GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	1 

SENATE BILL 602

Short Title:  Wake Impact Fees.	(Local)
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Sponsors: Senators Johnson of Wake; and Speed.
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Referred to:  Finance.
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March 22, 1989

A BILL TO BE ENTITLED
AN ACT TO PROVIDE FOR THE AUTHORITY FOR THE WAKE COUNTY BOARD OF COMMISSIONERS TO ENACT AN ORDINANCE IMPOSING IMPACT FEES.
The General Assembly of North Carolina enacts:
Section 1.  There is hereby added a new Part 6 to Article 18 of Chapter 153A of the General Statutes to read:
“Part 6.  Impact Fees.
"§ 153A-378.  Impact fees authorized.
(a)	The board of commissioners of a county may provide by ordinance for a system of impact fees to be paid by developers to help defray the costs of the county of constructing certain capital improvements, the need for which is created in substantial part by the new development that takes place within the county.
(b)	For purposes of this Part, the term ‘capital improvements' includes any purpose outlined in G.S. 159-48(b) and (c)(1) through (c)(4).
(c)	An ordinance adopted pursuant to authority contained in this Part may be made applicable to all development that occurs within the county.
"§ 153A-378.1.  Amount of fees.
In establishing the amount of any impact fee, the county shall endeavor to approach the objective of having every development contribute to a capital improvements fund an amount of revenue that bears a reasonable relationship to that development's fair share of the costs of the capital improvements that are needed in part because of that development.  In fulfilling this objective, the board of commissioners shall, among other steps and actions:
(1)	Estimate the total cost of improvements by category (e.g. schools, public recreation facilities, etc.) that will be needed to provide in reasonable manner for the public health, safety and welfare of persons residing within the county during a reasonable planning period not to exceed 20 years.  The board of commissioners may divide the county into two or more districts and estimate the costs of needed improvements within each district.  These estimates shall be periodically reviewed and updated, and the planning period used may be changed from time to time.
(2)	Establish a percentage of the total costs of each category or improvement that, in keeping with the objective set forth above, should fairly be borne by the property charged with the fee.
(3)	Establish a formula that fairly and objectively apportions the total costs that are to be borne by those properties charged with impact fees among various types of developments.  By way of illustration, but without limitation, in the case of improvements to schools, the impact fee may be related to the size of the development, i.e., number of houses, and the anticipated number of students expected from said development according to recognized estimates, the impact thereof on the need for additional school facilities in the county.
"§ 153A-378.2.  Capital improvements reserve funds; expenditures.
(a)	Impact fees received by the county shall be deposited in a Capital Improvements Reserve Fund.  Such funds may be expended only on the type of capital improvements for which such impact fees were established, and then only in accordance with the provisions of subsection (b) of this section.
(b)	In order to ensure that impact fees paid by a particular development are expended on capital improvements that benefit that development, the county may establish for each category of capital improvement for which it collects an impact fee at least two geographical districts or zones, and impact fees generated by development within those districts or zones must be spent on improvements that were located within or that benefit property located within those districts or zones.
"§ 153A-378.3.  Credits for improvements.
An ordinance adopted under this act shall make provision for credits against required fees when a developer installs improvements of a type that generally would be paid for by the county out of a capital reserve account funded by impact fees.  The ordinance may spell out the circumstances under which a developer will be allowed to install such improvements and receive such credits.
"§ 153A-378.4.  Appeals procedure.
An ordinance adopted under this act may provide that any person aggrieved by a decision regarding an impact fee may appeal to a designated county board.  If the ordinance established such an appeal procedure, it shall spell out the time within which the appeal may be taken, the possible grounds for an appeal and the board's authority in the matter, whether the fee must be paid prior to resolution of the appeal, and other procedural or substantive matters related to appeals.  Any decision by the board shall be subject to review by the superior court within the county by proceedings in the nature of certiorari in the manner as is provided in G.S. 153A-345(e).
"§ 153A-378.5.  Payment of impact fees.
An ordinance adopted under this Part shall spell out when in the process of development approval and construction impact fees shall be paid and by whom.  By way of illustration, and without limitation, the ordinance may provide that an applicant for a building permit shall submit the impact fee along with the permit application and that building permits shall not be issued until the impact fee has been paid.
"§ 153A-378.6.
If this Part or any ordinance adopted hereunder is declared to be unconstitutional or otherwise invalid by any court of competent jurisdiction, then any impact fees collected thereunder shall be refunded to the person paying them together with interest at the same rate paid by the Secretary of Revenue on refunds for tax overpayment.
"§ 153A-378.7.  Limitation on actions.
(a)	Any action contesting the validity of an ordinance adopted pursuant to this Part must be commenced not later than nine months after the effective date of such ordinance.
(b)	Any actions seeking to recover an impact fee must be commenced not later than nine months after the impact fee is paid.
"§ 153A-378.8.  Repealer.
All laws and clauses of laws, public and local, in conflict with this Part are hereby repealed."
Sec. 2.  This act applies to Wake County only.
Sec. 3.  This act is effective upon ratification.