APPENDIX E

 

ESTIMATED COSTS AND REVENUES

FOR PARKSIDE II ANNEXATION AREA

 

Summary

 

A summary of cost and revenue estimates (rounded) for the Annexation Area is as follows:

 

 

 

 

 

Year 1

 

 

Year 2

 

 

Town Costs

 

 

$14,800

 

 

$11,700

 

 

Town Revenues

 

 

$96,600

 

 

$117,800

 

 

Difference

 

 

$81,800

 

 

$106,100

 

 

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 Parkside II Annexation Area

 

Year One Costs

 

·        The costs for Year One are summarized in Table 1.

 

·        The costs are calculated for the 2003-04 fiscal year.  The annexation is proposed to be effective on June 30, 2003.

 

·        Town refuse collection will be provided with current positions and 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.

 

·        The annexation area has access to major water and sewer lines.

 

·        The Town's police services will be provided with current positions and equipment.

 

·        The Town's fire services will be provided with current positions and equipment.  There is a marginal cost increase for anticipated emergency response trips to the annexation area and for providing fire related activities such as public fire education, inspections, and expected routine calls for assistance.

 

·        The annexation area is currently serviced by the Orange New Hope Volunteer Fire Department.  We anticipate that the Orange New Hope 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. 

 

·        The annexation area can be adequately served by modifying existing public transportation routes without additional expense.

 

 

Year One Revenues

 

·        Year One Revenues are summarized in Table 2.

 

·        The total 2003-04 real property tax valuation of real estate in the annexation area is $12,859,924 according to Orange County tax records.  The estimated personal property tax valuation in the annexation area is $943,280 as of January 1, 2003.

 

The 2002-03 ad valorem tax rate for real and personal property is $.51 per $100 for the Town's General Fund.  The estimated total General Fund Tax Revenue is $68,988 (98% collection rate).

 

·        Estimates of franchise tax, sales tax, Powell Bill revenues, vehicle license fees, and beer and wine tax, are as follows:

 

Ĝ      Franchise Tax               $4,779

Ĝ      Sales Tax                     $16,720

Ĝ      Powell Bill Revenue      $4,106

Ĝ      Vehicle License Fees    $1,560

Ĝ      Beer and Wine Tax       $465

 

·        The total estimated revenue for Annexation Area 1 is $96,618.

 

 

Year Two Costs

 

·        Year Two costs are summarized in Table 1.

 

·        Town service costs are similar to those experienced in Year One.

 

 

Year Two Revenues

 

·        Year Two Revenues are summarized in Table 2.

 

·        The estimated real property tax valuation for the 2004-2005 fiscal year (values to be determined as of January 1, 2004) is expected to increase by an estimated $2,485,000.

 

 

TABLE 1

TOTAL ESTIMATED COSTS

PARKSIDE II ANNEXATION AREA

2003-2004 Fiscal Year (Year One)

2004-2005 Fiscal Year (Year Two)

 

 

 

 

 

 

 

 

 

 

YEAR 1

YEAR 2

FIRE

 

 

 

 

    -Town Operations

$0

$0

    -Fire Hydrant

 

$0

$0

    -Contracts with Rural Fire Department

$3,215

$4,295

LIBRARY

 

$0

$0

PARKS AND RECREATION

$0

$0

POLICE

 

 

$0

$0

PUBLIC WORKS

 

 

 

    -Street Repair

 

$1,500

$1,500

    -Drainage

 

$1,500

$1,500

    -Street Lights

 

$250

$250

    -Street Signs

 

$250

$250

    -Landscape Services

$3,295

$1,545

    -Payments to Private Sanitation Firms

$3,000

$0

    -Tipping Fees

 

$1,800

$2,400

TRANSPORTATION SERVICES

$0

$0

UTILITIES

 

 

 

    -Sewer Outfalls

 

$0

$0

    -Water Mains

 

$0

$0

TOTAL ESTIMATED COSTS

$14,810

$11,740

 

 

 

TABLE 2

TOTAL ESTIMATED REVENUES

PARKSIDE II ANNEXATION AREA

2003-2004 Fiscal Year (Year One)

2004-2005 Fiscal Year (Year Two)

 

 

 

 

 

 

 

 

 

 

YEAR 1

YEAR 2

PROPERTY TAX REVENUE

 

 

Approximate Real Property

 

 

Tax Valuation (1/1/03)

 

$12,859,924

$15,345,112

Estimated Personal Property

 

 

Tax Valuation (1/1/03)

 

$943,280

$1,215,380

Maximum Real & Personal Property Tax

 

 

Revenue - General Fund ($0.51 per $100)

$70,396

$84,459

Estimated Annual General Fund

 

 

Tax Revenue (98% Collection Rate)

$68,988

$82,770

Estimated Vehicle License Fee -

 

 

$20 per vehicle (1.5 vehicles per du)

$1,560

$2,010

OTHER TAX REVENUE

 

 

Estimated Population of Annexation Area

119

153

Estimated  Franchise Tax Revenue

 

 

Based on $40.16 per Capita

$4,779

$6,145

Estimated Sales Tax Revenue

 

 

Based on $140.50 per Capita

$16,720

$21,497

Estimated Beer and Wine Tax Receipts

 

 

Based on $3.91 per capita

$465

$598

POWELL BILL REVENUE

 

 

Approximately $20.00 per Capita and

 

 

$1,816.88 per mile of Town-Maintained

 

 

Residential Streets

 

 

$4,106

$4,786

TOTAL ESTIMATED REVENUE

 

 

 

 

 

 

$96,618

$117,806