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DocuSign Envelope ID:9141986F-1 B82-40FD-B364-5C818EBODBD6 <br /> As part of calculating the impact fees, costs may include the construction contract price; the cost of <br /> acquiring land, improvements, materials and fixtures; the cost for planning, surveying, and engineering <br /> fees for services provided for and directly related to the construction system improvement; and debt <br /> service charges, if impact fees are used to pay the debt service to finance the cost of the system <br /> improvements. Also included will be support buildings, vehicles, and equipment. <br /> Deliverable: Memoranda as appropriate; results will be included in the Impact Fee reports. <br /> TASK 8.DETERMINE THE NEED FOR CREDITS <br /> A consideration of "credits" is an integral part to the development of a legally valid impact fee <br /> calculation methodology. Often there is confusion about the definition of a credit and why it may be <br /> legally or equitably required. <br /> There are, in fact, two (2) types of credits, each with specific, distinct characteristics, but both of which <br /> will be included (or at least considered) in the development of all impact fees. The first is a credit due to <br /> possible double payment situations. This could occur when future contributions are made by the <br /> property owner toward the capital costs of the public facility already covered by the impact fee. This <br /> type of credit will be considered and incorporated into the fee amount, if necessary. The second is a <br /> credit toward the payment of an impact fee due for the required dedication of public sites and/or public <br /> improvements provided by the developer and for which the impact fee is imposed. This type of credit <br /> will be addressed in the ordinance that adopts the fee and is addressed during implementation. <br /> This task will calculate credits, as appropriate, to account for potential double payment by new <br /> development. <br /> Deliverable: Memoranda as appropriate; results will be included in the Impact Fee reports. <br /> TASK 9.CONDUCT FUNDING SOURCE AND CASH FLOW ANALYSIS <br /> In order to calculate the feasible capital improvements needs required by each school district over time <br /> as development occurs, it is important to evaluate the anticipated funding sources. Cash flow <br /> projections will be based on projections of new housing by type and district provided by Orange County <br /> Public Schools and confirmed as part of Section A, Tasks 1 and 2. In this subtask, we will prepare a cash <br /> flow analysis, which indicates the sources of funding, independent of impact fees. This calculation will <br /> allow the County and each district to better understand the various revenue sources available, including <br /> impact fees and the additional amount, which might be needed if the impact fees were not adopted or <br /> were discounted. It will also provide a good understanding of the cash flow needed to cover the capital <br /> facilities both for existing and new development. <br /> The initial cash flow analysis will indicate whether additional funds might be needed or whether the <br /> capital improvements schedule might need to be changed. This could also affect the total credits <br /> 7 <br />