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D. Responsibilities of the Towns and County <br /> 1. Annual Funding <br /> The County and Towns agree that their annual funding of CHT will gradually grow and <br /> annually be adjusted, starting in fiscal 2015-16, from the fiscal 2014-15 levels (Orange <br /> County $149,000, Town of Chapel Hill $200,000, Town of Carrboro $35,000 and Town of <br /> Hillsborough $2,500) to allow CHT to maintain a minimum required operating cash balance. <br /> CHT's minimum required operating cash balance will be the sum of the industry-standard six <br /> months of operating expenses ($350,000 as of July 1, 2014) plus special project reserves <br /> necessary for CHT to safeguard its portfolio of homes ($550,000 as of July 1, 2014). Each <br /> year, CHT will re-determine these amounts and include them in its budget proposal. <br /> Funding payments from the County and Towns to CHT will be made quarter-annually in <br /> equal amounts on or about July 1, October 1, January 1 and April 1. <br /> 2. CHT Staff Compensation <br /> The County and Towns agree that the CHT budget will include CHT staff compensation <br /> based upon compensation paid by the County and Towns. <br /> 3. Funding Formula <br /> Although it is recognized that each local government will vote independently to approve this <br /> Agreement, it is expected that each jurisdiction will approve the same funding formula. <br /> Furthermore it is agreed that funding will be determined as follows: <br /> a. The sharing of the County and Towns' portion of the annual funding will be <br /> determined by a two tier formula. First, the County will provide 33% of the total <br /> and the Towns will provide 67% of the total. Second, the Towns will share their <br /> 67% portion based on the ratio of CHT homes within each town to the total number <br /> of CHT homes. The number of homes will be determined as of January 1 prior to <br /> each fiscal year. <br /> b. For example, if CHT's budget is $800,000 and the number of homes in the CHT <br /> portfolio on the prior January ls` is 250, with 200 of those homes in Chapel Hill, 50 <br /> of those homes in Carrboro and none of those homes in Hillsborough, and CHT <br /> budgets providing $200,000 of revenue itself, then Orange County will be required <br /> to pay 33% of$600,000 ($800,000 less $200,000), or $198,000, Chapel Hill will be <br /> required to pay 67% of$600,000 multiplied by 200/250, or $321,600; Carrboro will <br /> be required to pay 67% of $600,000 multiplied by 50/250, or $80,400 and <br /> Hillsborough will be required to pay 67% of$600,000 multiplied by 0/250, or $0. <br /> 4. Portfolio Management <br /> a. The Towns and County agree to consult with the CHT staff when new <br /> developments are proposed that would include homes that would become a part of <br />