Annexation Issues in Eden A History of Annexation in Eden Since 1968 NC Annexation History Current...

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Annexation Issues in Eden

•A History of Annexation in Eden Since 1968•NC Annexation History•Current Annexation Issues in Eden

January 2010

Treatment PlantAnnexation

Voluntary Annexations in Eden

• Most annexations in Eden since 1968 have been voluntary.

• Property owners request that their property be annexed into the City Limits for a variety of reasons:o Need for City services – water, sewer, police, fire, etc.o Examples – The Oaks, Weil McLean, MGM Trucking

Water/Sewer Extension Policy

• Except under certain conditions, the City of Eden will provide water and sewer utility services only to properties within the corporate limits of the City and will only allow the extension of such lines to serve properties that are within the corporate limits of the City. No water or sewer service shall be provided to any property outside the corporate limits of the City of Eden unless the owner of the property petitions for voluntary annexation and the City Council approves that annexation prior to their receipt of water and sewer services, or the City Council approves an exception to these sections.

• City of Eden City Code Section 16-211.1

Assessment Policy

• Property owners desiring extensions of utilities/services may petition the City Council for such extensions or improvements. The minimum area considered shall not be less than an entire street length between intersections and shall extend to the terminus of existing infrastructure. The City Council may decide to increase minimum area requirements based upon the overall size of the area for which new service is required. The property owners will be assessed to recover construction costs based upon N.C.G.S. 160A-218 and is determined by the assessment maps.

• City of Eden City Assessment Policyfor Streets, Sidewalks, Water and Sewer Facilities

Involuntary Annexation in Eden• Several of the same areas have been considered for

involuntary annexation by various City Councils multiple times since 1982.

1982 Annexation Study Map

Involuntary Annexation in Eden• Only two involuntary annexations have been completed

since that time: 1994 (shown in blue) and 2009 Indian Hills Annexation (shown in green).

Current Areas Under Consideration for Annexation

• Smith Acres and the Bryant Street Area are adjacent to the City Limits and can be undertaken at any time.

Current Areas Under Consideration for Annexation

• The Green Knolls area could be undertaken at any time now that the Indian Hills annexation is effective.

• The Meadowood area could only be started after the Smith Acres annexation becomes effective.

Current Areas Under Consideration for Annexation

• The Glen Farm and Sauratown areas have also been considered, but these areas would be more costly and difficult to do.

Smith Acres Annexation Report Summary

Smith Acres Annexation Report SummaryRates Effective 2012-2013

Residential Lots (less than 5 acres) 103

Undeveloped Lots & Lots Over 5 Acres with House 31

Institutional Lots 4

Commercial Lots 6

Total Lots 144

Households:

Residential Lots 103

Parcel #133120 (Over 5 Acres with House) 1

Parcel #133167 (Over 5 Acres with House) 1

Parcel #133086 (Over 5 Acres with House) 1

Total Households 106

Population (2.34 per household) 248

Smith Acres Annexation Report SummaryRates Effective 2012-2013

Projected Annual Cost Summary

Households 113

Current Sewer Customers 0

Potential New Sewer Customers 113

Current Sewer Customers x Avg. Monthly Rate ($66.14) = Lost Sewer Revenue $0

Dan River Water Customers 73

Current City Water Customers 38

Potential New Water Customers 2

Current Water Customers x Avg. Monthly Rate ($62.16) = Lost Water Revenue $28,344.96

