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inevitable that a balance will accrue until a major capital project is undertaken; at which time the balance will fall. This is substantially different from running a surplus and running a deficit as implied in the letter. Simply put, fees are collected in small increments, are accumulated for projects, and are encumbered/expended in batches to fund projects. School project data were included in the Community Development Director's letter. • Appeal Reason 4: "There are actually less student stations today than in 2008. Impact fees cannot be used to replace existing student stations, for repairs or for remodeling". Response: With respect to permanent student stations, this reason correctly asserts that "impact fees cannot be used to replace existing student stations" but incorrectly cites the total number of student stations districtwide as evidence that fees were used for replacement. In response to this issue, Tindale Oliver and Associates has stated that. although the District has capacity available countywide for future growth, there are certain schools that are above capacity. With the Class Size Reduction Amendment requirements, School Districts are not able to exceed a certain number of students per classroom. Given this, there may be needs to add classrooms or schools in certain sub- areas even though there is additional capacity available at another location in the county. • Appeal Reason 5: "Impact fees cannot be used for students that are ineligible to receive those funds". Response: Information from the School District confirms that school impact fees have been used solely for construction of classroom, transportation, and ancillary facilities relating to the County's public schools. As such, fees have been used only where increases in students have required use of those funds to provide needed improvements, including projects such as the Sebastian River High School freshman center addition and the Fellsmere Elementary School expansion. (Attachment 3) • Appeal Reason 6: "School impact fees are calculated on errant population figures and not "the latest and best data" as required". Response: As has been explained earlier to Impact Fee Consultants, the Impact Fee is not based on staff's estimate of future population. Simply stated, it assumes demand is generated by each unit of development, and a proportional fee is assessed on each unit to cover that demand. In this way, staff cannot overestimate or underestimate population — if there is no growth, no fees are collected (See the discussion below regarding Consumption -Based Impact Fees). This "consumption based" method was used in the 2005 impact fee study and was explained and justified in the "methodology" section of the 2014 impact fee study (Attachment 2). 2 Attachment 4a 137