Affairs which properly concern us

French poet Paul Valery once said,

"Politics is the art of preventing people from taking part in affairs which properly concern them."

We know all too well how true this is in the Federal Government. The whole “Crashing the Gate” concept is built around tearing down walls between regular citizens, our elections and our government. That, however, is not the only place we are prevented from “taking part in affairs which properly concern us.”

In no political arena is Valery's anecdote truer than in North Carolina counties where populations are multiplying, water supplies are thinning, schools are bursting at the seams and other services are either held together with duck tape and bailing wire, or held up by credit.

Local regulation, building ordinance and infrastructure is local government’s burden. It doesn’t appear on the surface to be a statewide issue, but it is. Local government is fiscally handcuffed by NC law. Local governments in North Carolina have one revenue generating tool in their box -- property tax increases. All other means of raising money have to go through the State Legislature; impact fees, transfer fees, sales taxes, etc. Counties that surround high growth cities like Raleigh and Charlotte find themselves in particularly tight spots under this system of management. These counties are growing at alarming rates.

According to a United VanLines study, it seems everyone is coming to NC.

And most of those “everyones” are coming to a double hand full of counties in NC. Union County, NC is the fastest growing county in NC and one of the fastest growing county in the nation. Johnston County, NC is the 4th fastest growing county in the state, and one of the fastest growing in the nation. Both counties have some industry, but for the most part, we are “bedroom communities” full of workers who drive 0.5 to 1.5 hours to work every day; Union for the banking & financial services industry in Charlotte, Johnston for the pharmaceutical and engineering research and development industry of Research Triangle Park. It is services and infrastructure in these bedroom community regions that are buckling under the strain.

NC County Commissioners, as a group, recently requested more money raising options from the NC Legislature. A special NC House committee has its recommendations in the matter:

Last week, the House Select Committee on Public School Construction Needs scrapped from its draft report a proposal that county commissioners be authorized to impose impact fees and adequate public facilities fees on developers along with real estate transfer taxes on property owners.
"I don't think we should pull out one particular group of folks and say, 'OK, you're going to be responsible for schools,'" said Rep. Julia Howard, R-Davie, who made the motion to strike the fees and taxes from the committee's recommendations.

A request to give local governments the full tool kit of options they require for addressing “the affairs that properly concern them” has been slashed. They recommend giving County Commissions only one additional option -- a half cent sales tax.

That is horse hooey.

Rapidly growing counties NEED the option by right to levy impact fees when new growth strains school, water and sewer capacities. They need an option by right to levy transfer fees when growth is so rapid that sewer spills, educational cottages and water restrictions are the rule rather than the exception. For Union, Johnston, and several other counties across NC, it just makes good old fashioned common sense to spread the responsibility for building public facilities out to all citizens. Yet all we get from the Lege is a half cent sales tax. Pfft. That’s like throwing a drowning woman flippers and a snorkel.

Come on, guys, gals, wake up. Break’s over. Shake the cobwebs out.

It is not every resident who causes the need for rapid infrastructure expansion. It is RAPID GROWTH which causes the need for RAPID EXPANSION. Growth should pay for that expansion – fair and square, plain and simple. Why, oh why, is simple logic so hard for smart people to understand?

But there they sit up in Raleigh, (working hard, no doubt), while out here in the provinces local governments are sending urgent distress signals and all the Lege can do for them is a half cent sales tax?

My, my, my, but money waved under the political schnozzle does cloud the brain, does it not? To be sure, the big money got what it wanted. Campaign coffers were very generously lined with Realtor and Homebuilders Association dollars in 2006. Indeed, I would venture to guess that it is times like these that make politicians quite happy to be in politics.

Yes, little people, the Lege looked at the spreadsheets and determined that us little folks just do not add up to much. You see, the money men make themselves useful. You could take lessons from them. They dump truckloads of Benjamins in Legislative laps while us little people do what? – vote? Pssh. Yeah ... in two years. Who the heck will remember this issue in two years?

Well, Lege, I don’t know the answer to that, but here's a hint: the problems created for local governments are not going away any time soon. I'll even stick my fat little neck out and say those problems will still be here, in spades, in a year and a half. I can tell you this straight out, though – us little folks far outnumber big money and yes, we do indeed vote. I’ll tell you this, too. We’re tired of voting on bonds for necessities we knew we would need ten years ago. In fact, we’re sick and tired of it. Oh, we'll keep passing them. You've got us over a barrel and you know it. Our kids have to be educated and we still need schools. But we're just going to get madder and madder about it. Sure, bond interest rates are low – so? The bonds we sell are enormous. Low interest rates on hundreds of millions of dollars adds up to millions of dollars of tax money going straight to a banker’s profit sheet. That’s millions of dollars that is NOT going towards building schools or parks or water facilities or sewer plants or anything else we and our children can use.

