HomeMy WebLinkAboutAgenda -11-06-2008 - 4rORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 6, 2008
Action Agen a
Item No. _~
SUBJECT: Educational Facilities Impact Fee
DEPARTMENT: Planning /Budget PUBLIC HEARING: (Y/N) No
ATTACHMENT(S):
1. Adopted Educational Facilities Impact
Fees and Results of 2007 Study
2. Graphs of Historical Impact Fee
Collections for Both School Districts
3. A. Impact Fee at Various Levels and
Projected Level Necessary to
Generate $1.6 million in CHCCS
B. Educational Facilities Impact Fees
in Relationship to New Single
Family Dwelling Sales Prices
4. Proposed Timeline
5. Adopted Student Generation Rates
and Results of 2007 and Relationship
to SAPFO (Schools Adequate Public
Facilities Ordinance)
6. Letters from CHCCS and OCS
7. Legal Ad for Public Hearing
8. Draft Report for CHCCS
9. Draft Report for OCS
(Previously Provided Under Separate
Cover)
INFORMATION CONTACT:
Craig Benedict, 245-2592
Donna Coffey, 245-2151
Perdita Holtz, 245-2611
PURPOSE: To 1) set the public hearing for the December 1, 2008 regular Board meeting; 2)
approve the fee level range as proposed by staff; and 3) approve the public hearing legal
advertisement.
BACKGROUND: Orange County adopted the Educational Facilities Impact Fee Ordinance in
1993 and last updated impact fee levels in 2001. In 2007, the County contracted with
TischlerBise, Inc. to produce an updated impact fee study. Copies of the draft reports were
sent to the School Districts, BOCC, and municipal Planning Directors on July 22, 2008 and the
Board formally received the draft Educational Facilities Impact Fee reports at its October 7,
2008 regular meeting. This topic was also discussed at the September 25, 2008 Joint Schools
meeting and at the October 14, 2008 BOCC work session. Letters received from the school
districts are included as Attachment 6.
2
Attachment 1 summarizes the adopted educational facilities impact fee levels and the results of
the 2007 study. The proposed legal advertisement for the public hearing is Attachment 7 and
includes the fee level ranges proposed by staff to be considered for the public hearing. The
proposed ranges are as follows:
• $5,069 to $11,423 for a new single-family detached dwelling in the Chapel Hill - Carrboro
City Schools (CHCCS) district, and
• $3,000 to $5,623 for a new single-family detached dwelling in the Orange County
Schools (OCS) district.
As is shown in Attachment 3A, the projected impact fee required in the CHCCS district to
generate the budgeted amount of $1.6 million to offset CHCCS debt service is $5,069. This is
the staff-recommended lower end of the impact fee range. The staff-recommended upper end
of the range ($11,423) is 60% of the Maximum Supportable Impact Fee (MSIF), which is
consistent with the adopted percentage of the 2001 MSIF. In the OCS district, the lower end of
the staff-recommended range is the current impact fee of $3,000 and the upper end of the
range ($5,623) is 60% of the MSIF.
Attachment 3B shows impact fee levels in relation to the sales price of new single family
detached dwellings. In CHCCS, the 2001-adopted impact fee of $4,407 is 1.21% of the 2001
median sales price of a new single family detached dwelling. If the impact fee were to be
increased to 1.21 % of the 2007 median sales price of a new single family detached dwelling,
the corresponding impact fee would be $9,249. In OCS, the 2001-adopted impact fee of
$3,000 is 1.32% of the median sales price of a new single family detached dwelling. If the
impact fee were to be increased to 1.32% of the 2007 median sales price of a new single family
detached dwelling, the corresponding impact fee would be $3,762.
The impact fee level for housing types other than single family detached dwellings would be set
at the same percentage of maximum supportable impact fee for the particular type of dwelling
as the percentage set for single family detached dwellings. For example, if impact fees were to
be set at 60% of the maximum supportable impact fee for single family detached dwellings, the
impact fee for a manufactured home would be set at 60% of the maximum supportable impact
fee for manufactured homes. Precise changes, if any, in the present fees would be determined
by the Board of Commissioners following public comment at the public hearing and otherwise.
In no event would educational facilities impact fees be changed to an amount or amounts that
exceed the maximums determined by the 2007 Technical Reports.
FINANCIAL IMPACT: Other than advertising costs and staff time, there is no financial impact
in approving the public hearing legal advertisement. As Attachment 3A shows, an increase in
impact fees to $5,069 per new single family detached dwelling is projected to be necessary to
generate the budgeted amount of $1.6 million to offset CHCCS debt service.
