Agenda - 01-16-1999- 3 - Laserfiche WebLink

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FINANCIAL CONSIDERATIONS Costs When the existing WTMP proposal was presented in the late 1980's, David M. Griffith and Associates conducted the study to establish the fee level and other related financial considerations. The fees approved for the implementation of the program were approximately one -half of the DMG recommendation and one FTE was funded to start the work. At present, the direct fees account for approximately one fourth of the FTE salary costs and the percentage of fee reimbursement gradually increases each year. Because the DMG methodology was based primarily on direct costs, staff doesn't believe it to be the best way to approach the estimation of costs for the expansion. The Institute of Government is conducting a study of the costs for environmental health services in several counties across North Carolina which is based on a more comprehensive cost allocation model. The first draft of this study is due out soon and should offer a more accurate way to look at the actual costs of providing education and inspections. When finalized and if fees are part of the funding mechanism, staff will prepare a fee schedule for the committee's review based on the IOG methodology and findings. CIP needs' such as computers, technical equipment and vehicles will also be figured into the fee base. The direct costs for each inspector will be salary and fringes, vehicle, computer equipment, field equipment, and office furniture. Funding — There are several options for paying for this program expansion. It is staff's recommendation that the option selected also be used to fund the existing WTMP activities. General Fund — The general fund is the first option for covering the expenses of this program. The principal argument against using the general fund is that municipal citizens would be paying for inspection of county resident's septic systems. However, it must be considered that the watersheds for the three main impoundments (and a proposed fourth) serving the Towns of Carrboro, Chapel Hill and Hillsborough are mostly comprised of county lands served by on -site septic systems. This expansion will be a benefit in the protection of those reservoirs. The general fund approach would also eliminate take the "ability to pay" and non- ,, payment issues and be much easier to administer from the Health Department's perspective. Special Fund — Although a special fund, even an enterprise fund, could be considered, there was not much support for its use with the committee. This method would allow for the charging of a monthly fee to each enrolled owner for Page 10 of 12