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The costs per dwelling unit are indicative of what impact fees for <br />public school facilities would be before any adjustments are made. <br />PROPORTIONATE SHARE OF CAPITAL COSTS <br />The standard to which impact fees will be held is that the <br />fees not exceed a proportionate share of the costs that local <br />government will incur to accommodate new development. Normally, new <br />development will pay towards capital improvements in the form of <br />general taxation, debt service, and other payments. The task is to <br />calculate how much of capital costs are covered by these payments. <br />whatever is not paid would then be paid through impact fees. <br />Among those factors which should be considered in establishing <br />a proportionate share of capital costs are the following: <br />1. The cost of existing facilities; <br />2. The means by which existing facilities were financed; <br />3. The.extent to which new development has already <br />contributed to the cost of providing existing facilities; <br />4. The extent to which new development will, in the future, <br />contribute to the cost of constructing existing <br />facilities (through debt service or other payments]; <br />5. The extent to which new development should receive credit <br />for providing facilities required as a condition of <br />development or construction approval; <br />6. Extraordinary costs'in serving the new development; and <br />o <br />7. The time -price differential inherent in fair comparisons I <br />of amounts paid at different times. <br />Payments By NeM Development T2Xgr Capital Cost <br />To determine how capital improvements have been financed, the <br />fiscal structuring of the community must be examined. Each type of <br />facility needs to be analyzed in terms of how it was financed and <br />also in terms of how new development will contribute toward capital <br />finance in the future. It would be unfair to require new <br />development to pay some portion of either existing or future <br />capital improvements and also require them to be totally <br />responsible for the capital improvement costs that new development <br />will need. Thus, a system of "credits" must be identified which <br />recognizes the extent to which to which new developments have <br />already contributed to and will pay for (in the future) the cost of <br />existing capital improvements. <br />Property Tau Revenues. Bonds, whether general obligation or <br />revenue, are commonly used to finance infrastructure. Where general <br />obligation bonds are used, the debt incurred by the approval and <br />issuance of such bonds is generally retired through the use of <br />Page - 8 <br />