Annexation Feasibility Study-1988

PROPERTY OF
DIVISION OF COASTAL MANAGEMENT
PLEASE DO NOT REMOVE

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ANNEXATION FEASIBILITY STUDY
WRIGHTSVII.I.E SOUND AREA
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TORN OF wRIGHTSVI= BEACH
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NORTH CAROLINA
APPROVED BY
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BOARD OF ALDERMEN
FEBRUARY 4, 1988
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ANNEXATION FEASIBILITY STUDY
Carlton G. Hall, Mayor
W. W. Golder, Jr.
Frances L. Russ
Roy Sandlin
John Sherrill
Dale H. Ralston, Town Manager
TECHNICAL ASSISTANCE PROVIDED BY:
North Carolina Department of Natural Resources
and Community Development
Division of Community Assistance - Wilmington
Thomas M. Cassell, Chief Planner
and
Carl Farmer, P.E.
Henry Von Oesen and Associates
Consulting Engineers
Wilmington, NC
Water, Sewer & Storm Drainage Requirements
* This portion of the document 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.
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The author wishes to acknowledge the basic information, research, and
assistance provided
by the Wrightsville Beach Town Manager, Department Heads and
staff:
Dale H. Ralston, Town Manager
George M. Antley, Police Chief
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Linda Askew, Town Clerk
John T. Nesbitt, Public Works
Ray Sugg, Recreation
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Everett K. Ward, Jr., Fire Chief
Without their
cooperation and patience, this study would not have been
possible.
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TABLE OF CONTENTS
Page
Introduction i-vii
Qualification of the Area 1
Major Services and Expenditures 5
Water, Sewer, Storm Drainage Requirements 23
Major Revenues 30
Revenue -Expenditure Summary 38
Financing the Cost of Services 41

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THE LEGAL NATURE OF CITIES AND TOWNS*
In common usage, the words, "city" or "town" describe at least two entities
- one is physical, or geographical in nature; the other legal. The physical
city or town is a place whose boundaries are constantly changing and which can
be recognized by patterns of land use, commuting, economic or social
relationships. The legal city or town - a municipality - is a governmental
entity whose boundaries are defined by law. These two entities may overlap, but
they are almost never identical in size and shape. The legal city or town is a
municipal corporation which, in North Carolina, is chartered by the General
Assembly to provide public services and regulate activities within its legal
boundaries. The municipal corporation is, ,in effect, an agency of state
government to which the General Assembly has delegated the authority to provide
those higher -levels of public services such as police and fire protection,
street construction and maintenance, refuse collection, building and land use
regulations, public water and sewer systems, parks and recreational activities
and similar services which people living in an urban setting require. The
General Assembly has granted the -power to municipalities to hold elections in
which voters may elect their local governing body, which will have the authority
to operate the municipal corporation to provide public services, within the
latitude granted by the General Assembly, in ways that best fit the needs and
desires of its residents.
ANNEXATION BY NORTH CAROLINA MUNICIPALITIES*
As mentioned above,' the physical city or town, and the municipal
corporation are rarely identical. The physical city often outgrows the
boundaries of the municipal corporation. A physical city grows as a result of
various social and economic forces, but its legal boundaries are fixed by law
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* Municipal Government in NC, David M. Lawrence, Institute Of Government, Chapel
Hill, Chapter 2, 1982.
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' until specific action is taken to change them. It is not unusual, therefore,
for urban areas to grow naturally, adjacent to, but outside of the legal
boundaries of the municipality.
' In 1959, the North Carolina General Assembly adopted annexation statutes
based on a policy stated in General Statute 160A-33, for municipalities with a
Ipopulation of 5,000 or less, and again in General Statute 160A-45 for larger
municipalities, that:
(1) Sound urban development is essential to the continued economic
development of North Carolina;
' (2) Municipalities .are created to ,provide the governmental services
essential for sound urban development...;
(3) ...municipal boundaries should be extended, in accordance with
legislative standards applicable throughout the state, to include such
areas and to provide the high quality of governmental services needed
therein for the public health, safety and welfare.
To implement this legislative policy, which is often shortened to, "What is
urban should become municipal", the General Assembly has given municipalities
statewide (with some exceptions). the power to annex land in three different
ways:
(1) G.S. 160A-31 allows the local governing body to annex any area
contiguous to its municipal boundaries upon receipt of a petition
signed by all owners of real property within the area proposed for
annexation. To annex land under this procedure, the governing body
must determine that the petition is legally sufficient, the area meets
the legal definition of contiguous, hold a public hearing on the
annexation and, following the public hearing, adopt .an ordinance
annexing the area;
(2) In 1974, the General Assembly enacted a general statute allowing
"satellite" annexation. This act is codified as General Statute
160A-58. It allows ,the annexation of land which is separated from the
municipality so that the boundary of the area to be annexed is not
contiguous with the boundaries of the annexation municipality. The
procedure for satellite annexation also requires a petition for
annexation, signed by all owners of real property in the area to be

