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Home My WebLink AboutLevel of Service, Cost & Revenue Factor Assumptions-1998t DCM COPY DCM COPY lease do not remove!!!!! on of Coastal Alanagement Level of Service, Cost & Revenue Factor Assumptions For City of Wilmington -New Hanover County, North Carolina March 20, 1998 0 Prepared By: 0 Tischler & Associates, Inc. a Bethes da, Maryland Pasadena, California r i "The preparation of this report (map, document, etc.) was financed in part through a grant provided by the North Carolina Coastal Management Program, through funds provided by the Coastal Zone Management Act of 1972, as amended, which is administered by the Office of Ocean and Coastal Resource Management, National Oceanic and Atmospheric Administration." Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina TABLE OF CONTENTS OVERALL METHODOLOGY AND MAJOR ASSUMPTIONS.............................................................1 A. THE FISCALS PROCESS AND DATA INPUT CATEGORIES...................................................... 1 B. MAJOR ASSUMPTIONS................................................................................................................ 2 1. Marginal, Growth -Related Costs and Revenues........................................................................ 2 2. Level of Service......................................................................................................................... 3 3. Revenue Structure and Tax Rates............................................................................................. 3 4. Inflation Rate.............................................................................................................................. 3 5. Non -Fiscal Evaluations.............................................................................................................. 3 C. SERVICE AREAS.......................................................................................................................... 3 D. MARKET VALUES........................................................................................................................ 6 COUNTYWIDE SERVICE AREA........................................................................................................ 8 1. GENERAL GOVERNMENT OPERATING..................................................................................... 8 A. County Manager......................................................................:...........:..................................... 8 B. Budget....................................................................................................................................... 8 C. Board of Elections....................................................................................................................... 8 D. Engineering................................................................................................................................9 E. Finance......................................................................................................................................9 F. County Commissioners.............................................................................................................. 9 G. Human Resources..................................................................................................................... 9 H. County Attorney.......................................................................................................................10 I. Management Information Systems...........................................................................................10 J. Non-Departmental...................................................................................................................10 K. Print Shop................................................................................................................................11 L. Property Management.............................................................................................................11 M. Register of Deeds....................................................................................................................11 N. Tax...........................................................................................................................................12 0. Veteran Services..................................................................................:..................................12 P. Planning...................................................................................................................................12 2. HUMAN SERVICES..................................................................................................................... 14 A. Health Department...................................................................................................................14 B. Aging.......................................................................................................................................14 C. Human Relations.....................................................................................................................14 D. Human Services Transportation..............................................................................................15 E. Social Services........................................................................................................................15 F. Capital Costs...........................................................................................................................16 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 3. CULTURE AND RECREATION...................................................................................................18 A. Library .......................... ............................................................................................................. 18 B. Parks........................................................................................................................................20 C. Cape Fear Museum...................................................................:............................................. 21 D. Cooperative Extension Service................................................................................................ 22 4. SCHOOLS....................................................................................................................................24 A. Capital Costs........................................................................................................................... 24 B. Operating Costs....................................................................................................................... 25 5. CAPE FEAR COMMUNITY COLLEGE........................................................................................ 27 ACapital Costs........................................................................................................................... 27 B. Operating and Maintenance Costs.......................................................................................... 29 6. PUBLIC SAFETY......................................................................................................................... 32 A. Court System........................................................................................................................... 32 B. Emergency Management......................................................................................................... 32 C. Emergency Medical Services................................................................................................... 32 D. Inspections............................................................................................................................... 33 E. Sheriffs Department................................................................................................................ 33 7. GENERAL FUND REVENUES.................................................................................................... 42 A. Ad Valorem Tax....................................................................................................................... 42 B. Real Property Transfer Tax...................................................................................................... 43 C. One -Half Cent Sales Tax Fund................................................................................................ 43 D. Beer and Wine Tax .......................................... ........................................................................ 43 E. Alcoholic Beverage Control (ABC) Revenues.......................................................................... 44 F. Cable Franchise Fees.............................................................................................................. 44 G. Intergovernmental Revenue..................................................................................................... 44 H. User Fees................................................................................................................................ 45 1. Intangibles Tax......................................................................................................................... 45 J. Other General Government Revenues.................................................................................... 45 K. Interest on Investments............................................................................................................ 45 L. Appropriated Fund Balance.....................................................................................................46 8. NEW HANOVER COUNTY FIRE DISTRICT...............................................................................48 A Impact on Volunteer Fire Departments.................................................................................... 48 9. NEW HANOVER COUNTY WATER AND SEWER DISTRICT .................................................... 50 10. ENVIRONMENTAL MANAGEMENT FUND................................................................................. 51 III. URBAN SERVICE AREA................................................................................................................. 52 1. GENERAL GOVERNMENT......................................................................................................... 52 A. City Council.............................................................................................................................. 52 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina B. City Clerk................................................................:................................................................ 52 C. City Manager........................................................................................................................... 52 a D. E. City Attorney............................................................................................................................53 Human Resource Management............................................................................................... 53 F. G. Finance....................................................................................................................................54 Administrative Services........................................................................................................... 54 H. Development Services............................................................................................................. 55 I. Sundry Appropriations.............................................................................................................. 57 2. POLICE........................................................................................................................................59 A. B. Operating Costs....................................................................................................................... Capital Costs......................................................................................................................:.... 59 65 3. A. FIRE.............................................................................................................................................68 Operating Costs....................................................................................................................... 68 B. Impact on Volunteer Fire Departments.................................................................................... 70 C. Capital Costs.................................................................................................. 71 4. PUBLIC SERVICES AND FACILITIES........................................................................................ 74 A. B. Administration..........................................................................................................................74 Operations............................................................................................................................... 74 C. D. Transportation..........................................................................................................................76 Solid Waste.............................................................................................................................. 77 D. Recreation............................................................................................................................... 77 5. GENERAL FUND REVENUES.................................................................................................... 80 A. Property Taxes........................................................................................................................ 80 D B. C. Penalty and Interest on Property Taxes................................................................................... Sales Tax................................................................................................................................. 80 80 D. Licenses, Fees and Permits..................................................................................................... 81 aE. Intergovernmental Revenues................................................................................................... 82 F. Charges for Public Service...................................................................................................... 83 G. Charges for Recreation Programs........................................................................................... 83 H. Miscellaneous Charges for Service......................................................................................... 83 D 1. J. Charges for General Government Services............................................................................. Charges for Public Safety Services......................................................................................... 83 83 KFines and Forfeitures............................................................................................................... 84 L. Investment Income................................................................................................................... 84 M. Other Revenue........................................................................................................................ 84 Q N. Appropriated Fund Balance..................................................................................................... 84 6. PUBLIC UTILITIES FUND........................................................................................................... 86 I �j Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 7. COMMUNITY DEVELOPMENT BLOCK GRANT FUND............................................................. 87 8. HOME INVESTMENT PARTNERSHIP FUND........:.................................................................... 87 10. PARKING FACILITY FUND......................................................................................................... 87 11. SOLID WASTE MANAGEMENT FUND....................................................................................... 87 AOperating Costs....................................................................................................................... 88 12. EQUIPMENT MAINTENANCE/REPLACEMENT FUND.............................................................. 89 13. GOLF COURSE ENTERPRISE FUND........................................................................................ 89 Tischler & Associates, Inc. TISCHLER & Asso , INC. a4701 Sangamore Road Suite N210 Bethesda, MD 20816 (301) 320-6900 Fax: (301) 320-4860 80 Annandale Road Pasadena, CA 91105-1404 (818) 790-6170 Fax: (818) 790-6235 (800)424-4318 0 I 11 I r1i QFiscal Impact Analysis Capital Facility Analysis QImpact Fee Systems Growth Policy Planning DEconomic and Market Analysis MUNIES, FISCALS & CRIM Fiscal impact systems tailored for each community I. OVERALL METHODOLOGY AND MAJOR ASSUMPTIONS The City of Wilmington and New Hanover County have contracted with Tischler & Associates, Inc. (TA) to evaluate the fiscal impact of growth to both the City and County between 1997 and 2010. These impacts will be evaluated from a Countywide, Urban and Nonurban perspective. In addition, for certain facilities and services, the fiscal impact of a higher level of service will be calculated. This Service Level, Cost and Revenue Factors document discusses City and County services and facilities that will be impacted by new development. These service level, cost and revenue factors are based on TA's on -site interviews with City and County staff and project management team. The final assumptions will be utilized with demographic projections to calculate the fiscal. impact on the City of Wilmington and New Hanover County budgets for the 13- year period between 1998 and 2010. Calculations will be performed using TA's FISCALS software designed exclusively for the City of Wilmington and New Hanover County. A. The FISCALS Process and Data Input Categories In order to provide an understanding of the overall methodology used in this fiscal impact analysis, a brief explanation of the FISCALS process follows. The FISCALS software utilizes two types of input data. The first category of demographic/economic projections is called Demand Base data inputs. These numerical projections include data such as population, - housing units, employment, and commercial and industrial space. The 1997 population and job estimates, in addition to the current number of dwelling units, were used to calculate unit costs and service level thresholds. These estimates were provided by the City of Wilmington and New Hanover County Planning Departments. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina The second type of input data relates to the government service levels, costs and revenues. The government service level, cost and revenue data used in the fiscal analysis have been determined and agreed upon by TA and City of Wilmington and New Hanover County personnel. This data will be used by TA's FISCALS system to calculate the annual costs, revenues, and capital facilities by department or function, where appropriate. These assumptions are outlined in this report. B. Major Assumptions This fiscal impact analysis can be regarded as a snapshot of the current budget. The Fiscal Year 1998 Budget has been used to represent a "snapshot" of the City and County's current costs and revenues and levels of service. In summary, the "snapshot" approach does not attempt to speculate about how services, costs, revenues and other factors will change over 13 years. Instead, it evaluates the fiscal impact on the County and County as they currently conduct business under the present budgets. noted. The following major assumptions regarding the fiscal methodology should be 1._ Marginal, Growth -Related Costs and Revenues For this analysis, costs and revenues that are directly attributable to new development or from the annexation of existing development are included. Some costs are not expected to be impacted by demographic changes, and may be fixed in this analysis, such as some administrative functions. In this analysis, most of the costs are driven by new residents and new jobs. The cost assumptions do not vary due to individuals at different income levels and different types of jobs. On the revenue side, income of residents and value of dwelling units have an impact on the amount of revenue collections. 