APPENDIX H

STATEMENT OF THE IMPACT OF ANNEXATION ON

THE ORANGE NEW HOPE VOLUNTEER FIRE DEPARTMENT

AND A STATEMENT OF THE IMPACT OF ANNEXATION ON

FIRE PROTECTION AND FIRE INSURANCE RATES

IN ANNEXATION AREA 2 (SOUTHERN VILLAGE)

The following information is provided to satisfy the impact information requirements of North Carolina General Statute 160A-47(4), which requires a statement of the impact of annexation on the Orange New Hope Volunteer Fire Department and a statement of the impact of annexation on fire protection and fire insurance rates in the annexation area.

Part I

1. The middle and eastern portions of Annexation Area 2 are located in the Southern Triangle Fire District that is served by the North Chatham Volunteer Fire Department. The North Chatham Volunteer Fire Department serves the following rural fire protection districts:

· Damascus Fire District (Orange County)

· Southern Triangle Fire District (Orange County)

· Bells Annex Fire District (Chatham County)

· North Chatham Fire District (Chatham County)

The western portion of Annexation Area 2 is located in the South Orange Fire District, which is served by the Town of Carrboro’s municipal fire department.

2. The current fire tax levy (per $100.00 of assessed valuation) for each fire district served by the North Chatham Volunteer Fire Department is as follows:

Damascus Fire District (Orange County) 3.0 cents

Southern Triangle Fire District (Orange County) 3.0 cents

Bells Annex Fire District (Chatham County) 6.0 cents

North Chatham Fire District (Chatham County) 6.0 cents

3. The current total assessed value of each fire district served by the North Chatham Volunteer Fire Department is as follows:

Damascus Fire District (Orange County) $ 46,798,214

Southern Triangle Fire District (Orange County) $ 255,920,716

Bells Annex Fire District (Chatham County) $ 27,912,407

North Chatham Fire District (Chatham County) $1,118,239,533

These assessed values all represent January 1, 2000 property valuations.

4. The current fiscal year anticipated fire tax revenue for the North Chatham Volunteer Fire Department is $778,507.

5. The total present area of the fire districts served by the North Chatham Volunteer Fire Department is approximately 262.51 square miles. The portion of the proposed annexation area that is located in the Southern Triangle Fire District is 0.55 square miles. The reduction in area of the fire district due to annexation would be approximately 0.18%.

6. The reduction in population of the fire district would be 1,929 persons.

7. The estimated annual reduction in North Chatham Volunteer Fire Department revenues due to annexation would be 7.6%.

8. The capital assets of the North Chatham Volunteer Fire Department including buildings, trucks, and equipment total $2,204,608 as of January 8, 2001.

9. Capital liabilities as of January 8, 2001:

Loan #1:

Amount of Loan $2,000,000

Description Building and Truck Loan

Mortgagee United Financial of North Carolina

Term of Loan (Years) 20

Years Remaining in Term 20

Annual Payment $170,000

Payment Due Date To Be Determined

Loan #2:

Amount of Loan $1,000,000

Description Building and Truck Loan

Mortgagee United Financial of North Carolina

Term of Loan (Years) 20

Years Remaining in Term 20

Annual Payment $90,000

Payment Due Date To Be Determined

10. The North Chatham Volunteer Fire Department employs twelve full-time employees who have been employed full-time for more than 2 years.

11. No full-time employees of the North Chatham Volunteer Fire Department will be terminated as a result of the town annexation.

Part II

1. The area to be annexed will be served by the Town's Fire and Public Safety personnel and equipment and is also proposed to continue to be served, through a contract for first responder service, by the North Chatham Volunteer Fire Department.

2. Fire service to the annexation area will initially be provided by a temporary Fire Station located at Hillsong Church on Culbreth Road. The part of the area to be annexed nearest to the existing municipal boundaries will be within 0.6 road miles of the temporary Fire Station. The furthest part of the area to be annexed will be within 2.0 road miles of the temporary Fire Station.

