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gallons would result in a revenue to operating expense ratio of approximately 67%, with the <br />remainder of the operating budget, approximately $80,000, being provided by the General <br />Fund. After these two increases have occurred, the Efland rates would be reviewed on an <br />annual basis and adjusted as necessary to account for inflation or other cost increases. The <br />Mebane out-of--town rate could continue to be a useful benchmark against which to compare <br />the Efland sewer rate. <br />UNIQUE FEE <br />As the rates have gone up, there has been much discussion regarding the Richmond Hills <br />pump station perpetual maintenance fee of $13.00 per month, which is charged to every sewer <br />customer in the Richmond Hills subdivision in addition to the normal sewer bill. This fee was <br />approved and established by the BOCC in December 2001 as a way to have the residents who <br />use the pump station pay to maintain the pump station. This perpetual maintenance fee was <br />created in lieu of having the developer, Habitat for Humanity, pay cone-time, lump sum amount <br />upfront to cover the maintenance of the Richmond Hills pump station. Because the residents in <br />the Habitat for Humanity subdivision have low incomes, the suggestion has been made to <br />eliminate this fee from the bills. An alternative, but revenue neutral, option to the proposed rate <br />schedule would be to increase the base charge from $10.16 to $12.68 per month. This <br />essentially distributes the $13.00 per month fee that 43 customers were paying to the entire 222 <br />customer base. It results in an increase of $2.52 per month for all customers who do not live in <br />Richmond Hills subdivision, as outlined in "Proposal 2, Alternate Rate Increase Schedule" in <br />Attachment 1. <br />Finally, as part of this amendment to the Efland sewer rates, staff suggests removing the rate <br />schedule from the Efland Sewer Resolution and simply including the -Efland sewer rate as part <br />of the County's existing rate and fee schedule. The Efland sewer rate currently exists in both <br />places, so when a change is made the rate must be changed in both places. The current <br />Efland Sewer Resolution will need to be amended to refer to the County's rate schedule rather <br />than "Attachment A", which is where the rate schedule is located in the Resolution. Thereafter, <br />the only place the rate will need to be amended will be in the County's rate schedule and this <br />can be accomplished during the normal, annual budget adoption process. <br />FINANCIAL IMPACT: Based on the existing sewer rate increase schedule provided at <br />Attachment 2, the Efland Sewer Fund is currently schedu{ed to be subsidized by the General <br />Fund in the amount of $64,000 for fiscal year 2011-2012 and $7,000 for fiscal year 2012-2013. <br />However, revising the rate schedule as proposed would result in an additional subsidy of <br />$98,000 ($25,000 for FY 2011-2012, $73,000 for FY 2012-2013) over the next two years when <br />compared with projected revenues based on the existing rate increase schedule. Eliminating <br />the Richmond Hills perpetual maintenance fee and distributing this cost to all customers would <br />have no financial impact on the County. There is no financial impact associated with removing <br />the rate schedule from the Efland Sewer Resolution. <br />RECOMMENDATION(S): The Manager recommends the Board: <br />1. Approve the "Proposal 1" revision to the Efland sewer rate increase schedule; <br />2. Provide direction on the elimination and re-distribution of the Richmond Hills perpetual <br />maintenance fee as outlined in Attachment 1, Proposal 2, Alternate Proposed Rate <br />Increase Schedule <br />3. Approve the amendment to remove the Efland Sewer rate schedule from the Efland <br />Sewer Resolution, with the rate schedule to remain/be addressed as part of the <br />County's annual fee schedule/budget approval. <br />