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21 <br />D <br />this need as part of the 1992 -93 budget in addition to comomitients <br />earlier this year to- accelerate work on the Bolin Creek and Tanyard <br />Branch sewer lines. - We commend OWASA !or these initiatives. <br />VI. Financing the OWASA <br />Background <br />OWASA receives about $1 million or annually from "availability" <br />charges to help pay for major water and sewer lines and a share of <br />treatment plant capacity. The revenue from this fee is used to help <br />pay for OWASA's capital improvement program. <br />For a typical home and lot size, the availability charge is about <br />$1,700 for water service and $1,100 for sewer service. <br />OWASA has responded to petitions from majorities of lot owners in <br />several neighborhoods for extension of water and sewer on an <br />assessment basis. OWASA has assessed 100% of costs as the Town did <br />in sewer projects before OWASA was created. This policy is pursuant <br />to the 1977 purchase and sales agreements. <br />Some OWASA Board members have expressed a belief that the Towns of <br />Chapel Hill and Carrboro should allocate a portion of their half <br />cent sales taxes for water and sewer purposes such as improvements <br />to the OWASA system or extending sewer in areas with septic <br />systems. They believe such use of the sales tax revenue would be in <br />accord with the intent of the sales tax legislation. <br />The Towns have received exemptions which are authorized in the <br />sales tax legislation to use all of the half cent sales tax revenue <br />for municipal services. <br />As previously discussed, the OWASA Board is unable to waive or <br />reduce fees and charges for low income families because of <br />provisions in OWASA's bond orders. However, the OWASA Board has <br />expressed interest in discussions with local governments to seek <br />cooperative arrangements for addressing these issues. <br />Comments and Recommendations: <br />A. Half cent sales taxes <br />We do not accept the assertion by some that the Towns' requests for <br />exemptions regarding municipal use of half cent sales taxes are <br />inconsistent with the legislature's intent. <br />The sales tax legislation expressly provides that the GC Local <br />Government Commission may grant exemptions, and the Commission has <br />done so in response to requests by cities including Greensboro, <br />Charlotte and Asheville. <br />