit before the 20-year period expires shall be required to pay the
difference between the age restricted impact fee paid and the impact fee in effect for the dwelling unit
type at the time of the change.
(Ord. of 6-7-1993, § 3, eff. 7-1-1993; Amend. of 6-5-1995, eff. 7-1-1995; Amend. of 6-26-1996,
eff. 7-1-1996; Amend. of 6-25-2001, eff. 7-1-2001; Amend. of 12-11-2008, eff. 1-1-2009, 6-1-
2009, 1-1-2011, and 1-1-2013)
Sec. 30-34. - Public school impact fee exceptions.
Public school impact fees as provided in Section 30-33 shall not be imposed in the following
circumstances:
(1) Buildings or structures, including alterations, repairs, renovations or additions thereto, which are
to be occupied and used solely for non-residential purposes.
(2) Residential dwelling units for which a building permit was obtained prior to the effective date of
this Ordinance.
(3) Alterations, repairs, renovations or additions to a residential dwelling unit.
(4) Replacement of a building, structure or mobile home used for residential purposes, including the
following:
a. Installation of a replacement mobile home on a separate lot or mobile home park space
when an educational facilities impact fee for such lot or space has been previously paid
pursuant to this Ordinance or where a residential mobile home legally existed on such lot
or space on or before the effective date of this Ordinance. For the purposes of this
Ordinance, "legally existed" shall mean that a mobile home was located on the lot or space
during the five-year period prior to the date of adoption of this Ordinance.
b. Replacement of a building, structure or mobile home damaged, destroyed or partially
destroyed by: the exercise of eminent domain; human acts, such as riot, fire, accident,
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26
explosion; or flood, lightning, wind or other natural calamity, with a new building, structure
or mobile home.
A residential building, structure or mobile home may be replaced with a new building, structure or
mobile home of the same or dissimilar dwelling type. For example, a mobile home may be replaced with a
mobile home. Likewise, a mobile home may be replaced with a stick-built structure. In either case,
however, the number of dwelling units may not be increased.
(5) Accessory buildings and structures, including, but not limited to, garages, decks, storage
buildings, and similar structures, provided they are not used for residential purposes.
(6) Temporary buildings and structures, provided they are not used for residential purposes.
However, public school impact fees shall not be levied in the following cases:
a. A mobile home being used to provide custodial care under the provisions of an approved
Special Use Permit.
b. A mobile home being used as a temporary residential dwelling during the installation of a
replacement mobile home or the construction of a stick-built dwelling unit.
(Ord. of 6-7-1993, § 4, eff. 7-1-1993; Amend. of 6-5-1995, eff. 7-1-1995)
Sec. 30-35. -Collection of fees.
(a) Creation of public school benefit area trust funds. Public school impact fees collected by Orange
County pursuant to this Ordinance shall be kept separate from other revenue of the County. There
shall be one trust fund established for each of the benefit areas. The benefit areas correspond to the
school district boundaries as determined by the School Districts and as illustrated on the attached
map labeled Public School Benefit Areas.
(b) Responsibility for fee collection.
(1) All public school impact fees are due to Orange County and shall be paid to Orange County
prior to a certificate of occupancy being issued for a dwelling unit. The fees will be collected by
Orange County and/or by interlocal agreement between Orange County and a municipality
located therein. All public school impact fees shall be properly identified by the appropriate
benefit area and transferred for deposit in the appropriate trust account.
(2) Where there is an interlocal agreement in effect for collection of the public school impact fees by
a municipality, the municipality shall remit the fees to Orange County as provided in the
agreement, including a report of the amount of funds collected and the benefit area from which
the fees were collected. Upon receipt, the County shall deposit the fees in the appropriate trust
fund.
(c) Limitation on expenditure of funds. Funds withdrawn from public school impact fee trust accounts
shall be used solely in accordance with the following provisions:
(1) Funds shall be used for capital costs associated with the construction of new public school
space, including new buildings or additions to existing buildings or otherwise converting existing
buildings into new public school space where the expansion is related to new residential growth.
Such capital costs include actual building construction; design, engineering, and/or legal fees;
land acquisition and site development; equipment and furnishings; infrastructure improvements;
and/or debt service payments and payments under leases through which to finance such costs.
(2) Funds shall be used exclusively for capital improvements within the benefit area from which the
funds were collected.
(3) Funds may be used for providing reimbursements as permitted in subsection (e)of this Section.
(4) No funds shall be used for public school operating expenses, periodic or routine maintenance,
or the administration of this public school impact fee program.
Page 5
27
(5) Following their collection, funds shall be expended within ten (10) years, the time frame
coinciding with the public school facilities capital improvements program (CIP)school impact fee
period.