Total Water & Sewer Revenue Loss $28,344.96

Smith Acres Annexation Report SummaryRates Effective 2012-2013

Projected Annual Cost Summary

Sanitation ($19.76 per household per month) $25,134.72

Fire Protection (Tax Value x Fire District Rate) $9,473.56

Secondary Street Maintenance(2.27 miles x $3,663.77 per mile cost) $8,316.76

Street Lights (39 x $5.47 x 12 months) $2,559.96

Total Annual Operating Expenses $73,829.96

Smith Acres Annexation Report SummaryRates Effective 2012-2013

Projected Annual Revenue Summary

Taxes

Real Property Taxes (Property Value x Tax Rate x 96% Collectible) $70,483.32

Personal Property Taxes (Real Property Taxes x 15%) $10,572.50

Sales Tax ($166.66 per capita) $41,331.68

Utilities Franchise Taxes ($47.05 per capita) $11,668.40

Beer & Wine Tax ($4.50 per capita) $1,116.00

Cable Franchise Fee ($10.18 per capita) $2,524.64

Powell Bill

Population Based Distribution ($25.11 per capita) $6,227.28

Mileage Based Distribution ($1,886.91 x 2.27 miles) $4,283.29

Total Powell Bill Distribution $10,510.57

Smith Acres Annexation Report SummaryRates Effective 2012-2013

Projected Annual Revenue Summary

Water & Sewer Revenue

Current Water Customers x $31.08 monthly $14,172.48

New Water Customers x $31.08 monthly $27,972.00

Current Sewer Customers x $33.97 monthly $0

New Sewer Customers x $33.07 monthly $44,842.92

Total Water & Sewer Revenue $86,987.40

Sanitation ($18.75 per household per month) $23,850.00

Total Annual Revenue Summary $259,044.51

NET IMPACT (Annual Revenue – Annual Cost) $185,214.54

Smith Acres Annexation Report SummaryRates Effective 2012-2013

Projected Capital Cost Summary

Water Line Extensions & Associated Costs $193,000.00

Sewer Line Extensions & Associated Costs $1,525,000.00

Total Water and Sewer Costs $1,718,000.00

Less Water & Sewer Assessments (11,500 linear ft. x $66.30 Estimated Cost per Foot) $762,450.00

Less Connection Fees (113 Connections x $850 per Tap Fee) $96,050.00

Total Assessments & Connection Fees $858,500.00

Net Water and Sewer Costs $859,500.00

Waste Containers (106 x $49.50 per Unit) $5,247.00

One-time Economic Loss Payment to Private Solid Waste Collector $18,555.30

Total Projected Capital Costs $883,302.30

Payback Period 4.77 Years

Bryant Street Area Annexation Report Summary

Bryant Street Annexation Report SummaryRates Effective 2012-2013

Residential Lots (less than 5 acres) 162

Undeveloped Lots & Lots Over 5 Acres with House 67

Institutional Lots 5

Commercial Lots 2

Total Lots 236

Households:

Residential Lots 162

Parcel #104277 (3 Houses) 2

Parcel #105125Z1 (Over 5 Acres with House) 1

Total Households 165

Population (2.43 per household) 401

Bryant Street Annexation Report SummaryRates Effective 2012-2013

Projected Annual Cost Summary

Potential New Sewer Customers 118

Current Sewer Customers 49

Total Sewer Customers 167

Current Sewer Customers x Avg. Monthly Rate ($66.14) = Lost Sewer Revenue $38,890.32

Dan River Water Customers 89

Current City Water Customers 70

Potential New Water Customers 8

Current Water Customers x Avg. Monthly Rate ($62.16) = Lost Water Revenue $52,214.40