2 Tischler & Associates, Inc. 0 Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 0 2. Level of Service The cost projections are based on the "snapshot approach" in which it is assumed the current level of spending, as provided in the Fiscal Year 1998 budget, will (� continue through the 13 year analysis period. The current level of spending is referred tJ to as the current level of service (LOS) in this type of analysis. 3. Revenue Structure and Tax Rates rj In most cases, revenues are projected assuming that the current revenue LL11 structure and tax rates, as defined by the FY98 adopted budget, will not change during athe analysis period. However, when it is known that an increase or decrease will occur in a rate or structure, it has been reflected and noted. 4. Inflation Rate The rate of inflation is assumed to be zero throughout the projection period, and cost and revenue projections are in constant 1997 dollars. This assumption is in accord with current budget data and avoids the difficulty of speculating on inflation rates and their effect on cost and revenue categories. It also avoids the problem of interpreting results expressed in inflated dollars. 5. Non -Fiscal Evaluations It should be noted that while a fiscal impact analysis is an important consideration in planning decisions, it is only one of several issues that should be r1 considered. Environmental and social issues, for example, should also be considered �J when making planning and policy decisions. The above notwithstanding, this analysis will enable interested parties to understand the fiscal implications of future development. C. Service Areas The City of Wilmington and New Hanover County has asked TA to evaluate the impact of growth on three geographic layers upon which levels of service will be based. K Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina These geographic layers are as follows and can be found in Appendix I of this document. Countywide: The Countywide services to be evaluated include public schools, acommunity college, human services, culture/library, culture/parks, sheriff and general government. The three categories in which an improved level of service is considered are community college, culture/library, and culture/parks. The demand base for the Countywide service area is shown in the table below. Demand Base Information Countvwide Service Area 1997 1998 2010 Increase Absolute % Category Estimate Projection Projection 1997-2010 Increase Population 149,211 151,611 180,417 31,206 21% Employment Retail 28,669 29,085 34,072 5,403 19% Office 15,100 15,316 17,914 2,814 19% Flex* 14,771 14,973 17,394 2,623 18% Total 68,540 59,374 69,380 10,840 19% Housing Single Family 41,292 41,915 49,388 8,096 20% Duplex/Townhome 5,496 5,723 8,451 2,966 64% Apartment 10,321 10,459 12,117 1,796 17% Mobile Home 3,785 3,785 3,785 0 0% Total 60,894 61,882 73,741 12,847 21% Nonresidential Sq. Ft ** Retail 11,467,600 11,633,846 13,628,800 2,161,200 19% Office 3,653,550 3,814,162 4,520,100 866,550 24% Flex 6,930,113 7,222,240 8,691,332 1,761,219 25% Total 22,061,263 22,670,248 26,840,232 1 4,788,969 22°k •Rex space is a space utilized for various industrial uses with 10%20% of the space utilized for office activity "The nonresidential square footage is based on the assumptions contained in the following two tables Nonurban: The Nonurban service area reflects the existing level of services as provided by the County as its proxy. The Nonurban services include Countywide services provided by the County, but also includes the Fire District, which will be impacted significantly as the City provides services to the Annexation areas in 1998 and Urban areas of the County in 2010. The demand base for the Non -Urban service area is shown in the table below. The negative numbers reflect the annexation of this area by the City and the loss of Nonurban service area population and employment 4 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina Demand Base information Non -Urban Service Area 1997 1998 2010 Increase Absolute % Category Estimate* Projection* Projection** 1997-2010 Decrease Population 85,047 51,334 31,935 63,112 -62% Employment Retail 10,148 5,415 2,440 (7,708) -76% Office 5,050 2,347 1,230 (3,820) -76% Flex* 9,914 8,254 6,851 3,063 -31% Total 25,112 16,016 10,521 14,591 -58% Housing Single Family 26,638 15,204 6,886 (19,752) -74% DuplexiTownhome 2,251 592 443 (1,808) -80% Apartment 447 473 - (447) -100% Mobile Home 3,285 2,153 1,156 2,129 -66% Total 32,621 18,421 8,485 24,136 -74% Nonresidential Sq. Ft.*** Retail 4,059,200 2,165,815 976,000 (3,083,200) -76% Office 1,090,800 506,969 265,680 (826,120) -76% Flex 4,292,762 3,574,115 2,966,483 1,326,279 -31% Total 9,442,7621 6,246,8991 4,208,163 5,234,599 -55% *Includes Non -Urban and Urban County areas **Urban County becomes part of Urban Service Area -Nonresidential square footage was estimated using the following factors developed by the Urban Land Institute: 400 sq. ft. (Retaiq, 216 sq. ft (Office), and 433 (Flex) Urban: The City of Wilmington, the three annexation areas, and an urbanized portion of the County comprise the urban service area. The service categories evaluated are police, fire, roads, general government, parks and recreation, and development services. The demand base for the Urban service area is shown in the table below. 5 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina Demand Base Information Urban Service Area 1997 1998 2010 Increase Absolute % Category Estimate* Projection** Projection"* 1997-2010 Increase Population 64,164 100,277 148,482 84,318 131% Employment Retail 18,521 23,670 31,632 13,111 71% Office 10,050 12,969 16,684 6,634 66% Flex* 4,857 6,718 10,543 5,686 117% Total 33,428 43,358 58,859 25,431 76% Housing , Single Family 14,654 26,711 42,502 27,848 190% Duplexlrownhome 3,245 5,132 8,008 4,763 147% Apartment 9,874 9,987 12,117 2,243 23% Mobile Home 500 1,632 2,629 2,129 426% Total 28,273 43,461 65,266 36,983 131% Nonresidential Sq. Ft. **** Retail 7,408,400 9,468,031 12,652,800 5,244,400 71% Office 2,562,750 3,307,193 4,254,420 1,691,670 66% Flex 2,637,351 3,648,125 5,724,849 3,087,498 117% Total 12,608,501 16,423,348 22,632,069 10,023,668 79% *City of Wilmingon only -Assumes City and Phase 1, II & III Annexation areas *-Adds Urban Portion of County —Nonresidential square footage was estimated using the following factors developed by the Urban Land Institute: 400 sq. ft. (Retail), 255 sq. ft. (Office), and 543 (Flex) D. Market Values n Market values for new residential and nonresidential construction has been (� estimated for the City, Phase I, II, and III Annexation areas, as well the County. The estimates for the single family and duplex/townhome categories were obtained through an analysis of information provided by the New Hanover County Board of Realtors. The apartment market value was obtained using the Marshall & Swift Valuation Service, assuming a square foot cost of $54.36 (based on localized Wilmington area data), a Dmultiplier of 15% for land, and an average unit size of 950 square feet. The Marshall & Swift Valuation Service was also used to obtain nonresidential market values. For the retail category, a Good Class C Community Scale Shopping Center was assumed for the City and Phase I, II, and III annexation areas, with a Q o square foot value of $59.48 (based on localized Wilmington area data) and a 15 /o 6 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina multiplier for land. Retail space in the County was assumed to be Average Class C, with a square foot value of $56.13 (based on localized Wilmington area data) and a 15% multiplier for land. For office space in the City and Phase I, II, and III annexation areas a Good Class C construction was assumed, with a square foot value of $56.62 (based on localized Wilmington area data) and a 15% multiplier for land. Average Class D construction was assumed for office space in the County, with a square foot value of $53.57 (based on localized Wilmington area data) and a 15% multiplier for land. Flex space in the City and Phase I, II, and III annexation areas was assumed to be Average Class C, with a square foot value of $28.43 (based on localized Wilmington area data) and a 15% multiplier for land. Flex space in the County was assumed to be Low Cost Class S, with a value of $17.89 per square foot (based on localized Wilmington area data) and a 15% multiplier for land. The table below contains the market value assumptions. Market Values of New Construction City of Wilmington/New Hanover County Unit City Phase 1 Phase 11 Phase III County Single Family* $130,456 $356,616 $222,738 $205,063 $159,398 Duplex/Townhome* $93,712 $113,502 $113,502 $113,502 $143,120 Apartment** $59,384 $59,384 $59,384 $59,384 $59,384 Retail (per sq. ft.)** $68.40 $68.40 $68.40 $68.40 $64.55 Office (per sq. ft.)** $65.11 $65.11 $65.11 $65.11 $61.61 Flex(per sq. ft.)** $32.69 $32.69 $32.69 $32.69 $20.57 *Source: New Hanover County Board of Realtors *"Source: Marshall & Swift Valuation Service - Tischler & Associates, Inc. aLevel of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina ii COUNTYWIDE SERVICE AREA GENERAL GOVERNMENT OPERATING A. County Manager The County Administrator is the chief administrator of the County government, responsible to the Board of Commissioners for administering all departments of County government. The Manager provides administrative and legislative leadership by supervising departmental operations, recommending new and revised policies and programs to the Commissioners, and ensuring that policies and programs adopted by the Board of Commissioners are executed in an effective and economical manner. The FY98 budget for this Department totals $552,427. This budget is not expected to increase significantly as a result of new growth and will remain fixed in the fiscal impact analysis. B. Budget The budget Department provides financial information and guidance to the Board of Commissioners and County Manager. The Department is responsible for the audit and evaluation of ongoing management and fiscal controls of the County. The FY98 budget for this Department totals $248,520. This budget is not expected to increase significantly as a result of new growth and will remain fixed in the fiscal impact analysis. C. Board of Elections The Board of Elections is responsible for conducting all elections including party primaries, general, municipal, and special elections, and referendums held within the County. Voter registration records for all County and municipal voters are, maintained by this office. The FY98 budget for the Board of Elections is $666,145. This budget is projected to increase with population, although on a partial cost basis estimated at 25%. The FY98 budget of $666,145 is multiplied by 25% and is then divided by the 1997 population estimate of 149,211, for a partial per capita increase of $1.12. Tischler & Associates, Inc. 0 Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina D. Engineering The Engineering Department provides for the administration and inspection of a variety of functions including: Sedimentation and Erosion permits, certain aspects of subdivision reviews, engineering and construction contracts, review of sewer plans, inspection of sewer system construction and acquisition of easements. The Department also operates and maintains the County's water and sewer systems. The FY98 budget for Engineering totals $543,113. Operating costs for water and sewer activities are reflected In the New Hanover County Water & Sewer District Fund. Other operating Dcosts are expected to remain fixed. Therefore the FY98 budget of $543,113 will remain fixed in the fiscal impact analysis. a . E. Finance The Finance Department is responsible for maintaining a centralized Countywide system of financial planning, reporting and control. The Department is responsible for preparing for bond sales, managing debt, accounting for the County's receipts and disbursements, processing payroll, managing investments, accounting for the County's fixed asset inventory, billing for water and sewer, as well as other financial functions. The FY98 budget for this Department totals $872,119. This budget is not expected to increase significantly as a result of new growth and will remain fixed in the fiscal impact analysis. F. County Commissioners The County Commissioners budget covers the operating expenses and salaries of the five -member County Commissioners. The County Commissioners are responsible for adopting the annual budget, establishing a tax rate, enacting local ordinances and setting County policy. The FY98 budget for the Commissioners is $338,988. This budget is not expected to increase significantly as a result of new growth and will remain fixed in the fiscal impact analysis. G. Human Resources The Department of Human Resources administers the recruitment and employee selection process for all County departments, assuring compliance with federal, state, P Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina and/or local regulations and polices, and maintains employee personnel records. The FY98 budget for Human Resources totals $558,001. This budget is projected to increase with population and employment, although on a partial cost basis estimated at 50%. The FY98 budget of $558,001 is multiplied by 50% and is then divided by the 1997 population and employment estimate of 207,751; for a partial per capita and employee increase of $1.34. H. County Attorney The County Attorney provides legal counsel and representation to the Board of Commissioners, County Manager, County Departments, and Boards and Commissions to ensure their work is performed in a legally authorized and productive manner. The Department also prepares and reviews all legal documents, represents the County in all civil litigation, and reviews and enforces the County ordinances. The FY98 budget for the County Attorney is $456,268. This budget is projected to increase with population and employment. The FY98 budget of $456,268 is divided by the 1997 population and employment estimate of 207,751, for a per capita and employee increase of $2.20 I. Management Information Systems The Management Information Systems Department (MIS) provides information management to all County departments through computer hardware and software services. The Department is also responsible for providing support for all hardware and software purchases. The FY98 budget for the Board of Elections is $2,091,246. This budget is projected to increase with population, although on a partial cost basis estimated at 25%. The FY98 budget of $2,091,246 is multiplied by 25% and is then divided by the 1997 population estimate of 149,211, for a partial per capita increase of $3.50. J. Non -Departmental This budget contains funds for principal and interest on bonded debt, transfer to other funds, as well as contingencies. In this analysis, TA's FISCALS software will calculate future debt payments for capital facilities due to growth. The assumed interest rate is 6% and the term is 20 years. Therefore existing debt service is not included. 10 Tischler & Associates, Inc. aLevel of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina aOnce debt service of $4,521,137 is netted out of the budget, the remaining Non - Departmental budget is $1,113,703. This budget is projected to increase with population, although on a partial cost basis estimated at 25%. The adjusted FY98 budget of $1,113,703 is multiplied by 25% and is then divided by the 1997 population aestimate of 149,211, for a partial per capita increase of $1.87. K. Print Shop The Print Shop is responsible for the County's departmental printing needs offering assistance in all printing related matters including paper selection, layout, preparation, and printing. The FY98 budget for the Print Shop is $158,800. Based on discussions with County staff, this budget is not expected to increase significantly as a result of new growth and will remain fixed in the fiscal impact analysis. L. Property Management P 9 n The Property Management Department is responsible for providing a safe and lJ comfortable environment for the public and employees in New Hanover County facilities through quality and cost -saving maintenance, repairs and housekeeping services. The Vehicle Management Division maintains the County's vehicle fleet of 330. The FY98 abudget for Vehicle Management totals $3,888,234 and will remain fixed in the fiscal analysis since TA will be direct entering vehicle maintenance costs for new vehicles purchased by the County as a result of new growth. The FY98 budget for the Property Management Division totals $3,067,860. This budget will also remain fixed as TA will direct enter maintenance costs for new County facilities built as a result of new growth. M. Register of Deeds The Register of Deeds is responsible for recording, indexing and maintaining Qaccurate records governed by North Carolina General Statutes and local ordinances. This Department is the custodian of all County legal records, which include: vital records asuch as births, deaths, and marriages; tax maps, land and property transactions, etc. The FY98 budget for this Department totals $895,256. The operating costs for this aDepartment are assumed to be covered by the fees collected for transactions and will not be independently calculated in the fiscal impact analysis. D 11 Tischler & Associates, Inc Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina N. Tax The Tax Department is responsible for obtaining, developing, and maintaining records necessary for the appraisal, assessment, billing, collection and listing of taxes associated with real and personal property within the County. The FY98 budget for this Department totals $1,834,763. The budget is expected to increase with residential and nonresidential growth in the County, although on a partial cost basis estimated at 25%. The FY budget of $1,834,763 is multiplied by 25% and is then divided by the 1997 population and employment estimate of 207,751, for a per capita and employee increase of $2.21. O. Veteran Services The Veterans Services Department counsels and advises veterans, their dependents and survivors of their entitlements and benefits under the Federal and State laws. This includes responsibility for proper processing of all claims to the Department U of Veterans Affairs. The FY98 budget for Veteran Services is $39,449. This budget is not expected to increase significantly as a result of new growth and will remain fixed in the fiscal impact analysis. P. Planning The Planning Department provides guidance and direction in the adoption of policies and regulations to encourage orderly and balanced growth and development in New Hanover County. The Department is directly responsible for the administration and enforcement of the Subdivision and Zoning Ordinances, Special Use Permits, site plan approval and street mapping, and addressing in the County. The FY98 County acontribution to this Department totals $621,196. This budget is projected to impacted by additional population and employment growth. The FY98 County contribution is divided by the 1997 