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August 25, 2004 Page 614 The Board of Commissioners for the County of Cabarrus met in special session at 6:00 p.m. on August 25, 2004, in the Commissioners' Meeting Room at the Cabarrus County Governmental Center in Concord, North Carolina. ' The purpose of the meeting was to consider the following items: (1) Conduct public hearing on Order authorizing $94,900,000 School Bonds and Order authorizing $3,100,000 Community College Bonds, Consider Adoption of Bond Orders and Passage of Resolution Calling Bond Referendum; (2) Bid Award for the Rowan-Cabarrus Community College Highway 29 Business and Technology Center; (3) Architectural Services Contract with Ware Bonsall Architects for the Law Enforcement Center/Jail Project; (4) Proposed escrow restructuring strategy; (5) Contributions for the advancement of school adequacy; and (5) Closed Session to consult with the County Attorney to preserve the attorney- client privilege and discuss pending litigation as authorized by North Carolina General Statute 143-318.11(a) (3). Present - Chairman: Robert M. Freeman Vice Chairman: Richard D. Suggs Commissioners: Carolyn B. Carpenter Robert W. Carruth Coy C. Privette Also present were John D. Day, County Manager; Marilyn D. Porter, County Attorney; Frankie F. Bonds, Clerk to the Board; and Kay Honeycutt, Deputy Clerk to the Board. Chairman Freeman called the meeting to order at 6:06 p.m. Chairman Suggs was not present for the beginning of the meeting. Vice Commissioner Privette gave the invocation. Contributions for the Advancement of School Adec~uacy Jonathan Marshall, Commerce Director, responded to questions raised by the Board on August 16 regarding contributions for advancement of school adequacy. He advised that graduated fees or a percentage fee on a house would be difficult as the impact is basically the same for a $50,000.00 house as it is for a $500,000.00 house. He stated staff continues to explore an option for a program similar to the County's tax incentives where the payment is the same but there can be some return based on some criteria established by the Board. Mr. Marshall discussed the issue of exemptions for non-profit housing, such as homes by Habitat for Humanity or the Community Development Corporation, and housing for the elderly. He said the Board could choose to offer a rebate of the adequacy requirement and/or establish a grant program such as the one in Durham County. Mr. Marshall pointed out the need for some type of restriction on housing for the elderly to ensure there would be no children coming from that house to the schools for the life of the house or for the long term. Vice Chairman Suggs arrived at 6:17 p.m. and was present for the remainder of the meeting. There was discussion regarding school facility needs and the advancement of school adequacy, including the donation of land and infrastructure improvements. Mr. Marshall responded to a number of questions regarding ~school construction fees" and ~school impact fees." Chairman Freeman read the following statement: The issue of providing adequate facilities for our growing student population is one of the most significant we face. We must do it somehow. The schools systems' 10 year capital plans and other obligations will result in debt service equal to 23% of the county's general fund budget by 2007. Continued financing of school projects will raise that number to nearly 30% in 2012. Based on current Local Government Commission policies and practices, we won't be allowed to take on that much debt. That means we will have to raise money to begin pay-as-you-go school building projects. Depending solely on property taxes for funding them will result in ridiculously high tax rates that will bring growth to a halt and burden our citizens far beyond what is reasonable.