The disbursal of public school impact fee funds shall require the approval of the Board of County
Commissioners upon recommendation of the County Manager.
(d) Interest on fees. Any public school impact fee funds on deposit and not immediately necessary for
expenditure shall be invested as allowed in N.C. General Statute 159-30 for other public moneys. All
income derived shall be deposited in the applicable trust fund.
(e) Reimbursement of fees.
(1) Any funds not expended within the time frame established in subsection (c)(5) of this Section.
shall be returned to the feepayer, or the land owner if the address of the feepayer provided to
Orange County is not current, with interest at a rate not to exceed that being paid on public
school impact fees deposited in accordance with subsection (d)of this Section.
(2) If the Schedule of Public School Impact Fees as contained in Section 30-33 is reduced due to
an updated school impact fee study that results in changes to impact fee levels charged, no
refund of previously paid fees shall be made. if the Schedule of Public School impact Fees as
contained in Section 30-33 is reduced due to reasons other than an updated school impact fee
study, the difference between the old and new fees shall be returned to the feepayer, or the
land owner if the address of the feepayer provided to Orange County is not current, with interest
at a rate not to exceed that being paid on public school impact fees deposited in accordance
with subsection (d)of this Section. If the Schedule of Public School Impact Fees as contained in
Section 30-33 is increased, no additional fees shall be collected from new construction for which
certificates of occupancy have been issued.
(3) Where an impact fee has been collected erroneously, or where an impact fee has been paid,
and the feepayer subsequently files for and is granted an exception as permitted in Section 30-
34, the fee shall be returned to the feepayer.
(f) Annual report. A report shall be made to the Board of County Commissioners each year showing
where public school impact fees have been collected, what projects have been constructed with such
fees, and what reimbursements have been made. The report shall also include an evaluation of this
Ordinance, including its effectiveness and enforcement, and the methods and data used to calculate
the Schedule of Public School impact Fees contained in Section 30-33.
The Board of County Commissioners shall review the report to determine if, within each benefit area,
all areas of new construction are being benefited by the fees. If the Board of County Commissioners
determines that areas of new construction are not being benefited, then it shall readjust the capital
improvements program to correct this condition. If, after review of the methods and data used to calculate
the Schedule of Public School Impact Fees, the Board of County Commissioners determines that
adjustments are required in the Schedule, then it shall direct the County Manager and staff to prepare a
report which outlines recommended changes for its consideration.
(Ord. of 6-7-1993, § 5, eff. 7-1-1993; Amend. of 6-5-1995, eff. 7-1-1995; Amend. of 6-26-1996,
eff. 7-1-1996)
Sec. 30-36. -Credits.
(a) Any conveyance of land for a public school site or construction of new school facilities received and
accepted by Orange County, a municipality located in Orange County, and/or the Orange County or
Chapel Hill-Carrboro School Board from a landowner may, at the election of the landowner, be
credited against the public school impact fee due if the conveyance or construction meets the same
needs as the public school impact fee in providing new public school facilities. If the landowner elects
to receive credit against the amount of the public school impact fee due for such conveyance or
Page 6
28
construction, the landowner shall, prior to the agreement to convey land for or construct new public
school facilities, or the conveyance of land for or construction of new school facilities, enter into a fee
agreement with the County. The fee agreement shall provide for the establishment of credits and
payment of the fee in a specified manner and time, and shall, upon its execution by the landowner
and the County, be binding upon the heirs and assigns of the landowner.
(b) The value of land conveyed or facilities constructed by a landowner and accepted by the County,
municipality or school board for purposes of this Section shall be determined by an appraisal based
on the fair market value of the land or facilities as established by the County. Construction shall be in
accordance with applicable County, municipal, school board, and State standards. Any land
conveyed for credit under this Section shall be conveyed no later than the time at which public
school impact fees are required to be paid. The portion of the public school impact fee represented
by a credit for construction shall be deemed paid when the construction is completed and accepted
for maintenance or when adequate security for the completion of the construction has been provided.
(Ord. of 6-7-1993, § 6, eff. 7-1-1993; Amend. of 6-26-1996, eff. 7-1-1996)
Sec. 30-37. - Penalties.
(a) In addition to any other remedy allowed by N.C. General Statute 153A-123, the failure to pay a public
school impact fee is hereby declared to subject the person responsible for payment of the public
school impact fee to a civil penalty. The amount of the penalty shall be equal to the amount of the
unpaid school impact fee, plus an interest charge of one-half percent (1/2%) per month compounded
monthly and a service charge of one hundred dollars ($100.00).