population and employment estimate of 207,751, for a per capita and job cost of $2.99. a Tischler & Associates, Inc L� Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 9L 0 7 11 1 GENERAL GOVERNMENT Activity A. B. C. D. E. F. G. H. I. J. K. L. M. N. 0. P. 0 0 0 0 0 0 13 County Manager Budget Board of Elections Engineering Finance County Commissioners Human Resources County Attorney Management Information Systems Non -Departmental Print Shop Property Management Register of Deeds Tax Veterans Services Planning Allocation Amount Fixed N/A Fixed N/A Partial per capita $1.12 Fixed N/A Fixed N/A Fixed N/A Partial per capita & emp. $1.34 Per capita & emp. $2.20 Partial per capita $3.50 See text N/A Fixed N/A Direct entry See text See text Partial per capita & emp. $2.21 Fixed N/A Per capita & emp. $2.99 Tischler & Associates, Inc. DLevel of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina d ,. HUMAN SERVICES A. Health Department The Health Department provides quality health care, preventive medical and dental services, and environmental protection for the citizens of New Hanover County through the following programs: Environmental Health; Vector Control; Animal Control; Women, Infants & Children (WIC) Program; Adult Health; Child Health; Dental Health; Health Promotion Programs; General Nutrition Program; Community Health; Women's Health Care; and Communicable Disease Program. The FY98 County contribution to this Department totals $4,235,109. From this amount is deducted fixed costs of $255,855 for Mosquito Control, $502,838 for Administration, and $4,820 for the Board of Health, for a net variable cost contribution of $3,471,596. The FY98 variable cost contribution is divided by the 1997 population estimate of 149,211, for a per capita cost of $23.27. B. Aging The New Hanover County Department of Aging serves persons sixty years or older through a variety of recreational, educational, and social programs. Services include operation of the Senior Center, providing transportation services to seniors; adult day care services; administering the Retired Senior Volunteer Program; managing the Home Delivered Meals and Congregate Nutrition Programs; and providing in -home services. The FY98 County contribution to the Aging Department amounts to $530,589. As the population in the County grows, so to will the elderly population. Therefore, the FY98 County contribution is divided by the 1997 population estimate of 149,211, for a per capita cost or $3.56. C. Human Relations The Human Relations Department provides staff support for the New Hanover Human Relations Commission. The Department and Commission address the elimination of discriminatory practices with regard to race, color, gender, national origin, religious belief, age disability, and familial status. The Department also enforces the 14 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina County's Fair Employment and Fair Housing Ordinances. The FY98 County contribution to the Department totals $276,445. This Department's activities are projected to increase with additional population growth in the County. The FY98 County contribution is divided by the 1997 population estimate of 149,211, for a per capita cost of $1.85. D. Human Services Transportation New Hanover Transportation Services (NHTS) is a coordinated human service system, designed to meet transportation needs of the elderly, disabled, Medicaid eligible pregnant women and dependent children, and other special populations who are clients of human service agencies. The FY98 County contribution to the NHTS amounts to $30,762. The provision of this service is projected to increase with additional population growth. The FY98 County contribution is divided by the 1997 population estimate of 149,211 for a per capita cost of $0.21. E. Social Services The Department of Social Services provides economic assistance to New Hanover County citizens with basic subsistence needs and provides services to citizens with physical, social and emotional problems. Programs the Department offer include: the Work First Program; Foster Care Services to Children; Foster Care Services for Adults; Child Day Care Services; Services to the Blind; Low Income Energy Assistance; Child Support Enforcement; Medicaid; Food Stamps; Protective Services for Children; and Crisis Intervention, AFDC -Emergency Assistance, and Project Share. The FY98 County contribution to this Department totals $11,335,727. From this amount is deducted the fixed costs of $3,698,145 for Administration and $986 for the Social Services Board, for a net variable County contribution of $7,636,596. As the population of the County increases, so to will the demands placed on this Department. The FY98 County variable cost contribution is divided by the 1997 population estimate of 149,211, for a per capita cost of $51.18. 15 Tischler & Associates, Inc. GLevel of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina I a 0 F. Capital Costs New Hanover County Human Service agencies operate out of three facilities in the County. These facilities and.their square footage are shown in the table below. Existing Human Services Space Building Square Footage Aging Center 29,200 Health Department 20,000 Social Services 38,000 Total 87,200 Divided by 1997 Population Estimate 149,211 =S uare Feet per Capita .58 As indicated in the table, square footage for Human Service totals 87,200 square feet. When compared to the 1997 population estimate of 149,211, the result is a ratio of .58 square feet per person. There are currently no plans for new Human Service capital facilities in the near future. However, in order for New Hanover County to maintain the current level of service for Human Services, additional space will have to be constructed in the future. Therefore, the current level of service is multiplied by the current cost to develop a square foot of Human Service space, $115 (figure is based on the Marshal & Swift Valuation Service, Good Class C Public Building, 15% was added for furnishings and contingencies). This results in a one-time Human Services capital cost per person of $66.70. 16 0 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina HUMAN SERVICES Activity B. Health Department B. Aging C. Human Relations D. Human Services Transportation E. Social Services F. Capital Costs 17 Allocation Per capita Per capita Per capita Per capita Per capita One-time cost per capita Amount $23.27 $3.56 $1.85 $0.21 $51.18 $66.70 Tischler & Associates, Inc. DLevel of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 0 3. CULTURE AND RECREATION K n If A. Library The New Hanover County Public Library provides high quality library services to County citizens through the Main Library, three branches, and the Law Library. The Library provides the public access to over 264,000 books in its collection through a computerized catalog. For the fiscal impact analysis, TA will be measuring the cost of maintaining the existing level of service, as well as providing an improved level of service for the Library. The improved level of service will be reflected. in additional space and more books per capita. 1. Capital Costs -Existing Level of Service a: Library Space The New Hanover County Public Library current operates 66,987 square feet of space. The table below provides detailed information regarding square footage by branch. Current Library Space Facility Existing Square Footage Main Library 52,000 Myrtle Grove Branch 6,987 Plaza East Branch leased 3,800 Carolina Beach 2,200 Law Library 2,000 Total 66,987 In order to maintain the current level of service to serve the 2010 County population, the library estimates that it needs to expand several branches, construct an additional branch, and renovate one existing branch. These expansions and their estimated capital costs are presented in the table below: 0 o,a a Additional Library Space Needs Facility Space Needed Year Built Estimated Capital Costs Main Library 26,000 1998 $1 560 000 Myrtle Grove Branch 3,013 2000 $180,780 Plaza East Branch 16,200 2002 N/A leased Carolina Beach N/A renovation 2005 $100 000 Northchase new 10,000 2008 $1 450 000 Total 55,213 $3 290,780 Source: New Hanover County Library Tischler & Associates, Inc. 0 Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina These capital costs of $3,290,780 will be direct entered into the fiscal model as the cost of maintaining the current level of service in terms of library space. This cost is assumed to be debt financed at 6% interest over a 20-year period. b. Books The current level of service in terms of books per capita is 1.89. The Library estimates the average cost of a book at $17. This cost will be applied to population growth between 1998 and 2010. 2. Operating Costs The County's FY98 contribution to the Library operating budget totals $1,780,170. TA will direct enter the marginal increase in operations (including staffing) and maintenance costs for the expansions, based on the Northeast Branch Library Site Report. These costs are estimated at $384,000. 3. Improved Level of Service For purposes of the fiscal impact analysis, an improved level of service is expressed in additional square footage and additional books per capita. IL a. Additional LibrarySpace The Library owns a tract of land in the northeastern portion of the County on which they would like to build a 20,000 square foot branch. The development of this site would provide the Library system the amount of the space they feel is appropriate for the County to 2010. The cost to construct this branch is estimated at $2,600,000. In addition, another $300,000 is required for equipment and furniture. These cost will be direct entered into the model in 2005 and are assumed to be financed through a 20-year bond at 6% interest. b. Books The level of service in terms of books per capita is assumed to increase to 3 books per capita, rather than the current 1.9 per capita. The cost of $17 per book is assumed. C. Operating Costs -Improved Level of Service Annual operations and maintenance costs for the additional branch location is estimated at $200,000 annually. This cost will be direct entered into the fiscal model in 2005. 19 j Tischler & Associates, Inc. 0 Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina D. 51 n B, L El B. Parks The Parks Department presently operates thirty parks and beach access areas, which provide a variety of outdoor recreational opportunities for New Hanover County citizens and visitors. The Parks Department also operates and maintains outdoor recreation facilities on public school property. The table below provides information regarding current County Park acreage. Park Acreage New Hanover Coun , North Carolina Park Classification Acres Regional Parks 178 Community Parks 158 Neighborhood Parks 36 Source: New Hanover County Parks Department The County currently obtains Neighborhood Park land as part of subdivision development in the form of land dedications and Community Parks are typically located on School property. Therefore, the County Parks budget is typically impacted strictly from an operating perspective. Capital costs will be incurred from the development of Regional Parks. In addition, TA will also be measuring the cost of providing an improved level of service for the Parks Department. The improved level of service will be reflected in an additional regional park. 1. Capital Costs -Existing Level of Service a. Ogden Park Ogden Park opened in the Spring of 1997. At that time, approximately 113 of the facilities planned for the park were completed. The cost estimate to complete the park is estimated at $2,000,000, including $500,000 in the FY98 budget, which will be directly entered into the fiscal model. The remaining development costs will be phased in over a three-year period. b. Pilot Ridge Park This 110 acre park will be developed in conjunction three schools in the Monkey Junction area of the County. The land cost per acre is estimated at $25,000 for a total land cost of $2,750,000. El Tischler & Associates, Inc. 0 Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina C. Additional Regional Park In order to maintain the current level of service for Regional Parks, the Parks Department estimates another regional park facility will need to be constructed prior to 2010. In lieu of a formal facility plan for this park, the cost to- acquire and develop this park is estimated at $3,000,000. This cost will be directly entered into the model in 2007 and is assumed to be debt financed over 20 years at an annual interest rate of 6%. 2. Capital Costs -Improved Level of Service An improved level of service will be reflected in a second Regional Park facility over what is needed to maintain the current level of service. A capital cost of $3,000,000 will be used as a proxy to represent the acquisition and development costs of this park. The cost will be direct entered into the model in 2005 and is assumed to be debt financed over 20 years at an annual interest rate of 6%. 3. Operating Costs L1 a. Maintenance Costs The County's current annual maintenance cost per acre is $2,794. As additional U regional park land is developed to serve new growth, the fiscal model will apply this cost per acre on annual basis. b. Staffing The County's current level of service for acres maintained per employee is 14.3. IL For every additional 14.3 acres of park land built to serve new growth, the fiscal model will add an additional employee, at an estimated cost $28,000, including benefits. C. Cape Fear Museum The Cape Fear Museum is the oldest history museum in the state of North Carolina. It collects, preserves, and interprets objects relating to the history, science, and cultures of the Lower Cape Fear, and makes those objects available to the public through educational exhibitions and programs. The FY98 County contribution to the Museum totals $701,105. The Museum is not expected to be significantly impacted by additional growth and will remain fixed in the fiscal impact analysis. 21 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina D. Cooperative Extension Service The North Carolina Cooperative Extension Service is a unique educational system with support from the County, State and Federal governments. The Service is a component of the State's two land grant universities. The Service helps people improve the quality of their lives by providing research -based information and informal educational opportunities in the areas of agriculture, home economics, 4-H and youth and community resource development. The FY98 County contribution to the Service totals $386,550. As the population in the County increases, so will the demands placed on the Cooperative Extension Service. The FY98 County contribution is divided by the 1997 population estimate of 149,211, for a per capita increase of $2.59. L! Ut 0 n -0 f�! 22 Tischler & Associates, Inc. z Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina CULTURE AND RECREATION Activi Allocation Amount A. Library I. Capital Costs a. Library Space Direct entry $3,290,780 b. Books 1.9 books per capita $17.00 2. Operating Costs Direct enter $384,000 3. Improved Level of Service a. Library Space Direct entry $6,190,780 b. Books 3.0 books per capita $17.00 c. Operating Costs Direct entry $584,000 B. Parks 1. Capital Costs -Existing Level of Service a. Ogden Park Direct entry $2,000,000 b. Pilot Ridge Park Direct entry $2,750,000 c. Additional Regional Park Direct entry $3,000,000 2. Capital Cost -Improved Level of Service a. Additional Regional Park Direct entry $3,000,000 3. - Operating Costs a. Maintenance Cost Per acre $2,794 b. Staff Per 14.3 acres $28,000 C. Cape Fear Museum Fixed N/A D. Cooperative Extension Service Per capita $2.59 23 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 4. SCHOOLS '[ The New Hanover County Board of Education operates 33 schools. This �J includes 23 elementary schools, 6 middle schools, and 4 high schools, including an t ( alternative high school. Full time enrollment totals 10,377 elementary students, 4,917 iJ middle school students, and 6,159 high school students, for a total full time enrollment (� of 21,453. New Hanover County is responsible for the building needs of the schools iJ (with some assistance from the State) and the related bonded debt of the Board of flEducation. In addition the County allocates funds for some school personnel and operating expenses. A. Capital Costs Information compiled for school capital facility needs was obtained from the New �1 Hanover Schools Long Range Building Program, 1997-2007. For the fiscal analysis, TA rj will be considering only schools needed to serve new growth. This analysis does not �J consider facilities necessary to relieve existing overcrowding. The fiscal analysis measures the cost to serve new growth to the year 2010. The Li New Hanover County Schools Long Range Building Plan has a horizon of 2007. TA _ requested that New Hanover County Schools evaluate enrollment projections to determine how many additional schools are necessary to serve new growth from 2007 j to 2010. However, due to staffing and time constraints, .New Hanover County Schools U was not able to provide this information. Therefore, it is assumed no additional capital costs will be incurred due to new growth for 2007-2010. 1. Facility Needs to 2001 According to information contained in the New Hanover County Schools Long Range Building Program 1997-2007, two elementary, one middle and one high school are needed by 2001 , to accommodate new growth. The table below contains information per to capital costs, capacity and year built. U1 24 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina School Facility Needs to 2001 Wilmington -New Hanover County Facility Year Opens Capacity Cost* A Elementary School 1999 500 $7,957,560 B Elementary School 1999 500 $7,957,560 AA Middle School 2000 750 $15,792,582 AAA High School 2001 1,500 $36,575,729 •1997 dollars These facilities will be directly entered into the fiscal model and are assumed to be debt financed over 20 years at an interest rate of 6%. 2. Facility Needs 2002-2010 The Long Range Building Program also contains information pertaining to school facility needs to serve new growth past the year 2001. According to the Plan, two elementary schools and one middle school are needed to serve new growth past 2002. Capacity and cost information are provided in the table below. School Facility Needs 2002 to 2010 Wilmington -New Hanover County Facility Year Opens Capacity Cost* C Elementary School 2004 500 $7,957,560 D Elementary School 2007 500 $7,957,560 BB Middle School 2007 750 $15,792,582 1997 dollars These facilities will be directly entered into the fiscal model and are assumed to be debt financed over 20 years at an interest rate of 6%. B. Operating Costs As stated previously, New Hanover County does allocate funds to cover a portion of New Hanover County Schools operating expenses. Since it can not be ascertained how much of the O&M and staffing costs the County will cover for a given school when it is constructed, TA will utilize an operating cost per student methodology to project future operating costs to serve new growth. The adopted FY98 New Hanover County Schools Budget includes a $31,296,258 County contribution for operating costs. When this contribution is compared to the 1997 enrollment of 21,453, the operating cost per student is $1,459. This figure will be applied on an annual basis to enrollment increases from 1997 to 2010. 25 Tischler & Associates, Inc. 0 n 0 0 0 Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina NEW HANOVER COUNTY SCHOOLS Activity A. Capital Costs 1. 1997 to 2001 2. 