ESTIMATED COSTS AND REVENUES
FOR ANNEXATION AREA 2
A summary of cost and
revenue estimates for Area 2 is as follows:
|
|
Year 1 |
Year 2 |
|
Town Costs |
$1,595,655 |
$1,544,444 |
|
Town Revenues |
$1,413,042 |
$1,554,926 |
|
Difference |
$-182,613 |
$ 10,482 |
Detailed cost and revenue
estimates are provided on the attached Tables 1 and 2. There are no intangibles tax revenues
included in the revenue estimates.
Comparison of Costs and
Revenues for Annexation 2
Year One Costs
·
The
costs for Year One are summarized in Table 1.
·
The
costs are calculated for the 2001-02 fiscal year. The annexation is proposed to be effective on June 30, 2001.
·
Refuse
collection will be provided without the need for additional Town positions or
equipment.
·
North
Carolina G.S. 160A-49.3 requires the Town to contract with or pay qualifying
private sanitation firms for two years for their revenue lost due to
annexation. To qualify, a sanitation
firm must make a request to the Town and meet other conditions of the
statute. In accordance with G.S.
160A-49.3(b), the Town will make a good faith effort to notify each private
sanitation firm providing services in the annexation area. It is the Town’s intention to contract with
the private sanitation firm currently operating within the annexation area
following the effective date of annexation.
·
The
annexation area has access to major water and sewer lines.
·
The
Town's police services will be provided with increased personnel and equipment. Five patrol officers and an additional crime
prevention officer will be added as a result of the annexation. A school crossing guard will also be added
for the Scroggs Elementary School.
·
The
Town's fire services will be provided with increased positions and
equipment. Additional personnel
resulting from the annexation and the staffing of the new Fire Station Number 5
include 3 captains, 3 FEOs, and 6 firefighters. Operating costs for the establishment of a temporary Station
Number 5 to be located within the annexation area are also included in service
cost projections.
·
The
annexation area is currently serviced by the North Chatham Volunteer Fire
Department. It is anticipated that the
North Chatham Volunteer Fire Department will request a ‘First Responder’
agreement with the Town in accordance with G.S. 160A-49.1.
·
The
annexation area has fire hydrants and water supply for fire protection
consistent with the rest of the Town.
One additional fire hydrant is recommended.
·
Area
2 will be served with fixed route transit service as soon as possible after
annexation. Transportation Services
costs also include a prorata share of projected costs of operating demand
responsive services (EZ Rider Service and Evening and Sunday Shared Ride
Service).
Year One Revenues
·
Year
One Revenues are summarized in Table 2.
·
The
total 2001-02 real property tax valuation of real estate in the annexation area
is $182,397,987 according to Orange County tax records. The estimated personal property tax
valuation in the annexation area is $15,786,000, as of January 1, 2001.
The tax rate for real and personal property is estimated to be $0.51
per $100 for the Town's General Fund. The estimated total General Fund Tax
Revenue is $990,524 (98% collection
rate).
·
Estimates
of franchise tax, sales tax, Powell Bill revenues, vehicle license fees, and
beer and wine tax are as follows:
o
Franchise
Tax $ 78,800
o
Sales
Tax $245,309
o
Powell
Bill Revenue $ 63,819
o
Vehicle
License Fees $ 26,310
o
Beer
and Wine Tax $ 8,280
·
The
total estimated revenue for Annexation Area 2 is $1,413,042.
Year Two Costs
·
Year
Two costs are summarized in Table 1.
·
Town
service costs are $51,211 less than those experienced in Year One.
Year Two Revenues
·
Year
Two Revenues are summarized in Table 2.
·
The
estimated real property tax valuation for the 2002-2003 fiscal year (values to
be determined as of January 1, 2002) is expected to increase by an estimated
$17,389,647.
·
Year
Two Revenues are expected to increase due to additional real and personal property
tax valuation and increases in state-shared taxes resulting from greater
population. Revenue increases for Year
Two are based upon the addition of 99 residences and 218 persons.
