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Randy Copeland said that, from what he is hearing, the OCS would be a net loser either way regarding the Cedar Ridge debt. Donna Dean said that before the 1996 policy was adapted, the CHCCS was in a very similar position with McDougle Elementary. Randy Copeland asked, if the County assumed to take over that debt from CHCCS, why it would be imposed on the OCS. John Link said that there was an agreement in 1996 in which the OCS requested that, in order to get Cedar Ridge High School built, they would pay about half of the debt service using their pay-as -you-go funds. Chair Carey said that this is a classic example of the difficulty with the old policy, which lends itself to this kind of misunderstanding. Commissioner Gordon said that it occurred to her that one difference has to do with where the impact fees are counted. In the older version, the impact fees were counted at the school district level, and in this new policy it is counted at the top of the debt service level. She asked about this. Donna Dean said that it makes the formula simpler by dedicating those fees to repay debt service. If the Public School Building Funds are dedicated to debt service, it should alleviate them being pulled away by the State. Rod Visser said that impact fees that are collected by the County or the towns are accounted far in an impact fee trust fund for the school systems and Finance Director Ken Chavious makes a transfer out of those trust funds to make sure that it covers the debt service. Commissioner Gordon said that she recalls for CHCCS High School #3 that a lot of the impact fee revenue between now and when the school comes online is earmarked. She thinks there was around $17.5 million of debt service and the rest was to be paid for by pay-as-you-go funds including impact fees. She asked if this was correct. Donna Dean said that she does not have that spreadsheet with her but that $6 million was dedicated from previously collected impact fees to go towards the high school. She believes they were dedicating for at least two years, $1.6 million each year. She could not remember if it is any longer than that. Commissioner Jacobs asked that Rod Visser explain appendix 11 for the school boards. Rod Visser said that one of the things that was clear as he reviewed the documents from 1995-1997 was that the need for additional high school space in OCS was emerging at that time. In April 1996, both school systems made presentations at the Board of County Commissioners' work session about their needs. In early 1997, it was clear that there would be a need for a new high school. The Capital Needs Task Force considered two options -full funding of the new high school or for funding half of it {$12.5 million) through bonds and the other half through pay-as-you-go funding through the OCS. Lisa Stuckey said that she was on that task force and they took a tour of facilities across the County. She was appalled at the ways that Orange High was trying to fit everything into a cramped space. There was a lot of discussion about the funding scenarios. There was a strong feeling that there should not be a tax increase to fund the high school. Rod Visser said that the task force's specific recommendation to the County Commissioners was $12.5 million from general obligation bonds and the remaining from pay-as- you-go funding from OCS. This was the option that OCS had requested. Libbie Haugh said that the paying back and the tying up have become more than cumbersome for OCS. She said that, just like with CHCCS, when the County figured out how to make it easier for the CHCCS with McDougle to run the school system and also deal with the debt, they are asking far the same courtesy. She anticipates that this will happen. She thinks the mast important thing is to see if there is a different alternative to what is in place currently. Lisa Stuckey asked about the 10th year impacts and it was answered that this was on the cumulative sheet. Lisa Stuckey asked Donna Dean why options 5A, 5B, and 5C were $20 million less annually. John Link said that one major concept is that the OCS is getting less revenue because they are still paying off Cedar Ridge, and the County is receiving more revenue because they do not have as much debt.