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53 <br /> OCS Schools Impact Fee Report(DRAFT) <br /> flexibility in providing future capacity improvements. Under this methodology, the fees are based on <br /> current LOS and project costs for each type of school facility(i.e., elementary, middle, and high), support <br /> facilities, portable classrooms, and buses. . Land for school sites is not a component of the fee, since the <br /> draft 2016 Orange County, NC Schools Adequate Public Facilities Ordinance Annual Report indicates <br /> "renovation and expansion to existing facilities may delay construction of new schools further into the <br /> future."' Therefore, new land acquisition is not required at this time. The LOS is documented and the <br /> intent is to use fee revenue to provide additional or expanded public school and related facilities as <br /> needed to accommodate new development. <br /> The current LOS and capital costs for new or expanded facilities are used to derive a cost per student for <br /> each type of school facility. Using the cost per student and the average OCS student generation rate by <br /> type of unit, a cost by type of residential unit is derived.The term "student generation rate" refers to the <br /> average number of public school students per housing unit in the OCS system. Further discussion on <br /> student generation rate calculations is provided in the body of this report and in Appendix A. <br /> A general requirement common to impact fee calculations is the evaluation of credits.Two types of credits <br /> should be considered, future revenue credits and site-specific credits. Revenue credits are necessary to <br /> avoid potential double payment situations arising from the payment of a one-time impact fee plus the <br /> payment of other revenues that may also fund growth-related capital improvements. Revenue credits are <br /> dependent upon the fee methodology used in the cost analysis. To avoid this potential double payment <br /> situation,future revenue credits are integrated into the fee to account for outstanding debt on OCS school <br /> facilities.A credit is necessary since new residential units that will pay the fee will also contribute to future <br /> principal payments on this remaining debt through property taxes. A credit is not necessary for interest <br /> payments because interest costs are not included in the costs. <br /> The second type of credit, a site-specific credit, is for system improvements that have been included in <br /> the fee calculations. Policies and procedures related to site-specific credits for system improvements <br /> should be addressed in the ordinance that establishes the County's impact fees. However, the general <br /> concept is that developers may be eligible for site-specific credits or reimbursements only if they provide <br /> system improvements that have been included in the fee calculations. Project improvements normally <br /> required as part of the development approval process are not eligible for credits against impact fees. <br /> MAXIMUM L SCHOOL IMPACT <br /> Figure 1 provides the schedule of maximum supportable school impact fees for OCS in Orange County, <br /> North Carolina. For a single-family detached housing unit, the maximum supportable fee amount is <br /> $12,044 for a 0-3 bedroom unit, $8,952 for a 4+ bedroom unit, and $3,317 for a unit that is less than 800 <br /> square feet; for a single family attached unit,the fee is$3,665 for a 0-2 bedroom unit and $5,558 for a 3+ <br /> bedroom unit; for a multifamily unit, the fee is $2,656 for a 0-2 bedroom unit and $20,677 for a 3+ <br /> bedroom unit; and for a manufactured home, the maximum fee amount is $8,127 per unit. Additionally, <br /> 3 SAPFOTAC,2016 Orange County,NC Schools Adequate Public Facilities Ordinance(draft),p.iii. <br /> 2 <br />