Total Water & Sewer Revenue Loss $91,104.72

W/S Cost for Part-time Employee Moved to Full-time $23,009.28

Bryant Street Annexation Report SummaryRates Effective 2012-2013

Projected Annual Cost Summary

Sanitation ($19.76 per household per month) $39,124.80

Fire Protection (Tax Value x Fire District Rate) $10,606.76

Secondary Street Maintenance(2.07 miles x $3,663.77 per mile cost) $7,584.00

Street Lights (55 x $5.47 x 12 months) $3,610.20

Total Annual Operating Expenses $175,039.76

Bryant Street Annexation Report SummaryRates Effective 2012-2013

Projected Annual Revenue Summary

Taxes

Real Property Taxes (Property Value x Tax Rate x 96% Collectible) $78,914.28

Personal Property Taxes (Real Property Taxes x 15%) $11,837.14

Sales Tax ($166.66 per capita) $66,830.66

Utilities Franchise Taxes ($47.05 per capita) $18,867.05

Beer & Wine Tax ($4.50 per capita) $1,804.50

Cable Franchise Fee ($10.18 per capita) $4,082.18

Powell Bill

Population Based Distribution ($25.11 per capita) $10,069.11

Mileage Based Distribution ($1,886.91 x 2.07 miles) $3,905.90

Total Powell Bill Distribution $13,975.01

Bryant Street Annexation Report SummaryRates Effective 2012-2013

Projected Annual Revenue Summary

Water & Sewer Revenue

Current Water Customers x $31.08 monthly $26,107.20

New Water Customers x $31.08 monthly $36,177.12

Current Sewer Customers x $33.07 monthly $19,445.16

New Sewer Customers x $33.07 monthly $46,827.12

Total Water & Sewer Revenue $128,556.60

Sanitation ($18.75 per household per month) $37,125.00

Total Annual Revenue Summary $361,992.43

NET IMPACT (Annual Revenue – Annual Cost) $186,952.67

Bryant Street Annexation Report SummaryRates Effective 2012-2013

Projected Capital Cost Summary

Water Line Extensions & Associated Costs $501,000.00

Sewer Line Extensions & Associated Costs $1,980,000.00

Total Water and Sewer Costs $2,481,000.00

Less Water & Sewer Assessments (14,300 linear ft. x $69.23 Estimated Cost per Foot) $989,989.00

Less Connection Fees (118 Connections x $850 per Tap Fee) $100,300.00

Total Assessments & Connection Fees $1,090,289.00

Net Water and Sewer Costs $1,390,711.00

Waste Containers (165 x $49.50 per Unit) $8,167.50

One-time Economic Loss Payment to Private Solid Waste Collector $28,883.25

Total Projected Capital Costs $1,427,761.75

Payback Period 7.64 Years

Meadowood Annexation Report Summary

Meadowood Annexation Report SummaryRates Effective 2012-2013

Residential Lots (less than 5 acres) 119

Undeveloped Lots & Lots Over 5 Acres with House 16

Institutional Lots 2

Commercial Lots 0

Total Lots 137

Households:

Residential Lots 119

Total Households 119

Population (2.34 per household) 278

Meadowood Annexation Report SummaryRates Effective 2012-2013

Projected Annual Cost Summary

Potential New Sewer Customers 119

Current Sewer Customers 0

Total Sewer Customers 119

Current Sewer Customers x Avg. Monthly Rate ($66.14) = Lost Sewer Revenue $0

Dan River Water Customers 120

Current City Water Customers 0

Dan River Water Customers x Monthly Bill = Amount to Compensate DRW $0

Total Water & Sewer Revenue Loss $0

Meadowood Annexation Report SummaryRates Effective 2012-2013

Projected Annual Cost Summary

Sanitation ($19.76 per household per month) $28,217.28

Fire Protection (Tax Value x Fire District Rate) $9,420.20

Secondary Street Maintenance(1.57 miles x $3,663.77 per mile cost) $5,752.12

Street Lights (21 x $5.47 x 12 months) $1,378.44

Total Annual Operating Expenses $44,768.04

Meadowood Annexation Report SummaryRates Effective 2012-2013

Projected Annual Revenue Summary

Taxes

Real Property Taxes (Property Value x Tax Rate x 96% Collectible) $70,086.32

Personal Property Taxes (Real Property Taxes x 15%) $10,512.95

Sales Tax ($166.66 per capita) $46,331.48

Utilities Franchise Taxes ($47.05 per capita) $13,079.90

Beer & Wine Tax ($4.50 per capita) $1,251.00

Cable Franchise Fee ($10.18 per capita) $2,830.04

Powell Bill

Population Based Distribution ($25.11 per capita) $6,980.58

Mileage Based Distribution ($1,886.91 x 1.57 miles) $2,962.45

Total Powell Bill Distribution $9,943.03

Meadowood Annexation Report SummaryRates Effective 2012-2013

Projected Annual Revenue Summary

Water & Sewer Revenue

New Water Customers x $31.08 monthly $44,755.20

New Sewer Customers x $33.07 monthly $47,620.80

Total Water & Sewer Revenue $92,376.00

Sanitation ($18.75 per household per month) $26,755.00

Total Annual Revenue Summary $273,185.71

NET IMPACT (Annual Revenue – Annual Cost) $228,417.67

Meadowood Annexation Report SummaryRates Effective 2012-2013

Projected Capital Cost Summary

Water Line Extensions & Associated Costs $262,000.00

Sewer Line Extensions & Associated Costs $2,229,000.00

Total Water and Sewer Costs $2,491,000.00

Less Water & Sewer Assessments (15,000 linear ft. x $71.44 Estimated Cost per Foot) $1,071,600.00

