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Given the assumptions used {student population projections), the countywide tax increase would be about 17 cents per hundred dollar-assessed valuation if a merger were pursued to take effect July 1, 2005. The report also talks about some of the capital and SAPFO implications. There would need to be some revisions to the SAPFO and the impact fee technical report to change the student generation rates that affect the maximum impact fees that can be charged. If merger did occur, the combined student projections for both school systems could cause a potential delay in opening some of the planned new schools in the next ten years. Rad Uisser said that there are other approaches to equalize funding including a countywide supplemental tax and a phase out of the Chapel Hill-Carrboro district tax, increasing the County's general fund tax rate, and creating and implementing a special district tax in the Orange County school system only. The district tax would require a majority vote. Commissioner Gordon said that one of the things in the last slide was the hypothetical OCS district tax. In year one, it requires mare in the County system, but in year ten, it is less. She said that 62°~ of students in the County are in the Chapel Hill- Carrbora schools and 3$% are in Orange County schools. Regarding tax revenue, 64°~ tames out of the Chapel Hill-Carrboro district and 36% from the Orange County district. She asked if the staff were projecting that 64°~ of the revenue was coming from the Chapel Hill-Carrboro district as it is now and 36% from the County. Rod Uisser said yes. Commissioner Gordon asked why the OCS district tax would have to be 22 cents versus the CHCCS district tax of 20 cents. Rad Uisser said that the figure of 22.4 cents assumed that there would be a revaluation. Commissioner Gordon said that they received supplemental information from the CHCCS board last night, 20~" day membership figures for both school systems, and she would like for all to get a copy of that. Flicka Bateman asked if you have a merged school system and new facilities come in line, where would they be located. She asked about the implications for the rural buffer. Chair Brown said that in their capital-planning pipeline, there is the third high school in Chapel Hill, another middle school for Orange County, and the elementary school for Chapel Hill. These schools will be built as planned, but they do not know about the other schools. Commissioner Carey said that he knows there is speculation that the rural buffer would be invaded. A merged system does not affect current land use plans and the Board of County Commissioners does not have any future plans to change the permitted uses in the rural buffer. He thinks that regardless of whether there is merger or not, there is going to be continued growth in this County. If elected officials stick by their decisions about what's possible in the rural buffer, then we do not have to worry about schools invading the rural buffer. Jim VIlard asked about the impact of school merger on property values. He thinks there are two wonderful school systems. The general perception is that the CHCCS is one of the top ten in the nation and is a magnet far people moving into the community. If merger goes poorly or is perceived to go poorly, it may have impacts on property value. If merger goes well, there may be tremendous growth throughout the County. Chair Brown said that it mayor may not have an impact. She said that our land use planning is firmly in place as well as the joint agreements for the rural buffer.