annexed. The governing body must determine that the petition is
legally sufficient, hold a public hearing on the requested annexation
and if the annexation is to be completed, adopt an ordinance to that
effect.
(3) The third method of annexation, the principal method used by •North
Carolina municipalities, was enacted by the General Assembly in 1959,
and codified as General Statutes 160A-33 through 160A-56. This
annexation procedure has been recommended by the U.S. Advisory
Commission on Intergovernmental Relations as a model for the nation
since 1967. Under these statutes, an area adjacent to a municipality's
boundaries that has developed to urban densities, as that term is
defined by the statutes, may be, annexed by ordinance of the
municipality's governing body, if study shows that the municipality can
provide the annexed area with services, "on substantially the same
basis, and in the same manner, as such services are provided within the
rest of the municipality prior to annexation".
If, after formal study of the annexation area, the municipality's governing
body finds that services can be provided, as required by statute, to the area to
be annexed, it must approve and make available to the public a written report of
the study. After the report has been available for public review for at least
30 days, the governing body must hold a public hearing and, no sooner than 10
days following the public hearing, act on an ordinance.to annex the area.
It is this method of annexation which is being considered by the Town to
unify the areas 'on the mainland which have previously been annexed by the
voluntary, satellite procedure.
BACKGROUND TO THE ANNEXATION ACTION STUDIED IN THIS REPORT
Events which directed the attention of the Town of Wrightsville Beach
toward the mainland can be traced at least to May, 1971, when the Board of
Aldermen received a report on a study of the Town's water system which they had
commissioned from the engineering firm of Henry von Oesen and Associates, Inc.
That report outlined three possible solutions to the Town's need for additional
water supply during the period of 1971 to 1990: (1) drill five more wells
within the town limits at an estimated cost of .$146,000; (2) extend the well
field to property across the Intracoastal waterway on the mainland at an

