Agenda - 09-08-1999 - 1 - Laserfiche WebLink

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exceeds one year. Cost savings in the forecast could be realized by delaying hiring of some personnel until more revenues are realized. It is important to note, it is easy to plan now to delay personnel hires, but when there is a strong likelihood the citizens and businesses will be adamant in demanding service ASAP in 2002, it is easier said then done. Starting in FY04, the General Fund starts to generate a surplus as the development nears completion and the benefit of property taxes are fully realized by the Town. It is crucial to mention two key factors about this forecast: 1) Every effort was made to avoid underestimating expenditure projections for service provision in Corbin Downs, so it is possible the expenditure estimates are high; and 2) The actual cost of fire protection while accurate, ~is likely to be shared with future development, thus decreasing the actual cost to serve Corbin Downs. The aforementioned two factors are key pieces of information to consider when evaluating the financial viability of this proposed annexation. There is unquestionably risk involved in trying to predict the cost of servicing a large development that may or may not be built according to schedule, depending on the economy and many other factors. This risk warrants serious evaluation and is why conservative approaches were used in the forecast. These conservative approaches while responsible, also mask the potential for substantial financial gains for the Town over the long run in the General Fund. w w Water/Sewer Fund: The forecast in this fund essentially separates operlus startins ineFY02 of a sizable portion. expenditures. The forecast projects an operating sure g Substantial contingencies were included each year to help protect against underestimating the actual cost of providing water/sewer service to Corbin Downs. The forecast indicates the Water/Sewer Fund would clearly benefit from an operational standpoint from providing utility services to Corbin Downs. The issue of determining Corbin Downs' specific dollar impact on the Town's three major capital facilities (e.g., water plant, wastewater plant, and reservoir) is a difficult matter to address, especially given the time restraints of this study. The estimated $2,203,100 in Capital Facility Fees generated by Corbin Downs will obviously go a long way towards addressing the development's actual impact on the Town's~plants and reservoir. To ensure this is an adequate amount, the Town will need to undertake a thorough analysis, regardless if Corbin Downs is annexed or not, for the purpose of re-evaluating the amount of its Capital Facility Fees to ensure new development is actually paying for its fair share of costs it the utility system. A key benefit that is not vailabled totthehEDD land to the intersection of I-140 andsOld NC86.tf In which will make sewer a addition, the constructs evelo er has agreed to pay the ent~rles ostl(minus at$300 000 eontributio~ and Old NC d6. The d p from Centex Homes for their portion of the outfall for Beckett's Ridge Subdivision) of constructing the Cates Creek Outfall. The total project cost is estimated at $1.1 million dollars. The developer has agrecd to pay for the cost of the outfall construction up front, though it can be done in phases, so the Town does not have to pay for the cost of this project. This i though teo t fo~ th t prof gtths lines. The same arrangement is planned for the water line, approximately $200,000. The benefits of providing utilities to this area, while not quantifiable in terms of the forecast are quite substantial to the Town. Note: If the Board decides to annex Corbin Downs they must first adopt awater/sewer extension agreement that includes the provisions discussed for this project. A draft contract has already been 2-7