RECOMMENDATION(S): The Manager recommends the Board:
1) set the public hearing for the December 1, 2008 regular Board meeting;
2) approve the fee level range as proposed by staff; and
3) approve the public hearing legal advertisement.
Attachment 1
0
Adopted Educational Facilities Impact Fees and Results of 2007 Study
Impact fees were last updated in 2001 and were adopted at the following levels:
Adopted School Impact Fees (2001)
[NOTE: Fee levels were adopted at 60% of the Maximum Supportable
Im act Fee MSIF for CHCCS and 56% of the MSIF for OCS
Chapel Hill-Carrboro Orange County
Schools Schools
Single-Family & Multi-wide $4
407 $3
000
Manufactured Homes , ,
Multi-Family 8~ Single-wide $1 979 $1
420
Manufactured Homes ,
Since 2001, construction costs have risen dramatically and land prices have
appreciated. For example, as the chart on page 16 of the Chapel Hill-Carrboro
City Schools draft report shows, when Scroggs Elementary was constructed in
Fall 2000 the project cost was slightly higher than $17.5 million (adjusted to 2007
dollars) while Morris Grove Elementary, constructed in the Fall of 2008, cost
slightly more than $24.6 million (adjusted to 2007 dollars). Additionally, land
costs have risen substantially in the CHCCS District and buildable parcels of a
size suitable for a school have gotten scarce. It is estimated that land acquisition
costs in the CHCCS will be $100,000 per acre for sites suitable for a school. The
2007 TischlerBise study has found the following Maximum Supportable Impact
Fee (MSIF) for each district:
2007 Stud Maximum Su ortable Im act Fees
Chapel Hill-Carrboro
Schools Orange County
Schools
Sin le-Famil Detached $19,039 $9,372
Sin le-Famil Attached $11,016 -
Multifamil $2,144 -
Single-Family Attached /
Multifamil
-
$2,905
Manufactured Homes $8,232 $4,463
Since 1995, Orange County has offered an impact fee reimbursement program
for school impact fees paid on affordable housing units. From FY2002-03
through FY2007-08, $196,698 in collected impact fees has been reimbursed for
the 59 affordable housing units constructed in that time period.
As was done when the impact fees were updated in 2001 (adopted at 56% of the
Maximum Supportable Impact Fee [MSIF] in OCS and 60% MSIF in CHCCS),
the BOCC has discretion to adopt fee levels at less than 100% of the
Maximum Supportable Impact Fee.
$1,400,000
~ $1,200,000
c
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C ~
~ ~ $1,000,000
~ W
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c
$800,000
OO
a o
.o N $600,000
m m
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0
~ ~ $400,000
'0 0
~w
a $200,000
$0
School Construction Impact Fee
Orange County Schools
Does Not Reflect School Construction Impact Fees Collected on Behalf of City of Mebane
09/16/2008
654 School Construction
Impact Fee Increase *620
Effective June 25, 2001 /1
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Fiscal Year
(1) Includes School Construction Impact Fees Collected for Certificates of Occupancy Issued by Orange County Planning
Department. Does not inlcude School Construction Impact Fees collected on behalf of City of Mebane.
(2) Certificates of Occupancy data provided by Orange County Planning Department.
7
700
600
a
500 H ,~
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400
~a
O«
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300 .y~'. ~j
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L
200 v O
ro
..
