Orange County NC Website
the management oversight of their system. One of the localities studied in <br />California use this method and the monthly fee was $12.50 in 1992. <br />Service District — The county engineer proposed a "sewer tax district" for <br />consideration. Although there are limitations for its use, it would help address the <br />inequities and ability to pay issues. This tax district would be developed as a <br />service district as prescribed in GS 153A -300 and applies only to certain parts of <br />the County. If the district extends into municipalities, it must be approved by those <br />affected towns or cities. The formation of these districts is a BOCC responsibility <br />and there is a limit on the amount of tax that can be levied in their use. <br />Fees — WTMP was originally approved to be a fee - sponsored program with the <br />first years augmented by the general fund until the numbers of inspections reached <br />a sustaining level. If the expansion is to be financed by fees, an accurate cost <br />allocation model, developed with help from the Institute of Government study, <br />should be used. Advantages to using fees are: they can be structured differentially <br />so that larger or more complex systems pay more; they are easily adjusted to meet <br />operational expenses; and have little or no impact on the County's tax rate. <br />Disadvantages to using fees are the cost and methods of their collection, delinquent <br />and non - payment remedies, and that benefits are realized by citizens who don't <br />participate in the fee payment. <br />There were two basic models of fees discussed by the group. The first was a "per <br />inspection fee which is billed after the inspection service is rendered. The second <br />was an annual "operations permit" fee which would be part of the annual tax bill <br />and spreads the cost of the re- inspection over the length of the 5 years review <br />frequency. <br />Hybrid — During the first meeting, the committee seemed to support a combination <br />of fees and general fund monies to finance the program. The advantage to this <br />approach is that all citizens, as beneficiaries, help support the costs of the work but <br />the individual system owner bears the majority of the costs. The disadvantages of <br />fee administration, payment collections and non-payment/delinquencies remain <br />with this system. It must be also be assured that the proportions and mechanisms <br />of funding are well understood by everyone involved and that the commitment to <br />using general fund monies for this purpose is strong. <br />At the final meeting, however, the group was leaning more towards the annual <br />"operations permit" fee with the caveat of providing some relief or options to those <br />with limited ability to pay. <br />Fee Collection Methods <br />Current Method -'Fees are now assessed, billed and collected through the <br />Environmental Health office. There are some type inspections which are not being <br />Page 11 of 12 <br />