Less Connection Fees (120 Connections x $850 per Tap Fee) $102,000.00

Total Assessments & Connection Fees $1,173,600.00

Net Water and Sewer Costs $1,317,400.00

Waste Containers (119 x $49.50 per Unit) $5,890.50

One-time Economic Loss Payment to Private Solid Waste Collector $20,830.95

Total Projected Capital Costs $1,344,121.45

Payback Period 5.88 Years

Green Knolls Annexation Report Summary

Green Knolls Annexation Report SummaryRates Effective 2012-2013

Residential Lots (less than 5 acres) 71

Undeveloped Lots & Lots Over 5 Acres with House 13

Institutional Lots 0

Commercial Lots 1

Total Lots 85

Households:

Residential Lots 71

Parcel #133454 (Over 5 Acres with House) 1

Total Households 72

Population (2.34 per household) 171

Green Knolls Annexation Report SummaryRates Effective 2012-2013

Projected Annual Cost Summary

Households 72

Current Sewer Customers 0

Potential New Sewer Customers 72

Current Sewer Customers x Avg. Monthly Rate ($66.14) = Lost Sewer Revenue $0

Dan River Water Customers 69

Current City Water Customers 0

Potential New Water Customers 3

Dan River Water Customers x Monthly Bill = Amount to Compensate DRW $0

Total Water & Sewer Revenue Loss $0

Green Knolls Annexation Report SummaryRates Effective 2012-2013

Projected Annual Cost Summary

Sanitation ($19.76 per household per month) $17,072.64

Fire Protection (Tax Value x Fire District Rate) $6,006.18

Secondary Street Maintenance(1.07 miles x $3,663.77 per mile cost) $3,920.23

Street Lights (22 x $5.47 x 12 months) $1,444.08

Total Annual Operating Expenses $28,443.14

Green Knolls Annexation Report SummaryRates Effective 2012-2013

Projected Annual Revenue Summary

Taxes

Real Property Taxes (Property Value x Tax Rate x 96% Collectible) $44,685.99

Personal Property Taxes (Real Property Taxes x 15%) $6,702.90

Sales Tax ($166.66 per capita) $28,498.86

Utilities Franchise Taxes ($47.05 per capita) $8,045.55

Beer & Wine Tax ($4.50 per capita) $769.50

Cable Franchise Fee ($10.18 per capita) $1,740.78

Powell Bill

Population Based Distribution ($25.11 per capita) $4,293.81

Mileage Based Distribution ($1,886.91 x 1.07 miles) $2,018.99

Total Powell Bill Distribution $6,312.80

Green Knolls Annexation Report SummaryRates Effective 2012-2013

Projected Annual Revenue Summary

Water & Sewer Revenue

New Water Customers x $31.08 monthly $26,853.12

New Sewer Customers x $33.07 monthly $28,572.48

Total Water & Sewer Revenue $55,425.60

Sanitation ($18.75 per household per month) $16,200.00

Total Annual Revenue Summary $168,381.98

NET IMPACT (Annual Revenue – Annual Cost) $139,938.85

Green Knolls Annexation Report SummaryRates Effective 2012-2013

Projected Capital Cost Summary

Water Line Extensions & Associated Costs $223,000.00

Sewer Line Extensions & Associated Costs $1,728,000.00

Total Water and Sewer Costs $1,951,000.00

Less Water & Sewer Assessments (10,400 linear ft. x $83.07 Estimated Cost per Foot) $863,928.00