estimated cost of $275,000; (3) extend a 12 inch pipeline to connect with the
City of Wilmington's system at an estimated cost of $365,000. The thirc
alternative was recommended as the best long term solution, even though its cost
was the highest.
Sixteen months later, at a time when the governing body was evaluating the
effects of new construction such as Channel Walk, Sea Path Tower, Station One
and the Islander, Mayor Howard L. Armistead, Jr., on September 14, 1972,
appointed an advisory committee, "...to make a careful study of the capacitie_
and characteristics of the town's water and sewage systems in the light of
trends in actual and planned construction, population changes, public anc
private needs and usage, costs, revenues and other factors." This committee me -
five times in public session. On November 9, 1972, Mr. Kenneth M. Sprunt,
Chairman of the Advisory Committee, read to the Board of Aldermen_ the
conclusions and recommendations of the committee. Its recommendation regarding
the town's water system, was that the Board of Aldermen continue, "...to expanc
the capacity of the Town's water system in accordance with present plans and the
recommendations of the Town's engineers", which included additional wells on the
mainland or a waterline connection to the City of Wilmington's system.
On September. 11, 1980 the Board of Aldermen held a public hearing on a:
"Order Authorizing $800,000 Water Bonds". At that public hearing, the Town':
Consulting Engineer stated: "there was a problem with adequate fire flow an,
also pressure in certain areas, the Town needed additional elevated storage fo:
water to correct this, we needed to go to the mainland for our increasing wate:
needs, which have jumped by 40% during the last two summers, not only for suppl,
but mainly for improved quality as our current wells show increasing salinit:
levels, and new water mains need to be installed..." Later in that meeting by i
4 aye and 0 nay vote, the Board of Aldermen passed a resolution calling for e
special bond referendum to be held November 4, 1980. Subsequently, the voter:
approved the authorization of $800,000 Water Bonds in a referendum on Novembe:
4, 1980.
On September 25, 1980, Mayor Robert W. Sawyer opened another public hearirn
by the Board of Aldermen on a proposal to extend the existing authorization, .
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"for $150,000 Water Bonds in order to build a pipeline to the mainland well
field in the event it is determined this is the necessary route to go". The
Board of Aldermen's minutes of that meeting record that, "The order authorizing
an extension of the period during which the Town of Wrightsville Beach, N.C.,
may issue bonds pursuant to a bond order authorizing $500,000 Water Bonds, which
took effect on November 6, 1973, from 7 years to 10 years was introduced by
Alderman Russ. Alderman Russ then made a motion that the order as introduced be
adopted. A second was made by Alderman Sineath and a 5 aye - 0 nay vote was
recorded."
In the early 1980's, another factor directed the attention of the Town's
governing body to the mainland. The Board of Aldermen's minutes of January 7,
1982 recorded, "that if space at a reasonable price cannot be found on
Wrightsville Beach, the ABC Store, might be relocated in Plaza East".
Subsequent entries in the Board of Aldermen's minutes show discussion of
alternative locations for the ABC Store within the existing town limits such 'as
The Landing, and the site of the former Crest Theatre. While a suitable
alternative site for the ABC store was not found within the Town limits of
Wrightsville Beach at that time, the 'governing body remained vitally interested
in keeping the store inside the Town because the Town's 75% share of profits
from the store's sales were averaging approximately $79,000 per year.
In 1984, the development of the -Galleria mall presented the Town with a
possible link between the Town's need for additional water supply from the
mainland and its desire to assist the New Hanover County ABC system in finding a
new site for its Wrightsville Beach Store within the town limits. The
developers of the Galleria mall were willing to assist with the cost of a new
water well and water treatment plant which they would build for the Town at a
location near Galleria. .The developers were also willing to become a part of
the Town of Wrightsville Beach through the voluntary non-contiguous (satellite)
annexation procedure. The proposed new mall, which would be within the Town of
Wrightsville Beach, offered a potential site for the relocated ABC Store.
Annexation of the Galleria property was approved in two parcels by the Board of
Aldermen in April and June, 1985. In March, 1986, the Town accepted from the
developers of the Galleria Mall, the newly constructed water treatment plant and
water well which had been built by the mall developers at a total cost of
$481,495 of which the developers paid approximately 53% of the cost or $256,645.
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Then following satisfactory completion of the Water Treatment Center and its
acceptance by the Town, the Town refunded to the Galleria $57,000 in Unit Use
Fees (now called Utility System Impact Fees), in accordance with a Memorandum of
Understanding between the Town and Galleria for the construction of the Water
Treatment Facility.
Negotiations continued between the New Hanover County ABC system and the
owners of Galleria mall for some time. However, the ABC system ultimately
decided on a site at 101 Burke Avenue as the location for its store. On
September 22, 1986, the Board of Aldermen approved a petition from Robert L. and
Faye B. Bland for satellite annexation of their property at 101 Burke Avenue
prior to their sale of it to the New Hanover County ABC system.
In the meantime, after the acceptance of the water treatment plant from the
Galleria, the town extended water lines eastward along Wrightsville Avenue to
Airlie Road in preparation for the construction of a water line beneath the
-Intracoastal Waterway to connect with the Town's water system serving Harbor
