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The Board of County Commissioners (BOCC} has expressed its interest and intent to consider a policy of assessment for County funded utility extension projects. To that end, Staff has outlined a series of policy decision points for BOCC review and reference. Much of the assessment process and administrative procedures are outlined by North Carolina General Statutes {NCGS). However, there are options available to the BOCC that allow for customization of the assessment process. These are as follows. Decision # 1: Percentage of the total project cost to be recovered through assessment Decision Summary The BOCC may elect to assess for any percentage of the total project cast, up to 100%. This total project cost can include not only the cost to construct the system, but may also include casts for engineering and design, construction supervision, legal fees, costs for obtaining easements, interest on construction loans, etc. An assessment policy would state the percentage of the total costs to be assessed for each project and what types of costs make up that total. As an example, the OWASA assessment policy approved by their board does not assess for engineering and design fees up to 15°~ of the total project cost or legal fees up to 5% of the total project cost. The BOCC may also want to consider establishing other offsets to total cast in the County's policy. The mast prominent example would be to subtract from the total cast of the project the value of any grant money received for the project. In the case of discounting assessments based on grant money received, it will be important to note whether the terms and conditions of the grant specifically indicate or limit who is supposed to benefit from the grant money andlor how to treat the grant money with regards to assessments. Decision # 2: Basis(esl for the assessment Decision Summary A County policy an utility assessment should outline how the total costs will be apportioned to the beneficiaries of the new utility. The NCGS spells out several bases available for the County to use, as follows: • Street frontage of the parcels to be served • Utility frontage of the parcels to be served • Area of the parcels to be served • Valuation of the land, without improvements, as shown on the County's tax records • On a per lot basis, at an equal rate per lot • A combination of two or more of these bases No other bases for assessment may be used. As stated above, the BOCC may elect to use any one of these or any combination of these, but the same basis for assessment must be used for each lot served. For example, it would not be allowed to assess one lot on the basis of area and another lot on the basis of street frontage. The only exemption circumstance allowed by NCGS is that of a corner lat. When assessing an