2002 to 2010 B. Operating Costs 26 Allocation Direct entry Direct entry Cost per student Amount $68,283,431 $31,707,702 $1,459 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 5. CAPE FEAR COMMUNITY COLLEGE The Cape Fear Community College offers vocational, technical, pre- baccalaurate, basic skills and literacy programs, as well as continuing education services to residents of New Hanover County. For the fiscal impact analysis, TA will be measuring the cost of maintaining the existing level of service, as well as providing an improved level of service for the Community College. The improved level of service will be reflected in additional academic facility space to meet the current State system average. A. Capital Costs 1. Existing Level of Service (� The Cape Fear Community College Strategic Plan 1997-2017 contains an �j analysis of the College's space needs to 2017 to meet anticipated growth. Despite the rj County's growth over the past twenty years, the College has only recently added LLJJ buildings and properties to its campus. As a result, the College currently has a level of service of 60 square feet of academic facilities space (ASF) per FTE student, which ranks among the most crowded of the 58 community colleges in the State system. The �j 1994 average for the system was 84 square feet of ASF per FTE student. The table L� below provides an analysis of space needs to 2010 in order for the Community College to maintain its current level of service of 60 square feet of ASF. 27 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina Space Needs to Maintain Current LOS Year Projected FTE Cum.GSF to Maintain 60 sqf. ASF/FTE 1998 3,223 0* 1999 3,545 0" 2000 3,676 0" 2001 3,812 5,954 2002 3,953 18,469 2003 4,099 31,428 2004 4,251 44,919 2005 4,408 58,854 2006 4,572 73,410 2007 4,741 88,410 2008 4,916 103,942 2009 5,098 120,096 2010 5,286 136,783 Source: Cape Fear Community College 'New space wifi come on fine The Community College estimates the construction cost per square foot at $195.61 based on data contained in their proposed bond referendum. This square foot construction cost includes bricks and mortar, land, fees, contingency, etc. When this figure is applied to the amount of square feet needed to maintain the current level of service of 60 square feet of ASF per student, the estimated construction cost is $26,756,122. This amount is assumed to be debt financed over 20 years at an interest rate of 6% and will be direct entered into the fiscal model. u 2. Improved Level of Service The improved level of service for the fiscal impact analysis is the current State community college system level of service of 84 square feet of ASF per student. An analysis of the additional space needs of the Community College to meet this improved level of service is provided in the table below. Q 11 J 28 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 0 LIB Space Needs for Improved LOS Year Projected FTE Cum. GSF to Maintain 84 sqf. ASF/FTE 1998 3,223 68,102 1999 3,545 108,114 2000 3,676 124,392 2001 3,812 141,291 2002 3,953 158,812 2003 4,099 176,954 2004 4,251 195,842 2005 4,408 215,351 2006 4,572 235,729 2007 4,741 256,729 2008 4,916 278,475 2009 5,098 301,090 2010 5,286 324,451 Source: Cape Fear Community College When the construction cost per square foot ($195.61) is applied to the amount of square feet (324,451) needed to provide an improved level of service of 84 square feet of ASF per student, the estimated construction costs is $63,465,860. This amount is assumed to be debt financed over 20 years at an interest rate of 6% and will be direct entered into the fiscal model. B. Operating and Maintenance Costs P 9 , The County contributes General Fund dollars to the Community College to cover building operation and maintenance expenses, as well as debt service. The Community College has estimated the marginal operating cost per square foot of space at $6.87. 1. Marginal Operating Cost -Existing Level of Service In order to maintain the current level of service, it is estimated that an additional 136,783 square feet of space is needed. At $6.87 a square foot, the annual marginal operating and maintenance cost to maintain the current level of service is $939,699. This cost will be direct entered into the fiscal model. 2. Marginal Operating Cost -Improved Level of Service In order to provide an improved level of service, it is estimated that an additional 324,451 square feet of space is needed. At $6.87 a square foot, the annual marginal LJ 29 (1 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina Qoperating and maintenance cost to provide an improved level of service is $2,228,978. This cost will be direct entered into the fiscal model. U lJ LJ a Q Q a D 30 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina CAPE FEAR COMMUNITY COLLEGE Activit A. Capital Costs 1. Existing Level of Service 2. Improved Level of Service B. Operating & Maintenance Costs 1. Existing Level of Service 2. Improved Level of Service 31 Allocation Amount Direct entry $26,756,122 Direct entry $63,465,860 Direct entry $939,699 Direct entry $2,228,978 - Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina o s. 1_1 I 1" IF, 0 0 n hi I PUBLIC SAFETY A. Court System Counties must provide appropriate and adequate. space and furniture for those functions of the court system performed at the local level. A portion of New Hanover County's contribution to the Court System is for operating expenses included in the Clerk of the Court's budget. The County also repairs and maintains the Court System facilities through expenditures included in its Property Management Department's budget. The FY98 County contribution to the Court System totals $145,786. This contribution is expected to increase with population growth in the County. The FY98 budget is divided by the 1997 population estimate of 149,211, for a per capita cost of $0.98. B. Emergency Management The Emergency Management Department works to protect the citizens of New Hanover County from the effects of natural or technological disasters. The Department works with all County departments, municipalities and public safety agencies to insure their preparedness and ability to respond to emergency situations. The Department maintains a 24-hour a day on -call status with paid and volunteer staff. The Department also operates the Emergency Operations Center, coordinates two-way radio systems and follows an annual work program developed by FEMA and the North Carolina Division of Emergency Management. The FY98 County contribution to this Department totals $289,014. This budget category will remain fixed for purposes of the fiscal impact analysis, as its activities are not driven by population or employment growth, rather the number of natural or technological disasters. C. Emergency Medical Services The Emergency Medical Services (EMS) . Department provides Countywide emergency medical care and transportation. County personnel serve as the primary provider of services. Crash/Rescue services are provided, through contract, by the City of Wilmington Fire Department and Ogden -New Hanover Volunteer Rescue Squad, Inc. 32 Tischler.& Associates, Inc. K Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina K ft K K K 0 0 I Revenues generated from EMS fees and the New Hanover Regional Medical Center offset the operating costs of this Department. Therefore this budget will not be calculated in the fiscal impact analysis. D. Inspections The Inspections Department enforces the North Carolina State building, electrical, plumbing, mechanical, and mobile home codes in the City of Wilmington, New Hanover County, and three surrounding beach communities. The Department also enforces the local County Zoning and Flood Plain Management Ordinances and the Coastal Area Management Act regulations. The revenues the Department generates from inspection fees and citations offset the operating costs of the Department. Therefore this budget will not be calculated in the fiscal impact analysis. E. Sheriffs Department The Sheriff is the principal law enforcement officer of New Hanover County. The Sheriffs Department has an operating budget of $12,754,719. Both residential and nonresidential development will impact the future costs to provide law enforcement services to New Hanover County residents and employees. The methodologies used to project the operating and capital costs are described in the sections below. 1. Operating Costs Based on the FY98 budget, the Sheriffs Department budget is divided into the following six divisions: 1) Support Services, 2) Custody, 3) 911 Center, 4) Vice and Narcotics, 5) Uniform Patrol, and 6) Detective Division. The table below shows the estimated FY98 operating costs and percentage for each division. FY98 Sheriff Department Budget 33 New Hanover County Division Budget Percent Support Services $1,686,376 13% Custody/Jail $4,011,266 31 % 911 Center $2,062,135 16% Vice $825,164 6% Patrol $3,262,172 26% Detectives $907,606 7% $12,754,719 100% ft Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors . Wilmington -New Hanover County, North Carolina U a. Support Services The Support Services Division includes Administration, Civil and Records Sections, Front Desk, Personnel and Purchasing. The Civil Section serves all Civil Process (Civil Summons, Magistrates Summons, Show Cause Orders, Evictions, and Domestic Violence Orders), collects money judgements on Executions, and seizes property under Attachments and Claim and Deliveries. The Records Section processes U pistol permit applications, concealed weapons permit applications and maintains a computer records system. The FY98 budget for this Division totals $1,686,376. From this amount is deducted revenues of $127,200, for a net budget of $1,559,176. Since this Division contains some administrative functions, costs are expected to increase on a partial cost basis, estimated at 50%. The FY98 budget of is multiplied by 50% and is then divided the 1997 population estimate of 149,211, for a per capita cost of $5.22. b. 911 Center The 911 Center is responsible for answering calls and dispatching personnel and equipment for emergency assistance for City and County fire service, ambulance (� assistance, and sheriff patrols. The FY98 budget for the 911 Center totals $2,062,135. U Deducted from this amount is $400,000 in revenue from the Emergency Telephone System Fund, for a net County contribution of $1,662,135. As the number of residents and jobs increase in the County, so too will 911 activities. This budget is projected to be impacted on a partial cost basis, estimated at 25%, as increased activity will be offset by D computer automation for dispatch functions. The FY98 County contribution of a $1,677,305 is multiplied by 25% and is then divided by the 1997 population and employment estimate of 207,751, for a per capita and employment cost of $2.02. C. Custody Division The Custody Division is responsible for the County Jail and the operations of the Transportation Unit and Court Bailiff Section. The FY98 budget for this Division totals $4,011,266. Deducted from this amount is $1,604,339 in revenues from various sources including Court Facility fees, Jail fees and Officer fees, for net budget of $2 406 927. This budget is projected to increase with additional population growth in . 9 P 1 P P Qthe County. The FY98 net budget is divided by the 1997 population estimate of 149,211, for a per capita cost of $16.13. �J 34, Tischler & Associates, Inc. I Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 0 I I 0 I I 11 11 I d. Patrol The Patrol Division consists of four Patrol squads, a K-9 squad, a Special Operations squad, a Crime Prevention unit and a- Warrant squad, totaling 70 sworn deputies. The Patrol budget will increase based on calls for service. The table below contains breaking and entering calls for service for 1997. These calls for service are the only ones that could be provided based on residential versus nonresidential location. The 58% residential/42% nonresidential distribution is assumed to be an accurate proxy for overall calls for service in the County. Calls for Service, 1997 New Hanover County. North Carolina Location Calls Percent Residential Nonresidential 598 426 58% 42% Total 1,024 100% Source: New Hanover County Sheriffs office The table below breaks out the residential portion (58%) of the Patrol Division budget based on calls for service. The residential portion is then divided by the existing population and then multiplied by the household size by type of unit to obtain a cost per unit factor. This factor will then be used to project growth related costs. Patrol Division Residential Land Use Factors New Hanover County Sheriffs Office FY98 Budget $3,262,172 Existing Pop. Residential Portion (58%r $1,892,060 Per Capita Cos Household Cost per Land Use Size** Unit Single Family 2.65 $33.60 Duplex/Townhouse 2.23 $28.28 Apartment 1.86 $23.59 Mobile Homes 2.32 $29.42 *Based on calls for service data provided by the Sheriffs Office **Based on an analysis of 1990 Census Data 149,211 $12.68 The nonresidential methodology allocates the nonresidential portion (42%) of the Patrol Division budget, which totals $1,370,112. The nonresidential portion of the budget is allocated by type of nonresidential land use. Since specific records for calls for service by land use type is not available, trips by type of nonresidential land use are utilized as a realistic proxy. This methodology indicates that the greatest calls for service on a per square foot basis are for retail, then office and then flex. The table 35 Tischler & Associates, Inc. DLevel of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina below summarizes the nonresidential vehicle trips on an average weekday in New . Hanover County. D- Nonresidential Vehicle Trips on an Average Weekday New Hanover County, North Carolina ft ft I 0 U1 I I I I Nonresidential Gross Floor Area (Sq. Ft. x 1, 000) Retail/Shopping Center Office Flex Average Weekday Vehicle Trips Ends per 1, 000 Sq. Ft. Retail/Shopping Center Office Flex Nonresidential Vehicle Trips on an Average Weekday Retail/Shopping Center 199,995 Office 30,288 Flex 13,340 Total 243,623 'Trip Rates are from Trip Generation (Institute of Transportation Engineers,1991. Trip rates assume community scale shopping center in the 200,000 sq. ft. range, office in the 50,000 sq. ft. range and manufacturing. Trip Factors 32% Average Weekday Vehicle Trip Ends are from the reference book, Trip Generation, published by the Institute of Transportation Engineers (5th Edition, 1991). A "trip end" represents a vehicle either entering or exiting a development. Trip rates have been adjusted to avoid over estimating the number of actual trips because one vehicle trip is counted in the trip rates of both the origination and destination points. A simple factor of 50% has been applied to Office and Flex categories. The Retail/Shopping Center category has a trip factor of less than 50% because this type of development attracts vehicles as they pass -by on arterial and collector roads. For example, when someone stops at a convenience store on their way home from work, the convenience store is not their primary destination. The ITE manual indicates that on average 37% of the vehicles entering shopping centers are passing by on the way to some other primary ' destination and 63% of the attraction trips have the shopping centers as their primary destination. Therefore, the adjusted trip factor is 32% (0.63 x 0.50). Based on the 243,623 average daily trips and the nonresidential operating cost for the Patrol Division of $1,370,112 (42% of $3,262,172), the operating cost per nonresidential vehicle trip is $5.62. This level of service standard is then multiplied by 36 N Tischler & Associates, Inc. rl Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina I El I 0 a 0 El K NI K the associated nonresidential trip ends and trip factors to derive the nonresidential factor increase due to new growth for the Patrol Division. Nonresidential Land Use Factors for Patrol Division Operating Costs New Hanover County, North Carolina Nonresidential Weekday Vehicle Trips per 1,000 Sq. Ft. Standards Trip Factors Operating Costs 54.50 32% Retail/Shopping Center 16.58 50% Office 1 3.85 50% 11 Level of Service Standards Nonresidential Operating Costs (42% x $3,262,172) $1,370,112 Nonresidential Vehicle Trips 243,623 Operating Cost per Vehicle Trip $5.62 Operating Costs Per 1,000 sq. ft. Per Employee" Retail/Shopping Center $98.08 $39.23 Office $46.62 $11.89 Flex $10.83 $5.88 'Based on 400 square feet per retal employee, 255 square feet per office employee and 543 square feet per flex employee e. Detective Division The Detective Division consists of 20 sworn .deputies and is responsible for investigation of criminal cases and crime scene analysis. Since criminal investigations are related to calls for service, as calls increase, investigations can be expected to increase proportionately. The table below breaks out the residential portion (58%) of the Detective Division budget based on calls for service. The residential portion of $526,411 is then divided by the existing population and then multiplied by the household size by type of unit to obtain a cost per unit factor. This factor will then be used to project growth related costs. 37 Detective Division Residential Land Use Factors New Hanover County Sheriffs Office FY98 Budget $907,606 Existing Pop. Residential Portion (58%)* $526,411 Per Capita Cos Household . Cost per Land Use Size" Unit Single Family 2.65 $9.35 Duplex/Townhouse 2.23 $7.87 Apartment 1.86 $6.56 Mobile Homes 2.32 $8.18 "Based on calls for service data provided by the Sheriffs Office **Based on an analysis of 1990 Census Data 149,211 $3.53 El Tischler & Associates, Inc. ft Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina ft ft 0 a K K R The nonresidential methodology allocates the nonresidential portion (42%) of the Detective Division budget, which totals $381,195. As was the case for the Patrol Division, the nonresidential portion of the budget is allocated by type of nonresidential land use. This methodology indicates that the greatest calls for service on a per square foot basis are for retail, then office and the flextindustrial. The table below summarizes the nonresidential vehicle trips on an average weekday in New Hanover County. Nonresidential Vehicle Trips on an Average Weekday New Hanover County, North Carolina Nonresidential Gross Floor Area (Sq. Ft. x 1,000) Assumptions Retail/Shopping Center 11,468 Office 3,654 Flex 6,930 Average Weekday Vehicle Trips Ends per 1,000 Sq. Ft." Retail/Shopping Center 54.50 Office 16.58 Flex 3.85 Nonresidential Vehicle Trips on an Average Weekday Retail/Shopping Center 199,995 Office 30,288 Flex 13,340 Total 243,623 'Trip Rates are from Trip Generation (Institute of Transportation Engineers,1991. Trip rates assume community scale shopping center in the 200,000 sq. ft. range, office in the 50,000 sq. ft. range and manufacturing. Trip Factors 32% 50 0 Based on the 243,623 average daily trips and the nonresidential operating cost for the Detective Division. of $381,195 (42% of $907,606), the operating cost per nonresidential vehicle trip is $1.56. This level of service standard is then multiplied by the associated nonresidential trip ends and trip factors to derive the nonresidential factor increase due to new growth for the Detective Division. 0 0 0 a 3e 0 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina Nonresidential Land Use Factors for Detective Division Operating Costs New Hanover County, North Carolina Nonresidential Weekday Vehicle Trips per 1,000 Sq. Ft. Standards Trip Factors Retail/Shopping Center 54.50 32% Office 16.58 50% Flex 3.85 50% Level of Service Standards Nonresidential Operating Costs (42% x $907,606) $381,195 Nonresidential Vehicle Trips 243,623 Operating Cost per Vehicle Trip $1.56 Operating Costs Per 1,000 sq. ft. Per Employee* Retail/Shopping Center $27.29 $10.92 Office $12.97 $3.31 Flex $3.01 $1.64 *Based on 400 square feet per retail employee, 255 square feet per office employee and 543 square feet per flex employee f. Vice and Narcotics Division The Vice and Narcotics Division provides' proactive drug enforcement throughout the County. The Division totals 16 deputies and has an operating budget of $825,164. --As -the population -of the County increases, so to will -the activities of the Vice and Narcotics Division. The FY98 budget of $825,164 is divided by the 1997 population estimate of 249,211, for a per capita increase of $5.53. 