Island and Wrightsville Island. This crossing beneath the waterway with a 14
inch pipeline was completed by the Town in the early summer of 1987, resulting
in an integrated water system serving all of the Town east of the Intracoastal
Waterway, the area along Wrightsville Avenue to Galleria Mall, and to the
Crocker Marine property at. 2035 Eastwood Road. The benefit of the additional
water supply from the mainland was immediately apparent. In the summer of 1986,
water was used faster than the Town could produce and treat it, and it was
necessary to ask for voluntary conservation of water for lawn sprinkling and car
washing. The summer of 1987 passed without water supply problems following
completion of the waterline across the Intracoastal Waterway. It is interesting
to note that $100,000 of the cost of the waterline crossing beneath the Waterway
was paid from the proceeds of bonds first approved by the voters in 1973 for the
purpose of improving the Town's water supply and distribution system.
Construction of sanitary sewer lines in the area by New Hanover County, as
a result of the County's sewer bond referendum approved by the voters in March
1984, also opened the area west of the Intracoastal Waterway to additional
development possibilities. As additional development occurred as a result of .
availability of sanitary sewer services and additional public water supply, the
Town received additional requests for voluntary non-contiguous annexation. Nine
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such requests were approved by the Town in 1985, in 1986 another five requests
were approved, as well as the Town's annexation of its water treatment center
site on Allen's.lane, the ownership of which had been turned over to the town by
the developers of the Galleria Mall. In 1987, the Town approved two more
petitions for voluntary annexation, making a total of fifteen such annexations
approved by the Town between April, 1985, and December 31, 1987, not including
the annexation of the water treatment plant on Allen's Lane.
In early 1986, seeing this pattern of development and the continuing
requests for voluntary satellite annexation, the Town requested the regional
office of the North Carolina Division of Community Assistance to prepare a "land
planning study" of the area. After review of this study by the Town's Planning
Board, the study was recommended by the Planning Board to the Board of Aldermen
on December 2, 1986. As a result of this study, the Board of Aldermen adopted a
Resolution of Consideration on December 4, 1986, describing a general area
within which the town -would initiate annexation under the provisions of Part 2
of Article 4A of Chapter 160A of the North Carolina General Statutes (G.S.
160A-33 through 160A-42). On December 17, 1987, the Board of Aldermen followed
this Resolution of Consideration with the adoption of a resolution as required
by General Statute 160A-37 stating its intent to initiate annexation proceedings
for a specific area.identified in the Resolution.
The following report sets forth the Town's plans to provide services in the
area intended for annexation, as required by General Statutes 160A-35.
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' QUALIFICATION OF THE ANNEXATION AREA
North Carolina General Statutes 160A-36 sets out strict standards for
cities to comply with in order to annex by local ordinance. The area covered by
this report as previously described and as reported in the Land Planning Study,
Wrightsville Sound Area, December 1986, complies with these standards as
follows:
Proposed'Annexation Area
1. The area is adjacent and contiguous to the Town of Wrightsville Beach,
as defined by GS 160A-41(1) as of the 17th day of December, 1987, the
date upon which this annexation proceeding was begun, and as shown on
Map 1. --
2. The aggregate external boundary of the area to be annexed is 17,178
feet, of which 2,460 feet or 14.3% coincide with the. Boundary -of the
Town of Wrightsville Beach as shown on Map 1. Therefore, at least
one -eighth (12.5%) of. said external boundary coincides with the
boundary of the Town of Wrightsville Beach.
3. No part of the area to be annexed is included within the boundary of
another incorporated municipality as evidenced by Map 1.
4. The area to be annexed is developed for urban purposes in that
eighty-seven percent (60% required) of the total number of lots and
tracts in the area at the time of annexation are used for residential,
commercial, industrial, institutional or governmental purposes and the
area is subdivided into lots and tracts such that one hundred percent
(60% required) of the total acreage, not counting the acreage used at
the time of annexation for commercial, industrial, governmental or
institutional purposes, consists of lots and tracts of five acres or
less in size. These findings are further described on the following
chart.
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MEETING STATUTORY REQUIREMENTS N.C.G.S. 160A-36
Character of Area to be Annexed
160A-36(b) and (c)
PERCENT OF AREA -BOUNDARY CONTIGUOUS
WITH CORPORATE LIMITS
PERCENT OF AREA DEVELOPED
FOR URBAN PURPOSES
Amount
Total
Number
Percent
of
Number
of
of
Perimeter
Contiguous
Is
of
Developed
Developed
Is
Length
Boundary
Percent
Requirement
Lots and
Lots and
Lots and
Requirement
(Feet)
(Feet)
Contiguous
Met
Tracts
Tracts
Tracts
Met
17,178
2,460
14.3
YES
99
86
87
YES
PERCENT OF ACREAGE SUBDIVIDED INTO LOTS
AND TRACTS FIVE ACRES OR LESS IN SIZE
ARE ALL REQUIREMENTS
OF G.S. 160-36(b) AND (C) MET
Residential and
Undeveloped Acreage
Percent of Residential
Subdivided Into
and Undeveloped Acreage
Total
Lots and Tracts
Subidvided Into Lots
Is
YES
Area
Five Acres or
And Tracts Five Acres
Requirement
Acres*
Less in Size
or Less in Size
Met
31.5
31.5
100%
YES
*.Not counting the acreage used at the time of annexation for commercial, industrial, governmental
or -institutional.
SOURCES: New Hanover County Tax Maps and Property Records. Acreage measurements made with
compensating planimeter; linear measurements made with map measurer.

