HomeMy WebLinkAboutAgenda - 05-24-1993 - C 1 11
O R A N G E C O U N T Y
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 24 , 1993
Agenda Abstract
Item # C 1
SUBJECT: IMPACT FEES FOR PUBLIC SCHOOL CAPITAL FACILITIES
DEPARTMENT: Planning PUBLIC HEARING: X Yes No
ATTACHMENT(S) : INFORMATION CONTACT:
Technical Report Planning Director X2592
[DISTRIBUTED PREVIOUSLY]
PHONE NUMBERS:
Hillsborough 732-8181
Mebane 227-2031
Durham 688-7331
Chapel Hill 967-9251
PURPOSE: To conduct a public hearing and receive citizen
comment concerning a system of impact fees to help
finance a portion of school capital needs in Orange
County.
BACKGROUND: For several years, Orange County has pursued an
objective of helping to fund school capital needs
created by growth. During the 1987 Session, the
General Assembly authorized the County to levy
impact fees in its planning jurisdiction for a
number of needs, including school capital.
A joint governmental work group investigated the
possibilities of an impact tax in the county in
1988-89. The County proposed legislation in the 1991
Session of the General Assembly seeking authority to
impose an impact tax for school capital needs. The
legislation was withdrawn due to local opposition.
However, the County did receive authority in the
1991 Session to impose impact fees for school
capital needs throughout the county, not just within
the County's planning jurisdiction.
In May, 1992, a public hearing was held to give the
citizens of Orange County an opportunity to voice
their opinion on establishing a system of impact
fees. In lieu of enacting a system of impact
fees at that time, the Board of Commissioners chose
to investigate other options for financing school
capital needs.
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Recently, the Board decided to conduct another
public hearing on a schedule of impact fees which
ranged from $500 to $750 per residential unit. The
purpose for such fees is found in the school needs
created by growth in the county. In 1990,
approximately 94, 000 persons resided here. By 2000,
approximately 117, 000 persons will live in Orange
County, an increase of 24 percent. If the 13 , 000+
school age children living in the county in 1990
increase at the same rate, over 16, 000 students will
require classroom space in 2000. For the 1993-94
school year alone, both school districts are
projecting an increase of almost 670 students.
Projected growth in the student population converts
to a capital need of one high school, two middle
schools, and two elementary schools. These needs
have been partially met through the approval of a
$50. 0 million bond issue in November, 1992 . A new
high school and two middle schools are being
constructed with these funds. Thus, the unmet need
is for two elementary schools.
To fund the identified needs of the school systems
through impact fees, Orange County is required to
calculate the maximum fee. Although this has been
done, the Board of Commissioners has elected to set
the fees at a lesser amount, averaging from $500 to
$750 per residential unit, to fund a portion of the
cost two new elementary schools. Revenues from such
a fee range would generate approximately $770, 000 to
$1.2 million for both school districts during the
first year. The alternative being considered by the
Board was an 1.8 cent to 2 .8 cent increase in the
property tax rate to raise similar amounts for both
school districts.
Adjustments to the proposed fee schedule are
possible. In calculating the fees, debt service
payments on past school capital projects have been
factored out. In addition, a sliding scale or fee
structure has been provided. The scale breaks down
the average fees, based on dwelling type and number
of bedrooms. If a sliding scale is used, it is one
means of addressing a concern about the regressive
. nature of the fees. Finally, to address
affordability issues, low-income housing needs can
be met employing the same mechanism established for
Habitat for the Humanities, a contribution by the
County to cover the expense associated with building
permits.
In terms of general ordinance administration,
existing homes would not be required to pay impact
fees. Credits are also possible for developers who
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donate land for school sites and/or install
utilities which would serve proposed school sites.
Collection of the fees has been proposed at the time
of issuance of a Certificate of Occupancy, and fees
are distributed to the school district in which
collected.
The Board established two public hearing dates
to receive comments from citizens and organizations
interested in school impact fees. The first hearing
was held on May 18, 1993 in conjunction with a
regular Board of Commissioners' meeting. All comment
received at that hearing will be included in the
record of this public hearing.
RECOMMENDATION: The Administration recommends that the Board
conduct the public hearing and that all comments be
referred to the Planning Board as appropriate.
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