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Pam Hemminger said that the SAPFO numbers show that the school is needed in 2010. The collaboration group has talked about postponing it to 2011. There is a capital lease program that can be investigated further. Lisa Stuckey said that in February the school board will be before the Town going through the approval process. Chair Jacobs said that he read where one of the candidates for Governor wants to mandate one school system per county. Lisa Stuckey made reference to the Medicaid Sales Tax Swap and said that it was supposed to be revenue neutral for the counties, but it is not for Orange County. She asked if this was because Orange County has less sales tax generally than other counties. Laura Blackmon said that there is an additional amount that the State has been given to try and balance this. Donna Coffey explained this in detail. She said that sales taxes have not grown and there will be further reductions in 2010-11 based on all of this. The ones who are truly held harmless are the cities and towns. Part of the County's sales tax money is going to hold the cities and towns harmless. There are lots of gray areas regarding the ins and outs of sales tax distribution. 2. Education Facilities Impact Fee Reports Planning Director Craig Benedict said that this concerns the update to the educational facilities impact fees. The last time the County conducted a study was in 2000-2001. In 2001, the County Commissioners adopted the current fees. This resulted in single-family rates for CHCCS of$4,400 per single-family home, and in OCS about$3,000. The study found the maximum supportable impact fee. The present fees are about 56-60% of the maximum supportable impact fee. Construction costs have increased dramatically since 2000 as has the student generation rate. There is a compounding type of factor in play. He made reference to page 4 of the abstract, which shows that the maximum supportable impact fee for single-family detached in CHCC would be $19,000 and in OCS would be over$9,000. The process before the Board of County Commissioners is to set a public hearing to discuss the material in this report that was done by Tischler and Associates, the same consultant that did the work in 2001. This would come back after October 21st and the Board would deliberate on what percentage of the maximum supportable impact fee might be desirable. The Board would then ask the staff to prepare a modification to the Education Facilities Impact Fee Ordinance, which would set the new rates and the effective date. Commissioner Nelson asked for an explanation of the 56-60% numbers. Craig Benedict said that his recollection was that the Orange County School board thought that a rate of$3,000 for a single-family impact fee in its district might be something that would not dramatically affect the cost of housing. The $3,000 limit was around 56-60% of the maximum supportable impact fee. Commissioner Nelson asked if the County staff was going to bring a recommended impact fee and Craig Benedict said that a chart would be given to show the different percentages. Laura Blackmon said that the staff could give some background. The decision will be based on what the community can support. Commissioner Nelson asked if this would be taken to the Affordable Housing Advisory Board for input. It was answered no. Commissioner Nelson said that he has heard about the potential increase for manufactured homes, and this is an issue that the AHAB reported to the Board a couple of weeks ago. Chair Jacobs said that last time the manufactured housing was separated out.