2. Capital Costs a. Jail For the New Hanover County Jail, a one-time cost per capita methodology will be used, since there are no planned expansions of the current facility. The New Hanover County Jail has 33,668 square feet of space in the Main Jail and 1,815 square feet of space in the Jail Annex, for a total of 35,483 square feet. When this is compared to the current population of 149,211, the resulting level of service is .237 square feet per capita. With no recent construction projects from which to base a capital cost per square foot of jail space, TA utilized the Marshall & Swift Valuation Service to estimate a capital cost of $87.60 per square foot of jail space. This estimate used an Average Class C Government Building, with a 15% multiplier for land. When the capital cost per square foot is applied to the .237 square foot per capita standard, the capital cost per capita is $20.76. 39 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina III I I b. Sheriffs Deputy Equipment The table below shows all the one-time costs associated with a new deputy sheriff, as well as vehicle costs. One time costs include radio and related equipment, weapon and ammunition, as well as uniforms and related equipment. The County currently has 100 vehicles for 111 deputy sheriffs involved in patrol, civil, vice and investigative functions. This is a ratio of- 1 vehicle for every 1.11 deputy sheriffs. Vehicles are assumed to have a useful life of five years. Capital Equipment Costs. New Hanover Lounty Snenrrs utrice Item Cost Uniforms & Equipment* $1,872 4 Door Sedan** $21,500 *One-time cost **Useful life of five years According to the most recent information (1997) provided by the Sheriffs Department, the County received 175,000 calls for service in FY97. When this is compared to the 1997 population and employment total in the County of 207,751, there were .84 calls for service for every resident and job in the County. Given the current 111 deputy sheriffs involved in patrol, civil, vice and investigative functions, there is an average of 1,577 calls for service per deputy. Therefore, for purposes of the fiscal impact analysis, a new deputy sheriff with an associated one-time capital cost of $1,872 will be Incurred by the County for each additional 1,577 calls for service. In addition, for every 1.11 officers a capital cost of $23,000 will be incurred by the County for a patrol vehicle with a useful life of five years. O n 0 0 0 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina PUBLIC SAFETY Activi Allocation Amount A. Court System Per capita $0.98 B. Emergency Management Fixed N/A C. Emergency Medical Services N/A See text D. Inspections . N/A See text E. Sheriff's Department 1. Operating Costs a. Support Services Per capita $5.22 b. 911 Center Per capita & emp. $2.02 c. Custody Division Per capita $16.13 d. Patrol Per unit/nonres. trip See text e. Detective Per unit/nonres. trip See text f. Vice & Narcotics Per capita $5.53 2. Capital Costs a. Jail One-time per capita $20.76 b. Equipment Direct entry See text 41 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 0 0 0 0 0 0 0 a 0 0 0 0 0 0 7. GENERAL FUND REVENUES A. Ad Valorem Tax Ad Valorem Tax is a tax on real property and vehicles based on the value of the property as a marketable item. Real property includes land, buildings, and items permanently affixed to land or buildings. The market value of the land is established by an appraisal, which must be carried out by the County every eight years. A tax rate is established by the County Commissioners for each fiscal year. The current tax rate is $0.665 per $100 dollars of assessed value. For purposes of the fiscal impact analysis, a 100% collection rate is assumed. For the fiscal impact analysis, TA's FISCALS software will calculate Ad Valorem Taxes from new development by multiplying the tax and assessment rates by the average market values. The average market values for new construction are shown in the table below. Market Values of New Construction City of Wilmington/New Hanover County Unit City Phase I Phase II Phase III County Single Family* $130,456 $356,616 $222,738 $205,063 $159,398 Duplex/Townhome* $93,712 $113,502 $113,502 $113,502 $143,120 Apartment** $59,384 $59,384 $59,384 $59,384 $59,384 Retail (per sq. ft.)** $68.40 $68.40 $68.40 $68.40 $64.55 Office (per sq. ft.)** $65.11 $65.11 $65.11 $65.11 $61.61 Flex(per sq. ft.)** $32.69 $32.69 $32.69 $32.69 $20.57 *Source: New Hanover County Board of Realtors **Source: Marshall & Swift Valuation Service The number of registered vehicles in the County totals 115,559 in FY98 and comprises an assessable base of $841,320,128. When the number of vehicles is compared to the total value, the result is an average value per vehicle of $7,280. And when the number of vehicles is compared to the 1997 population of 149,211, there are .77 vehicles per capita. For the fiscal impact analysis, TA's software will forecast additional vehicles at the rate of .77 per capita as population increases in the County. The current assessment rate will be applied to the average value per vehicle of $7,280. B. Ad Valorem Interest Interest on Ad Valorem Taxes is charged for property taxes not paid on time. Interest of 3/4 of one percent is charged beginning the first day of each month following 42 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina the tax due date until paid. This revenue source totals $230,000 in FY98. Since a 100% collection rate is assumed for ad valorem taxes, this revenue source will remain fixed in the fiscal impact analysis. C. Real Property Transfer Tax �J The Real Property Transfer Tax is an excise tax on each deed or other ainstrument by which real property is conveyed. Although this tax is levied by the State of North Carolina, the proceeds go directly to the New Hanover County government. The tax rate is $.50 for each $500 of the sale price. This tax will be treated as a. one- time revenue and will be applied toward the projected number of housing units and non- residential square feet added in year 2010 of the fiscal impact analysis. D. One -Half Cent Sales Tax Fund Sales Tax includes two local option half -cent sales taxes. The taxes are collected by the State of North Carolina on retail sales or leases of tangible personal property. These funds are returned to the County by the State. North Carolina Statutes require that 30 percent of Article 40 and 60 percent of Article 42 taxes be used for l� County public school capital expenditures. In FY98, the undesignated portions of these revenues have been transferred. to the Environmental Fund and Water and Sewer District. For purposes of the fiscal analysis, it is assumed that the restricted portions of these revenues are used to retire School bonded debt. It is further assumed that the unrestricted portions continue to be designated for Water and Sewer Fund and aEnvironmental Fund activities and are therefore not available for General Fund activities. A retail square footage projection methodology will be used for each of the sales tax revenue sources. This methodology utilizes information contained in Dollars & Cents of Shopping Centers, published by the Urban land Institute, and assumes that every additional square foot of retail space added in the County generates sales of $191.63 annually (A neighborhood scale shopping center prototype was assumed). E. Beer and Wine Tax - QBeer and Wine Tax is an excise tax levied by the State on the sale of beer and wine at the wholesale level. Counties and cities, in which beverages are sold and a 43 Tischler & Associates, Inc. 0 Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina Dtaxed, may share in the proceeds of the tax on a per capita basis. This revenue source totals $274,000 in FY98 and is projected to increase with population. The FY98 revenue total is divided by the 1997 population estimate of 149,211, for a per capita increase of $1.84. F. Alcoholic Beverage Control (ABC) Revenues 1. 5 Cent Bottle Charge The 5-cent per bottle revenue is turned over by the County to Southeastern Center and must be spent for alcohol abuse treatment or research. This revenue source totals $66,000 in FY98. Since this is essentially a "pass through" revenue, it will not be factored in the fiscal analysis. 2. Other ABC Revenues Other ABC revenues consist of the following ABC charges: (1) 3.5 percent add - on, (2) additional 5 cent per bottle, and (3) mixed beverage (liquor by the drink). The County also receives distribution of ABC net profits. The FY98 total for these revenue sources is $846,100 and is projected to increase with population. The FY98 revenue total is divided by the 1997 population estimate of 149,211, for a per capita increase of $5.67. G. Cable Franchise Fees This revenue source is a franchise fee that is charged to each cable television account in the County. The FY98 revenue total amounts to $334,000, which is expected to increase with additional residential development. The FY98 revenue total is divided by the FY98 dwelling unit estimate of 60,894, for a per dwelling increase of $5.48. H. Intergovernmental Revenue Several departments offset a portion of their operating expenditures with grants and transfers from Federal and State Governments. This revenue source totals $21,827,280 in FY98. For purposes of the fiscal impact analysis, these revenues have been netted out of the appropriate operating budgets. 44 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina I. User Fees User Fees are fees charged to direct users of selected County services. Examples of these fees include Library fines, Inspection fees, Dog and Cat License fees, etc. For purposes of the fiscal impact analysis, these Fees are netted out of the appropriate operating budget. J. Intangibles Tax The Intangibles Tax is a hold harmless reimbursement paid by the State to the County to replace tax revenues lost from the 1995 repeal of the North Carolina Intangibles'Tax. The FY98 revenue includes $2,430,000 for intangibles reimbursement and $2,000,000 in tax, based on prior years actual receipts. The $2,430,000 reimbursement will remain fixed in the fiscal impact analysis while the $2,000,000 tax revenue is anticipated to increase with additional employment. The FY98 variable amount of $2,000,000 is divided by the 1997 employment estimate of 58,540, for a per employee increase of $34.16 K. Other General Government Revenues These revenues include Food Stamp Sales Tax Reimbursement, Sale of Fixed Assets, Rental Income, Tax Collection Fees, Marriage License Fees, etc. These revenues total $1,659,754 in FY98 and are projected to increase with population, although at a semivariable rate estimated at 25%. The FY98 revenue total is multiplied times 25% and then divided by the 1997 population estimate of 149,211, for a partial per capita increase of $2.78. L. Interest on Investments This revenue source is interest earned on County funds invested. According to North Carolina laws, to maximize the return between the time funds are collected and used. This revenue source totals $1,900,000 in FY98. For purposes of the fiscal impact analysis, this revenue is assumed to remain the same percentage of total revenues in 2010 (1.4%) as it is in FY98. 45 Tischler & Associates, Inc. 0 Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina K 0 K M. Appropriated Fund Balance In accordance with the Local Government Fiscal Control Act, the County may use some unexpended funds from previous years to balance the budget. This revenue source totals $156,325 in FY98 and will remain fixed in the fiscal impact analysis. 46 Tischler & Associates, Inc. 0 a 0 0 0 0 0 0 0 0 0 0 a a Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina GENERAL FUND REVENUES Revenue Allocation A. Ad Valorem Tax Market Value B. Ad Valorem Interest Not factored C. Real Property Transfer Tax Market Value D. One -Half Cent Sales Tax Fund Square feet E. Beer and Wine Tax Per capita F. ABC Revenues 1. 5 Cent Bottle Charge Not factored 2. Other ABC Revenues Per capita G. Cable Franchise Fees Per Unit H. Intergovernmental Revenue Net out I. User Fees Net out J. Intangibles Tax Per employee K. Other General Government Revenues Per capita L. Interest of Investments % of budget M. Appropriated Fund Balance Fixed 47 N Amount $0.665 per $100 value See text $0.50 per $500 $172.58 $1.84 See text $5.67 $5.48 N/A N/A $34.16 $2.78 1.4% Tischler & Associates, Inc. 0 Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 8. NEW V HANG ER COUNTY FIRE DISTRICT j Fire protection in the unincorporated portion of New Hanover County is provided U by the Special Fire District Fund. This Fund is a special revenue fund used to account for a special tax in New Hanover County's Fire District. This District was established in 1986 to provide funds to volunteer fire departments in the unincorporated areas of the QCounty. The Fire District property tax rate for property owners within the service district is $2.5 cents per $100 value. The Fire Services Administration conducts activities Dinvolving fire prevention, code enforcement, fire safety education, fire scene investigation, and coordinates the contractual fire protection services of volunteer fire departments. A. Impact on Volunteer Fire Departments 1. Fire District Revenue Loss a. Phase I Annexation Area The tax valuation of the property to be annexed is $1,056,953,052. Annexation of this property will result in annual property tax revenue loss of $264,238 to the New Hanover County Fire District, assuming a tax rate of $2.5 cents. b. Phase II Annexation Area The tax valuation of the property to be annexed is $589,476,123. Annexation of this property will result in annual property tax revenue loss of $147,369 to the New Hanover County Fire District, assuming a tax rate of $2.5 cents. Qc Phase III Annexation Area The tax valuation of the property to be annexed is $535,353,211. Annexation of this property will result in annual property tax revenue loss of $133,838 to the New Hanover County Fire District, assuming a tax rate of $2.5 cents. d. Urban Countv The tax valuation of the property to be annexed is $1,062,753,299. Annexation of this property will result in annual property tax revenue loss of $265,688 to the New Hanover County Fire District, assuming a tax rate of $2.5 cents. 48 0 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina ui I 0 I I I I NI I � 2. Supplemental Service Contracts According to North Carolina State Law, when a City annexes County land it must either contract with the County volunteer fire departments in an annexation area to provide supplemental services to the annexed area or be responsible for paying a proportionate share of the current department debt. For purposes of the fiscal analysis, it is assumed that the City enters into supplemental service contracts. The table below shows the estimated annual contract amounts for each area and the year the contract begins. The Phase I and II annexation studies provide estimates for the annual amounts of these contracts. The contract amounts for the Phase I and II areas are used as proxies for the Phase III and Urban portions of the County. 49 Volunteer Fire Supplemental Service Contract Revenue Area Year Cost Phase I Annexation 1998- $132,706 Phase II Annexation 1998 $74,540 Phase III Annexation 1998 $132,706 North -Urban County 2010 $74,540 South -Urban County 2010 $132,706 Source: City of Wilmington Fire Department 0 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 9. NEW HANOVER COUNTY WATER AND SEWER DISTRICT The New Hanover County Water and Sewer District was established in 1983. The District includes all unincorporated areas within New Hanover County. Approximately 70,000 people live in the District's service area. The District currently provides service to approximately 20,800 customers (residential and commercial). The FY98 budget for the District totals $9,478,233. For reasons documented in a separate memo entitled "City/County Sewer and Water Issues", this enterprise fund is not reflected in the fiscal impact analysis. 50 Tischler & Associates, Inc. 0 0 0 0 r� 0 n 0 0 0 0 0 0 0 n 0 0 0 0 Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 10. ENVIRONMENTAL MANAGEMENT FUND The Environmental Management Fund is used to account for the operations of the County Landfill. Environmental Management operations total $12,439,493 in FY98 and are funded primarily through tipping fees. Based on conversations had with City and County staff regarding this activity, it was decided not to factor this fund in the fiscal analysis, given it is an enterprise fund operation. 51 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina III. URBAN SERVICE AREA For the Urban service area, the fiscal analysis will measure the cost of providing a City level of service to the City and the Phase I, II, and Ill annexation areas in 1998. For 2010, the fiscal analysis will also measure the cost of providing a City level of service to the Urbanized portion of the County. The City's revenue structure will be used where City costs are used. 1. GENERAL GOVERNMENT A. City Council The seven -member City Council is the official legislative and policy -making body of the City of Wilmington. The FY98 budget for the City Council is $131,230. According to the Annexation Studies prepared by the City, additional population and employment growth is not anticipated to substantially impact this budget. This budget will remain fixed in the fiscal impact analysis. B. City Clerk Appointed by the City Council to a two-year term, the City Clerk acts as official record keeper for the City. The City Clerk records minutes of all Council meetings, certifies ordinances and resolutions adopted by the City Council, maintains files of deed and contractual transactions, manages the codification of ordinances, as well as many other duties. The FY98 budget for the City Clerk is $92,960. As is the case with the City Council, this budget will remain fixed in the fiscal impact analysis. C. City Manager The City Manager directs and coordinates the services delivered by City agencies. The FY98 budget for this Department totals $540,440. For purposes of the fiscal impact analysis, this budget category will remain fixed, since growth in the City is not expected to significantly impact administrative functions. 52 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 11 0 I K ft n N! C Li it I D. City Attorney The City Attorney's Office represents the City in all suits for and in behalf of the City. The City Attorney also represents the City in administrative proceedings with other governmental agencies relating to unemployment compensation, employment claims, environmental issues and other matters. The FY98 budget for this Department totals $374,040. It is estimated, based on the Annexation Studies prepared by the City, that one additional Paralegal, at a cost of $34,720, will be needed to assist with acquisition of property as needed for extending City services. Operating costs are projected to increase by an additional $12,500. These costs will be assumed for each of the annexation areas and the urban portion of the County and will be directly entered into the fiscal impact model. C' ttyr mey Costs to 2010 Area Year Cost Phase I Annexation 1998 $47,220 Phase II Annexation 1998 $47,220 Phase III Annexation 1998 $47,220 Urban County -North 20101 $47,220 Urban County -South t-- 20101 $47,220 Source: City of Wilmington Annexation Studies/City Staff E. Human Resource Management The Office of Human Resource Management provides comprehensive services to all City departments to support effective management of the workforce. Functional areas include recruitment, classification, compensation, and benefits administration, personnel record management, training and employee relations. The FY98 budget for this Department totals $392,900. It is estimated, based on the Annexation Studies prepared by the City and conversations with City staff, that two Personnel Analysts, at a cost of $35,080, will be needed to support the additional personnel associated with providing City services to the Phase I and II areas. Operating costs are projected to increase by an additional $6,000. These costs are projected to be incurred again to provide service in the Phase III area and Urban County. These costs will be direct entered into the fiscal impact model. 