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 THE PARKSIDE II ANNEXATION AREA

The following information is provided to satisfy the impact information requirements of

GS 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 Orange New Hope Volunteer Fire Department serves the New Hope Fire District which is a rural fire protection district.

2.         The current fire tax levy is 5.0 cents per $100 of assessed valuation.

3.         The current total assessed value of the Orange New Hope Fire District is $455,674,252.

4.         The current fiscal year anticipated fire tax revenue is $227,837.

5.         The total present area of the Orange New Hope Fire District is approximately 18.52 square miles.  The area of the proposed annexation is .05 square miles.  The reduction in area of the fire district due to annexation would be .27%.

6.         The reduction in population of the fire district would be 119 persons.

7.         The annual reduction in fire district revenues due to annexation would be 2.8%.

8.         The capital assets of the Orange New Hope Volunteer Fire Department including buildings, trucks, and equipment total $2,252,466 as of January 17, 2003.

9.         Capital liabilities as of January 17, 2003:

Loan #1

Apparatus & Equipment (Loan Amount)           $535,000

Mortgagee                                                        Central Carolina Bank

Term of Loan (Years)                                       10

Years Remaining in Term                                  5

Annual Payment                                                Date Amount

6/30/03            $290,404.20

6/30/04            $248,504.45

6/30/05            $204,413.53

6/30/06            $158,016.87

7/31/07            $109,193.88

Annual Payment Due Date                                See above

Loan #2

Apparatus (Loan Amount)                                $183,989

Mortgagee                                                        Central Carolina Bank

Term of Loan (Years)                                       5

Years Remaining in Term                                  5

            Annual Payment                                                Date Amount

6/30/03            $23,357.88

6/30/04            $248,504.45

6/30/05            $204,413.53

6/30/06            $158,016.87

6/30/07            $109,193.88

Annual Payment Due Date                                See above

10.       The Orange New Hope Volunteer Fire Department employs no (0) full-time employees who have been employed full-time for more than 2 years.

11.       No full-time employees of the Orange New Hope 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 Orange New Hope Volunteer Fire Department.

2.         Fire service to the annexation area will be provided by Town Fire Station #4 (Airport Road and Weaver Dairy Road).  The part of the area to be annexed nearest to the existing municipal boundaries is within 0.6 road miles of an existing municipal fire station.  The furthest part of the area to be annexed is within 1.2 road miles of an existing municipal fire station.

3.         The part of the area to be annexed nearest to the existing municipal boundaries is within 3.5 road miles of the Orange New Hope rural fire department.  The furthest part of the area to be annexed is within 4.0 road miles of the Orange New Hope rural fire department.

4.         100% of the population of the area to be annexed is within 1.2 road miles of an existing municipal fire station.

5.         100% of the population of the area to be annexed is within 4.0 road miles of the Orange New Hope 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 6-7 minutes.

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

2 Orange New Hope Fire Department Pumpers

2 Orange New Hope Fire Department Tankers

3 Municipal Fire Department Pumpers

0 Municipal Fire Department Tankers

9.         The average number of Orange New Hope Volunteer Fire Department personnel responding during the day (8:00 a.m. until 6:00 p.m.) is 6 and during the night (6:01 p.m. until 7:59 a.m.) is 15.

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

11.       Orange New Hope Fire Department apparatus available for response in the area to be annexed is:

PUMPERS

YEAR PUMP CAPACITY TANK CAPACITY

1991 E-One                                         1250 GPM                               1000 gal.

1991 E-One                                         1250 GPM                               1000 gal.

1999 LaFrance                                     1500 GPM                               1000 gal.

2002 Marion                                         1500GPM                               1500 gal.

TANKERS

YEAR PUMP CAPACITY TANK CAPACITY

1982 Grumman                                    1000 GPM                               1000 gal.

OTHER APPARATUS

YEAR TYPE APPLICATION

1997                            Brush Truck                                         Woods and Grass Fires

1999                            Utility Truck                                         Support and Air

2000                            Ford Expedition                                    Support

2001                            Ford F150 Truck                                 Support

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

2001 HME (60 Ft. Quint.)                    1500 GPM                                           500 gal.

2001 KME                                          1000 GPM                                           500 gal.

1997 Ferrara                                        1500 GPM                                           500 gal.

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

2000 International (attack pumper)       1000 GPM                                           500 gal.

1988 E-One                                         1000 GPM                                           500 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 AND MODEL TYPE APPLICATION

1997 Ford Van                                                Support                                    Investigations

2001 Dodge 1500 Truck                                  Support

2000 Ford Expedition                                       Command

2001 Chevy Suburban                                      Command

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 Orange New Hope rural fire district is 9.

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 32)

Orange New Hope Fire District                                    Town of Chapel Hill

Class 9                                                                         Class 3

Annual Premium

Masonry                       Frame                                      Masonry                       Frame

$ 429                           $ 586                                       $ 371                           $ 390

NON-SPRINKLERED MASONRY MERCANTILE

(class three construction, high susceptibility)

Basis Rate

Per $100 Coverage

$ 0.481 -- building                                                        $ 0.325 -- building

$ 0.581 -- contents                                                       $ 0.393 -- contents