Less Connection Fees (72 Connections x $850 per Tap Fee) $61,200.00

Total Assessments & Connection Fees $925,128.00

Net Water and Sewer Costs $1,025,872.00

Waste Containers (72 x $49.50 per Unit) $3,564.00

One-time Economic Loss Payment to Private Solid Waste Collector $12,603.60

Total Projected Capital Costs $1,042,039.60

Payback Period 7.45 Years

Western Areas Annexation Report Summary

Western Areas Annexation Report SummaryRates Effective 2012-2013

Residential Lots (less than 5 acres) 293

Undeveloped Lots & Lots Over 5 Acres with House 61

Institutional Lots 6

Commercial Lots 7

Total Lots 367

Households:

Residential Lots 293

Parcel #133454 (Over 5 Acres with House) 1

Parcel #133120 (Over 5 Acres with House) 1

Parcel #133167 (Over 5 Acres with House) 1

Parcel #133086 (Over 5 Acres with House) 1

Parcel #132733 (Over 5 Acres with House) 1

Total Households 298

Population (2.34 per household) 697

Western Areas Annexation Report SummaryRates Effective 2012-2013

Projected Annual Cost Summary

Households 298

Current Sewer Customers 0

Potential New Sewer Customers 298

Current Sewer Customers x Avg. Monthly Rate ($66.14) = Lost Sewer Revenue $0

Dan River Water Customers 262

Current City Water Customers 38

Potential New Water Customers 5

Dan River Water Customers x Monthly Bill = Amount to Compensate DRW $0

Total Water & Sewer Revenue Loss $0

Western Areas Annexation Report SummaryRates Effective 2012-2013

Projected Annual Cost Summary

Sanitation ($19.76 per household per month) $70,661.76

Fire Protection (Tax Value x Fire District Rate) $25,459.76

Secondary Street Maintenance(4.91 miles x $3,663.77 per mile cost) $17,989.11

Street Lights (82 x $5.47 x 12 months) $5,382.48

Total Annual Operating Expenses $119,493.11

Western Areas Annexation Report SummaryRates Effective 2012-2013

Projected Annual Revenue Summary

Taxes

Real Property Taxes (Property Value x Tax Rate x 96% Collectible) $189,420.64

Personal Property Taxes (Real Property Taxes x 15%) $28,413.10

Sales Tax ($166.66 per capita) $116,162.02

Utilities Franchise Taxes ($47.05 per capita) $32,793.85

Beer & Wine Tax ($4.50 per capita) $3,136.50

Cable Franchise Fee ($10.18 per capita) $7,095.46

Powell Bill

Population Based Distribution ($25.11 per capita) $17,501.67

Mileage Based Distribution ($1,886.91 x 1.07 miles) $9,264.73

Total Powell Bill Distribution $26,766.40

Western Areas Annexation Report SummaryRates Effective 2012-2013

Projected Annual Revenue Summary

Water & Sewer Revenue

Current Water Customers x $31.08 monthly $14,172.48

New Water Customers x $31.08 monthly $99,580.32

New Sewer Customers x $33.07 monthly $118,258.32

Total Water & Sewer Revenue $232,011.12

Sanitation ($18.75 per household per month) $67,050.00

Total Annual Revenue Summary $702,849.09

NET IMPACT (Annual Revenue – Annual Cost) $583,355.97

Western Areas Annexation Report SummaryRates Effective 2012-2013

Projected Capital Cost Summary

Water Line Extensions & Associated Costs $678,000.00

Sewer Line Extensions & Associated Costs $5,482,000.00

Total Water and Sewer Costs $6,160,000.00

Water & Sewer Assessments (15,000 linear ft. x $71.44 est. cost/ft - Meadowood) $1,071,600.00

Water & Sewer Assessments (10,400 linear ft. x $83.07 est. cost/ft – Green Knolls) $863,928.00

Water & Sewer Assessments (11,500 linear ft. x $66.30 est. cost/ft – Smith Acres) $762,450.00