53 V!, Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina I I 0 Human Resource Mana ement Costs to 2010 Area Year Cost Phase I Annexation 1998 $41,080 Phase II Annexation 1998 N/A Phase III Annexation 1998 $41,080 Urban County -North 2010 N/A Urban County -Sou h 2010 $41,080 Source: City of Wilmington Annexation Studies/City Staff F. Finance The Finance Department supports all City operations through the accounting and apayroll systems. The Finance Department is responsible for compliance to laws governing the City's fiscal practices and for financial reporting related to statutory arequirements and generally accepted accounting principles. The FY98 budget for this Department totals $1,410,090. It is estimated, based on the Annexation Studies prepared by the City and conversations with City staff, that an Account Clerk and Customer Service Clerk, at a cost $82,340, will be needed in each annexation area and I I ire 0 the urban county, primarily to provide billing and collection services for the new water and sewer customers. Operating costs are projected to increase by an additional $100,000 in each area, primarily due to increased tax collection costs. These costs will be direct entered into the fiscal impact model. cityFinance Costs to 2010 Area Year Cost Phase I Annexation 1998 $182,340 Phase II Annexation 1998 $182,340 Phase III Annexation 1998 $182,340 Urban County -North 2010 $182,340 Urban County -South 2010 $182,340 Source: City of Wilmington Annexation Studies/City Staff G. Administrative Services Administrative Services is comprised of three divisions: Budget, Management Information Systems, and Central Services. The Budget Division prepares and monitors the annual City budget, providing financial forecasts and other management analyses. The Management Information Systems Division provides data processing services through mainframe and personal computer systems. The Central Services 54 i Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 0 III 111 Division includes centralized purchasing, contracting, and warehousing functions, as well as management, maintenance, and replacement of the City's fleet of vehicles and other rolling stock. The FY98 Budget for this Department totals $1,326,890. It is estimated, based on the Annexation Studies prepared by the City and conversations with City staff, that Phase 1 annexation will increase operating costs by $54,998 as a result of the need for one Computer Specialist ($27,030), and one Automotive Mechanic ($22,968), and operating costs of $5,000. Phase II annexation is expected to increase operating costs by $22,882 (one Clerk Typist at $18,782 and operating costs of $4,100). Phase I and II costs will be used as a proxies for the Phase III area and the urban County. These costs will be directly entered into the fiscal impact model. :Il Administrative Services Costs to 2010 Area Year Cost Phase I Annexation 1998 $54,998 Phase II Annexation 1998 $22,882 Phase III Annexation 1998 $54,998 Urban County -North 2010 $22,882 Urban County -South 1 2010 $54,998 Source: City of Wilmington Annexation Studies/City Staff Development Services 1. Planning The Planning and Development Department mission is to work with citizens to provide positive, comprehensive, and visionary community planning and development assistance to improve the quality of life in the City. The Department provides staff support to City Boards and Commissions, including the City Council, Planning Commission, Historic District Commission and Board of Adjustment. In addition, the Department provides long range planning assistance to the community, as well as code enforcement. The FY98 Budget for this department is $691,150. It is estimated, based on the Annexation Studies prepared by the City and conversations with City staff, that Phase I annexation will increase operating costs by $91,900, as a result of the need for an additional Planner II ($31,975), Code Enforcement Officer ($29,375), Clerk Typist ($18,775) and operating costs of $7,700. It is estimated that Phase II annexation will increase operating costs by $32,343, as a result of the need for an additional Planner. Phase I and II annexation costs will be used as proxies for the Phase III and Urban 55 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina County areas, respectively. These costs will be directly entered into the fiscal impact model. Pla ning Costs to 2010 Area Year Cost Phase I Annexation 1998 $91,900 Phase II Annexation 1998 $32,343 Phase III Annexation 1998 $91,900 Urban County -North 2010 $32,343 Urban County -South 2010 $91,900 Source: City of Wilmington Annexation Studies/City Staff 2. Engineering The Engineering Department provides design and construction management for capital projects, administers a stormwater management program, and reviews subdivision plans. The FY98 budget for this Department totals $1,212,120. It is estimated, based on the Annexation Studies prepared by the City and conversations with City staff, that Phase I annexation will increase operating costs by $166,700, as a result of the need for one Transportation Planner ($30,360), two Engineer Technicians ($53,720), one Construction Inspector ($26,860), one Clerk Typist ($19,760) and operating costs of $36,000 to support the additional Engineering activities associated with providing City services to new areas. It is estimated that Phase II annexation will increase operating costs by $203,019, as a result of the need for an two Engineers ($75,831), two surveyors ($53,180), a Construction Inspector ($28,608) and operating costs of $45,400. Phase I and II annexation costs will be used as proxies for the Phase III and Urban County areas, respectively. These costs will be directly entered into the fiscal impact model. En ! eering Costs to 2010 Area Year Cost Phase I Annexation 1998 $166,700 Phase II Annexation 1998 $203,019 Phase III Annexation 1998 $166,700 Urban County -North 2010 $203,019 Urban County -Sou h 2010 $166,700 Source: City of Wilmington Annexation Studies/City Staff 3. Community Development The. Community Development Department provides code enforcement, neighborhood improvement and housing programs to City residents. The FY98 budget 56 Tischler & Associates, Inc. OLevel of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina totals $771,830. It is estimated, based on the Annexation Studies prepared by the City and conversations with City staff, that Phase I annexation will not result in additional aoperating costs for the City. It is estimated that the Phase II annexation area will increase City operating costs by $50,993, as a result of the need for one Code Enforcement Officer ($32,343) and operating costs of $18,650. Operating costs are projected to increase by an additional $18,650. Phase I and II annexation costs will be Qused as proxies for the Phase III and Urban County areas, respectively. These costs will be direct entered into the fiscal impact model. CommunityDevelo ment Costs to 2010 Area Year Cost Phase I Annexation 1998 N/A Phase II Annexation 1998 $50,993 Phase III Annexation 1998 N/A Urban County -North 1 2010 $50,993 Urban County -Sou h 1 2010 N/A Source: City of Wilmington Annexation Studies/City Staff I. Sundry Appropriations 1. Non -Departmental This budget covers miscellaneous City expenditures for items such as expenses for City memberships in professional organizations, cost of the annual audit, City contributions for medical insurance for retirees, and allowance for continuing costs of cleanup of waste sites, as may be required by EPA. These expenditures total $432,060 in FY98 and are not expected to be impacted by growth. Therefore, this budget will remain fixed in the fiscal impact analysis. 2. Payment to Other Agencies The City provides funding to outside agencies whom provide services consistent with the City's objectives. This leveraging of dollars with volunteer efforts and other revenue sources increases the community services offered to citizens. The FY98 budget for these contributions total $534,010. As the population increases in the City, so too will contributions to other agencies, in order to maintain the current level of service. The FY98 budget of $534,010 is divided by the 1997 population estimate of 64,164, for a per capita cost of $8.32. 57 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina GENERAL GOVERNMENT Activi Allocation Amount A. City Council Fixed N/A B. City Clerk Fixed N/A C. City Manager Fixed N/A D. City Attorney Direct entry See text E. Human Resource Management Direct entry See text F. Finance Direct entry See text G. Administrative Services Direct entry See text H. Development Service 1. Planning Direct entry See text 2. Engineering Direct entry See text 3. Community Development Direct entry See text I. Sundry Appropriations 1. Non -Departmental Fixed N/A 2. Payments to Other Agencies Per capita $8.32 58 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 2. POLICE aThe Wilmington Police Department utilizes community -policing tactics to promote safe neighborhoods and reduce the fear of crime. The Police Department is structured U in four divisions: Administration, Criminal Investigations, Community Policing, and LJ Support Services. As part of the Phase I and II Annexation Studies prepared by the DCity of Wilmington, the cost to extend Police service was evaluated. In these studies, the present level of service for Patrol and Investigation activities was reflected in sworn aofficers per 1,000 residents. For these functions, TA has utilized a methodology that projects costs by type of land use, using trip generation rates and calls for service information. This methodology provides a more accurate picture of the present cost structure. For example, if the City were to lose population over a 5-year time period and aat the same time capture substantial nonresidential square footage, a sworn officer per 1,000 population methodology would not reflect the cost to serve the increase in I f nonresidential activity. A. Operating Costs Based on the FY98 budget, the Police Department budget is divided into the following four divisions: 1) Administration, 2) Support Services, 3) Community Policing, and 4) Criminal Investigations. The table below shows the FY98 operating costs and percentage for each division. FY98 Police Department Budget City of Wilmington Division Budget Percent Administration $567,000 6% Support Services $1,784,070 20% Community Policing $4,954,340 54% ,Criminal Investigations $1,811,440 20% $9,116,850 100% 1. Administration Division The Administration Division is responsible for the overall management of the department and also houses the professional standards and community relations functions. Other activities include training, crime prevention programs, the DARE 59 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina program internal investigations and career development activities. The FY98 budget for this Division totals $567,000. As the population and employment of the City grows, so too will this Division's budget, although on a partial cost basis, estimated at 50%, as this Division will have to increase its. community relations and crime prevention programs. Therefore the FY98 budget is divided by the 1997 population and employment estimate of 97,592 and is then multiplied by 50%, for a per capita and job cost of $2.90. D2. Support Services Division The Support Services Division is responsible for the management of police arecords, property, and evidence. The Division also handles budget, personnel, and purchasing functions of the Police Department. The FY98 budget for this Division totals $1,784,070. Since this Division is primarily administrative, costs are expected although on a partial cost basis estimated at 25%. The FY98 budget is multiplied by 25% and is then divided by the 1997 population and employment estimate of 97,592, for a per capita and employee increase of $4.57. 3. Community Policing Division K 11 fl K 01 The Community Policing Division is the patrol function of the Police Department and emphasizes a neighborhood based approach through the use of four Neighborhood Area Base Stations (NABS). There are currently 167 officers performing patrol activities. The Community Policing budget will increase based on calls for service. The table below contains breaking and entering calls for service for 1996. These calls for service are the only ones that could be provided based on residential versus nonresidential location. The 60% residential/40% nonresidential distribution is assumed to be an accurate proxy for overall calls for service in the City. Calls for Service, 1996 Wilminaton. North Carolina Location Calls Percent Residential Nonresidential 931 629 60% 40% Total 1,560 100% Source: City of Wilmington Pofice Department The table. below breaks out the residential portion (60%) of the Community Policing Division budget based on calls for service. The residential portion is then divided by the existing population and then multiplied by the household size by type of III Tischler & Associates, Inc. ft Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 0 K 0 111 ft I I K K K unit to obtain a cost per unit factor. This factor will then be used to project growth related costs. Community Policing Residential Land Use Factors City of Wilmington Police Department FY98 Budget $4,954,340 Existing Pop. Residential Portion (60%r $2,972,604 Per Capita Cost Household Cost per Land Use Size** Unit Single Family 2.50 $115.82 Duplex/Townhouse 2.26 $104.70 Apartment 1.87 $86.63 Mobile Homes 2.04 $94.51 *Based on calls for service data provided by the Police Department **Based on an analysis of 1990 Census Data 64,164 $46.33 The nonresidential methodology allocates the nonresidential portion (40%) of the Community Policing Division budget, which totals $1,981,736. The nonresidential portion of the budget is allocated by type of nonresidential land use. Since specific records for calls for service by land use type is not available, trips by type of nonresidential land use are utilized as a realistic proxy. This methodology indicates that the greatest calls for service on a per square foot basis are for retail, then office and then flex. The table below summarizes the nonresidential vehicle trips on an average weekday in the City of Wilmington. 0 61 Nonresidential Vehicle Trips on an Average Weekday Wilmington, North Carolina Nonresidential Gross Floor Area (Sq. Ft. x 1, 000) Assumption Retail/Shopping Center 7,408 Office 2,563 Flex 2,637 Average Weekday Vehicle Trips Ends per 1,000 Sq. Ft.* Retail/Shopping Center 54.50 Office 16.58 Flex 3.85 Nonresidential Vehicle Trips on an Average Weekday Retail/Shopping Center 129,196 Office 21,247 Flex 5,076 Total 155,519 *Trip Rates are from Trip Generation (Institute of Transportation Engineers,1991. Trip rates assume community scale shopping center in the 200,000 sq. ft. range, office in the 50,000 sq. ft. range and manufacturing. Trip Factors 32% 50% 50°' III Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina Average Weekday Vehicle Trip Ends are from the reference book, Trip Generation, published by the Institute of Transportation Engineers (5th Edition, 1991). a- A "trip end" represents a vehicle either entering or exiting a development. Trip rates have been adjusted to avoid over estimating the number of actual trips because one vehicle trip is counted in the trip rates of both the origination and destination points. A simple factor of 50% has been applied to Office and Flex categories. The Retail/Shopping Center category has a trip factor of less than 50% because this type of development attracts vehicles as they pass -by on arterial and collector roads. For example, when someone stops at a convenience store on their way home from work, the convenience store is not their primary destination. The ITE manual indicates that on average 37% of the vehicles entering shopping centers are passing by on the way to some other primary destination and 63% of the attraction trips have the shopping centers as their primary destination. Therefore, the adjusted trip factor is 32% (0.63 x 0.50). Based on the 155,519 average daily trips and the nonresidential operating cost for Community Policing of $1,981,736 (40% of $4,954,340), the operating cost per nonresidential vehicle trip is $12.74. This level of service standard is then multiplied by the associated nonresidential trip ends and trip factors to derive the nonresidential L� factor increase due to new growth for the Community Policing Division. DNonresidential Land Use Factors for Community Policing Division Operating Costs Wilmington, North Carolina Nonresidential Weekday Vehicle Trips per 1,000 Sq. Ft. Standards Trip Factors D Operating Costs 54.50 1 32% Retail/Shopping Center 16.58 50% a Office Level of Service Standards 3.85 50% Nonresidential Operating Costs (40% x $4,954,340) $1,981,736 a Nonresidential Vehicle Trips Operating Cost per Vehicle Trip 155,519 $12.74 Operating Costs Per 1,000 sq. ft. Per Employee" Retail/Shopping Center $222.23 $88.89 n Office $105.64 $26.94 u Flex $24.53 $13.32 'Based on 400 square feet per retail employee, 255 square feet per office employee and 543 square feet per n flex employee i 62 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 4. Criminal Investigations Division The Criminal Investigations Division investigates all crimes and targets career criminals in the community. The FY98 operating expenses for the Criminal Investigations Division totals $1,811,440. Since investigations are related to calls for service, as calls increase, investigations can be expected to increase proportionately. The table below breaks out the residential portion (60%) of the Criminal Investigations Division budget based on calls for service. The residential portion is then divided by the existing population and then multiplied by the household size by type of unit to obtain a cost per unit factor. This factor will then be used to project growth related costs. Criminal Investigations Residential Land Use Factors City of Wilmington Police Department FY98 Budget $1,811,440 Existing Pop. 64,164 Residential Portion (60%)* $1,086,864 Per Capita Cost $16.94 Household Cost per Land Use Size** Unit Single Family 2.50 $42.35 Duplex/Townhouse 2.26 $38.28 Apartment 1.87 $31.68 Mobile Homes 2.04 $34.56 *Based on calls for service data provided by the Police Department **Based on an analysis of 1990 Census Data The nonresidential methodology allocates the nonresidential portion (40%) of the Criminal Investigations Division budget, which totals $724,576. As was the case for the Community Policing Division, the nonresidential portion of the budget is allocated by type of nonresidential land use. This methodology indicates that the greatest calls for service on a per square foot basis are for retail, then office and the flextindustrial. The table below summarizes the nonresidential vehicle trips on an average weekday in the City of Wilmington. Q u F1 63 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina Nonresidential Land Use Vehicle Trips on an Average Weekday Wilmington, North Carolina Nonresidential Gross Floor Area (Sq. Ft. x 1,000) Assumptions - Retail/Shopping Center 7,408 Office 2,563 Flex 2,637 Average Weekday Vehicle Trips Ends per 1,000 Sq. Ft.