TABLE 1
|
|||||
TOTAL ESTIMATED COSTS
|
|||||
ANNEXATION AREA 2
|
|||||
SOUTHERN VILLAGE AREA
|
|||||
|
2001-2002 Fiscal Year (Year One) |
|||||
|
2002-2003 Fiscal Year (Year Two) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
YEAR 1 |
YEAR 2 |
|
FIRE |
|
|
|
|
|
|
-Town
Operations |
$532,255
|
$531,462
|
|||
|
-Fire
Hydrant |
|
$5,000
|
$0 |
||
|
-Contracts
with Rural Fire Department |
$27,360
|
$29,968
|
|||
|
-Temporary
costs for Station #5 |
$20,550
|
$0 |
|||
|
LIBRARY |
|
$0 |
$0 |
||
|
PARKS
AND RECREATION |
$0 |
$0 |
|||
|
POLICE |
|
|
|
|
|
|
-Personnel |
|
$251,700
|
$264,285
|
||
|
-Equipment |
|
$31,725
|
$18,614
|
||
|
PUBLIC
WORKS |
|
|
|
||
|
-Street
Repair |
|
$170,670
|
$162,070
|
||
|
-Drainage |
|
$70,455
|
$82,905
|
||
|
-Street
Lights |
|
$14,000
|
$14,000
|
||
|
-Street
Signs |
|
$36,000
|
$37,300
|
||
|
-Landscape
Services |
$47,300
|
$45,200
|
|||
|
-Payments
to Private Sanitation Firms |
$49,000
|
$16,000
|
|||
|
-Tipping
Fees |
|
$34,000
|
$37,000
|
||
|
TRANSPORTATION
SERVICES |
$305,640
|
$305,640
|
|||
|
UTILITIES |
|
$0 |
$0 |
||
|
-Sewer
Outfalls |
|
$0 |
$0 |
||
|
-Water
Mains |
|
$0 |
$0 |
||
|
TOTAL
ESTIMATED COSTS |
$1,595,655 |
$1,544,444 |
|||
TABLE 2
|
|||||
TOTAL ESTIMATED REVENUES
|
|||||
ANNEXATION AREA 2
|
|||||
SOUTHERN VILLAGE AREA
|
|||||
|
2001-2002 Fiscal Year (Year One) |
|||||
|
2002-2003 Fiscal Year (Year Two) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
YEAR 1 |
YEAR 2 |
|
PROPERTY
TAX REVENUE |
|
|
|||
|
Approximate Real Property |
|
|
|||
|
Tax Valuation (1/1/01) |
|
$182,397,987
|
$199,787,634
|
||
|
Estimated Personal Property |
|
|
|||
|
Tax Valuation (1/1/01) |
|
$15,786,000
|
$17,568,000
|
||
|
Maximum Real & Personal Property Tax |
|
|
|||
|
Revenue - General Fund ($0.51 per $100) |
$1,010,738
|
$1,108,514
|
|||
|
Estimated Annual General Fund |
|
|
|||
|
Tax Revenue (98% Collection Rate) |
$990,524
|
$1,086,343
|
|||
|
Estimated Vehicle License Fee - |
|
|
|||
|
$20 per vehicle (1.5 vehicles per du) |
$26,310
|
$29,280
|
|||
|
OTHER
TAX REVENUE |
|
|
|||
|
Estimated Population of Annexation Area |
1929 |
2147 |
|||
|
Estimated
Franchise Tax Revenue |
|
|
|||
|
Based on $40.85 per Capita |
$78,800
|
$87,705
|
|||
|
Estimated Sales Tax Revenue |
|
|
|||
|
Based on $127.17 per Capita |
$245,309
|
$273,032
|
|||
|
Estimated Beer and Wine Tax Receipts |
|
|
|||
|
Based on $4.29 per capita |
$8,280
|
$9,216
|
|||
|
POWELL
BILL REVENUE |
|
|
|||
|
Approximately $25.37 per Capita and |
|
|
|||
|
$1,816.88 per mile of Town-Maintained |
|
|
|||
|
Residential Streets |
|
|
$63,819
|
$69,350
|
|
|
TOTAL
ESTIMATED REVENUE |
|
|
|||
|
|
|
|
|
$1,413,042 |
$1,554,926 |