Agenda - 05-04-2006-9d - Laserfiche WebLink

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Prepared 04/18/06 II ESTIMATED GREENE TRACT REIMBURSEMENT AMOUNTS Under the interlocal "Agreement for Solid Waste Management", the term "Reimbursement Amount" is defined as follows: "(1) in the case of disposition to a North Carolina local government that is also a Party, so long as that government devotes the transferred por-lion to public purposes, (a) $608,823, being the original purchase price of the Greene Tract, multiplied (b) b,y a fraction, the numerator of which is the number of whole acres of the Greene Tract being disposed and the denominator of which is 169, plus (c) uncompounded interest on the product of (a) and (b) at the annual rate of 6 00% from March 30, 1984 to the effective date of any disposition, and (2) in the case of any other disposition, the greater of either (a) the Reimbursement Amount to a North Carolina local government that is also a Party, or (b) the net proceeds of a sale after the costs of the sale are paid " If one were to assume that the June 2002 recommendations of the Greene Tract Work Group were implemented, with conservation easements recorded sometime during FY 2006-07 on both jointly owned property and on the County's 60 acres, and with alump- sum payment due date of July 1, 2007, the total reimbursement amount would be approximately, Ori final Purchase Price $608,823 Annual Interest at 6%uncompounded 36,530 Total Interest (23 years 3 months) 849,322 Total Reimbursement Amount $1,458,145 The respective shares of the local governments in making reimbursements to the Solid Waste/Landfill Operations Enterprise Fund would be approximately (based on the actual surveyed acreage of 164, rather than the 109 acres cited in the interlocal agreement): Principal Interest Total Entire Greene Tract 164 acres $608,823 $849,322 $'1,458,145 Orange County deeded 60 acres 222,741 310,727 533,468 portion Orange County interest 43% of 104 acres 166,015 231,596 397,611 in remainder Chapel Hill interest in 43% of 104 acres 166,015 231,596 397,611 remainder Carrboro interest in 14% of 104 acres 54,052 75,403 129,455 remainder If the local governments were to agree that reimbursement payments should be spread out over a period of several years, that might make annual budget planning easier than having to budget for one large reimbursement payment Spreading payments could be structured to provide necessary cash to the enterprise fund for future major capital expenditures (e g. a transfer station), while easing the burden on Town and County General Funds. The County and Town Managers and staffs can collaborate to produce a recommendation for payback over amulti-year period, for future Board discussion