* Retail/Shopping Center 54.50 Office 16.58 Flex- 3.85 Nonresidential Vehicle Trips on an Average Weekday Retail/Shopping Center 129,196 Office 21,247 Flex 5,076 Total 156,519 *Trip Rates are from Trip Generation (Institute of Transportation Engineers,1991. Trip rates assume community scale shopping center in the 200,000 sq. ft. range, office in the 50,000 sq. ft. range and manufacturing. Trip Factors I Based on the 155,519 average daily trips and the nonresidential operating cost for Criminal Investigations of $724,576 (40% of $1,811,440), the operating cost per nonresidential vehicle trip is $4.66. This level of service standard is then multiplied by the associated nonresidential trip ends and trip factors to derive the nonresidential factor increase due to new growth for the Criminal Investigations Division. Nonresidential Land Use Factors for Criminal Investigations Division Operating Costs Wilmington, North Carolina Nonresidential Weekday Vehicle Trips per 1,000 Sq. Ft. Standards Trip Factors Retail/Shopping Center 54.50 32% Office 16.58 50% Flex 3.85 50% Level of Service Standards Nonresidential Operating Costs (40% x $1,811,440) $724,576 Nonresidential Vehicle Trips 155,519 Operating Cost per Vehicle Trip $4.66 Operating Costs Per 1,000 sq. ft. Per Employee* Retail/Shopping Center $81.25 $32.50 Office $38.62 $9.85 Flex $8.97 $4.87 *Based on 400 square feet per retail employee, 255 square feet per office employee and 543 square feet per flex employee f� U' 64 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina B. Capital Costs 1. Headquarters The Police Department presently operates out of a central Headquarters, located in downtown Wilmington and four Neighborhood Area Base Stations (NABS). The Headquarters is located in an old building in need of repairs. The Department is not presently utilizing the entire building. TA is told that a Space Needs Analysis is being conducted to determine Police space needs in the future. However, TA is of the opinion that any capital investment in Police Headquarters space is not necessitated by new growth, rather it is a reaction to antiquated facility the Department is now utilizing. Therefore there is no capital cost associated with this facility. 2. Neighborhood Area Base Stations As part of the Departments community policing efforts, four Neighborhood Area Base Stations (NABS) have been established. These base stations are essentially office trailers that allow Officers a place to catch up on paperwork, make phone calls, as well as establish a Police presence in the neighborhood. These NABS have an estimated capital cost of $12,000 and have been paid for through grant money. Additional NABS are planned in the annexation areas, however no capital costs will be assumed in the analysis. 3. Patrol Officer Equipment The table below shows all the one-time costs associated with a new patrol officer added to the Police Department. These costs include radio and related equipment, weapon and ammunition, as well as uniforms and related equipment. One -Time Capital Cost Per Patrol Officer City of Wilmington Police Department Item Cost Radio Equipment $835 Service Weapon $422 Ammunition $63 UniformsNest $1,636 Equipment $720 Total $3,676 The table below shows the capital costs associated with the purchase of a new patrol vehicle for the City of Wilmington Police Department. The City currently has 100 65 Tischler & Associates, Inca Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina vehicles for 167 sworn officers. This is a ratio of 1 vehicle for every 1.67 sworn officers. Vehicles are assumed to have a useful life of five years. Vehicle Capital Costs City of Wilmington Police Department Item Cost 4 Door Sedan $21,000 Blue Light Bar $625 Siren Speaker $170 Switch Box $60 Siren $190 Communication Rail $60 Seat Cover $90 Security Screen $170 Decal Kit $190 Mobile Radio $710 Fire Extinguisher $13 Installation Costs $400 Total $23,678 According to the most recent information (1997) provided by the Police Department, the City received 100,496 calls for service in 1997. When this is compared to the 1997 population and employment total in the City of 97,592, there were 1.02 calls for service for every resident and job in the City. Given the current 167 sworn police officers, there is an average of 602 calls for service per officer. Therefore, for purposes of the fiscal impact analysis, a new patrol officer with an associated one-time capital cost of $3,676 will be incurred by the City for each additional 602 calls for service. In addition, for every 1.67 officers a capital cost of $23,678 will be incurred by the City for a patrol vehicle with a useful life of five years. X. Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina POLICE Activity Allocation Amount A. Operating Costs 1. Administration Partial per capita $2.90 2. Support Services Per capita/emp. $4.57 3. Community Policing Per res. unit/nonres. trip See text 4. Criminal Investigations Per res. unit/nonres. trip See text B. Capital Costs 1. Headquarters N/A NIA 2. Neighborhood Base Stations N/A NIA 3. Patrol Officer Equipment Direct entry See text 67 Tischler & Associates, Inc. I Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina R 3 0 I '1J hl 3. FIRE A. Operating Costs Based on the FY98 budget, the Fire Department budget is divided into the following five divisions: 1) Administration, 2) Support Services, 3) Fire Prevention/Investigations, 4) Firefighting, and 5) Hazardous Materials. The table below shows the FY98 operating costs and percentage for each division. FY98 Fire Department Budget City of Wilmington Division Budget Percent Administration $92,250 204 Support Services $516,500 9% Fire Prevention/Investigatior $225,840 4% Firefighting $5,110,040 85% Hazardous Materials $72,700 1 % $6,017,330 100% 1. Administration Division The Administration Division is responsible for the overall management of the Department. The City of Wilmington Fire Department estimates the following increases in administrative costs. In the Phase I Annexation area, a Secretary will be required, at an annual cost of $21,750. No increase in administrative costs are projected for the Phase III annexation area. Phase I and II annexation costs will be used as proxies for the Phase III and Urban County areas, respectively. These costs will be directly entered into the fiscal model. Administration Costs to 2010 Area Year Cost Phase I Annexation 1998 $21,750 Phase II Annexation Area 1998 N/A Phase III Annexation 1998 $21,750 Urban County -North 2010 N/A Urban County -South 1 2010 $21,750 Source: City of Wilmington Fire Department 2. Support Services The Support Services Division provides equipment maintenance and training functions for the Department. In the Phase I area, the Fire Department estimates that it WIIIIIIIIIIIIII Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina will incur an additional $176,000 in annual operating costs. In the Phase II area, an increase in annual operating costs of $176,000 is anticipated. In the Phase III area, it estimated that an additional Training Officer and Equipment Mechanic will be needed, at an annual cost of $59,750, as well as an additional $176,000 in annual operating costs. Phase I and II annexation costs will be used as proxies for the northern and southern portions of the Urban County, respectively. These costs will be direct entered into the fiscal impact model. Support Services Costs to 2010 Area Year Cost Phase I Annexation 1998 $176,000 Phase II Annexation Area 1998 $176,000 Phase III Annexation 1998 $235,750 Urban County -North 2010 $176,000 Urban County -South 1 2010 1 $176,000 Source: City of Wilmington Fire Department 3. Fire Prevention/Investigations The Fire Prevention/Investigations Division inspects and permits all public buildings and businesses for compliance with applicable building and fire safety codes. This Division also investigates fires that are suspicious or involve injury death, or a large loss or property. In the Phase I area, the Fire Department estimates that it will incur an additional $31,125 annually for an Inspector. No increase is expected for the Phase II area. Another $31,125 is anticipated in the Phase III area. Phase I and II annexation costs will be used as proxies for the northern and southern portions of the Urban County, respectively. These costs will be direct entered into the fiscal impact model. Prevention/lnvesti ations Costs to 2010 Area Year Cost Phase I Annexation 1998 $31,125 Phase 11 Annexation Area 1998 N/A Phase III Annexation 1998 $31,125 Urban County -North 2010 $31,125 Urban County -South 2010 N/A Source: City of Wilmington Fire Department 4. Firefighting Division Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina The Firefighting Division responds to.fire calls and serves as a first responder for other emergencies. Firefighting operates from six fire stations located throughout Wilmington. In the Phase I area, the Fire Department estimates that it will incur an additional $1,143,525 annually for 39 additional firefighting personnel. In the Phase II and III areas, an additional cost of $684,250 will be incurred in each area for 24 firefighting personnel. Phase I and II annexation costs will be used as proxies for the northern and southern portions of the Urban County, respectively. These costs will be direct entered into the fiscal impact model. Firefighting Costs to 2010 Area Year Cost Phase I Annexation 1998 $1,143,525 Phase II Annexation 1998 $684,250 Phase III Annexation 1998 $684,250 Urban County -North 2010 $1,143,525 Urban County -South 2010 $684,250 Source: City of Wilmington Fire Department 5. Hazardous Materials The Hazardous Materials budget covers Departmental costs to respond to hazardous materials incidents. The FY98 budget for this function is $72,700. This budget is projected to increase with additional population and employment. The FY98 budget is divided by the 1997 population and employment estimate of 97,592, for a per capita and employee cost of $0.74. B. Impact on Volunteer Fire Departments According to North Carolina State Law, the City has the option to enter into a contract with volunteer fire departments in an annexation area to provide supplemental services to the area. If the City chooses not to enter into a contract with the departments, the City would be responsible for paying a proportionate share of the current department debt. For purposes of the fiscal analysis, it is assumed that the City enters into supplemental service contracts. The Phase I and II annexation studies . provide estimates for the annual amounts of these contracts. The contract amounts for 70 Tischler & Associates, Inc. n Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina the Phase I and II areas are used as proxies for the Phase III and Urban portions of the County. These amounts are shown in the table below. Volunteer Fire Supplemental Service Costs Area Year Cost Phase I Annexation 1998 $132,706 Phase II Annexation 1998 $74,540 Phase III Annexation 1998 $132,706 Urban County -North 2010 $74,540 Urban County -South 2010 $132,706 Source: City of Wilmington Fire Department C. Capital Costs Capital cost for the extension of fire protection to the Phase I, II and III Annexation areas were provided by the City of Wilmington Fire Department. 1. Phase I Annexation Area The Phase I Annexation Study calls for the construction of two additional Fire stations in the annexation area. The total cost of the new stations, including land acquisition, is estimated to be $2,000,000. This cost will be direct entered into the fiscal impact model and is assumed to be financed through 20-year revenue bonds at an interest rate of 6%. The total cost of acquiring new equipment and vehicles is estimated at $1,045,000. This purchase will be financed through a 5-year lease -purchase B I arrangement. 2. Phase II Annexation 13 0 The Phase II Annexation study calls for the construction of two additional Fire stations in the annexation area. The total cost of the new stations, including land acquisition, is estimated to be $2,000,000. This cost will be directly entered into the fiscal impact model and is assumed to be financed through 20-year revenue bonds at an interest rate of 6%. The total cost of acquiring new equipment and vehicles is estimated at $550,000. This purchase will be financed through a 5-year lease -purchase arrangement. 3. - Phase III Annexation The Fire Department estimates the need for an additional two stations in the Phase III annexation area. The total cost of the new stations, including land acquisition, 71 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina ' r is estimated to be $2,000,000. This cost will be direct entered into the fiscal impact model and is assumed to be financed through 20-year revenue bonds at an interest rate of 6%. The total cost of acquiring new equipment and vehicles is estimated at $1,045,000. This purchase will be financed through a 5-year lease -purchase arrangement. 4. Urban County Lacking a detailed study regarding capital costs for stations and equipment to serve the northern and southern portions of the Urban County, the Phase I and II Annexation area capital costs are used as proxies, respectively. I 72 CJ Ca ital Costs to 2010 Area Year Stations Equipment Total Phase I Annexation 1998 $2,000,000 $1,045,000 $3 045,000 Phase II Annexation 1998 $2,000,000 $550,000 $2,550,000 Phase III Annexation 1998 $2,000,000 $1,045,000 $3,045,000 Urban County -North 2010 $2,000,000 $1,045,000 $3 045,000 Urban County -South 1 20101 $2,000,000 1 $550,000 $2,550,000 Source: City of Wilmington Fire Department Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina FIRE Activitv Allocation Amount A. Operating Costs 1. Administrative Division Direct entry See text 2. Support Services Direct entry See text 3. Fire Prevention/Investigations Direct entry See text 4. Firefighting Direct entry See text 5. Hazardous Materials Pop. & emp. $0.74 B. Impact on Volunteer Stations Direct entry See text C. Capital Costs 1. Phase I Annexation Direct entry $3,045,000 2. Phase II Annexation Direct entry $2,550,000 3. Phase III Annexation Direct entry $3,045,000 4. Urban County -North Direct entry $3,045,000 5. Urban County -South Direct entry $2,550,000 73 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina o <. PUBLIC SERVICES AND FACILITIES A. Administration The Administration Division is responsible for providing overall management of a wide range of departmental activities, including the handling of telephone and visitor inquiries, review of development plans for conformity with City regulations and providing research and analytical support to the department. The FY98 budget for this Division totals $368,880. According to the Annexation studies prepared by the City, this Division will need to add the following positions for the Phase I area: one Administrative Assistant at $23,043, one Site Review Assistant at $23,043 and one Secretary at $19,693, and $23,000 annually in additional operating expenses. In the Phase II area, one Program Specialist at $33,964 is anticipated as well as an additional $10,000 in operating expenses. The Phase I and Phase II estimates will be used as proxies for the Phase III annexation area and Urban County, respectively. These costs will be directly entered into the fiscal model. B. Public Service and Facilities -Administration Costs Area Year Cost Phase I Annexation 1998 $88,779 Phase II Annexation 1998 $43,964 Phase III Annexation 1998 $88,779 Urban County -North 2010 $43,964 Urban County -Sou h 2010 $88,779 Source: City of Wilmington Annexation Studies Opeeations 1. Buildings and Facilities The Buildings and Facilities Division provides emergency and preventative maintenance to approximately 125 City -owned buildings and facilities used by City staff and citizens. According to the Annexation Studies prepared by the City, there will be no additional staff needed as a result of Phase 1 and Phase II Annexations. These assumptions will also be used for the Phase III and Urban County areas. 74 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 2. Landscape and Parks The Landscape and Parks Division is responsible for maintaining and improving the City's park lands, open space and street trees. The FY98 budget for this Division totals $1,282,180. According to the Annexation Studies prepared by the City, this Division will need to add the following positions for the Phase I area: one Tree Crew Chief at $23,100 annually and one Tree Trimmer at 21,350 annually, as well as an additional $52,500 annually in operating expenses. In the Phase II area, two Maintenance Mechanics/Operators at a combined $42,676 annually and 3 Maintenance Workers at a combined $53,962 annually, as well as an additional $132,550 in annual operating costs. The Phase I and Phase II estimates will be used as proxies for the Phase III annexation area and Urban County, respectively. These costs will be direct entered into the fiscal model Public Service and Facilities -Landscape and Parks Costs Area Year Cost Phase I Annexation 1998 $96,950 Phase 11 Annexation 1998 $229,188 Phase III Annexation 1998 $96,950 Urban County -North 2010 $229 188 Urban County -Sou h 20101 $96,950 Source: City of Wilmington Annexation Studies 3. Stormwater The City currently has 21.5 miles of open ditches and canals and 17 area -wide retention ponds. The present operational budget, included in the Operation Division of the Public Service and Facilities budget, covers ongoing activities including maintenance, repairs, aquatic weed control, slope mowing, etc. However, as of July 1, 1998, this Program will be funded through a Stormwater Utility Fund. Stormwater service fees are proposed as the primary source of revenue for this fund. This service fee is based on impervious surface area and is proposed at $3.56 per month for single- family residences. The fee for other uses is based on multiples of the residential fee, depending on size of the impervious area. The current budget amount of $1,032,440 used for stormwater activities will be netted out for purposes of the fiscal impact analysis, as it is assumed to be covered by this new Utility Fund. 75 Tischler & Associates, Inc. Level of Service, Cost, and Revenue Factors Wilmington -New Hanover County, North Carolina n 0 a C. Transportation 1. Traffic Operation The Public Services and Facilities Department provides preventive and routine maintenance to paved and unpaved streets in the City. These activities include street sweeping, shoulder and plaza stabilization, public hazard correction, street lighting, and management of contracts for resurfacing streets and sidewalk repair. Provision of Street and Traffic Operation maintenance services to the Phase I annexation area will require additions to the budget. A total of seven employees will be added to existing crews at an estimated annual cost of $169,333. A bucket truck will be purchased for the signal repair crew. The sign crew will have a utility truck and the road repair crew will utilize an asphalt patching truck and dump truck. Funds are also provided for contracted street sweeping service and other operating costs, including the rental of street lights. Annual operating expenditures are estimated at $258,000 and initial capital expenditures are estimated at $365,000. Provision of Street and Traffic Operation maintenance services to the. Phase II annexation area will require a total of seven employees to be added to existing crews to provide these services at an estimated cost of $169,333. The sign crew will have a utility truck and the street crew will require a pick up truck, a large truck, asphalt roller, trailer, and backhoe. Funds are also provided for contracted street sweeping services and for other operating costs, including the rental of street lights. Annual operating expenditures are budgeted at $258,200. Initial equipment purchases and other capital outlay are estimated at $287,310. Phase I and II annexation costs will be used as proxies for the Phase III and Urban County areas, respectively. These costs will be direct entered into the fiscal impact model. 