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Home My WebLink AboutAgenda - 06-25-2001-5aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 25, 2001 Action Agen a Item No. SUBJECT: Amendment to Orange County Educational Facilities_Impact Fee Ordinance DEPARTMENT: Planning PUBLIC HEARING: (Y/N) Yes ATTACHMENT(S): ^ Section 3 -Orange County Educational Facilities Impact Fee Ordinance. ^ 2/20/01 OCS Letter Re: Impact Fee Recommendations ^ Impact Fee Percentage Tables ^ Table: Impact Fee Analysis - OCS ^ Table: Impact Fee - CHCCS INFQRMATION CONTACT: Craig Benedict, ext 2592 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 9fi8-4501 Durham fi88-7331 Mebane 336-227-2p31 PURPOSE: To consider a proposed amendment to the Orange County Educational Facilities Impact Fee Ordinance. BACKGROUND: A public hearing was held February 26, 2001 to present the findings of a technical study prepared by Tischler & Associates to determine a maximum supportable impact fee per housing unit. The study addressed both the Orange County and Chapel Hill-Carrboro School Districts and also took into account different types of housing. Present impact fees are $750 in the Orange County District and $3,000 in the Chapel Hill-Carrboro District based on amendments to the ordinance adopted on June 3, 199fi. The Tischler findings concerning maximum supportable impact fees were as follows: Housin T e Oran a Coun District Cha el Hill Carrboro District Sin le Famil. Detached $5,364 $7,345 All Other Residential $2,539 $3,298 The Orange County School Board submitted a letter requesting that impact fee amounts be set at $3,000 for single family homes and $1,400 for all other residential units. The Chapel Hill- Carrboro School Board, at a Joint School Board meeting on March 28, 2001, suggested assessing the maximum supportable impact fees of $7,345 for single family homes and $3,298 for all other residential units. This item was discussed at the June 12 and June 21 BOCC budget work sessions. FINANCIAL IMPACT: The Budget Director has prepared "Impact Fee Analysis" tables for both school systems. These tables reflect estimates of additional revenue (beyond that already programmed in the 10 year CIP, as Hated on the bottom line of each table) that might be generated depending on the level of impact fees set by the BOCC and using the assumptions about annual additional housing units created as laid out in the Tischler report. One idea discussed. by the BOCC at the June 21 budget work would be to base the impact fees at 56 percent of each maximum supportable impact fee, based on the request from the Orange County Board of Education that the single family detached impact fee in the OCS district be set at $3,000 per dwelling unit (which represents 56 percent of the maximum fee of $5,364.) The revenue figures derived from the 56 percent scenario are denoted in the pink section of each table. The Board may also wish to consider setting rates for the Chapel Hill-Carrboro system that will generate at least as much estimated impact fee revenue for the CHCCS district as currently projected under the, existing fee schedule. All of the scenarios with fees set at 50 percent or higher of the maximum supportable impact fee would produce such a result. RECOMMENDATION(S): The Manager recommends that the Board amend the Ordinance as follows: 1. In keeping with the impact fee amounts as proposed by the Orange County School Board for Orange County Schools, and observing the 56 percent benchmark, approve $3,000 for single family detached and $1,420.for all other residential units with an effective date of July 1, 2001. Permits issued prior to July 1 would be assessed at the existing impact fee of $750. 2. Depending on rates set by the BOCC for OCS, consider the 56 percent benchmark ($4,113 for single family detached and $1,847 for all other residential units) as a starting point for discussion about impact fee amounts for the Chapel Hill-Carrboro .City Schools with an effective date of July 1, 2.001. Permits issued prior to July 1 would be assessed at the existing impact fee of $3,000. ORANGE COUNTY EDUCATIONAL FACILITIES IMPACT FEE ORDINANCE SECTION 1 -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. SECTION 2 -DEFINITIONS For the purposes of this ordinance, the following terms shall have the following definitions: Certificate of Occupancx. A certificate issued by Orange County ar 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. 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. Ympact Fee Ordinance 3 SECTION 3 -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 the public school impact fee will be ;~8 $ 2per single family detached residential dwelling unit and z er residential dwellin unit for all other residential es in the Orange County School District., The amount of the public school impact fee will be $~;A99 ~$ xper single~amily detached residential dwelling unit and $ 2per residential dwelling unit for all other residential types in the Chapel Hill-Carrboro School District. ' Amended June 3, 1996; effective July 1, 1996. z Amended June 25, 2001; effective July 1, 2001. Impact Fee Ordinance 4 5 Orange County Board of Education Randy Bridges . Superintendent Board Members: Keith Cook, Chairman Brenda Stephens, Vice Chair Robert Bateman . . Susan Halkiods David Kolbinsky Dolores Simpson Dana Thompson 200 East King Street Hillsborough, NC 27278 Telephonc: 919-732-8126 FAX: 919-732-8120 ~- ~ 7iA7 ~ 1VIEMORAr]DUM . TO: Stephen Halkiotis, Chairman Orange County Commissioners ~~ FR01VI: Keith Cook,~airman Orange County Board of Education RE: Impact Fee Recamm~endations DATE: February 20, 2001 U - r~; r :~ } FER 2 t c:~~~ '' ~ . . Thank .you for the letter outlining the process and legal requirements concerning establishment of Impact Fees for our school system. I know the work done on the Adequate Public Facilities Ordinance has been time consuming, but it is our hope as a Board that the information in this report will serve as a data driven document that will give credibility to the need of addressing many of the financial needs of our system. During its February 19, 2001 meeting, the Orange County Board of Education voted to recommend to the Commissioners the .following Impact Fee amounts for our system: • Single Family Detached - $3000.Q(1 • All Other Residential - $1100.00 These amounts represent approximately 5696 of the recommended amounts . in the Tischler & Associates report of $5364.00 far Single Family Detached, and $2539.00 for All Other Residential. Thank you in advance for any consideration given to this request. As always, we appreciate the continued support of the Commissioners to the Orange County School System. If you have questions about this information, please feel free to contact me. lha c: Orange County Board of Education .~ 6 CHAI~EL HILL - CARRBORO CITY SCHOOLS DISTRICT ,, - „ . , ~ ~ Existing Incremental increases of $750 with applicable percent MSIF Fee $3,000 $3,750 $4,500 $5,250 $fi,000 $6,750 $7,345 51% 62% 72% 82% 92'% 100% `' AIG.L'CT#~I R htE$lDE TIAL:;t~ ' ITS ~ , Existing Incremental increases of $330 with applicable percent MSIF Fee $3,000 $1,682 $2,045 $2,375 $2,704 $3,034 $3,298 51% 62% 72% 82% 92% .100% ORANGE COUNTY SCHOOL DISTRICT _ SII~G~~ FAM~~,I.':~~ R.~51d'EN`~;ili~~L "':" I Existing Fee Incremental increases of $750 with applicable percent MS IF $750 $1,500 $2,250 $3,000 $3,750 $5,364 28% 42% 56% 70% 100% ALL G~`TH~;R~~°~~'ESIDEN ~~L UNITS ~.. Existing Fee Incremental increases of $360 with applicable percent MSIF $750 $710 $1,070 $1,430 $1,790 $2,539 28% 42% 56% 70% 100% y ? m m 0 ~~ 3 "__ a .. rt fp n d N H d ~ ~ T ti m qNq 3 ~~. o n v3 ~ O C ~ .. ~C 5 Vj S ' O 3 H n T e t m m ~~,~ x n m 0 0 n r: N 0 0 tl! m m g~ 3 b^ 8 s m 3 m