Agenda - 10-05-2010 - 7c - Laserfiche WebLink

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Orange County is in the process of amending and/or creating utility service agreements with the City of Mebane (Efland, Mebane, Buckhorn area; see Attachment 2) and City of Durham (Eno Economic Development District). As a related matter, these districts can also complement the County's `urban' transition land use areas (which also includes residential zones) where public water and sewer is in place or planned in accordance with the countywide Water and Sewer Management, Planning, and Boundary Agreement (WASMPBA). This district concept can be a method to spread the cost of operating and capitalizing an area to both development and undeveloped properties where water and sewer is available or may be available. Efland Relevance: As an example of the usage for a district, the County has owned and operated a sewer collection system in the community of Efland since 1988. Historically, the difference between revenues generated from customer billing and the operating costs of the system has been made up with appropriations from the Orange County General Fund. A 2008 study showed that to generate enough revenue to cover operation costs and future capital needs, the rate at the time would have to be increased by 300-400% over a five year schedule. Rate increases at several public meetings have been discussed. Staff has met with several customers individually and with Justice United, an Orange County based social advocacy group, regarding the need for the increases and potential ways to reduce the ultimate rate that will need to be charged to Efland customers. The sewer district concept is one of the ways that has been discussed by staff to lower the ultimate necessary sewer rate. Water and Sewer District Conceat: The State grants to counties the ability to define water and sewer districts within the county, pursuant to North Carolina General Statutes (NCGS). The district would be a municipal corporation, with the Board of County Commissioners (BOCC) serving as the governing body of the district. As a municipal corporation, the district is granted a number of powers by the NCGS referenced above, namely: - Authority to issue bonds for the purpose of providing water and/or sewer service to the district with benefits to existing and future residents and businesses - Ability to levy a separate water and/or sewer tax on properties located in the district to support the operation and maintenance of the utility and/or to pay debt service on bonds - Ability to contract with private entities, such as with an engineering consultant to design sewer infrastructure for the district - Authority to proceed with eminent domain - Authority to create special assessments for projects in the district Districts and Subdistricts: Orange County could create multiple districts that are unique to the conditions or the potential of public water and sewer service. Each district would have a definitive boundary and the associated organizational and business aspects would be tailored accordingly. Districts can be enlarged by a type of annexation into the district. These water and sewer districts would be consistent with the County's 2030 Comprehensive Plan which notes the County's intention for a higher level of land use and economic development potential.