Agenda - 03-03-1999 - 9d - Laserfiche WebLink

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4 Orange Grove Volunteer Dire Department 6800 ORANGE GROVE ROAD - HILLSBOROUGH. NORTH CAROLINA 27278 Ed Kerwin, Executive Director Orange Water and Sewer Authority PO Box 366 Cacrboro, NC 27510-0366 Dear Ed, This is a response to your letter of May 8 in which you expressed interest in the proposal that OWASA should compensate the Fire Company for its extensive ownership of land in Bingham Township (and the'land's consequent deletion from the tax roll). This compensation would be in recognition of the fact that we continue to offer fire protection to all of OWASA's facilities in our district. Additionally, we provide protection against woods and brush fires for OWASA's land holdings around Cane Creek reservoir and in the wildlife mitigation areas. In response to your suggestion that we propose an annual amount that OWASA might provide to the Fire Company, our Board of Directors has authorized me to consider the issue, consult with you, and suggest an appropriate amount. It seems to me most reasonable for OWASA simply to make up the fire tax revenue that we would have received had land now owned by OWASA remained in private hands. We could then multiply the acreage by a typical large -tract evaluation and multiply the result by the fire tax rate. Using this principle, we need only three numbers. Fast, the Orange Grove Fire District tax rate is 4.5 cents per $100 evaluation. Second, at the recent Planning Board hearing at our fire station, David Stancil, a staff member of the Orange County Planning Board, noted that OWASA owned approximately 2100 acres in Bingham Township. Since virtually all of the Cane Creek watershed in Bingham Township lies in our tax district, this is by far the easiest and simplest figure to use. Lastly, for the per -acre valuation, I suggested that we use the amount suggested to OWASA by the Cadmus Group in its- Cane Creek watershed study (see pages 3 -14). They suggested an average fee - simple value of $5000 per acre based on sales of 20+ acre parcels in the period 1993- 1996 as compiled by an appraiser. 1 Multiplying 2100 acres by $5000 yields $10.5 million in total evaluation. Multiplying. this value by the fire tax rate of 4.5 cents per $ 100, one gets $4725. On behalf of the Fire Company, therefore, 17.6 NOV 5 November 3, 1998 Ed Kerwin, Executive Director Orange Water and Sewer Authority PO Box 366 Cacrboro, NC 27510-0366 Dear Ed, This is a response to your letter of May 8 in which you expressed interest in the proposal that OWASA should compensate the Fire Company for its extensive ownership of land in Bingham Township (and the'land's consequent deletion from the tax roll). This compensation would be in recognition of the fact that we continue to offer fire protection to all of OWASA's facilities in our district. Additionally, we provide protection against woods and brush fires for OWASA's land holdings around Cane Creek reservoir and in the wildlife mitigation areas. In response to your suggestion that we propose an annual amount that OWASA might provide to the Fire Company, our Board of Directors has authorized me to consider the issue, consult with you, and suggest an appropriate amount. It seems to me most reasonable for OWASA simply to make up the fire tax revenue that we would have received had land now owned by OWASA remained in private hands. We could then multiply the acreage by a typical large -tract evaluation and multiply the result by the fire tax rate. Using this principle, we need only three numbers. Fast, the Orange Grove Fire District tax rate is 4.5 cents per $100 evaluation. Second, at the recent Planning Board hearing at our fire station, David Stancil, a staff member of the Orange County Planning Board, noted that OWASA owned approximately 2100 acres in Bingham Township. Since virtually all of the Cane Creek watershed in Bingham Township lies in our tax district, this is by far the easiest and simplest figure to use. Lastly, for the per -acre valuation, I suggested that we use the amount suggested to OWASA by the Cadmus Group in its- Cane Creek watershed study (see pages 3 -14). They suggested an average fee - simple value of $5000 per acre based on sales of 20+ acre parcels in the period 1993- 1996 as compiled by an appraiser. 1 Multiplying 2100 acres by $5000 yields $10.5 million in total evaluation. Multiplying. this value by the fire tax rate of 4.5 cents per $ 100, one gets $4725. On behalf of the Fire Company, therefore, 17.6