USE TEST
Residential
Commercial
Industrial
Institutional
Governmental
Subtotal
Undeveloped/Vacant
Total
86 / 99 = 872
SUBDIVISION TEST
Total area not counting
commercial, industrial
governmental or institutional
Residential and undeveloped
acreage subdivided into lots
and tracts five acres or less
in size.
31.5 / 31.5 = 1002
NUMBER OF LOTS
55
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86
16
99
ACRES
31.5
31.5
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m m m m m m m m m m m m m M. M m m m m

DRAWBRIDGE OPERATIONS
The only roadway access connecting segments of the Town east and west of
the Atlantic Intracoastal Waterway is by the Heide -Trask Drawbridge on U.S.
Highways 74-76. The drawbridge is operated and maintained by the North Carolina
Department of Transportation.
Since the summer of 1985, the Town has maintained radio communications with
the drawbridge operator by placing a Town radio in the operator's control booth.
The bridge operator also has radio contact with vessels using the Waterway. In
November, 1987, the Town was successful in having the U.S. Coast Guard place the
drawbridge on a.schedule of opening every hour on the hour, year round. for
pleasure craft, between the hours of 7:00 a.m. and 7:00 p.m. Commercial craft
and vessels operated by governmental agencies still pass through the drawbridge
on demand.
The bridge operator notifies the Town's police dispatcher in advance of any
time the bridge will be open longer than usual to accommodate the passage of a
dredge or barge tow. The County's 911 emergency communication center also has
radio communications with the bridge operator and notifies the operator when an
ambulance is approaching the bridge. In the same way, the Town's police
dispatcher notifies the bridge operator when there is a fire, police or medical
emergency within the Town that requires highway access across the bridge. Under
these emergency circumstances, the bridge operator will not open the bridge
until the emergency has been cleared.
There will always -be some probability that a bridge opening will interfere
with a public safety emergency. However, experience since the current system of
communications with the bridge operator has been in effect shows that the
probability is low. The bridge probably represents no more of an obstacle to
emergency services or other municipal activities than the passage of trains
through a town, over which the municipality has no control.
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POLICE DEPARTMENT
The Police Department staff presently consists of 19 sworn officers, 4 desk
officers, one secretary and one animal control officer for a total of 25 full
time employees. The Police Department is also augmented by a reserve consisting
of 5 officers all of whom are unpaid. The department has 3 marked patrol 'units
(1987 Fords), 2 unmarked units assigned to the Patrol Division (1983 Ford and a
1986 Ford), 2 unmarked units assigned to the Special Services Division (1985
Oldsmobiles), 1 unmarked unit assigned to the Chief of Police (1983 Ford), 1
Animal Control vehicle (1984 Ford Truck, 4-wheel drive) and a 1984 Dodge truck
four wheel drive assigned to the Health and Safety Division (life guards).
The department offers law enforcement services ranging from investigative
services to patrol of residential and commercial property. The department
presently has an emergency response time of less than 3 minutes and*,a
non -emergency response of 5 minutes. The Police Department Headquarters is
located at 321 Causeway Drive in the Municipal complex on Harbor Island.
LAW ENFORCEMENT IN THE PROPOSED ANNEXATION AREA
The area proposed 'for annexation currently receives its law enforcement
protection from the. New Hanover County Sheriff's Department. Since the
Sheriff's Department must serve all of the unincorporated areas of New Hanover
County, the proposed annexation area .will receive more intensive police
protection as a result of annexation.
Data regarding past calls for service in the annexation area are next to
impossible to obtain since the Sheriff's Department, which is responsible for
all non-satellited parts of that area, now considers it part of one of their
patrol zones. They can give data for the entire zone, but not for just a
section of it.
However, pertinent information is available from N. C. Highway Patrol. The
Highway Patrol investigated 68 wrecks in the annexation area during 1986. The
Police Department has investigated 102 in the present city limits during that
period which would suggest that it can initially expect a 60% increase in motor
vehicle accidents. Through selected enforcement it is likely this accident rate
can be reduced in time.
There are presently 90 businesses in the primary corporate limits east of
the waterway. In the area proposed for annexation, there are 147 businesses
ranging from commercial fishing operations to doctor's offices which are now
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operating, or for which the space is already built for them to occupy. Some
businesses in the area are already annexed and are being served. Annexation
will bring the total of businesses operating in town to about 250.
The 138 (estimated) residents living in the proposed annexation area should.
not cause significant changes to current police operations in the area except to
require some changes in patrol procedure and to generate a variety of calls that
the department has not had to handle in this area prior to this proposed
annexation.
DETERMINING POLICE PERSONNEL AND EQUIPMENT NEEDS
It is much easier to determine the level of police personnel and equipment
needs in areas with fairly consistent population levels. The average number of
sworn full time officers per 1,000 population in cities under 10,000 population
in the southern United States is 2.6. The average number of full time police
employees in such areas is 3.4. - The difference is that the term "police
employees" includes dispatchers and clerks whereas sworn full time officers
includes only law enforcement personnel. The obvious question is, in a resort
area, which level one should use. The law enforcement personnel needs for
Wrightsville. Beach can be projected in several different ways using this
formula.
2.6 Sworn Officers Per 1,000 Population
U. S. Census (3,092) 8 officers
Winter population including winter rentals (5,000) 13 officers
Overnight summer population (12,500) 33 officers
Peak summer population (30,000) 78 officers
The Police Department presently has 19 full time sworn officers.
3.4 Police Employees per 1,000 Population
U. S. Census 10 employees
Winter population including winter rentals 17 employees
Overnight summer population 43 employees
Peak summer population 102 employees
The Wrightsville Beach Police Department presently has 25 full time employees.
Another problem that Wrightsville Beach has in determining police employee
needs is its uniqueness in that it is the only resort area between Virginia
Beach, VA. and Charleston, S.C. with a consistent population level in excess of
110,000 next to its borders and a university with a student population of 6,000
only four miles away.
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The point that must be recognized is that it is next to impossible to use
population levels (national, regional or state standards) in determining law
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enforcement needs in resort areas. The anticipated increase in work load based
on local experience is the best guide when trying to determine what additional
tlaw
enforcement resources will be required by the proposed annexation.
ADDITIONAL PERSONNEL AND EQUIPMENT NEEDS
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The current work schedule provides a minimum of three uniformed officers on
duty per shift during summer months, with this number supplemented by additional
officers on the street during special events or holiday weekends. In addition
to the uniformed officers, a detective is also on duty from 8:00 a.m. until
12:30 a.m. daily throughout the year.
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The annexation which is the- subject of this report would require the
addition of a separate patrol zone. This new zone would include the many
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businesses along Airlie Road and in the Plaza East Shopping Center which are not
currently the responsibility of the Town. Adequate coverage of this new patrol
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zone would require two additional patrol positions and another patrol car, the
cost of which should be assigned to the annexation. With the addition of two
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patrol positions and another automobile to cover the newly annexed areas, the
department could maintain two patrolmen on duty east of the waterway, one
patrolman on duty west of the waterway and have a fourth uniformed officer.on
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duty as the shift supervisor, to circulate among the zones and back up any of
the patrolmen when needed..
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Additional costs are anticipated as follows:
Salaries (including overtime and court time)
Uniforms
Equipment
Fringe Benefits
Training
TOTAL PERSONNEL COSTS
Patrol Car
Equipment (lights, radio, siren)
Gas, oil, tires, etc.
Maintenance
TOTAL VEHICLE COSTS
TOTAL COSTS
$36,350.00
2,000.00
750.00
9,300.00
1,000.00
$49,400.00
$12,000.00
2,000.00
4,000.00
1,500.00
$19,500.00
$68,900.00
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' FIRE PROTECTION
Fire protection within the corporate limits of the Town of Wrightsville
Beach is provided by its municipal fire department.
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This proposed annexation will impact the Seagate Volunteer Fire Department,
a fire service district established by New Hanover County pursuant to Article 16
of General Statutes, Chapter 153A. (See annexation's Impact on Seagate
Volunteer Fire Department). It is the intent of the Town of Wrightsville Beach
to negotiate with the Seagate Volunteer Fire Department in regard to fire
protection service if requested. 'The Town of Wrightsville Beach will provide
fire protection service for the annexed area on substantially the same basis and
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in the same manner as such services have been provided within the rest of
Wrightsville Beach prior to annexation. ..
The Wrightsville Beach Fire Department is headquartered at the Municipal
complex on Harbor Island. Since September 1986, the Department has grown to a
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five man paid staff, funded by the Town's General Fund which provides two people
on duty 8-5 weekdays, 1 person during the night hours and weekends. This change
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was a significant upgrading in fire protection service for the Town allowing
greater dependability of apparatus maintenance and up -keep, a faster response
from the station, and broader training capabilities.
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The volunteer roster consists of seventeen members. Average volunteer
response in daytime hours is seven; night-time response is twelve. Manpower
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turnover in the volunteer segment of the Fire Department is a concern of local
officials. However, this problem is not peculiar to Wrightsville Beach, but is
a nationwide phenomenon. The Fire Department is developing an innovative
"intern" live-in program for volunteers which would increase availability and
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dependability of volunteer personnel by furnishing living quarters in the fire
house in return for specific duty time.
The addition of a 'fifth paid fireman in November 1987 will provide the
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capability of a fire inspection program, pre -fire planning, further development
of standard operating procedures, logistical support, and assurance of 2nd
engine response.
The Town's present fire rating classification is 6. This classification is
expected to be extended to the proposed area upon annexation. Within the next
two years, a new Insurance Services Office evaluation is expected to result in a

