Agenda - 05-04-2004-5l - Laserfiche WebLink

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Introduction RECOMMENDED PROGR~IM COST SUMMARY Page 8 of I I ~~ The total estimated first year cost for the recommended program is $2,031,255. Attachment 2 is a draft operating budget document and budget details for program year 2004-OS, assuming the Utility is established effective July 1, 2004.. The following table summarizes estimated program revenues and costs far the first year of the recommended program. DESCRIPTION 2004-OS Estimated Bud et TOTAL PROJECTED REVENUES 2,031,255 EXPENDITURES Personnel 297,730 Operations 429,525 Capital 125,500 Other reimburse sunk costs; fund balance 1,178 500 TOTAL PROJECTED EXPENDITURES 2,031,255 The annual program budget is expected to remain stable between $2 and $2,5 million over the first five program years, subject to changes directed by the Council in response to program master plan recommendations BII..LING AND COLLECTIONS We recommend that billing and collections be administered through Orange County. We are currently negotiating the scope and costs of billing and collection services necessary to support the Utility.. We estimate that first year costs for these services would be approximately $68,000. We will continue billing and collection discussions with Orange County with the objective of creating an inter-local service agreement for consideration by the Council if it decides to establish a utility as recommended. Billing for Chapel Hill properties in Durham County will be handled through a private contractor.. EQUIVALENT RATE LTNTT (ERU) FEE The program recommended by the Manager includes an ERU fee of $45.00 per year per ERIJ. We believe it would be prudent to establish an initial fee that could support the program over a period of several yeazs and that the proposed $45.00 annual fee would be sufficient for the first three years of the program. We anticipate that the cost of services could increase aver time because of increasing regulatory requirements and depending on the schedule for implementation of work identified in the program master plan. The fee rate would need to be periodically reevaluated in response to these changes. The recommended program would exempt State and Town public rights-of••way from assessment of fees because public roads and streets collect and convey stotmwater runoff as an integral part of the public drainage system infrastructure.. Property owned by the i.Iniversity would not be included in making the initial estimate of total Equivalent Rate Units. It is our understanding of the law that the University would be subject to the http://townha(l.townofchapelhill org/agendas/ca040426/7-Stormwater%20Utility%204-26-_. 4/26/2004