a
100
0
School Construction Impact Fees
Orange County Schools
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
09/16/2008
~~~
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Fiscal Year
^Collected by Orange County Planning for Certificates of Occupancy Issued Collected by Orange County Planning on Behalf of City of Mebane ~
School Construction Impact Fee
Chapel Hill Carrboro City Schools
$3,000,000
c
~ $2,500,000
ea
Q
$2,000,000
H
30
~ ~ $1,500,000
~ V
°~ $1,000,000
0
V
e~
a $500,000
$0
School Construction Impact
~~ Fee Increase Effective June
972 25, 2001
\ ~ 851
628
571
67
1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Fiscal Year
1,200
d
a
1,000 t
V
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800 ~ ,~
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600 y V
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(1) Building permit data provided by Towns of Chapel Hill and Carrboro Planning Departments
Attachment 3A
~I Necessary to Generate $1.6 million in CHCCS
~rtable impact fee (MSIF) as defined in the 2007 technical reports pre ared b
Current Impact Fee for
Single Family Homes
located in CHCCS School
District
ty Schools
50% 40% 32% 30% 2Z% 9tO 20% 10%
$9,520 $7,616 $6,092 $5,712 $5 069. $3,808 $1,904
$5,508 $4,406 $3,525 5 $2,203 $1,102
$1,072 $858 $68 $643 $429 $214
A N/A N/A N/A N/A N/A N/A
$4,116 ,293 $2,634 $2,470 $1,646 $823
Current Impact Fee for
Single Family Homes
located in OCS School
hoots
50% 40% 3296 30% 27% 20% 10%
$4,686 $3,749 000 $2,812 $2,530 $1,874 $937
N/A N/A N/A N/A N/A N/A
N/A N/A N/A N/A N/A N/A
,743 $1,453 $1,162 $872 $784 $581 $290
$2,232 $1,785 $1,339 $1,205 $893 $446
Attachment 3B
Educational Facilities Impact Fees
Fees in Relationship to New Single Family Dwelling Sales Prices
Chapel Hill - Carrboro City Schools District
New SF 2001 Impact Fee 2007 2008 Impact
detached (217 closed ($4,407) % of (74 closed Fee if at same
dwellin sales Price sales % as 2001
Average $393,445 1.12 $805,707 $9,024
Sales Price
Median $364,900 1.21 $764,394 $9,249
Sales Price
Source of data: MLS closed sale date for Average; proprietary appraisal
software for Median, using MLS data. It should be noted that all sales are not
entered into the MLS.
Orange County Schools District
New SF 2001 Impact Fee 2007 2008 Impact
detached (95 closed ($3,000) % of (110 closed Fee if at same
dwellin sales Price sales % as 2001
Average $233,626 1.28 $337,775 $4,324
Sales Price
Median $228,000 1.32 $284,968 $3,762
Sales Price
Source of data: MLS closed sale date for Average; proprietary appraisal
software for Median, using MLS data. It should be noted that all sales are not
entered into the MLS.
Attachment 4
Proposed Timeline
July 22, 2008 Draft reports sent to School Systems, BOCC, and municipal
Plannin Directors.
August 22, 2008 Date stated in transmittal letter for submittal of comments
from School Districts (letters have been received from both
school districts .
September 16, Draft reports on BOCC agenda for formal receipt of reports
2008 and direction. (Dela ed due to time constraints
September 25, Educational Facilities Impact Fees (EFIF) discussed at the
2008 Joint BOCC/School Board meetin .
October 7, 2008 BOCC formal) received draft re orts.
October 14, 2008 BOCC discussed to is at work session.
November 6, 2008 Item on BOCC agenda to receive information from staff
regarding fee level range to be considered for adoption and
to a rove le al advertisement for ublic hearin .
November 19 and Legal advertisement for public hearing runs in papers for 2
26, 2008 consecutive weeks.
December 1, 2008 Public hearing on draft reports and to receive input on the
potential fee levels. (Consultant attends to present reports
and answer questions). Direct Consultant to finalize draft
reports. Direct staff to bring back amendments to
Educational Facilities Impact Fee Ordinance for adoption
consideration on December 11, 2008.
December 11, BOCC adopts updated impact fee levels and determines
2008 effective date for new fee levels.
Attachment 5
~~
Adopted Student Generation Rates and Results of 2007 Study and Relationship
to SAPFO (Schools Adequate Public Facilities Ordinance)
Student generation rates have increased in both school districts from the rates
calculated in 2001. The Adopted (2001) student generation rates are as follows:
Ado ted Student Generation Rates 2001
Cha el Hil l-Carrboro Schools Ora n a Coun Sch ools
Elem. Middle High All Elem. Middle High All
Grades Grades
Single-
Famil 0.168 0.095 0.123 0.386 0.150 0.075 0.084 0.309
Other 0.094 0.042 0.043 0.179 0.084 0.033 0.030 0.147
All
Housing 0.134 0.070 0.086 0.290 0.140 0.068 0.076 0.284
T es
The analysis for the 2007 draft report found the student generation rates in the
following table. Some data was aggregated slightly differently for the school districts
since the housing types found in each district vary (i.e., Single Family Attached /
Multifamily was combined for OCS since there is minimal single family attached
housing in the OCS district).