' reclassification to 5 or possibly 4. Such a reclassification could result in a
lower insurance premium than if the Town remained in a Class 6. The Town's fire
station and facilities. are adequate to provide services to the present Town
limits and to the proposed annexation area. Major fire equipment includes:
1. 1983, 1250 gpm
pumper with 50 feet telesquirt
master stream -- 500
gallon tank;
600 feet of 5 inch supply,
700 feet of 3 inch
'
attack/supply;
200 feet of 2.5 inch attack; 400
feet 1.75 inch attack.
' 2. 1973, 750 gpm pumper -- 500 gallon tank; 600 feet 3 inch supply; 700
feet 2.5 inch attack; 200 feet 2.5 inch preconnect attack; 400 feet'1.5
' inch preconnect attack.
3. 1965, 750 gpm pumper -- 500 gallon tank; 600 feet 3 inch supply; 700
' feet 2.5 inch attack; 200 feet 2.5 inch preconnect attack; 400 feet 1.5
inch preconnect attack. Note: This pumper will be replaced by
' December 1988 with a new 1250 gpm pumper with larger 5 inch hose
capacity.
4. 1976 pickup truck for equipment and logistical support.
The department is developing a training facility which includes a fire
training structure, test/draft tank, and a hose drying and ladder training
1
facility.
This annexation will not require any new equipment or facilities.
The current response time for the Fire Department within the present
corporate limits is within four minutes to the furthest points at the North and
South ends of Wrightsville Island. Response time to the Galleria Mall at the
western end of the proposed annexation area is within three minutes. These
response times represent off-season traffic conditions which exist between Labor
'
Day and Memorial Day. Traffic congestion must be expected in summer months.
These traffic conditions also affect the ability of volunteer personnel to
'
respond. The live-in "intern" program will improve response time to less than
current times.
'
12

The Town's fire protection service will be improved by strengthening the
existing mutual aid agreements with the Seagate Volunteer Fire Department;
Department of Transportation's improvements along Wrightsville Ave. and Eastwood
Road; and year round hourly bridge openings at the ICWW. The drawbridge
separation from the mainland is not expected to detrimentally affect Insurance
Service Office's rating for the annexation area.
For fire protection service in the annexation area, the most critical
concern is adequate water supply. The waterline crossing beneath the ICWW built
in 1987, was a significant improvement to water supply in the area. Existing
water mains and hydrants in the area, and the Town's emphasis on built-in
protection through sprinklers and fire resistant construction standards in new
buildings and additional mains to be built following this annexation will
provide for fire protection service in the annexation area which is comparable
to that in the remainder of the Town.
Discussion with the representatives of the NC Department of Insurance
indicate that as a result of annexation the fire insurance rating class of the
area to be annexed will be the same as the Town of Wrightsville Beach.
The following table shows annual insurance premiums* and ratings as
currently filed by the Insurance Service Office with the Insurance Commissioner
of North Carolina.
Class
HOMEOWNER 3 003) COVERAGE
$75,000 COVERAGE/$250 DEDUCTIBLE
Annual Premium
Masonry Frame
9 Seagate VFD
$
341
$
394
6 Wrightsville Beach
(beach)
$
353
$
369
6 Wrightsville Beach
(west of ICWW)
$
278
$
290
NON-SPRINKLERED MASONRY MERCANTILE
$250,000 COVERAGE
Class Annual Premium
9 $ 986
6 $ 864
* Premium rates provided by Allstate Insurance Company, Wilmington
13

