THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, April 24, 1996 TAG: 9604240408
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY ANNE SAITA, STAFF WRITER
DATELINE: CURRITUCK LENGTH: Medium: 84 lines
If trends continue, Currituck County officials will need to come up with a half-million dollars more each year in school funding just to keep up with demand.
The escalating costs could mean a drop in the level of educational services or a continuous increase in local property taxes, unless other revenue sources are found,
That grim news was among the findings of a report released Monday night by Tischler & Associates Inc., a Maryland-based consulting firm hired to help the county finance growth.
``You're getting worse off. That's the point,'' Paul Tischler, a principal consultant, told Currituck commissioners and county staff at the Department of Social Services meeting room.
``The type of housing you're getting is not as expensive as you'd like it to be to get the revenues you'd like to get,'' he explained.
As a result, new residential units are placing more of a strain on county services - particularly schools - than revenue can be expected to meet.
The findings in Tischler's ``Impact of Revenue Alternative on Currituck County, N.C., Schools'' held few surprises.
Last week the Board of Commissioners went against the recommendations of a local legislator and decided to ask the General Assembly to approve impact fees, a new meals tax and higher land-transfer taxes in Currituck County.
Rep. Bill Owens, D-Pasquotank, told the county he'll draft the bills, but the requests don't stand a chance of getting approved during the General Assembly's short session that begins next month.
But county officials said they're willing to try anyway, and they hope Monday's figures help persuade state lawmakers to consider the alternative revenue sources.
``The justification for us is now in place,'' said Commissioner Owen Etheridge.
The Tischler report focused on three possible revenue sources for schools: instituting a $4,000 impact fee on new residences or setting aside 1 percent each from the county's land-transfer and occupancy taxes.
The alternatives were selected by commissioners at a meeting with Tischler consultants in January.
All three plans would help pay for school construction and other capital needs as more people move into the county.
Preliminary figures, based on population trends and school costs, indicate the best source is an impact fee, followed by the transfer tax. Using a portion of occupancy tax proceeds alone would not make up for the expected shortfall.
A school impact fee would be charged on all new dwellings to pay for extra space and services for children living in those houses. It could not be used to ease existing overcrowding.
The $4,000 figure for an impact fee was Tischler's projection, based on previous studies. A more precise amount would be mathematically formulated if the measure is allowed.
Such annual fees would be expected to generate between $846,000 and $1.1 million above costs during the next 10 years, according to the report.
Tischler also calculated a surplus of funds from a 1 percent land transfer tax that would be earmarked for schools.
Such a tax could net the county between $349,000 and $604,000 above costs for new students during the same 10-year period. That is a conservative estimate, Tischler said, since it includes only new properties and not resales.
Earmarking 1 percent of the occupancy tax for schools, on the other hand, is an uncertain source of income, depending as it does on the tourist market.
Another revenue source may be ``interim service fees.'' This one-time charge would be paid for by new homes constructed after Jan. 1 but not included on the county tax rolls until the following year.
Such a fee would be likely to generate $50,000 to $70,000 annually, said Dan Scanlon, the county's finance director.
``It's a user fee. It's not a tax,'' Tischler said.
The consultant said Currituck County is more fortunate than some localities blindsided by rampant growth.
``Can we head this off? Do we have the time element on our side, or are we against the bulkhead?'' Etheridge asked.
``You're ahead of the curve,'' Tischler responded.
A minute later he added, ``A half-million dollars a year just to maintain where you are with the schools, though, is not something to sneeze about.'' by CNB