A sales tax? Adding a half cent sales tax is a last resort option. It is fine as a temporary measure in a budgetary emergency, but it should go away once the dire need that instigated the tax is remedied. In one swoop of the pen, the NC Senate made an additional sales tax a County Commission’s only option. And please ... speaking as a single parent who earns below the median NC income, don’t even get me started on sales taxes. No matter how slight, additional sales taxes require that some of us who already spend all our money on necessities now spend even more on those same necessities. Why is it that some people define “truly fair” as making sure the littlest, poorest of us get the shortest end of whatever stick is being fought over?

At the risk of being redundant:

"Politics is the art of preventing people from taking part in affairs which properly concern them."

Comments

Don't mean to post and run

but I've got a meeting up the road. I'll be back.

"They took all the trees and put them in a tree museum Then they charged the people a dollar 'n a half just to see 'em. Don't it always seem to go that you don't know what you've got till it's gone? They paved paradise and put up a parking lot."

It is not every resident who

It is not every resident who causes the need for rapid infrastructure expansion. It is RAPID GROWTH which causes the need for RAPID EXPANSION. Growth should pay for that expansion – fair and square, plain and simple. Why, oh why, is simple logic so hard for smart people to understand?

I think most people understand. It's just up until now they really didn't care. Now that so many high-growth counties are in even more of a bind because of that growth, more people are starting to care. They'll sleep through the first wave or two of bonds since they weren't that common in the past. Now they're coming one after another and taxes are skyrocketing, they're waking up. The realtors and homebuilders snuck a lot past everyone, but it's not going to be so easy anymore.

agreed

I think most people do understand. Its frustrating to watch them act like they don't, though.

SP - I didn't see your post before I threw mine up this morning. My bad. Good conversation going on over there! :)

"They took all the trees and put them in a tree museum Then they charged the people a dollar 'n a half just to see 'em. Don't it always seem to go that you don't know what you've got till it's gone? They paved paradise and put up a parking lot."

Funny

When I saw your post, I thought to myself, "Doh! Same subject and hers is a lot better."

Short Sighted on Ms. Howard's Part

"I don't think we should pull out one particular group of folks and say, 'OK, you're going to be responsible for schools,'" said Rep. Julia Howard, R-Davie, who made the motion to strike the fees and taxes from the committee's recommendations."

I have to disagree with Ms. Howard. The people who create the need are exactly the people who should be funding it. Not the current property owners, not the developers, not the current citizens, and most assuredly not the future generations who will be paying off the bonds long after we're dead.

property taxes

property taxes are paid by everyone to pay for schools. (we can talk about that goat fuck later). however, they only pay for maintenance of preexisting schools. in other words, operating budget. Current property tax levels are never going to cover new, predictive, growth of a school system expanding its classroom capacity.

unique, you are exactly right in saying that the burden of paying for new schools should be placed with those who cause the funding problem. just accuse ms. howard of being a communist. you will get the impact fees.

Draft Brad Miller -- NC Sen ActBlue :::Petition

"Keep the Faith"

Developers should pay, too.

The people who create the need are exactly the people who should be funding it. Not the current property owners, not the developers, not the current citizens, and most assuredly not the future generations who will be paying off the bonds long after we're dead.

Yes, the developers, they surely profit from it. They promote the growth, and they lean on local officials not to regulate growth.

I absolutely agree with the rest of your points.

What I Mean -

What I mean by 'not the developers' is that I don't believe they should bear the entire burden themselves. In other words - they shouldn't have to 'eat it'.

That's why the fees need to be reasonable; if they're too high the fees reach a point where they can't pass it forward - where it needs to be.

I say this because they do contribute to the economy in positive ways. Besides buying land they hire people, they buy tools and materials (hopefully they buy locally), and some other things that slip my mind right now.

That's how they make their living - that's what they do.

That's why I think it's important for them to be involved in helping develop a comprehensive plan. If it's done right and with forethought it can make their jobs easier and the process they go through more efficient.

It helps keep taxes in line with actual community benefit. People don't mind paying for tangibles. They mind paying for other people's tangibles with no benefit to themselves.

The information is out there. What works - what didn't work - what almost worked ... it just doesn't happen over night.

Is Cabarrus County not acting within the law?

According to your post our local County here is doing something that's against NC state law?

Cabarrus County is one of those "exploding" suburb counties next to Charlotte.
In Cabarrus County every developer has to pay a fee of $4,034 per home in a new subdivision, under the county's "adequate public facilities ordinance".
I would consider that an impact fee no?

