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PRESENTED BY JONATHAN MARSHALL TO BOC ON 8-16-04 <br /> <br />Calculation of Capital Costs <br />Due to School Growth <br /> <br />The Board of Commissioners employed Tischler & Associates in 1996 to determine the <br />approximate capital costs for various residential and non-residential uses. The capital <br />costs that were examined included all of those public facilities necessary to support a <br />growing community including schools. Tischler & Associates studied three types of <br />residential growth and estimated the school construction costs for each type. The <br />following were their estimates of school capital costs by growth area: Transitional Area - <br />$8067, Rural Area - $3161, Urban Area - $3332. These numbers should be considered <br />in light of the following assumptions made by Tischler: <br />· The majority of new housing units, by value and number, are in the transition area. <br /> This is still true today. <br />· The rural areas were being served by schools that were not over capacity and <br /> therefore the new construction needed for these homes was not as grea't. This fact <br /> would no longer hold true as almost all of the schools throughout the Cabarrus <br /> district have grown to capacity or above. <br />· The urban area calculations were based on student generation rates'from multi- <br /> family housing which are lower. There is a much lower rate of growth in areas <br /> defined as urban, and what growth has occurred is more of a mix of single family <br /> and multi-family residential which produces a higher student per dwelling ratio. <br /> <br />Based on the factors discussed above it is still most accurate to use the transition areas <br />to determine the true costs of school capital needs due to growth. In addition those <br />costs have gone up since the Tischler study in 1996. <br />· The capital cost of $8067 in 1996 had a value of $9320 based on a straight <br /> consumer price index. <br />· Re-calculation of the construction costs used to determine the capital costs in the <br /> Tischler study also indicates the cost experienced today is higher. The Turner <br /> Building Cost Index and ENR Building Cost Index both estimate building costs have <br /> increased by 23% since the study was performed. Based on that increase the capital <br /> cost for schools would be $9922 per unit. <br /> <br />G-9 <br /> <br /> <br />