Agenda - 05-26-1992 - Laserfiche WebLink

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' property tax revenues. For example, of Orange County's outstanding general obligation bonds in FY 1991 -92, $31,400,000 had been issued for public schools. Total debt service payments on these bonds, ' including principal and interest, will amount to $2,961,400 in FY 1991 -92. Of that amount, $778,889 is to be paid using property tax revenues. The remainder is paid from sales tax proceeds [see ' discussion of "Sales Tax Revenues" below]. Assuming a 98 percent tax collection rate, the amount is equivalent to $.0216 of the current tax rate [$.805 per $100 valuation]. If applied to a single - family home with an average value of $135,674 in 1990, the ' debt service payment would be $29. The amounts of concern in impact fee calculation are not one- ' time payments. Rather, the amounts of concerns are annual payments. This means that there will be a payment in one year, in two years, in three years, etc. Thus, the time -price differential issue becomes one of how to deal with a stream of payments over a number ' of years in the future, resulting in a need to cut off the analysis at some point.-Title VI, Chapter 460, of the 1987 Session Laws ' establishes a cut off point by requiring Orange County to "estimate the total cost-of improvements ... that will be needed... during a reasonable planning period not to exceed 20 years." For purposes of this analysis, the cut off point is six years, the period of time used by Orange County in its annual Capital Improvements Plan [CIP] for financial planning purposes. Beginning with the FY 1992 -93 CIP, it is also the period of time within which the new school facilities identified by the School Bond Committee and listed below ' will be needed. ' Fiscal Year School Type School „Eoard FY 1994 -95 Middle Chapel Hill - Carrboro FY 1995 -96 Middle Orange County ' FY 1996 -97 High School Chapel Hill - Carrboro FY 1997 -98 Elementary Chapel Hill- Carrboro ' Elementary Orange County ' Based on the school capital needs above, the task then becomes the provision of fair and reasonable consideration for annual payments toward capital improvements costs over a period of six years. Shown on Tables 10 and 11 are the debt service requirements ' during the capital improvement program period. Three different debt service amounts from property taxes are identified. The first amount involves debt incurred prior'to 1988. When a bond issue was approved for school improvements in the late 19701s, the initial debt service payment to retire the bonds was approximately $800,000. The Board of Commissioners adopted a policy holding the amount constant even though the annual debt service payment would decrease. As shown on Table 11, the actual debt service on payment pre -1988 debt decreased from $602,100 in FY 1992 -93 to $490,500 in FY 1993 -94. The difference between the debt service payments and ' the $800,000 derived from property taxes is pledged to finance school capital projects. For the six -year capital improvement Page - 9