Town Fire Station #5 (U.S. 15-501 and Bennett Rd.) is expected to be completed and open by December 2001. The part of the area to be annexed nearest to the existing municipal boundaries will be within 0.0 road miles of Fire Station #5. The furthest part of the area to be annexed will be within 2.2 road miles of Fire Station #5.

3. The part of the area to be annexed nearest to the existing municipal boundaries is within 4.9 road miles of the North Chatham rural fire department. The furthest part of the area to be annexed is within 3.5 road miles of the North Chatham rural fire department.

4. 100% of the population of the area to be annexed is within 2.2 road miles of an existing municipal fire station.

5. 100% of the population of the area to be annexed is within 5.4 road miles of the North Chatham rural fire department.

6. The average time delay between dispatch and "turnout" (apparatus departing the station) for the municipal fire department is 45 seconds.

7. The average time delay between dispatch and "turnout" for the rural fire department is 1 minute.

8. Water supply in the area to be annexed will be provided by:

2 North Chatham Fire Department Pumpers

2 North Chatham Fire Department Tankers

3 Municipal Fire Department Pumpers

0 Municipal Fire Department Tankers

9. The average number of North Chatham Volunteer Fire Department personnel responding during the day (8:00 a.m. until 6:00 p.m.) is 10 and during the night (6:01 p.m. until 7:59 a.m.) is 20.

10. The average number of municipal fire department personnel for response day and night is 15.

11. North Chatham Fire Department apparatus available for response in the area to be annexed is:

PUMPERS

YEAR AND MODEL PUMP CAPACITY TANK CAPACITY

1992 E-One 1250 GPM 1000 gal.

1990 E-One 1250 GPM 1000 gal.

1993 E-One 1250 GPM 1000 gal

2000 E-One 1250 GPM 1000 gal

TANKERS

YEAR AND MODEL PUMP CAPACITY TANK CAPACITY

1987 EEI 250 GPM 1500 gal.

1987 EEI 250 GPM 1500 gal

1993 EEI 350 GPM 1250 gal

1980 FMC 750 GPM 1000 gal

2000 E-One 1250 GPM 1250 gal

OTHER APPARATUS

YEAR TYPE APPLICATION

1973 Brush Truck Woods and Grass Fires

2000 Heavy Rescue Vehicle Extrication

2000 95 foot Aerial Truck Elevated Rescue and water

12. Chapel Hill municipal fire department apparatus available for response in the area to be annexed is:

PUMPERS

YEAR AND MODEL PUMP CAPACITY TANK CAPACITY

1999 KME 1000 GPM 500 gal.

1997 Ferrara 1500 GPM 500 gal.

1992 Simon LTI (100 Ft. Ladder)) 1500 GPM 300 gal.

1988 E-One 1000 GPM 500 gal.

1982 Mack 1250 GPM 500 gal.

TANKERS

YEAR AND MODEL PUMP CAPACITY TANK CAPACITY

(none)

OTHER APPARATUS

YEAR TYPE APPLICATION

(none)

PART III

STATEMENT OF THE IMPACT ON FIRE INSURANCE RATES IN THE AREA TO BE ANNEXED.

1. According to the Insurance Services Office of North Carolina, the current fire insurance classification of the Southern Triangle rural fire district is 7.

2. According to the Insurance Services Office of North Carolina, the current fire insurance classification of the Town of Chapel Hill is 3.

The table that follows shows the relationship which insurance premiums bear to the insurance classification for two types of properties, i.e., homeowners coverage and the basis rate for non-sprinklered masonry mercantile properties.

INSURANCE RATES

HOMEOWNERS 3 (HO3) COVERAGE

$100,000 Coverage

$250 Deductible

The following table shows annual premiums according to the N.C. Rate Bureau and the North Carolina Department of Insurance.

(Rating Territory 33)

Southern Triangle Fire District Town of Chapel Hill

Class 7 Class 3

Annual Premium

Masonry Frame Masonry Frame

$ 390 $ 488 $ 371 $ 390

COMMERCIAL

NON-SPRINKLERED MASONRY MERCANTILE

(class three construction, high susceptibility)

Basis Rate

Per $100 Coverage

$ 0.400 -- building $ 0.325 -- building

$ 0.483 -- contents $ 0.393 -- contents