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2 <br /> • Zero base budgeting and reduced school administration costs should be <br /> used as means to reduce overall costs and provide funding for schools. <br /> • Housing costs are up due ((primarily to increased lumber and labor costs. <br /> Fee is not equitable, since up to 50% of new homes are built for existing <br /> residents. <br /> • A$1,500 impact fee means an additional$1,500 in interest payments if <br /> the fee is paid for through a loan. <br /> • Impact fees are simply q means of growth control, not a means of <br /> financing school capital needs. <br /> • Pursue real estate transfer tax as means of financing school capital needs <br /> instead of impact fees. <br /> • Consider increasing impact fee in Chapel Hill-Carrboro School District on <br /> an interim basis until the Technical Report is updated. <br /> Options. The Board of Commissioners may choose from among the following <br /> options: <br /> • Keep public school impacti fees at their current levels; e.g., $750 in both <br /> the Orange County and Chapel Hill-Carrboro School Districts, at least <br /> until completion of the updated Technical Report and the sliding scale of <br /> fees; or <br /> • Increase public school impact fees(as advertised)in both School Districts <br /> to$1,500; or <br /> • Differentiate between School Districts by keeping the impact fee at$750 <br /> in the Orange County system and increasing the fee to $1,500 in the <br /> Chapel Hill-Carrboro system. <br /> One basis for differentiated fees may be the positions of the two School Boards. <br /> The Chapel Hill-Carrboro School Board supports the fee increase, whereas the <br /> Orange County School Board does not (see attached correspondence). <br /> Another basis for such differentiation may be the types of housing units being <br /> constructed in the two School Districts. However, housing type must be related <br /> to numbers of school age children per dwelling unit (by type), and data to <br /> accomplish this is absent. <br /> A final basis for differentiating between the two School Districts may be the <br /> identified need.The Chapel Hill-Carrboro system has an identified need for three <br /> new schools (e.g., elementary, middle, and high school) whereas the Orange <br /> County system has an identified need for only an elementary school. <br /> RECOMMENDATION: As the Board decides. <br /> f <br /> I <br />