AGENDA #11a(1)
MEMORANDUM
TO: Mayor and Town Council
FROM: Council Member Flicka Bateman
SUBJECT: Petition Regarding Sewer Reserve Funds
DATE: September 9, 2002
I petition the Council to remove the designation of $192,000 currently reserved in the Capital Reserve Fund for sewer assistance in the Morgan Creek neighborhood, thereby making this amount available for other potential projects.
BACKGROUND
A Budget Working Paper of April 24, 2002, provided the Council a status report on these funds (please see Attachment 1). On July 1, 1996, the Council adopted a resolution expressing an intent to contribute $192,000 for the Morgan Creek/Mason Farm sewer project (please see Attachment 2). I understand that there is currently no active petition from the Morgan Creek neighborhood to the Orange Water and Sewer Authority for the provision of public sewer (please see Attachment 3).
PETITION
I petition the Council to remove the designation of the sewer assistance funds for the Morgan Creek/Mason Farm neighborhood, as expressed in the 1996 resolution. I recommend the Council refer this petition to the Manager for a follow-up report, including notification of Morgan Creek neighborhood representatives.
ATTACHMENTS
AGENDA #5a
BUDGET WORKING PAPER
TO: W. Calvin Horton, Town Manager
FROM: Roger Waldon, Planning Director
SUBJECT: Status of Water and Sewer Assistance Fund
DATE: April 24, 2002
This memorandum provides a report on the status of the Chapel Hill Water and Sewer Assistance Fund. The current balance in the Fund is $192,000.
HISTORY
Starting in the early 1990’s, the Town Council has set aside funds to help neighborhoods with the cost of connecting to the public sewer system. In 1993, the Town Council used half cent sales tax funds to help pay for sewer improvements in the North Forest Hills, Glen Heights, Mount Bolus, and Sherwood Forest neighborhoods. The Council also used federal Community Development funds to assist with the connection to sewer of lower-income homeowners in these areas.
In 1995, the Town authorized the use of half cent sales taxes for the Severin Street and Markham Drive neighborhoods. State law at that time required, subject to exemption by the NC Local Government Commission, that the Town allocate 30% of the half cent sales taxes for water or sewer projects. This requirement has expired.
On March 27, 1995, the Town Council adopted a resolution revising a policy regarding Town participation in the costs of future sewer projects (please see Attachment 1).
On July 1, 1996, the Town Council adopted a resolution expressing an intent to contribute $192,000 to assist low income homeowners in the Morgan Creek/Mason Farm sewer project area and as a contribution to OWASA for construction costs of the Morgan Creek/Mason Farm project subject to OWASA undertaking the project and subject to an appropriation by the Council in the 1997-98 budget years. These funds remain reserved for this purpose.
On September 9, 1998, the Council adopted a resolution that revised the Town’s sewer assistance policy. This resolution authorized that the Town provide a 20% subsidy to sewer projects for existing neighborhoods with private systems by providing a line item in the Capital Improvements Program budget, with a cap of $4,500 per lot based on the total number of lots in the project which is being subsidized (please see Attachment 2).
In 1999, the Town paid $12,500 for sewer on Patterson Place based on the Council’s revised policy of 1998 and authorization for this neighborhood.
STATUS OF FUND
The balance of funds reserved for the specific purpose of providing financing for water and sewer improvements in residential neighborhoods is $192,000.
The full amount is reserved for the Mason Farm/Morgan Creek area per a July 1, 1996 Council resolution. We note that one of the recent measures in response to the loss of State revenues was the reassignment of interest accumulated in the Water and Sewer Assistance Fund to make up for lost General Fund revenues.
On March 4, 2002, we provided a report to the Council on petitions from residents in the Emily Road/Partin Street neighborhood in Chapel Hill. That report recommended that residents petition the Orange Water and Sewer Authority for provision of public sewer. If submitted to the Authority, the Council could then consider whether it may wish to allocate additional funds to the Water and Sewer Assistance Fund to assist this neighborhood. The report also noted that the Orange Water and Sewer Authority in a letter of February 27, 2002 stated that there is currently no active petition from the Morgan Creek neighborhood for provision of public sewer.
ATTACHMENTS
ATTACHMENT 1
A RESOLUTION ADOPTING A REVISED POLICY REGARDING TOWN PARTICIPATION IN THE COSTS OF FUTURE SEWER PROJECTS (95-3-27/R-11)
BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby adopts the following policy regarding future participation in future sewer projects:
1. That the Town's obligation to participate in sewer costs from sales taxes and Community Development funds be limited to the amount of funds now available and undesignated through the Council's actions ($78,000 in 1994-95 sales taxes and $100,000 of 1995-96 sales taxes; $50,000 of Community Development grant funds).