2007 Stud Student Generation Rates
Cha el Hill-C arrboro Schools Ora n a Cou n Schools
Elem. Middle High All Elem. Middle High All
Grades Grades
Single-Family
Detached 0.263 0.143 0.197 0.603 0.168 0.090 0.126 0.384
Single-Family
Attached 0.158 0.077 0.115 0.350
-
-
-
-
Multifamil 0.038 0.015 0.017 0.070 - - - -
Single-Family
Attached / - - - - 0.066 0.022 0.034 0.122
Multifamil -
Manufactured
Homes 0.141 0.066 0.061 0.268 0.096. 0.041 0.049 0.186
All Housing
T es 0.149 0.078 0.105 0.332 0.145 0.074 0.102 0.321
The contract with TischlerBise, Inc. includes an update to student generation rates
because student generation rates are a factor, along with school construction costs,
in the Maximum Supportable Impact Fee calculation.
The Educational Facilities Impact Fee Ordinance is independent of and preceded the
Schools Adequate Public Facilities Ordinance (SAPFO) effective date. Student
generation rates are also a part of SAPFO and the Certificate of Adequate Public
Schools (CAPS) system that is component of SAPFO. Although it is logical to update
SAPFO processes with the most up-to-date data available, there is not a requirement
that SAPFO student generation rates be updated prior to or concurrent with changes
to the Educational Facilities Impact Fee Ordinance. For example, the 2001 impact
fee study included student generation rates which were adopted into SAPFO in 2003
because they were readily available.
The SAPFO MOU contains a process for updating student generation rates (and
other statistical methods). The process is as follows:
1. The Board may change the projected student membership growth rate, the
methodology used to determine this rate, or the student generation rate if the
Board concludes that such a change is necessary to predict growth more
accurately.
2. Before making any such change, the Board shall receive and consider the
recommendation of a staff committee consisting of the planning directors of
the Town(s) and -the County and a representative of the School District
appointed by the Superintendent.
3. The committee shall provide, in a timely manner, a copy of its
recommendation to the governing boards at the time it provides such
recommendation to the BOCC and the BOCC shall provide an opportunity for
the governing boards to comment on the recommendation.
4. If a change is made, the BOCC shall inform the governing boards prior to
February 1St in any year in which such change is intended to become effective
what change was made and why it was necessary.
is
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$~~ 4 9 ZaoB
BY:
September 8, 2008
Barry Jacobs, Chair
Board of County Commissioners
PO Box 8181
Hi(Isborough, NC 27278
Dear Commissioner Jacobs:
At its meeting on September 3, 2008, the Chapel Hill-Carrboro Board of
Education approved the following resolution:
Be it, therefore, resolved that the Board of Education urges the Orange
County Board of Commissioners to increase the school impact fees in
order to provide a source of funding to construct new schools to keep
pace with the district's growing student population and the escalating cost
of construction.
Be it further resolved that the Board of Education urges the Orange
County Board of Commissioners to continue to reimburse the impact fee
for newly constructed affordable housing.
We look forward to further discussion on this important topic at our joint meeting
on September 25, 2008.
Sincerely,
Pamela S. Hemminger, Chair
Board of Education
C: Laura Blackmon
Neil Pedersen
Lincoln Center, 750 S. Merritt Mill Road • Chapel Hill, NC 27516-2878 • (919) 967-8211 • www.chccs.kl2.nc.us
G. Patrick Rhodes (919} 732-8126 Telephone
Superintendent (919) 732-8120 Fax
www.orange.kl2.nc.us
September 19, 2008
Mr. Craig Benedict, Director
Orange County Planning and Inspections I?epartrnent
306 F Revere Road, PO Box 8181
Hillsborough, NC 27278
Dear Mr. Benedict:
RE: School Impact Fees
The Orange County Board of Education held a discussion at their September 2, 2008 Board meeting regarding the
Draft School Impact Fees Report completed by TischlerBise. In response to the request for our Board to provide
comments pertaining to the report, I am providing dze following excerpt from the approved minutes of the
September 2 meeting:
Board members agreed by consensus to reply to the County Commissioners stating the Board of
Education supports the County Commissioners in all their efforts to fully fund our school district
Administration recommends the percentage of the maximum supportable impact fee remain at 56°/a
The Orange County Board of Education fully supports the Board of County Commissioners' efforts to fund the
Orange County Schools and supports the current impact fee levels. Please let me know if you need any additional
information.
