Agenda - 04-20-1993 - VIII-C - Laserfiche WebLink

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VIII-B "1993-98 Capital Improvements Plan" MEMORANDUM 1"- X J5 TO Orange County Board of Commissioners FROM: Sally Kost, Budget Director DATE: April 15, 1993 SUBJECT: School Impact Fees We have prepared two approaches to funding additional elementary schools which are shown at attachment 1 and 2 . These approaches were shared with the Non-Binding Committee last Wednesday night. The first approach, at attachment 1, shows how impact fees and sales tax funds could be combined to fund pay-as-you-go projects and the debt service on a Certificate of Participation" (COP) . Column A in the "Expenditures" box, shows the funding amounts for pay-as-you-go projects as identified by the School Systems and shown in the 1993-98 recommended CIP. Column B shows the debt service amount for the 15 year COP, at an interest rate of 6.3%. In the "Revenue" box, funds available from pay-as-you-go sources are shown in Column D. Columns E, F and G show the amounts that would be generated from the three levels of impact fees, $500, $750 and $1,000, combined with the pay-as- you-go funds. For example, for Chapel Hill/Carrboro City Schools, in 1993-94 , there would be $1, 619,361 available from pay-as-you-go sources. An additional $535,000 generated by a $500 impact fee would generate a total of $2, 154,361. Since there is no debt service, these funds would be available for other CIP projects or could be held in a reserve account. In 1995-96, when the first debt service payment is due, the total combined revenue including a $500 impact fee, would generate an estimated $2,569,426. The COP payment would be $1, 049,904, leaving available for other CIP projects $1,519,527, which is $69,872 less than what is currently in the CIP for other projects (Shown in the Difference Box) . The same calculations are shown for the Orange County Schools. At attachment 2, no debt is included in the calculations. Instead, this approach shows the number of years it would take to accumulate adequate funds to construct an elementary school on a cash basis. Three impact fee levels are used in these calculations: $500, $750 and $1,000. As you see, as an example, for the Orange County Schools, based on using pay-as-you-go funds as identified in the CIP combined with an impact fee of $500, in the year 2008-09 there would be adequate funds to build a $10,000,000 elementary school. No inflationary increases for building costs are shown in these calculations. The same calculations are shown for the Chapel Hill/Carrboro City Schools.