(b) The County may assess this penalty against the landowner whereon new construction has occurred
without payment of the public school impact fee. However, no service charge will be assessed when
the County staff has made an error in the fee determination. Furthermore, no penalty shall be
assessed until the person or persons alleged to be in violation are served by registered mail, certified
mail - return receipt requested, or personal service with notice to pay.
(c) The County Attorney is hereby authorized to institute a civil action in the name of Orange County in
the appropriate division of the General Court of Justice in Orange County for recovery of the penalty.
All moneys recovered shall be deposited in the appropriate trust fund.
(Ord. of 6-7-1993, § 7, eff. 7-1-1993)
Sec. 30-38. - Legal status provisions.
(a) All ordinances and clauses in conflict herewith are hereby repealed to the extent of said conflict. If
any clause or Section of this Ordinance or application thereof to any person or circumstance is held
invalid, such invalidity shall not affect other provisions or application of this ordinance which can be
given separate effect, and, to this end, the provisions of this Ordinance are declared to be severable.
(b) This Ordinance shall not diminish any prior contractual, conditional zoning, or special or conditional
use district zoning obligation to pay for or install road, park or other improvements required by
Orange County or a municipality located therein, nor shall the fulfillment of those obligations diminish
any applicable public school impact fee owed to the County. This Ordinance shall not diminish any
prior obligation of the County or a municipality located therein to reimburse persons for road, parks
or other improvements, nor shall the fulfillment of those obligations by the County or a municipality
diminish any applicable credit owed to the feepayer.
(Ord. of 6-7-1993, § 8, eff. 7-1-1993)
Secs. 30-39-30-70. -Appeal to the Orange County Board of Adjustment [Reserved].
Page 7
29
Sec. 30-80. - Effective date.
This Ordinance shall be effective from and after the 1st day of July, 1993. This Ordinance shall only
apply to residential dwelling units for which building permits are issued on and after the effective date of
the Ordinance or any amendment thereto.
(Ord. of 6-7-1993, eff. 6-7-1993)
Page 8
30
Attachment 4
Summary of Proposed Amendments to School Impact Fees
The proposed change to the disaggregation of housing type by bedroom count illustrates that
fewer bedrooms (i.e. usually smaller houses) are correlated to less student generation and
therefore a lower school impact fee amount in the vast majority of cases (6 of 6 cases) is
realized in the first year. Rationally, one may conjecture that a smaller home (fewer bedrooms)
is more affordable and therefore the lower impact fee is appropriate or at least does not
disproportionately burden a smaller more affordable home. In addition, a new <800 SF home
and Age Restricted Housing category were added to further clarify the lower school impacts
associated with smaller more affordable or senior homes.
Note: This example only comments on the fee when disaggregated by bedroom count but results
are very similar when the average is employed.
The results of the disaggregation are as follows:
SINGLE FAMILY USING A GRADUAL IMPLENTATION OF MSIF( 2017, 2018, 2019)
Chapel Hill/Carrboro Fees 37% 47% 57%
Single Family Detached 0-3 Bedroom Reduced 57.5% 46.0% 34.6%
Single Family 4+Bedroom Reduced then Increased 18.6% 3.4%+ 25.4% +
Reduced as compared to
Single Family< 800 SF 87.5% 84.2% 80.8%
their prior categorization
Single Family Attached 0-2 Bedroom Reduced 42.5% 27.0% 11.5%
Single Family Attached 3+Bedroom Reduced then Increased 8.1% 16.7% + 36%+
**A prior note to the Multifamily Results; the data from the earlier analysis in 2005 showed
dominance of low student presence probably from the strong college associated off-campus
occupancy. Fees were relatively low($1286)for multifamily because of this situation,
appreciably lower than multifamily in the Orange County school system area.
31
MULTIFAMILY USING A GRADUAL IMPLENTATION OF MSIF( 2017, 2018, 2019)
Chapel Hill/Carrboro Fees 37% 47% 57%
Increased(4 times less than the 3+bedroom
Multifamily 0-2 Bedroom category below albiet higher than the previous 27.8% 62.3% 96.8%
fee strucuture.)
Increased Both schools have showed an
exponential increase to reflect the exponential
student generation realized over the last 10
years in this housing type and bedroom count.
MultiFamily 3+Bedroom Anecdotally,due to decreasing supplies of 444.2% 591.3% 738.3%
single family homes yet the high desirability
for family migration to the area for the
excellent schools and quality of life families
are moving into this category.
Note: These proposed fees for 3+ bedrooms are similar to the student generation seen in Single
Family Detached 0-3 bedrooms and Single Family attached 3+ bedrooms.