Cabarrus County had a six-month moratorium on new subdivisions that ended in 2005. It led to tough new development rules.

Developers pay the per-house fee under the ordinance, based on the county's estimate of the costs of schools and other improvements made necessary by residential growth.

Our County Commissioners (all republicans) are probably even going to raise that fee to more than $6000 per house.
The county commissioners have not voted on increasing the per-house fee yet, but county planners presented a consultant's growth trends report recently showing the cost of school capital projects.

Considering capital costs per student, the report suggests a "feasible" per-house fee of $12,425. But the county commissioners historically have asked developers to pay half of the cost, which would be approximately $6,212.

Left on 49

Cabarrus Democrats

Most Likely -

Most likely these fees do not follow the letter of the law but by calling it something else it creates a loop hole that allows them to do what needs to be done by calling it something else.

I had a discussion with a gentleman after our county meeting who told me essentially the same thing - and it was in a county that wasn't experiencing rapid growth.

Imagine that.

APFO

Adequate Public Facility Ordinances are legal but have not been tested in the courts. Impact Fees require legislative approval (allowing the General Assembly to micro-manage your home town). APFOs are similar but different. Authority for them is implicit but not explicit. Cabarrus has had an APFO since 1998. Jurisdictions with APFOs generally have a Unified Development Ordinance which provides context and a legal basis and apply standards to a range of public facilities.

UNC Institute of Government explains: Adequate Public Facility Criteria: Linking Growth to School Capacity

Henderson County Board of Commissioners had a good overview in their August meeting

In the Charlotte area a group called the The Real Estate and Building Industry Coalition (REBIC) has been active in fighting AFPOs and Impact Fees and anything else that might actually help growth pay for itself.

Counties should be relieved of the obligation to pay a portion of Medicaid and should be given authority to select revenue sources from a menu of local funding options to best meet their needs. Property tax and sales tax shouldn't carry the heavy load. Actually your cell phone account has a tax that goes to the county. Why not other innovative sources that track the burdens?

But what worries me...

Counties should be relieved of the obligation to pay a portion of Medicaid

What worries me is that the Leg. might say, "fine, we'll relieve you of Medicaid obligations, but now you'll have to start funding roads."

Yikes!

That would halt growth in a big fat hurry.

LOL

Indeed it would halt growth. It might even inspire some light rail advocates, too. ;)

Thanks for the input, everybody. I'm still learning the ins and outs and the language of growth management and planning boards. Good stuff.

"They took all the trees and put them in a tree museum Then they charged the people a dollar 'n a half just to see 'em. Don't it always seem to go that you don't know what you've got till it's gone? They paved paradise and put up a parking lot."

Cabarrus

has obviously gotten permission from the Lege to levy those fees.

By right, a local government cannot levy any tax save property tax. BUT they can ask the Legislature to allow them special permission to levy other fees and taxes. To do that, the county has to have a Legislator willing to sponsor a local bill and get it through both houses. If a county commission can't get buy in on those additional taxes from a NC Representative or NC Senator, they can't do anything. That's where we in Johnston find ourselves.

"They took all the trees and put them in a tree museum Then they charged the people a dollar 'n a half just to see 'em. Don't it always seem to go that you don't know what you've got till it's gone? They paved paradise and put up a parking lot."

APF

I'm not an expert, but I think towns and counties do have the ability to enact adequate public facilities ordinances. They require adequate public facilities be in place or funded before a new project can be approved.

There are some differences between AFPO's and impact fees. With an impact fee you must pay the fee. With an AFPO, if the public facilities are adequate, you can build. So, if a developer wanted to build a big project, they could wait until a new school is built and then apply for the project once there are more seats available. With an impact fee, you're always paying your fair share regardless of the current state of public facilities.

AFPO's have been upheld in the courts, but they are also not specifically authorized by the legislature either.

Additionally, there are fairly high implementation and administration costs for AFPO's as they are supposed ot be a good faith effort to continually evaluate the adequacy of public facilities, associated costs, and the impact a new development would have on them.

Good info

I like the sound of APFOs. They seem to be the sort of thing the housing industry would fight hardest against, though. Still, an APFO doesn't really address the problem of finding the hundred million + dollars we need now for building infrastructure and schools that we needed yesterday. But, I guess you can't have everything. I'd be very happy with baby steps in the right direction.

"They took all the trees and put them in a tree museum Then they charged the people a dollar 'n a half just to see 'em. Don't it always seem to go that you don't know what you've got till it's gone? They paved paradise and put up a parking lot."