AG 1999 06 21 - Laserfiche WebLink

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development is located. Based on a projected growth rate in county housing units of 3.39 percent, planners have-estimated that the fee will raise as much as $6.4 million in revenue over the next five yearsB$2.2 million for the Orange County Schools end $4.2 million for the Chapel HilI-Carrboro Schools. The revenues may be used only to fund capital improvements for schools for land acquisition; site development; building construction; design, engineering, and legal fees; equipment and furnishings; and related infrastructural improvements. Orange County is the first North Carolina local government to introduce an impact fee ..designed to fund schools and the first county to use its' regulatory power to impose impact fees to fund public facilities other than utilities. The purpose of this article is to review the events that led to the adoption of such a fee, analyze the fee and the methodology for calculating it, and review the legal issues that arise when impact fees are used to finance public facilities. Historical Background Discussions in Orange County and its municipalities about the possible use of development fees and taxes to finance public facilities began a decade ago. Rapid population growth and the need for expanded public facilities to serve this growth caused elected officials to consider both impact fees, which must be expended to benefit those who generate the need for new public facilities, and impact taxes, which are subject to far fewer restrictions. Since 5,256. The Chapel HilI-Carrboro Schools currently comprise one senior high school, two middle schools, and six elementary schools. The Orange County system includes one senior high, two middle schools, and four elementary schools. 8o!.h units receive the same per pupil funding from the county. However, the residents in tl~e Chapel Hill-Carfooro unit have voted to pay a supplemental tax of up to an additional 15.75 cents per $100 assessed value. 24