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Public Health Exuenditures_from___the General Fund <br />There are certainly some public health aspects to sewering the <br />remainder of Efland. The Orange County Health Department, <br />Environmental Health Section reports that a number of septic <br />systems in the area have had to be repaired in unsuitable soils <br />and could fail at any time. Additionally, much of the soil in <br />Phases III and IV is not very good for on site waste treatment. <br />Mobile home parks in the remainder of Phase I and in Phase III are <br />suspect because of the high concentration of septic systems with <br />relatively small areas available for effluent disposal. The <br />County may consider putting some funds. which would not have to be <br />repaid from sewer revenues. into construction of an expanded <br />systemm to address public health needs. As was stated earlier in <br />this report. each $100,000 reduction of the capital debt burden <br />carried as an operating expense reduces the average sewer bill by <br />$2.50 when all phases are constructed. <br />Sewer Service Districts <br />The creation of an Efland area sewer service district with the <br />authority to levy taxes within the district is yet another sewer <br />construction financing alternative. This alternative is somewhat <br />complicated in that a sewer service district must have a governing <br />board. The 80CC. in creating the service district, could choose <br />to become the governing board of the service district itself or <br />could choose to appoint a board for the service district. If the <br />sewer service district was created, it could levy a supplemental <br />property tax on all land owners within the district. These <br />tax revenues could be used to pay sewer construction and operating <br />costs, while holding down sewer rates. The advantage to this <br />type of system is that those whose land was most greatly <br />increased in value by the provision of sewer service would <br />pay the greatest portion of sewer development cost. The sewer <br />service district would also spare the remainder of the County from <br />having to carry the financial burden of sewering Efland. <br />I hope that I have presented you with sufficient information <br />that will help clarify the complex situation that describes the <br />Efland sewer system, at least to the point that you can begin the <br />process for making decisions on the future of the system. The <br />situation outlined above regarding the existing sewer system is <br />obviously undesirable in terms of service provided to the <br />citizens. revenues generated. and repayment of debts to the County <br />General Fund. With careful planning. the County may be able to <br />rectify the problems with the existing system and expand the <br />system into other areas of-Efland, which would be well served if <br />the sewer system is expanded. If I can provide any additional <br />information or answer any questions. please advise. <br />11 <br />