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Home My WebLink About1989-03-29 Water & Sewer (SM) 206 MINUTES OF NEW HANOVER COUNTY WATER AND SEWER DISTRICT SPECIAL MEETING M~R~H 7Q, lqRq ~ I- i- , J ASSEMBLY The Board of District Commissioners of the New Hano er County Water and Sewer District held a Special Meeting on Wednesday, March 29, 1989, at 8:00 o'clock A.M. in the 5th Fl or Conference Room of the New Hanover County Administration Build"ng located at 320 Chestnut Street, Wilmington, North Carolina. Members present were: District Commissioners E. L. Mathe s, Jr.; Nolan O'Neal; Fred Retchin; Vice-Chairman, W. Alb rt Corbett, Jr.; Chairman, Jonathan Barfield, Sr.; County Manag r, G. Felix Cooper; County Attorney, Robert W. Pope; and Clerk to the District, Lucie F. Harrell. Chairman Barfield called the meeting to order stating he purpose of the Work Session is to hear a presentation by Talbe t, Cox & Associates on future plans and funding for the county-w de Sewer System. PRESENTATION OF SEWER SYSTEM FEASIBILITY REPORT Mr. Dan Latta, Project Manager of Talbert, Cox & Associat s, Inc., stated the purpose of this report is to develop nd recommend a funding plan and schedule for the District to 'l complete the county-wide sewer system. He stated four ba ic i scenarios were analyzed to determine the level of construct on J that could be supported throughout the twenty-year plann ng period, 1990-2010. Each scenario was analyzed using a ba ic financial model with incremental changes in revenues and chan es in expenditures. The construction sequencing of the sewer sys em is based primarily on the ranking of the basins. The individ al basins were rated using the following parameters: - Per household cost of the system. - Total cost of each system. - Water quality considerations within the basin. - Relative number of failed or failing septic tank system within the basin. - Future growth potential. - Treatment plant availability. The following funding methods were discussed: Scenario A - Existing Plan - "Pay-as-you-go": The Distr ct currently uses a portion of the existing 1/2 cent sales tax to fund construction of the system. This funding method is limi ed in the area that can be served by the Sewer System during he planning period. Under this plan 50% of the District will be served by the year 2010. 'l J MINUTES OF SPECIAL MEETING, MARCH 29, 1989 (CONTINUED) ,Oil" 0 201 Scenar io B Sewer District Property Tax: This funding $1:"0-0 as-s-e-s-s-e-d-va:lue on property :i:If1:ne-rrtsEI'lct: as tne prim revenue generator along with State Revolving Loan Funds total' $17,025,000 and the possibility of reissuing up to 2/3 of debt retired in a given fiscal year. Under this plan 85% of District will be served by the year 2010. Scenario C - Assessments: This funding method uses prope assessments for front footage and acreage as the primary sou of funds for capital construction along with State Revolving L Funds. The average assessment of a single-family dwelling on one-quarter acre lot would total approximately $2,551. homeowners would pay the assessment to the District over five-year period with no interest charged beginning the y following completion of construction in any given basin. Un this plan the entire system will be completed by the year 2008 2009. I Scenario D - Additional Sales Tax Revenue: This fund' method uses an additional 1/2 cent local option sales tax w' 2/3 of available sales tax revenue used for construction of sewer system and the remaining 1/3 reserved for other uses wit the County along with State Revolving Loan Funds and reissuing to 2/3 of the debt retired in a given fiscal year. Under t plan 95% of the system will be completed by the year 2010. Property Transfer Tax: Mr. Latta stated Scenario D selected as the best financing method for completion of the se system until the Governor announced a proposed additional cent sales tax to provide salary increases for teachers. Af study of other financing al terna ti ves , the use of a prope transfer tax is recommended; however, this method will requ' enabling legislation to allow the District to charge the propo tax. Dare, Currituck, Camden and Chowan Counties are now us' the property transfer tax with Dare County generating $3 million of revenue for the calendar year 1988. Using reve generated from documentation stamps from the New Hanover Cou Register of Deeds Office in 1988, a 1% property transfer would generate approximately $4 million. Mr. Latta recommen use of this funding alternative if the Governor's propo state-wide sales tax is enacted. I Commissioner Retchin asked about the distribution of property transfer tax in Dare County. Mr. Latta stated monies collected for the first 12 years remain in the Dare Cou cofers; however, beginning with the 13th year 1/3 of reve generated is distributed to the incorporated municipalities w' all revenues earmarked for capital expenditures. He stated D County has placed the following exemptions in the Prope Transfer Tax Ordinance: (1) a gift deed, and (2) foreclosure property which is returned to the lien holder. 