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next two years. In two years an escrow amount would be available from the ABC fund that may be used to purchase two cars. The Board members endorsed the recommendation indicating the County would have better coverage and visibility, manpower costs would be saved, the moral of the officers would be increased and in the long run the plan would save maoney. After further discussion, it was decided that the program should be phased in over a period of time. Motion was made by Commissioner Carey, seconded by Commissioner Hartwell to approve the concept of single driver vehicles. County Manager Kenneth Thompson noted that in the short run the recommendation would cause problems because the high mileage cars would be kept one more year causing additional maintenance and workload at the garage. However, in the long run the plan would save money. Sheriff Pendergrass pointed out that with single driver cars the maintenance cost will be lower. VOTE: UNANIMOUS. It was the consensus of the Board to authorize the purchase of 15 new vehicles and to delay the determination of whether or not the old vehicles will be sold at auction until after the budget is approved. 11A. ANNEXATION - HILLSBOROUGH Mayor of Hillsborough Frank Sheffield explained that Hillsborough is seeking legislation on this annexation because of the way the law is written for towns of less than 5, 000 in population. Sixty percent of the area to be annexed must be in 5 acre lots or more. The reason for the annexation is to bring into Hillsborough all those fully developed areas. Phase I annexation is to broaden the tax base for Hillsborough. Phase II would bring into Hillsborough those fully developed areas because people in those areas have requested to be annexed to the Town. People in the extraterritorial areas are now paying a higher water rate than those people located within the city limits of Hillsborough. The Town would like to annex those areas listed in Phase I this year because they can provide the services to that area. Next year Phase II would be annexed. A public hearing was held with a minimum of opposition voiced. He asked that the Board of Commissioners support the proposal. The intention of the annexation is to provide a full range of municipal services to an area that is urbanized. Mayor Sheffield in response to a concern expressed by Chair Marshall explained that in reference to the rural fire department that the Town would do whatever is required as outlined in the General Statutes. He explained that the majority of Hillsborough water and sewer customers live outside the city boundaries and that in his opinion the Town has been dependent upon these revenues to supplement the Town's revenues. Commissioner Willhoit indicated that because the annexation will not benefit the County that the stand of the Board of Commissioners should be not to oppose the annexation. Chair Marshall pointed out that the policy of the State of North Carolina is that those areas which are at municipal density should be municipal and the County's function is to support that policy if the Town can provide the services that are necessary. Motion was made by Commissioner Hartwell, seconded by Commissioner