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214 <br />John Link mentioned that both systems will receive $242,000 for unanticipated <br />middle school start-up costs. Each system must absorb the remainder of the cost for <br />capital needs. <br />Chair Carey stated that he was hearing several different suggestions for <br />funding. Funds could be raised on a countywide basis, a district wide basis and/or <br />through the use of the impact fee. The inference is that the Board of Commissioners <br />should be the ones to figure out how to raise the start-up costs without a sense of <br />consensus from this group. He suggested that the Orange County School Board explore <br />what the current feeling is in the community regarding a district tax. <br />Keith Cook indicated that his concern is that a process be developed so that <br />money will be available when it is needed. If that requires a tax, then he would <br />support that idea. <br />Commissioner Halkiotis mentioned that a Public Hearing on the Impact Fee is <br />scheduled on March 21st. <br />IMPACT FEE: <br />Commissioner Gordon stated that there is a need to have an impact fee. <br />Residential development should pay a portion of the cost of new schools. Residential <br />development generates new capacity for residents which in turn leads to more <br />students. The other reason for the Impact Fee is to generate pay-as-you-go-funds. <br />For those two reasons, she feels that the Impact Fee is the correct way to go. <br />Keith Cook indicated that he agreed with most of Commissioner Gordon's <br />comments. However, he felt that those residents who move within the County should <br />not have to pay the Impact Fee twice. <br />Mary Bushnell stated that the Towns of Chapel Hill and Carrboro have been asked <br />to include the schools in courtesy reviews for new housing development so that the <br />ramifications of new development for the school system can be anticipated. <br />Commissioner Halkiotis stated that he felt that setting the impact fee at <br />$750.00 was a good, first time effort. However, he would like to see it increased, <br />possibly with a sliding scale, so that it is more equitable. <br />Commissioner Willhoit mentioned that the Board of Commissioners have voted to <br />ask the towns to do an impact analysis for new developments. One of the flexible <br />options that is being considered is affordable housing. This option would mean that <br />when a subdivision is being planned, it would be required to include a certain number <br />of small homes of approximately 1000 sq. ft. The sliding scale for the Impact Fee <br />looks like a good idea, however, it involves an incredible amount of work. If <br />considered, it would need to be phased in so that the Planning Staff could handle the <br />increased work load. <br />Mark Royster suggested that the issue of equity could be addressed by allowing <br />residents to request exemptions from an Impact Tax based on income. <br />Commissioner Willhoit indicated that allowing exemptions would create a <br />hardship for the-,County because the tax would have to be collected from everyone and <br />the subsidy would then have to come from the County's general fund. <br />Bob Bateman indicated that the Orange County School Board will discuss the <br />Impact Fee and send a letter to be read into the record at the Public Hearing on the <br />21st. <br />Susan Dovenbarger commented that the impact of a new dwelling needs to be the <br />determining factor which is best addressed through a tax. She also mentioned a <br />concern for long term residents who move to another part of the County and do not <br />increase the impact on the schools. That needs to be addressed within this system. <br />Geof Gledhill indicated that an impact fee is considered to be a development <br />exaction. The courts have said that there must be a rational nexus between the <br />impact of the development and the fee that is being charged. There must also be