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Impact fees will be projected and allocated to each school system, although these fees may be <br />used to pay debt service. When impact fees are used to pay debt service, the equivalent <br />amount of the projected impact fee will be allocated to each school system. For the first three <br />years of the planning period (1997 -98, 1998 -99 and 1999 -2000) impact fees are dedicated to <br />the cost of the new schools. <br />Funding Levels <br />It is the intent of the Board of Commissioners to "hold harmless" School projects and <br />County projects as identified by the amount of funding projected in the 1996 -2006 Capital <br />Improvements Plan. To achieve this intention, the following funding options will be used: <br />The difference between the amount of general obligation debt service payments at <br />the peak year of the debt schedule and the actual debt service payment will be <br />earmarked for the Orange County Schools until the time that any shortfall that <br />would have been realized by that system is made up. <br />For County projects, beginning in 1998 -99 the equivalent of one cent on the <br />general fund property tax rate will be necessary. The Board of <br />Commissioners in adopting this policy instructed staff to identify other <br />funding options rather than a tax increase to make up this shortfall. The <br />Board of Commissioners may consider shifting the one cent capital reserve <br />fund to be dedicated to County projects (see Capital Reserve section below). <br />E. Capital Reserve <br />The capital reserve fund, established by the Board of Commissioners in 1995 -96 is <br />equivalent to one cent on the General Fund Property Tax Rate (not adjusted for the 1997 <br />revaluation of property but adjusted for revaluation of real property beyond the 1997 <br />revaluation.) This reserve will accumulate during 1996 -97 and 1997 -98 with these funds <br />used for site acquisition for schools and or recreation, or the combination of both. The <br />Board of Commissioners will evaluate this reserve fund during 1998 -99 to determine if <br />this one cent reserve should continue. <br />F. School/Parks/Recreation <br />It is the intent of the Board of County Commissioners to evaluate each new proposed <br />school in both School Districts for joint use to include park and recreation use. <br />Recurring Capital <br />40 Recurring capital for each School System will be based on the equivalent of three cents on <br />