Orange County NC Website
~~ <br />2 <br />Thompson noted that the developer would pay for the e::tension of the line; <br />Hillsborough has set the tap fee at 5400. <br />Commissioner t~Thitted pointed out in conjunction with the project the Board <br />needs to set policy for the e::tensien and size of the line and tap fees. An <br />agreement with the Town of Hillsborough as to the volume they are vvilling to <br />- treat needs to +~e negotiated. <br />Thompson e~splained that the 5200,OD0 loan amount is needed ir. addition to <br />the local money and the FT3A grant to nay for the construction cast. This loan <br />would be obtained by general obligation sewer bonds. The 5136,ODD would go <br />__ into an enterprise fund with payback through future tap fees. Pay'aack of the <br />' 515,000 b?anlcet tap fee would be built into the rate at five cents per 1,000 <br />. gallons for the first 13.3 years. <br />• Commissioner tahitted noted among other alternatives two ways to handle <br />the blanket tap fee amount: <br />(1) increase the grant or <br />(2) increase the 5136,D00 loan amount. <br />Chair T•7i11hoit indicated that the only enforcement to collect the monthly <br />sewer bill is through Orange-Alamance and if the dwelling is on a well the <br />County has no enforcement for collection of the monthly fee. <br />T~1''FI7~ FQR_~CIS2ON <br />1J _ ~'.~RT~a?~L~QT,3~~ArI AhTD GRAAIT OFFER <br />~..- _Ir~~'Z'ER OF 2N'~'~'NT TO i~1EET CONDIT3ONS <br />Thurmond Murphy, representative of FxA, indicated the County would <br />not be obligated until the issuance of bonds. The next step would be final <br />-'. plans and specifications and advertisement for bits. <br />Commissioner i2arshall asked the length of time the Board has to give <br />FHA the specifics they need and i4urphy indicated they would give the Board the <br />time they need to wor{: out the project. <br />Commissioner t•7hitted indicated that issuing net debt bonds is a fair- <br />ly normal practice with counties and municipalities. The law, without the vote <br />of the people, allows issuance of 2/3 of the debt retirement for the previous <br />fiscal year. Because Orange County has never issued net bebt reduction bonds, <br />Commissioner tdhitted indicated that the Board needs to establish the criteria <br />or conditions that Orange County will use in .the issuing of such bonds. It is <br />quite clear that a health hazard exists in the Efland Estates area which should <br />be listed as one criteria. P.nother would be the critical condition that exists <br />at Exland School. The issuance of net debt reduction bands should be reserved <br />for emergency situations only and have very specific purposes. <br />Gledhill noted that the Bond Counsel is concerned that before you <br />incur a debt that all the people in Orange County are responsible for repaying, <br />that you have public purposes that affect all the people in Orange County. <br />t4otion was made by Commissioner t•7hitted, seconded by Commissioner <br />-- ti`dalker that as a matter of policy the issuance of general obligation .bonds <br />under the net debt reduction rules by Orange County be e~:ercised only when <br />there e~:ists a health, safety and welfare hazard and/or to construct a capital <br />facility needed to protect the health, safety and welfare from emergency <br />conditions. <br />VOTE: UNAPIIP•iOUS. <br />Commissioner *9hitted noted there are other policy issues that should <br />be addressed at a later time before other decisions are made. <br />Thompson indicated that the figures on the Letter of intent to meet <br />conditions will be adjusted to reflect the operating budget fees, <br />