76 Street and Traffic Op eration Costs Area Year Annual O er. Costs Capital Costs Phase I Annexation 1998 $427,333 $365,000 Phase II Annexation 1998 $427,533 $287,310 Phase III Annexation 1998 $427,333 $365,000 Urban County -North 2010 $427,533 $287,310 Urban County -South 2010 $427,333 $365,000 Source: City of Wilmington Annexation Studies Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 2. Road Capital Costs The State of North Carolina is responsible for constructing all non -local streets in the City of Wilmington and the private sector has responsibility for construction of streets necessary to serve individual developments. However, the City has funded the construction of non -local streets that were not in the State Transportation Improvement Plan, sometimes with the participation of local developers. The amount of funding the City has allocated for these types of transportation projects has varied greatly over the years. However, it can be assumed that this participation will continue in the future and will increase as the City's corporate limits increase. Therefore, it will be assumed, based on discussions with the City Planning staff, that the City will spend $200,000 annually on road projects in each annexation area. Road Ca ital Costs Area Year Capital Cost Phase I Annexation 1998 $200,000 Phase II Annexation 1998 $200,000 Phase III Annexation 1998 $200,000 Urban County -North 2010 $200,000 Urban Count -South 2010 $200,000 Source: City of Wilmington Annexation Studies D. Solid Waste The Public Services and Facilities Department provides refuse collection, recycling, yard waste collection and bulky item removal through the Solid Waste Management Fund. However, under the Public Services and Facilities General Fund budget, there is a $226,490 budget for Solid Waste that covers the cost of collection from public facilities, community level activities and dump site cleanups. The budget is expected to increase with additional population growth. The FY budget contribution is divided by the 1997 population estimate of 64,164, for a per capita cost of $3.53. D. Recreation 1. Operating Costs The Recreation Division manages a program of public recreation services, including recreation centers, athletic leagues, and therapeutic and senior services. According to the Annexation Studies prepared by the City, this Division will need to add the following positions for the Phase I area: a Program Specialist at $32,980 annually, 77 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina as well as an additional $8,000 annually in operating costs. The Phase II area is not projected to increase the operating budget. The Phase I and Phase 11 estimates will be used as proxies for the Phase III annexation area and Urban County, respectively. These costs will be direct entered into the fiscal model. Public Service and Facilities -Recreation Costs Area Year Cost Phase I Annexation 1998 $40,980 Phase II Annexation 1998 N/A Phase III Annexation 1998 $40,980 Urban County -North 2010 N/A Urban County -Sou h 2010 $40,980 Source: City of Wilmington Annexation Studies 2. Capital Costs To estimate capital costs, TA will utilize a one-time capital cost per person methodology. This methodology is being used since the City currently obtains the majority of its park land through developer contributions and has not had to purchase park land in a number of years. This one-time capital cost per person is assumed to represent a proxy cost, which will probably be used to develop a regional athletic complex on land the City already owns. Q The City of Wilmington currently maintains approximately 250 acres of greenway and park land. When this is compared to the 1997 population estimate of 64,164, the resulting level of service standard is .004 acres per capita. The estimated development cost per acre for a regional athletic area is $25,000 an acre. This translates into a capital cost per person of $100. 78 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina PUBLIC SERVICES AND FACILITIES Activity A. Administration B. Operating Costs 1. Buildings & Facilities 2. Landscape & Parks 3. Stormwater C. Transportation 1. Operating Costs 2. Road Capital Costs D. Solid Waste E. Recreation 1. Operating Costs 2. Capital Costs 79 Allocation Amount Direct entry See text Fixed N/A Fixed N/A N/A See text Direct entry See text Direct entry See text Per capita $3.53 Direct entry See text One-time per capita $100 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 0 5. I 11 F1, 0 Ll I KI GENERAL FUND REVENUES A. Property Taxes Property Tax is a tax on real property and vehicles based on the value of the property as a marketable item. Real property includes land, buildings, and items permanently affixed to land or buildings. A tax rate is established by the City Council for each fiscal year. The current tax rate is $0.595 per $100 dollars of assessed value. For purposes of the fiscal impact analysis, a 100% tax rate is assumed. For the fiscal impact analysis, TA's FISCALS software will calculate property taxes from new development by multiplying the tax and assessment rates by the average market values. The average market values for new construction are shown in the table below. Market Values of New Construction City of Wilmington/New Hanover County Unit City Phase I Phase 11 Phase III County Single Family* $130,456 $356,616 $222,738 $205,063 $159,398 DuplexfTownhome* $93,712 $113,502 $113,502 $113,502 $143,120 Apartment'" $59,384 $59,384 $59,384 $59,384 $59,384 Retail (per sq. ft.)** $68.40 $68.40 $68.40 $68.40 $64.55 Office (per sq. ft.)** $65.11 $65.11 $65.11 $65.11 $61.61 Flex(per sq. ft.)** $32.69 $32.69 $32.69 $32.69 $20.57 *Source: New Hanover County Board of Realtors **Source: Marshall & Swift Valuation Service B. Penalty and Interest on Property Taxes Interest on Property Taxes is charged for taxes not paid on time. This revenue source totals $80,000 in FY98. Since a .100% collection rate is assumed for property taxes, this revenue source will remain fixed in the fiscal impact analysis. C. Sales Tax 1. Local Option Taxes Sales Tax includes a 1-cent local option and two half -cent local option sales taxes. The taxes are collected by the State of North Carolina on retail sales or leases of tangible personal property and on the rental of hotel and motel rooms. A retail square footage projection methodology will be used for each of the sales tax revenue sources. This methodology utilizes information contained in Dollars & Cents of Shopping :1 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina I a 0 I I I I I Centers, published by the Urban land Institute, and assumes that every additional square foot of retail space added in the City generates sales of $172.58 annually (A community scale shopping center prototype was assumed). 2. Room Occupancy Tax The City collects room occupancy tax on hotel and motel room stays. This revenue source totals $200,000 in FY98 and is given to the County. According to State law, the County must use 60% of this revenue for beach erosion control and the remaining 40% for tourism promotion. Therefore this revenue will not be factored in the fiscal analysis. _ D. Licenses, Fees and Permits 1. Privilege Licenses Privilege License revenue is generated by the issuance of business licenses. The FY98 revenue totals $795,000 and is projected to increase with employment growth. The FY98 revenue amount is divided by the 1997 employment estimate of 33,428, for a per employee increase of $23.78. 2. Motor Vehicle Licenses Motor Vehicle License_ revenue totals $200,000 in FY98 and is projected to increase with population growth in the City. The FY98 revenue total is divided by the 1997 population estimate of 64,164, for a per capita increase of $3.12. 3. Cable TV Franchise Fees Cable TV Franchise Fee revenue is derived from monthly cable bills. The FY98 revenue totals $445,000 and is projected to increase with additional household growth in the City. The FY98 revenue total is divided by the FY98 household estimate of 28,273, for a per household increase of $15.73. 4. Other Fees and Permits The City also receives revenue from Fire Permits & Charges ($60,000), Miscellaneous Permits ($10,000) and Stormwater Discharge Permits ($10,000). The Stormwater Fee will be part of a Stormwater Enterprise fund next fiscal year and Fire Permits and Miscellaneous Permits are expected to remain fixed sources of revenue. 81 Tischler & Associates, Inc. DLevel of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina E. Intergovernmental Revenues 1. Utility Franchise Tax The Utility Franchise Tax is a revenue source generated from utility bills. This revenue source totals $3,260,000 in FY98 and is expected to increase with population and employment. The FY98 revenue total is divided by the 1997 population and employment estimate of 97,592, for a per capita and job increase of $33.40. 2. Beer and Wine Tax �j Beer and Wine Tax is an excise tax levied by the State on the sale of beer and U wine at the wholesale level. Counties and cities, in which beverages are sold and taxed, may share in the proceeds of the tax on a per capita basis. This revenue source totals $255,000 in FY98 and is projected to increase with population growth. The FY98 revenue total is divided by the 1997 population estimate of 64,164, for a per capita increase of $3.97. 3. Alcoholic Beverage Control (ABC) Revenues ABC Revenues total $406,000 in FY98 and are projected to increase with Q population growth. The FY98 revenue total is divided by the 1997 population estimate of 64,164, for a per capita increase of $6.32. 4. Powell Bill Revenue Powell Bill Revenue is revenue from State Gas Taxes that is distributed to localities for street maintenance. These monies are distributed to localities based 75% on population and 25% on local street mileage. This revenue source totals $1,915,000 in FY98 and is projected to increase with additional population. The FY98 revenue total is divided by the 1997 population estimate of 64,164, for a per capita increase of n $29.85. �J 5. FTA/NCDOT Transit Revenue The City receives several grants from the Federal Transit Administration and the �j North Carolina Department of Transportation, primarily for transit operations. These (1 grants total $727,480 in FY98. The majority of these funds are passed through to the Wilmington Transit Authority and the remainder is used to offset City administrative costs. Since these grant revenues are not directly related to growth they will remain fixed in the fiscal impact analysis. 82 Tischler & Associates, Inc. 0 Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 6. Other Intergovernmental Revenue There are several other Intergovernmental Revenue sources the City receives, such as Inventories Tax Reimbursement, Food Stamp Reimbursement, and Federal Transit Authority funds that, will remain fixed or will be netted out of the appropriate operating budget. F. Charges for Public Service Charges for Public Services total $228,000 in FY98. These revenues are from items such as parking meters, lot cleaning charges, and street department charges. These revenues will remain fixed in the fiscal analysis. G. Charges for Recreation Programs (j This revenue source is comprised various fees and user charges for parks and LL11 recreation programs and facilities. This revenue source totals $140,840 in FY98 and is �} expected to increase with additional population growth in the City. The FY98 revenues U are divided by the 1887 population estimate of 64,164. For a per capita increase of (� $2.20. H. Miscellaneous Charges for Service Miscellaneous Charges for Service total $15,000 in FY98 and will remain fixed in the fiscal impact analysis. I. Charges for General Government Services Charges for General Government Services are primarily payments by the City's enterprise and grant funds for services provided by the General Fund departments. These payments total $1,679,600 in FY98. Most of these payments are expected to remain fixed in the analysis. However, the Public Utilities Fund payment is expected to increase over time and will be reflected in the analysis. J. Charges for Public Safety Services This revenue source is comprised of miscellaneous charges and contracts for Public Safety services. This revenue source totals $604,500 in FY98. Based on 83 Tischler & Associates, Inc. 0 Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina discussions with City staff, this revenue source is not expected to be significantly impacted by growth and will remain fixed in the fiscal analysis. K. Fines and Forfeitures Fines and Forfeitures are comprised of Civil and Parking Violations. This revenue source totals $218,000 and is projected to increase with population growth. (� The FY98 revenue total is divided by the 1997 population estimate of 64,164, for a per +-� capita increase of $3.39. L. Investment Income m Investment income comes from interest on investments, assessments, and liens. This revenue source totals $724,000 in FY98. For purposes of the fiscal impact analysis, this revenue source will remain the same percentage (4.2%) of Property Taxes in 2010 as it is in FY98. M. Other Revenue Other Revenue is comprised of proceeds from the sale of equipment, materials and land. This revenue source totals $44,000 in FY98 and will remain fixed in the fiscal impact analysis. N. Appropriated Fund Balance The Appropriated Fund Balance is essentially the rollover from the previous fiscal year fund balance. This balance totals $915,340 in FY98 and will remain fixed in the fiscal impact analysis. 84 Tischler & Associates, Inc. 0 Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina GENERAL FUND REVENUES Activit Allocation Amount A. Property Taxes Per $100 ass. Value $0.595 B. Penalty & Interest Fixed N/A C. Sales Tax 1. Local Option Taxes Per Square Foot $172.58 2. Room Occupancy See text N/A D. Licenses, Fees & Permits 1. Privilege License Per employee $23.78 2. Motor Vehicle License Per capita $3.12 3. Cable TV Per household $15.73 D 4. Other Fees Fixed N/A E. Intergovernmental Revenues (� 1. Utility Franchise Per capita & emp. $33.40 �J 2. Beer & Wine Tax Per capita $3.97 3. ABC Revenues Per capita $6.32 4. Powell Bill Revenue Per capita $29.85 a 5. FTA/NCDOT Transit Revenue Fixed N/A 6. Other Intergovemmental Revs. See text N/A (� F. Charges for Public Service Fixed N/A �j G. Charge for Recreation Programs Per capita $2.20 H. Miscellaneous Charges for Service Fixed N/A I. Charges for General Govt. Services See text N/A J. Charges for Public Safety Services Fixed N/A K. Fines and Forfeitures Per capita $3.39 i1 L. Investment Income % of Prop. Tax 4.2% �J M. Other Revenue Fixed N/A N. Appropriated Fund Balance Fixed N/A n U 85 Tischler & Associates, Inc. Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 6. PUBLIC UTILITIES FUND The Public Utilities Fund is an enterprise fund used to account for the operations of the City's Pubic Utilities Department. The FY98 budget for the Public Utilities Fund totals $21,771,560. For reasons documented in a separate memo entitled "City/County Sewer and Water Issues", this enterprise fund is not factored in the fiscal impact analysis. Tischler & Associates, Inc. DLevel of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 7. COMMUNITY DEVELOPMENT BLOCK GRANT FUND The City receives Community Development Block Grant funds on an annual basis for housing, economic development and community development programs in (� eligible areas of the City. The City makes a General Fund contribution each year to cover the; administrative costs associated with this Program. This contribution totals $137,400 in FY98 and will remain fixed in the fiscal impact analysis. a 8. HOME INVESTMENT PARTNERSHIP FUND The City receives funds from the U.S. Department of Housing and Urban aDevelopment on an annual basis to be used for neighborhood conservation loans and for rehabilitation and redevelopment of large tract of land in distresses neighborhoods. The City General Fund covers the administrative costs associated with this Program. This contribution totals $24,200 in FY98 and will remain fixed in the fiscal impact analysis. 10. PARKING FACILITY FUND The Parking Facility Fund is used to account for the operations of the City's two downtown parking facilities. Revenues are primarily earned from hourly and monthly charges for parking. In FY98, this Fund contains a contribution of $350,000 from the City's General Fund for possible City participation in the construction of a new public/private parking deck. This sort of contribution is not expected to continue and will not be factored in the fiscal impact analysis. In addition, for purposes of the fiscal impact analysis, this Fund will remain fixed as it is fee sustaining in nature. 11. SOLID WASTE MANAGEMENT FUND D The Solid Waste Management Fund is used to account for operations of the Solid Waste Disposal program in the City. Revenues are earned primarily from monthly D fees charged to solid waste customers based on the level of service chosen. The total budget for this Fund totals $3,712,000 in FY98 and includes a $58,000 contribution from the General Fund to subsidize solid waste services for low-income elderly and disabled citizens. 87 �1 Tischler & Associates, Inc. � J Level of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina A. Operating Costs Because of the Statutory requirements that the City contract with existing haulers in the annexation area for the first two years after annexation, the City's Annexation studies project a deficit of $424,770 for the first year in the Phase I area and a deficit of $223,786 in the Phase II area. After two years, the City can competitively bid collection services as is done for the existing City routes services by private haulers. These deficits will be used as proxies for the Phase III and Urban County areas in 1998 and 2010, respectively. It assumed after the initial two years that operating revenues will cover expenses on an annual basis. U 88 Operating Costs for Solid Waste Manage entFund Area Year Cost Annual Cost Phase 1 Annexation 1998 $424,770 Phase II Annexation 1998 $223,786 Phase III Annexation 1998 $424,770 Urban County -North 2010 $424,770 Urban County -South 2010 $223,786 Source: City of Wilmington Annexation Studies Tischler & Associates, Inc. DLevel of Service, Cost and Revenue Factors Wilmington -New Hanover County, North Carolina 0 12. EQUIPMENT MAINTENANCE/REPLACEMENT FUND The Equipment Maintenance/Replacement Fund is used to account for the maintenance, repair, insurance and replacement of most City vehicles and equipment. aPatrol vehicles are purchased from the Police Department budget and are maintained as part of the centralized fleet. The Fire Department is the only department that does not participate in the centralized program. As these charges are already accounted for in the Departmental operating budgets, this Fund will not be factored in the fiscal analysis. (� 13. GOLF COURSE ENTERPRISE FUND �J The Golf Course Enterprise Fund is used to account for the operations of the (� Municipal Golf Course. Since this is an entirely fee sustaining operation it will not be U factored in the fiscal impact analysis. a 0 u� ro K I u, a 89 Tischler & Associates, Inc. 0 Z W a a Q