Brevard County collects educational facilities impact fees from residential development for construction of educational facilities or capital improvements that provide educational capacity in the Impact Fee Benefit District from which the funds were collected. The funds may be used on capacity projects identified in the Five-Year District Facilities Work Program.

The process by which funds are allocated to projects is outlined in the Interlocal Agreement between Brevard County and the School Board. Each Benefit District (North and South) has an Educational Facilities Impact Fee Benefit District Advisory Committee that includes the School Board, County and applicable municipal representatives. Approximately every quarter, the District Advisory Committees make a recommendation to the School Board. The School Board approves or modifies the recommendation and then submits the funding request to Brevard County for approval by the Board of County Commissioners. The process can take 2-4 months before the funds are received by the District.

The Board action requested allocates the impact fee revenue collected through the quarter ending September 30, 2022 and interest on School Board impact fee accounts.  Additionally, this request reallocates unused impact fees from the Central Area (Viera) Elementary project.

The Impact Fee Benefit District Advisory Committees met on October 17, 2022. The Committees' recommendations for new educational facilities impact fees through September 30, 2022 and interest on School Board impact fee accounts, along with reallocation of previously allocated impact fees are attached to this agenda memo and are summarized as follows:

• Central Area Secondary - Total $4,532,086.97
  • New Impact Fees Collected = $4,420,778.21
  • Reallocate funds previously allocated for Viera Elementary School = $82,039.32
  • Interest on School Board South Benefit District Impact Fee account = $29,269.44
• North Elementary Capacity - Total $1,091,508.75
  • New Impact Fees Collected = $1,075,834.76
  • School Board interest available for allocation = $15,673.99
• Debt Service - Total $12,370.63
  • Benefit District 1 = $12,276.74
  • Benefit District 2 = $0.10 *
  • Benefit District 3 = $93.79 *

The Central Area Secondary project includes funds that can be used for a classroom building addition at Viera High School as well as funds that can be used for a middle school on the site next to Viera High School (referred to as "Middle School X" in our Five-Year District Facilities Work Program). New impact fees available in the amount of $4,420,778.21 are recommended for the Central Area Secondary projects. Also recommended for the Central Area Secondary projects is $82,039.32 previously allocated to build the Viera Elementary School and were realized as savings in the project. Furthermore, interest on Benefit District South impact fee account in the amount of $29,269.44 is recommended for the Central Area Secondary projects.  Both of the secondary projects were discussed at the November 16, 2021 School Board Workshop on capacity.

The North Elementary Capacity project is underway to provide an additional classroom building at South Lake Elementary School. This project will accommodate an additional class to each grade level and provide more choice school capacity in North Brevard. The South Lake classroom addition is currently in the design phase and is planned to open in August 2023. This project was also reviewed at the School Board Workshop on March 22, 2022.  Other projects in the North Area are under consideration and will be evaluated as the enrollment statistics and projections are released.

It is further recommended to allocate the interest on Benefit District 1, 2, and 3 accounts ($12,370.63) to debt service. For Benefit District 2 and 3, it is recommended to spend the amount currently available plus any future interest accrued up to the time of the debt payment.  Once those payments are made, Benefit District 2 and 3 impact fee accounts will be closed.  When using educational impact fees to pay debt for prior construction of student stations, the debt must be related to a project within the impact fee benefit district from which the fees were collected. The Finance Department has confirmed that the proposed use of the funds is in compliance with this requirement as outlined in the Interlocal Agreement and Florida Statutes.

The allocation to debt service was not budgeted, so this will result in a reduction in the amount of capital funds used to pay debt service by $12,370.63. Since this allocation to debt was not budgeted, the recommendation to the Board includes allocating an additional $12,370.63 of capital funds for the South Lake Elementary school project (for costs relating to ancillary facilities such as parking and a pavilion). This project is included in the approved Five-Year District Facilities Work Program and was discussed at the March 22, 2022 School Board Workshop on capacity.

Approve the recommendations of the Educational Facilities Impact Fee Benefit District Advisory Committees:

• Central Area Secondary $4,532,086.97
• North Elementary Capacity $1,091,508.75
• Debt Service $12,370.63

Authorize the Superintendent, or designee, to request Brevard County approve the allocation request and disburse the Educational Impact Fees available through September 30, 2022.

Approve utilizing $12,370.63 in capital funds for the ancillary facilities in support of the classroom addition at South Lake Elementary pending approval and disbursement of the recommended allocation of educational facilities impact fees by the Brevard County Commission.