OTHER HOUSING TYPES USING A GRADUAL IMPLENTATION OF MSIF( 2017, 2018, 2019)
Chapel Hill/Carrboro Fees 37% 47% 57%
Reduced(no bedroom count
Manufactured Homes 52.8% 33% 19%
differentiation)
Reduced from what they were
previously charged as a single
Age Restricted family by approximately 26-45 times 4500% 3200% 2600%
lower. (No bedroom count
differentiation.)
32
SINGLE FAMILY USING A GRADUAL IMPLENTATION OF MSIF ( 2017, 2018, 2019)
Orange County Fees 37% 47% 57%
Reducded then Increased
Single Family Detached 0-3 Bedroom last 2 years 20.7% 07% + 22.1%+
Reduced 41.1% 25.2% 9.3%
Single Family 4+ Bedroom
Single Family< 800 SF Reduced 78.2% 72.3% 66.4%
Reduced 1st year then
Single Family Attached 0-2 Bedroom 22.2% 1.2% 19.9%
Increased last year
Single Family Attached 3+ Bedroom Increased 18.0% 49.9% 81.8%
Note: of the 6 cases where bedroom count was used in both districts, the single family detached
0-3 bedrooms vs. 4+ bedrooms was the only case where smaller bedroom count showed higher
student generation and therefore higher fee. Also of note, are the increases with Single Family
attached which in 2005 were only 26% of the similar type in Chapel Hill. There was limited
amount of that type at that time.
MULTIFAMILY USING A GRADUAL IMPLENTATION OF MSIF ( 2017, 2018, 2019)
Orange County Fees 37% 47% 57%
Multifamily 0-2 Bedroom Reduced 43.6% 28.4% 13.1%
MultiFamily 3+ Bedroom Increased 338.9% 457.6% 576.2%
OTHER HOUSING TYPES USING A GRADUAL IMPLENTATION OF MSIF
Orange County Fees 37% 47% 57%
Manufactured Homes Increased 12.3% 43% 73%
Reduced from new Single
Age Restricted 2400% 1900% 1600%
Family
33
Attachment 5
Current School Impact Fees
(Adopted December 2008)
[The amount shown for the effective date of January 12, 2012 is 60% of the Maximum
Supportable Impact Fee, as calculated during the study/analysis completed in 2007-08]
Chapel Hill — Carrboro City Schools District
Effective Effective Effective Effective
January 1, January 1, January 1, January 1,
2009 2010 2011 2012
Single-Family Detached $6,092 $7,616 $9,520 $11,423
Single-Family Attached $3,525 $4,406 $5,508 $6,610
Multifamily $686 $858 $1,072 $1,286
Manufactured Homes $2,634 $3,293 $4,116 $4,939
Orange County Schools District
Effective Effective Effective Effective
January 1, January 1, January 1, January 1,
2009 2010 2011 2012
Single-Family Detached $3,000 $3,749 $4,686 $5,623
Single-Family Attached / $930 $1,162 $1,453 $1,743
Multifamily
Manufactured Homes $1,428 $1,785 $2,232 $2,678
Attachment 6 34
Historical Impact Fee Activity
Revenues:
Orange Chapel Hill-
Fiscal Year County Carrboro City Total
Schools Schools
Prior Year Balances 6,988,747 18,009,757 24,998,504
2005-06 873,017 991,880 1,864,897
2006-07 1,372,354 648,046 2,020,400
2007-08 1,049,731 454,791 1,504,522
2008-09 714,544 523,950 1,238,494
2009-10 658,148 556,671 1,214,819
2010-11 727,701 732,200 1,459,901
2011-12 646,733 1,001,502 1,648,235
2012-13 1,002,583 1,018,621 2,021,204
2013-14 874,549 937,395 1,811,944
2014-15 1,421,027 1,342,729 2,763,756
2015-16 1,649,205 1,063,735 2,712,940
Interest Earned 198,123 231,338 429,461
Total Revenues 18,176,462 27,512,615 45,689,077
Expenditures:
Prior Year Balances 5,658,796 17,091,602 22,750,398
2005-06 970,000 1,600,000 2,570,000
2006-07 970,000 1,600,000 2,570,000
2007-08 970,000 1,100,000 2,070,000
2008-09 1,090,000 563,900 1,653,900
2009-10 660,663 557,093 1,217,756
2010-11 400,000 400,000 800,000
2011-12 520,000 520,000 1,040,000
2012-13 520,000 1,320,000 1,840,000
2013-14 520,000 1,020,000 1,540,000
2014-15 520,000 520,000 1,040,000
2015-16 1,063,831 686,169 1,750,000
Total Expenditures 13,863,290 26,978,764 40,842,054
Available Balance 4,313,172 533,851 4,847,023