Sincerely,
~. ~'
G. Patrick Rhodes
Superintendent
/pmc
cc: Orange County Board of Education ~Q$
~~ ~ SEp ~ 3 2
Attachment 7
~T
NOTICE OF PUBLIC HEARING
ORANGE COUNTY BOARD OF COMMISSIONERS
A public hearing will be held in the Judge F. Gordon Battle Superior Courtroom of the
New Orange County Courthouse, 106 E. Margaret Lane, Hillsborough, North Carolina, on
Monday, December 1, 2008, at 7:30 PM for the purpose of giving all interested citizens an
opportunity to speak for or against the following item:
1. Draft Educational Facilities Impact Fee Reports
Effective July 1, 1993, the Board of County Commissioners established a system of
impact fees to help recover a portion of the school capital needs created by growth in
the county. Since that date, an impact fee has been collected for each new housing unit
constructed or installed in the county, including single-family home, multi-family housing
units, apartments, and manufactured homes. Fees collected in each of the two school
districts within the county (Chapel Hill -Carrboro City Schools and Orange County
Schools) are deposited into separate special accounts and used exclusively for the
construction of new school facilities in the school district in which the fee was collected.
The impact fee supplements funds provided by the County from sales tax and property
tax revenues for school capital projects. The educational facilities impact fee presently
collected (last updated in 2001) in each district for each new residential unit is as
follows:
Adopted School Impact Fees (2001)
[NOTE: Fee levels were adopted at 60% of the Maximum Supportable Impact Fee (MSIF)
for CHCCS and 56% of the MSIF for OCS
Cha el Hill-Carrboro Schools Oran a Count Schools
Single-Family & Multi-wide
Manufactured Homes $4,407 $3,000
Multi-Family & Single-wide
Manufactured Homes $1,979 $1,420
The Board of County Commissioners employed a consultant to evaluate impact fee
levels and determine the maximum legally defensible fee for new development in each
of the school districts with the County to subsequently decide the maximum justifiable
fee it will to charge. The full draft reports (one for each school district) are available on
the Orange County website at: http://www.co.orange.nc.us/OCCLERKS/0809166dO.pdf
(Orange County Schools) and http://www.co.orange.nc.us/OCCLERKS/0809166dC.pdf
(Chapel Hill -Carrboro City Schools).
The 2007 Technical Reports determined the Maximum Supportable Impact Fees as
follows:
/5
2007 Stud Maximum Su ortable Im act Fees
Cha el Hill-Carrboro Schools Oran a Count Schools
Sin le-Famil Detached $19,039 $9,372
Sin le-Famil Attached $11,016 -
Multifamil $2,144 -
Single-Family Attached /
Multifamil
-
$2,905
Manufactured Homes $8,232 $4,463
The Board of Commissioners will consider whether or not to change educational
facilities impact fees following the December 1, 2008 public hearing. THE MAXIMUM
LEGALLY PERMISSABLE FEES CALCULATED IN THE REPORTS OF THE
CONSULTANT ARE NOT A PROPOSAL TO CHARGE THOSE LEVELS OF FEES.
The Board of Commissioners is currently considering a range of between $5,069
and $11,423 for a new single-family detached dwelling in the Chapel Hill -
Carrboro City Schools district and a range of between $3,000 and $5,623 for a
new single-family detached dwelling in the Orange County Schools district.
Impact Fees for other housing types would be set at the same percentage of maximum
supportable impact fee for the particular type of dwelling as the percentage set for
single-family detached dwellings. For example, if impact fees were to be set at 60% of
the maximum supportable impact fee for single-family detached dwellings, the impact
fee for a manufactured home would be set at 60% of the maximum supportable impact
fee for manufactured homes. Precise changes, if any, in the present fees will be
determined by the Board of Commissioners following public comment at the public
hearing and otherwise. In no event will educational facilities impact. fees be changed to
an amount or amounts that exceed the maximums determined by the 2007 Technical
Reports.
Purpose: To receive public comment on the Draft Educational Facilities Impact Fees
reports and the impact fee range under consideration.
Changes may be made in the advertised proposal that reflect debate, objections
and discussion at the hearing.
Accommodations for individuals with physical disabilities can be provided if the
request is made to the Director of Planning at least 48 hours prior to the Public
Hearing by calling the appropriate number listed below.
Questions regarding the proposal may be
Department located in .the Planning and
Hillsborough, North Carolina. Office hours
through Friday. You may also call 245-257
staff member who will answer your questions.
directed to the Orange County Planning
Agricultural Center, 306E Revere Road,
are from 8:00 a.m. to 5:00 p.m. Monday
i or 245-2585 and you will be directed to a
PUBLISH:
l~
News of Qrange Chapel Hill Herald
November 19, 2008 November 19, 2008
November 26, 2008 November 26, 2008