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9 <br /> CHCCS School Impact Fee Report(DRAFT) <br /> Maximum supportable school impact fees for CHCCS are derived using the incremental expansion <br /> approach. For school capital improvements, the most common methodology employed is typically the <br /> incremental expansion method when future capacity needs are anticipated.This approach allows for the <br /> greatest flexibility in providing future capacity improvements. Under this methodology,the fees are based <br /> on current LOS standards and project costs for each type of school facility (i.e., elementary, middle, and <br /> high), support facilities, portable classrooms, and buses. Land for school sites is not a component of the <br /> fee, since the draft 2016 Orange County, NC Schools Adequate Public Facilities Ordinance Annual Report <br /> indicates "renovation and expansion to existing facilities may delay construction of new schools further <br /> into the future."3 Therefore, new land acquisition is not required at this time. These LOS standards are <br /> documented and the intent is to use fee revenue to provide additional or expanded public school and <br /> related facilities as 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 CHCCS 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 CHCCS 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 CHCCS <br /> school facilities. A credit is necessary since new residential units that will pay the fee will also contribute <br /> to future principal payments on this remaining debt through property taxes. A credit is not necessary for <br /> interest 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 E SCHOOL I CT FEES <br /> Figure 1 provides the schedule of maximum supportable school impact fees for CHCCS in Orange County, <br /> North Carolina. For a single-family detached housing unit, the maximum supportable fee amount is <br /> $13,114 for a 0-3 bedroom unit, $25,139 for a 4+ bedroom unit, and $3,848 for a unit with less than 800 <br /> 3 SAPFOTAC,2016 Orange County,NC Schools Adequate Public Facilities Ordinance(draft),p.Hi. <br /> 2 <br />