Agenda - 04-24-2003-1 - Laserfiche WebLink

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Financing by the District $ 6,326,700 The district would request additional funds be borrowed and would repay the debt by using budgeted impact fees and the impact fee balance. With the anticipated decline in impact fee revenue, the proposal is very conservative in the debt repayment schedule and uses just more than 50% of the budgeted impact fee revenue for debt service after the project is completed. With the $696,000 reduction this year in impact fee revenues, this revenue source should not be viewed as stable. The impact fee balance would be used to service the debt during the construction period so that budgeted impact fees could be used totally for construction. At the conclusion of the project, the debt service would be covered by budgeted impact fees. The amount financed covers the amount that the project is expected to be over Orange County Construction Standards and the loss of impact fee revenue. It must be noted that the Local Government Commission requires that all alternative financing for a project be in place before bonds are sold, thus the financing is set for 2004-2005 and 2005-2006 and can not be moved to a later date. Impact Fee Balance $ 3,240,231 The impact fee balance was created when more impact fees were collected than were budgeted for in the CIP. This balance will be used to finance part of the high school. Approximately $275,000 of the balance is being set aside to cover any increase in land costs associated with condemnation proceedings. The rest of the impact fee balance would be used to repay the debt service of the District financed note. Bud et~Impact Fees $ 6,400,000 Impact fees are used to fund part of the project as well as providing for the debt service on the District financed notes. All of the budgeted impact fees for 2003 - 2007 would be used for construction. After the project is completed, the debt service on the financed notes would come out of the budgeted fees. While impact fees must be used for construction that increases student capacity, the County has allowed some flexibility in cash flow to enable the District to undertake other major projects. A review of the proposed CIP, included in the appendix, shows the projects currently underway and those that are planned for the near future. A major reduction in impact fee availability would severely constrain capital projects planned for the next ten years. Other Factors to Consider: • There are unknown costs associated with land condemnation at the Rock Haven site. Funds have been reserved for increased costs. • The terrain and rock at the Rock Haven site make it more likely that we will encounter unforeseen costs associated with site development and the foundation of the building. If land costs are not significantly higher than anticipated, that funding source could be used to offset any increase. If unavailable, then further reductions to existing projects would be required. • The Rock Haven site is the preferred geographic location and gives the community a high school and reduces travel for students, parents, and school buses as well as existing service by the Town of Chapel Hill Transit. Access for walkers and bikers would be considered. 8