208 MINUTES OF SPECIAL MEETING, MARCH 29, 1989 (CONTINUED) Discussion was held on Scenario B, the proposed 1/2 cent sales tax and the property transfer tax. District Commissioner Ketchin corrunented on the recent mee-ciny wi Lh Huu:::;t:: S.E:Jt::ctkt::r, Representative Joe Mavretic, ana presiaent Pro Tern, sena~r Henson Barnes, stating Representative Mavertic spoke favorably ~n taxing trade services as another possible source of revenue. ~e stated he will be attending a Taxation and Finance Steerilthg Committee of the North Carolina Association of Cou ~y Commissioners on Wednesday and will inquire about this source ~f revenue. 1 District Commissioner Mathews asked how the additional sals tax will impact upon the City of Wilmington and be fh communities. Mr. Latta stated the sales tax is distributed based upon property tax evaluations. 1 Director of Engineering & Facilities, Ed Hilton, commen~ d on the recent agreement with Wal-Mart for installation of c1.n additional line for the cost of materials only. He recommen~~d that the District work with local developers in developi~g regional approaches to solid waste treatment which saves mo ey for the County and meets the needs of the developer. 1 Discussion was held on selecting a funding option a,d providing sewer to residents in place before July 1, 1987, Jc1.s stipulated in the bond issue. Once funding is in place, ~e District could construct skeleton interceptors at a much lm..J.1er cost than lines which would allow customers and developers W].th dry sewer lines to tie into the system and generate revenue. COMMENTS FROM THE GENERAL PUBLIC Chairman Barfield asked if anyone from the general pub lC would like to speak. The following person commented: J Mr. William Funderburg, representing the Castle Ha I,e Community, expressed concern for the County Sewer Ordina ~e requiring persons to connect to the system wi thin a cert in period of time. He asked if NorthChase will have to connect to even though they have dry sewer lines? I Director Hilton stated when the sewer system beco es available in an area where a waste treatment plant ~s established before adoption of the Sewer Ordinance, the plant 11.S not required to connect to the system; however, if the treatm~pt plant has been established after adoption of the Sewer Ordinance the plant must connect to the system. I Mr. Funderburg asked if the County has fulfilled ~ts obligation to residents of the County under the present sew.~r bond issue. Assistant Finance Director, Alan Mozingo, staJ~d after completion of Phase II, all proceeds from the $46 mill~hn bond issue will have been expended. Mr. Funderburg asked abaht F F J ~ ! -1 ~ MINUTES OF SPECIAL MEETING, MARCH 29, 1989 ( CONTINUED) 209 the tremendous shortfall in the projected cost of the sewer sis_t_em? Assistant Finance Directo~ ~ozingo_ stated the original s udy 2rojeC't-pn t=l cost of $6q mllliull wiLll an updaECd-o"tmlY . rojecting a cost of $199 mllllon. I Mr. Funderburg expressed concern for industrial grow h stating only service industries are locating in the County wi h low paying wages. He recommended developing a plan that wi 1 include some mechanism for supplying water and sewer to areas f the County with a high potential for industrial growth. ACCEPTANCE OF SEWER SYSTEM FEASIBILITY REPORT PRESENTED TALBERT, COX & ASSOCIATES, INC. District Commissioner Retchin MOVED, SECONDED Commissioner Mathews to accept the Sewer System Report as presented by Talbert, Cox & Associates, vote, the MOTION CARRIED UNANIMOUSLY. Y by Distri t Feasibili y I nc . Up n Chairman Barfield, on behalf of the District expressed appreciation to Talbert, Cox & Associates, Inc. excellent report. He also expressed appreciation Funderburg for his comments. Boar for to n Chairman Barfield adjourned the meeting at 9:30 o'clock A I DISCUSSION OF SCHEDULING PUBLIC HEARINGS THROUGHOUT THE COUNTY DISCUSS FUNDING OPTIONS FOR COMPLETION OF THE SEWER SYSTEM Discussion was held on the importance of holding Pub Hearings in various areas of the County to properly inform citizens on the status of the Sewer System and fund' alternatives. It was the consensus of the District Board schedule hearings in the northern and southern end of the Coun The Engineering Staff was requested to select places and dates be presented at the next meeting of the Water and Sewer Distri ADJOURNMENT District Commissioner Corbett MOVED, SECONDED by Distr' Commissioner Retchin to adjourn. Upon vote, the MOTION CARR UNANIMOUSLY. Respectfully submitted, rVJ ~~ ~t F. Harrell Clerk to the District I