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28 <br /> CHCCS School Impact Fee Report(DRAFT) <br /> Implementation and Administration <br /> ACCOUNTING <br /> Impact fees should be paid at time of building permit. Certain accounting procedures should be followed <br /> by the County. For example, monies received should be placed in a separate fund and accounted for <br /> separately and may only be used for the purposes authorized in the impact fee ordinance. Interest earned <br /> on monies in the separate fund should be credited to the fund. <br /> COST UPDATES <br /> All costs in the impact fee calculations are given in current dollars with no assumed inflation over time. <br /> Necessary cost adjustments can be made as part of the recommended annual evaluation and update of <br /> the fees. One approach is to adjust for inflation in construction costs by means of an index specific to <br /> construction as opposed to the consumer price index (CPI), which is more general in nature.TischlerBise <br /> recommends using the Marshall Swift Valuation Service, which provides comparative cost multipliers for <br /> various geographies and types of construction. The multipliers can be applied against the calculated <br /> impact fee. If cost estimates or other factors change significantly the County should redo the fee <br /> calculations. A full update is recommended every 3 to 5 years to reflect changes in development trends, <br /> infrastructure capacities, costs, funding formulas, etc. <br /> CREDITS I <br /> S„ re eve re ifs <br /> CHCCS impact fees are calculated using an incremental approach.This method documents current factors <br /> and is best suited for public facilities that will be expanded incrementally in the future. Because new <br /> development will provide front-end funding of infrastructure, there is a potential for double payment of <br /> capital costs due to future principal payments on existing debt for public facilities. A credit is not necessary <br /> for interest payments because interest costs are not included in the fees. This type of credit is <br /> incorporated into the CHCCS impact fees due to outstanding debt on CHCCS school capacity expansions <br /> and land acquisition. <br /> Site-Specific Cre iis <br /> A site-specific credit should be considered for contributions of system improvements that have been <br /> included in the impact fee calculations. If a developer constructs the type of system improvements <br /> included in the fee calculations, it will be necessary to either reimburse the developer or provide a credit <br /> against the fees for that portion of the fee. The latter option is more difficult to administer because it <br /> creates unique fees for specific geographic areas. Based on TischlerBise's experience, it is better for the <br /> County to establish a reimbursement agreement with the developer constructing the system <br /> improvement.The reimbursement agreement should be limited to a payback period of no more than 10 <br /> 21 <br />