ANNEXATION'S IMPACT ON SEAGATE VOLUNTEER FIRE DEPARTMENT
The area to be annexed is included within a fire service district as
defined by GS 153A-301. The Seagate Volunteer Fire Department (SVFD) which is
'
supported by the New Hanover County Fire Tax currently provides fire protection
to the area to be annexed. This statement of impact on SVFD is provided in
accordance with the provisions of GS 160A-35. The Town of Wrightsville Beach,
in a certified letter dated September 14, 1987, requested information from SVFD.
SVFD requested a 30 day extension and provided some information on December 4,
'
1987.
1. The current FY fire tax levy (New Hanover County) is 4 cents per $100
assessed valuation.
2. The current (September 24, 1987) total assessed value of the New
Hanover County fire district is $2,012,510,720.
3. The current fiscal year fire tax anticipated revenue in New Hanover
County is $805,004. The SVFD receives from the County $102,000.
4. The reduction in area of the SVFD service delivery area expressed in
'
terms of the percentage which the acres to be annexed bears to the
total acres of the Seagate service delivery area will be 1.6%
(115.4/7,199) acres.
S. The reduction in population of the SVFD service delivery area expressed
in terms of the percentage which the people to be annexed bears to the
total population of the Seagate service delivery area will be 1.4%.
This is based on estimated annexation area population of 138 and SVFD
'
service delivery area population of 10,000.
6. The reduction in the revenue of the New Hanover County Fire Tax
'
District (includes all of SVFD service delivery area) which is provided
fire by
protection the SVFD in the proposed annexation area is $5,038
per year based on the assessed value of property,in the annexation area
'
on September 24, 1987.
'
The SVFD did not provide any information on Capital Assets or Capital
Liabilities as requested.
'
The SVFD does not have any full time personnel. Therefore, no full time
personnel will be lost as a result of this annexation. The average number of 22
volunteer rural fire department personnel responding during day (8:00 a.m, until
'
6:00 p.m.) is 3-6 and during the night (6:01 p.m. until 7:59 a.m.) is 12-18.
'
14

The following list
of SVFD apparatus
available is for response in the area
to be annexed:
Year Model
Pump Capacity
Tank Capacity
1970 Ford
1000
1000
1971 Ford
1000
500
1975 Ford
500
750
1987 Ford
1250
1000
1971 7
250+ jet pump and drop tank 1630
1952 Dodge
400 Aux. unit
1959 Dodge
400 Aux. unit
While information
was not provided
to the town as requested, SVFD has
'
stated that the only debt they have is the
new 1987 fire truck.
Fire protection in
the area to be annexed will be provided by the Town of
'
Wrightsville Beach. It
is the intent of
Wrightsville Beach to compensate the
SVFD in accordance with
GS 160A-37.1 sign
a written agreement in the event of a
'
fire, if requested. In
addition, the Town
will compensate SVFD for a portion of
its debt service in accordance
with the provision of N.C. General Statute
160A-37.2.
15

PUBLIC WORKS DEPARTMENT
The Wrightsville Beach Public Works Department consists of six divisions.
They are: Water, Sewer, Street, Sanitation, Building Regulation and
Administration Divisions.
Street Division
The Street Division maintains approximately 15 miles of city streets and
assists in the maintenance of approximately 9 miles of state roads. Associated
with street maintenance is the cleaning of approximately 180 catch basins and 80
stormwater discharges into estuarine waters. The Division is also responsible
for all street lights, which are furnished by CP&L under contract with the Town,
and mows all Town and State Rights -of -way.
Personnel within the Street Division include: one street crew leader and
two equipment operators. There are eight major pieces of equipment that
include: one bulldozer, two tractors, one tractor mower, one street sweeper,
one pickup truck and two dump trucks. -- -
Street Improvements
Wrightsville Beach has a street assessment policy which enables the Town to
recoup two-thirds of street construction costs. Such improvements are
undertaken only upon receipt of a petition signed by the owners of property. to
be benefitted by the improvement in accordance with standards set out by GS
160A-217(A). Approximately fifty feet of Canal Street and 280 feet of Burke
Avenue could be brought up to Town standards upon petition of the abutting
property owners at an estimated cost of $24,750. Sixteen thousand five hundred
dollars of this estimated cost would be assessed to abutting property owners and
paid by them to the Town over a period not to exceed 10 years at 82 interest on
the unpaid balance.
Annual maintenance for the 12.8 miles of city streets is approximately
$16,875 per mile or $3.20 per foot. Additional maintenance cost for Canal
Street and Burke and Dick Avenues (1050') as a result of annexation will be
approximately $3,355 annually.
Furthermore, approximately 12 new street lights will be needed to serve the
annexation- area for a total annual operating cost of $1,200. Thus, total street.
maintenance cost would be $4,555. Construction and maintenance of streets in
the proposed annexation area will be paid for by_revenues to the Town's General
Fund. The following streets are presently State maintained streets in the area
and are expected to remain so: US Highways 74 and 76, Airlie Road SR 1411,
Stokley Drive SR 1418.
16