2. That the availability of Community Development funds for sewer purposes shall be subject to change due to reallocations which the Council may make in the plan for using these funds and/or due to federal requirements regarding use and availability of these funds.
3. That the Town's participation in future sewer projects with sales tax funds shall continue at 16% of estimated construction costs of neighborhood sewer projects and that funds be applied at this rate until they are no longer available, subject to the following:
a. That of the 16% funding for a given project area, up to half shall be available for assisting low-income families with costs of assessments under the terms of the Council's Sewer Loan Policy as in effect at the time of the allocation. The remaining half of the 10% contribution, and any of the funds available for but not used for loans to low-income homeowners in the project area shall become allocated to sewer construction costs at a time determined by the Town Manager or Town Council.
b. That the Council allocate funds from sales taxes for individual projects in specific amounts based on estimated construction costs at the time of the Council's allocation decision. If estimated or actual construction costs subsequently change, the Council may but shall not be obligated to adjust the amount of the 16% funding for a sewer project.
c. That if the remaining amount of sales tax funds available for a sewer project would equal less than 16% of estimated costs of a project, then the Council may but shall not be obligated to allocate other funds to increase the allocation to a total of 16%.
d. That the Council's decisions to allocate funds for individual sewer projects take into account the public health need to undertake a project, the order in which valid sewer petitions are received by OWASA and other factors which the Council considers relevant. The Council may in its discretion but shall not be required to allocate funds for an anticipated sewer project before a petition is received by OWASA.
e. That the Town shall have no obligation to contribute funds to a sewer project if the Orange Water and Sewer Authority undertakes a project without assessments.
f. That if the Town is required under State law to extend sewer outfall lines into an annexation area, the Town's allocation of sales taxes for outfall purpose shall be for the full cost of such outfall, less any costs to be covered by other parties.
4. That the above policy would not alter the Council's decisions before adoption of this policy regarding assistance to neighborhoods which are or have been in the process of having sewers built with assessments.
5. That the policy shall not apply to any annexation areas for which the Town's previous policy regarding financial participation in sewer projects must apply under requirements in current State law.
This the 27th day of March, 1995.
ATTACHMENT 2
A RESOLUTION MAKING RECOMMENDATIONS ON OWASA’S SEWER ASSESSMENT POLICY (98-9-9/R-7)
BE IT RESOLVED by the Council of the Town of Chapel Hill that the Town provide a 20% subsidy to sewer projects for existing neighborhoods with private systems by providing a line item in the Capital Improvements Program budget with a cap of $4,500 per lot based on the total number of lots in the project which is being subsidized. This cap will be adjusted annually to account for inflation; and,
BE IT FURTHER RESOLVED by the Council of the Town of Chapel Hill that OWASA reinstate the past policy of adsorbing engineering and legal costs up to the 15% limit for engineering costs and 5% limit for legal costs; and,
BE IT FURTHER RESOLVED by the Council of the Town of Chapel Hill that OWASA provide preliminary cost estimates so that residents signing a petition know what to expect; and,
BE IT FURTHER RESOLVED by the Council of the Town of Chapel Hill that OWASA clarify with the University and appropriate government entities the phrase “benefiting party” in the Sales and Purchase Agreements.
This the 9th day of September, 1998.
A RESOLUTION CALLING A PUBLIC FORUM TO CONSIDER THE PROPOSED REORGANIZATION OF THE LANDFILL OWNERS GROUP AND THE PROPOSED COMPREHENSIVE SOLID WASTE MANAGEMENT PLAN (96-7-1/R-17)
WHEREAS, the Landfill Owners Group has referred to the Town Council its proposal to reorganize the Landfill Owner’s Group; and
WHEREAS, the Landfill Owners Group has referred to the Town Council its proposed comprehensive solid waste management plan; and
WHEREAS, the Town Council recognizes that the consequences of adopting either or both of these items would significantly impinge on the daily lives of the residents of Chapel Hill;
NOW, THEREFORE BE IT RESOLVED by the Council of the Town of Chapel Hill that it hereby sets a public forum to consider the proposed reorganization of the Landfill Owners Group and the proposed comprehensive solid waste management plan, to be held on Wednesday, September 18, at 7:00 PM in the Chapel Hill Town Hall at 306 North Columbia Street.
This the 1st day of July, 1996.