Sewer Conn. Fees (120 x $850 - Meadowood) $102,000.00

Sewer Conn. Fees (72 x $850 – Green Knolls) $61,200.00

Sewer Conn. Fees (113 x $850 – Smith Acres) $96,050.00

Total Assessments & Connection Fees $2,957,288.00

Net Water and Sewer Costs $3,202,772.00

Western Areas Annexation Report SummaryRates Effective 2012-2013

Projected Capital Cost Summary

Waste Containers (298 x $49.50 per Unit) $14,751.00

One-time Economic Loss Payment to Private Solid Waste Collector $52,164.90

Total Projected Capital Costs $3,269,687.90

Payback Period 5.60 Years

Glen Farm Area Annexation Report Summary

Glen Farm Area Annexation Report SummaryRates Effective 2012-2013

Residential Lots (less than 5 acres) 96

Undeveloped Lots & Lots Over 5 Acres with House 56

Institutional Lots 1

Commercial Lots 2

Total Lots 155

Households:

Residential Lots 96

Parcel #140932 1

Total Households 97

Population (2.34 per household) 227

Glen Farm Area Annexation Report SummaryRates Effective 2012-2013

Projected Annual Cost Summary

Current Sewer Customers 0

Potential New Sewer Customers 97

Current Sewer Customers x Avg. Monthly Rate ($66.14) = Lost Sewer Revenue $0

Dan River Water Customers 97

Current City Water Customers 0

Potential New Water Customers 97

Dan River Water Customers x Monthly Bill = Amount to Compensate DRW $0

Total Water & Sewer Revenue Loss $0

Glen Farm Area Annexation Report SummaryRates Effective 2012-2013

Projected Annual Cost Summary

Sanitation ($19.76 per household per month) $23,000.64

Fire Protection (Tax Value x Fire District Rate) $17,169.40

Secondary Street Maintenance(2.17 miles x $3,663.77 per mile cost) $7,950.38

Street Lights (73 x $5.47 x 12 months) $4,791.72

Total Annual Operating Expenses $52,912.14

Glen Farm Area Annexation Report SummaryRates Effective 2012-2013

Projected Annual Revenue Summary

Taxes

Real Property Taxes (Property Value x Tax Rate x 96% Collectible) $127,740.35

Personal Property Taxes (Real Property Taxes x 15%) $19,161.05

Sales Tax ($166.66 per capita) $37,828.49

Utilities Franchise Taxes ($47.05 per capita) $10,679.41

Beer & Wine Tax ($4.50 per capita) $1,021.41

Cable Franchise Fee ($10.18 per capita) $2,310.66

Powell Bill

Population Based Distribution ($25.11 per capita) $5,699.47

Mileage Based Distribution ($1,886.91 x 1.57 miles) $2,962.45

Total Powell Bill Distribution $8,661.92

Glen Farm Area Annexation Report SummaryRates Effective 2012-2013

Projected Annual Revenue Summary

Water & Sewer Revenue

New Water Customers x $31.08 monthly $36,177.12

New Sewer Customers x $33.07 monthly $38,493.48

Total Water & Sewer Revenue $74,670.60

Sanitation ($18.75 per household per month) $21,825.00

Total Annual Revenue Summary $303,898.89

NET IMPACT (Annual Revenue – Annual Cost) $250,986.74

Glen Farm Area Annexation Report SummaryRates Effective 2012-2013

Projected Capital Cost Summary

Water Line Extensions & Associated Costs $250,000.00

Sewer Line Extensions & Associated Costs $2,690,000.00

Sewer Line Extensions & Associated Costs for East & West Sides of NC 14

$994,000.00

Total Water and Sewer Costs $3,934,000.00

Less Water & Sewer Assessments (15,800 linear ft. x $84.49 Estimated Cost per Foot) $1,334,942.00

Less Water Connection Fees (97 Connections x $850 per Tap Fee) $82,450.00

Total Assessments & Connection Fees $1,417,392.00

Net Water and Sewer Costs $2,516,608.00

Glen Farm Area Annexation Report SummaryRates Effective 2012-2013

Projected Capital Cost Summary

Waste Containers (97 x $49.50 per Unit) $4,801.50

One-time Economic Loss Payment to Private Solid Waste Collector $16,979.85

Total Projected Capital Costs $2,538,389.35

Payback Period 10.11 Years

Sauratown Area Annexation Report Summary

Sauratown Area Annexation Report SummaryRates Effective 2012-2013

Residential Lots (less than 5 acres) 27

Undeveloped Lots & Lots Over 5 Acres with House 17

Institutional Lots 0

Commercial Lots 0

Total Lots 44

Households:

Residential Lots 27

Parcel #166414 (Over 5 Acres with House) 1

Total Households 28

Population (2.34 per household) 66

Sauratown Area Annexation Report SummaryRates Effective 2012-2013

Projected Annual Cost Summary

Current Sewer Customers 0

Potential New Sewer Customers 28

Current Sewer Customers x Avg. Monthly Rate ($66.14) = Lost Sewer Revenue $0

Dan River Water Customers 28

Current City Water Customers 0

Potential New Water Customers 28

Dan River Water Customers x Monthly Bill = Amount to Compensate DRW $0

Total Water & Sewer Revenue Loss $0

Sauratown Area Annexation Report SummaryRates Effective 2012-2013

Projected Annual Cost Summary

Sanitation ($19.76 per household per month) $6,639.36

Fire Protection (Tax Value x Fire District Rate) $4,146.90

Secondary Street Maintenance(1.33 miles x $3,663.77 per mile cost) $4,872.81

Street Lights (24 x $5.47 x 12 months) $1,575.36

Total Annual Operating Expenses $17,234.43

Sauratown Area Annexation Report SummaryRates Effective 2012-2013

Projected Annual Revenue Summary

Taxes

Real Property Taxes (Property Value x Tax Rate x 96% Collectible) $30,852.92

Personal Property Taxes (Real Property Taxes x 15%) $4,627.94

Sales Tax ($166.66 per capita) $10,919.56

Utilities Franchise Taxes ($47.05 per capita) $10,679.41

Beer & Wine Tax ($4.50 per capita) $294.84

Cable Franchise Fee ($10.18 per capita) $666.99

Powell Bill

Population Based Distribution ($25.11 per capita) $1,645.21

Mileage Based Distribution ($1,886.91 x 1.57 miles) $2,509.59

Total Powell Bill Distribution $4,154.80

Sauratown Area Annexation Report SummaryRates Effective 2012-2013

Projected Annual Revenue Summary

Water & Sewer Revenue

New Water Customers x $31.08 monthly $10,442.88

New Sewer Customers x $33.07 monthly $11,111.52

Total Water & Sewer Revenue $21,554.40

Sanitation ($18.75 per household per month) $6,300.00

Total Annual Revenue Summary $82,454.17

NET IMPACT (Annual Revenue – Annual Cost) $65,219.74

Sauratown Area Annexation Report SummaryRates Effective 2012-2013

Projected Capital Cost Summary

Water Line Extensions & Associated Costs $58,000.00

Sewer Line Extensions & Associated Costs $1,857,000.00

Total Water and Sewer Costs $1,915,000.00

Less Water & Sewer Assessments (15,000 linear ft. x $61.90 Estimated Cost per Foot) $928,500.00

Less Water Connection Fees (28 Connections x $850 per Tap Fee) $23,800.00

Total Assessments & Connection Fees $952,300.00

Net Water and Sewer Costs $962,700.00

Sauratown Area Annexation Report SummaryRates Effective 2012-2013

Projected Capital Cost Summary

Waste Containers (28 x $49.50 per Unit) $1,386.00

One-time Economic Loss Payment to Private Solid Waste Collector $4,901.40

Total Projected Capital Costs $968,987.40

Payback Period 14.86 Years

Recommendations• Review all industrial sites outside the City Limits but

within the ETJ for feasibility of annexation, with particular focus on the Hanesbrands property.

• Update Resolution of Consideration in February 2010.• Financial constraints:

o Current economic conditions in the City, County, State & Nation are not very stable.

o Water & Sewer Fund is adjusting to changes from the loss of Hanesbrands and others.

o General Fund revenues are unpredictable at this time.• Therefore, Staff recommends:

o No annexations be initiated in 2010, but that a small area be considered for 2011.

o A plan for regular annexations be considered by Council.

Recommended