Agenda - 09-16-2008 - 6d - Laserfiche WebLink

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pRq~' SCHOOL IMPACT FEES: Ct~uwe~ Hiu.-CnwtBORO Cmr $CHOOIS Orange County, North Carolino Figure 11. Buses /Vehicles Levels of Service and Costs: Chapel Hill-Carrboro City Schools Number of Unifs Cosf/Bus Tofat Cosf CHCCS Buses 55 $80,000 $4,400,000 CHCCS Activity Buses 18 $70,000 $1,260,000 Other vehicles 23 $30,000 $690,000 Tofat 96 $66,146 $6,350,000 CHCCS Enrollment (2006-07) 11,092 Buses/Vehicles per Student 0.009 Cost per Student $57248 Source: CHCCS ADJUSTMENT FOR NON-LOCAL FUNDING To adequately reflect the local share of capacity costs, the impact fees need to be adjusted to account for State funding for capacity improvements. Orange County estimates that the County receives one percent of the costs for capacity improvements from the state, therefore the local share is adjusted to represent 99 percent of the total. (Other contributions from the State are used for maintenance and other non-capacity related improvements.) CREDIT FOR FUTURE PRINCIPAL PAYMENTS ON SCHOOL IMPROVEMENTS AND LAND Because the County debt financed a portion of recent school capacity expansion construction costs and land acquisition, a credit is included for future principal payments on outstanding debt. A credit is necessary since new xesidential units that will pay the impact fee will also contribute to future principal payments on this remaining debt through property taxes. A credit is not necessary for interest payments because interest costs are not included in the costs. Information on outstanding debt for Chapel Hill-Carrboro City Schools was provided by Orange County Finance staff. School improvements and applicable bond issues are indicated in Figure 12 below. As shown, total outstanding debt from school capacity expansion projects for CHCCS is estimated at approximately $114 million. Annual principal payments are divided by student enrollment in each year to get a per student credit. (For example, in Fiscal Year 2007, the total amount of projected principal to be paid of $6.3 million is divided by enrollment of 11,092 for a payment per student of $568.) To account for the time value of money, annual payments per student are discounted using a net present value formula based on an average current interest rate of 4.5 percent. T'he total net present value of future principal payments per student is $6,127. This amount is subtracted from the gross capital cost per student amount to derive a net capital cost per student for school facilities. TischterBis-~ 18 thc2,[~hs~tticai.Pliiuttng Canw~~nti.