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13 <br /> 1 higher or lower, depending on actual construction activity). The estimated breakeven point if <br /> 2 data is disaggregated to bedroom count levels is 37% of the MSIF. The estimated breakeven <br /> 3 point for the "calculated average" of housing types is 43.5%. <br /> 4 <br /> 5 When updated impact fees were last adopted in 2008, the initial fee amount was set at a level <br /> 6 (32% of the 2008 MSIF) expected to collect $1.6 million in the Chapel Hill — Carrboro district in <br /> 7 order to reach the amount budgeted for debt service in that district. The "breakeven point" was <br /> 8 not calculated in 2008 (i.e., the MSIF percentage point was based on budget needs). <br /> 9 Additionally, a four-year implementation period was adopted since the starting point of 32% of <br /> 10 the MSIF provided a very low partial cost recovery. The fee started at 32% of the MSIF on <br /> 11 January 1, 2009 and moved to 40%, 50%, and 60% each January 1 of subsequent years, <br /> 12 completing the annual increases in 2012 (see Attachment 5). <br /> 13 <br /> 14 Craig Benedict, Planning Director, and Perdita Holtz, Planning, made a PowerPoint <br /> 15 presentation. Perdita Holtz presented the following slides: <br /> 16 <br /> 17 2016 School Impact Fee Update <br /> 18 <br /> 19 Results of October 4 Discussion <br /> 20 • Breakeven analysis completed <br /> 21 • Information regarding affordability concerns compiled <br /> 22 • Two potential ordinances for consideration <br /> 23 ° One to charge by bedroom counts, if applicable <br /> 24 ° One to charge by calculated average <br /> 25 Note: October 10th presentation at Chapel Hill Council Meeting; Consensus generally <br /> 26 favorable <br /> 27 <br /> 28 Breakeven Analysis <br /> 29 • Breakeven assumes what revenues would be received under old fee schedule vs. new <br /> 30 when using projected housing type and bedroom mix of future years. <br /> 31 • Also parallels development projections. <br /> 32 • Also approximates budget projections. <br /> 33 <br /> 34 Attachment 1 — Breakeven Analysis <br /> 35 Actual Fee Structure (Discussed later in presentation) <br /> 36 • Bedroom Count tables — <br /> 37 ° Projected Annual Collections Added <br /> 38 ° Breakeven % Determined (37%) <br /> 39 ° Columns added at 37%, 47%, and 57% MSIF <br /> 40 • Calculated Average Tables <br /> 41 ° Projected Annual Collections Added <br /> 42 ° Breakeven % Determined (43.5%) <br /> 43 ° Columns added at 43.5%, 53.5%, and 63.5% MSIF <br /> 44 <br /> 45 Proposed Ordinances <br /> 46 • Begin fees at estimated breakeven point and increase by 10 percentage points for 2 <br /> 47 subsequent years <br /> 48 • Also language in adopting ordinance (Be it further ordained) clarifying building permit <br /> 49 application deadlines and by when a building permit would have to be issued in order to <br /> 50 pay the prior fee <br />