Sanitation Division
The Sanitation Division is responsible for the collection and disposal of
all solid waste from. residential and commercial properties in Town. The
Division provides twice weekly collection for approximately 2,000 residential
customers. The Division provides and maintains 90 gallon roll out carts for
residential service. Also, the Division provides from twice weekly up to -daily
service six days per week for approximately 108 commercial refuse boxes. The
Division provides and maintains these commercial refuse boxes, which are sized
from 2 to 6 cubic yards.
This Division also operates and maintains .the Town's incinerator and
disposes of all unburnable refuse at the New Hanover County Landfill.
Over the course of a year, approximately 95% of the refuse collected by the
Sanitation Division is disposed of by burning in the Town's incinerator. During
the months of June, July and August, when refuse volumes are highest, the Town
must haul approximately 20% of the refuse collected in those months to the
County's incinerator. Because the Town intends to contract refuse collection
and disposal with private firms currently operating within the annexation area
for the first two years following annexation, there would be no immediate effect
on the Town's incinerator operations resulting from the annexation. .It is not
expected that the additional 1,000 to 1,100 cubic yards per month of loose
refuse collected from the proposed annexation area would have a substantial
effect on incinerator operations, although the volume of refuse disposed of
through the County incinerator during summer months would increase at such time
as refuse from the annexation area began to be disposed of by the Town. Based
on a 6 day per week schedule, and operating at 85% of rated 'capacity, the
incinerator can handle approximately 46,000 cubic yards of refuse per year. In
1987, slightly less than 35,000 cubic yards of refuse was collected by the Town.
It is estimated that refuse volume equivalent to four months of collection from
the annexation area might be taken to the County incinerator for disposal during
the peak summer' season. Converting the loose refuse to tonnage at the average
weight of 232 pounds per cubic yard and applying the fee of $22 per ton paid to
the County for their incinerator disposal represents an annual cost of.
approximately $11,500 or an increase of approximately $6,500 to $7,000 over
current County incinerator fees.
17

Personnel in the Sanitation Division include, one sanitation and street
division superintendent, one incinerator operator, 3 equipment operators, 5
sanitation works. Major pieces of equipment include: 4 refuse loadpackers, 2
pickup trucks and 2 dump trucks.
With the proposed annexation, it is the intent of the Town of
Wrightsville Beach to comply with NC General Statutes 160A-37.3 Contract with
Private Solid Waste Collection Firm(s). It is estimated that the cost of
contracting with the private firms would be about $52,000 during,year one. In
the event that the Town of Wrightsville Beach and the private waste
collection firm(s) do not enter into a contract for a two year period, then
the Town is prepared to provide the service in the annexed area on
substantially the same basis and in the same manner as within the rest of the
municipality prior to annexation with its own personnel and equipment. The
cost to the Town to provide dumpsters in the area would be $25,821. The
Town's operating expenditures are estimated to be approximately $70,040 during
year one.
The higher cost estimated for the Town's operations is partly
attributable to the more frequent weekly collections offered by the Town
compared to those offered by the private firms.
There are approximately 55 residential uses, 29 commercial uses, one
institutional, and one governmental use in the annexation area. There are
approximately 12 additional commercial uses which have already been satellite
annexed by the Town and which will be within the boundaries of the proposed
annexation.
17(a)

The collection of commercial and commercial type refuse depend upon the
size of the container and the frequency of collection. Based upon a windshield
survey conducted by the Public Works Department (Wrightsville Beach) in October
1987 it is .estimated that the Town would need the following containers for
annexation area:
6 2 yard containers
8 4 yard containers
31 6 yard containers
45 new commercial containers and 55 residential containers
The Town does not anticipate additional personnel or equipment needs except
new commercial and residential containers in order to provide sanitation service
to the annexation area. Sanitation services will be extended to the area
proposed for annexation and paid for with revenues to the Town's General Fund:
Building Regulation Division
This Division is established to insure compliance with codes and
regulations for the protection of public health, safety, and welfare. In
particular, this Division enforces regulations for land use, buildings,
subdivisions and coastal area management requirements for minor permits.
Personnel within this division include: the. Superintendent who is a Level
III Building Inspector; an Inspector II who is a Level I Building Inspector and
a Level III Plumbing Inspector; and an administrative assistant.
The Town does not anticipate the need for additional personnel in the
building regulation division as a result of this proposed annexation.
Building inspections and regulations services will be extended to the
proposed annexation area and paid for by revenues of the Town's General Fund.
E.

PARKS AND RECREATION DEPARTMENT
The Parks and Recreation Department is established to offer a broad variety
of parks and recreational opportunities that contribute to the social, physical,
educational, and cultural well being of the Town's citizens. The department is
also responsible for the development and maintenance of a system of parks and
recreational facilities and for beautification of open spaces and public
grounds.
The Department has two major service areas: parks maintenance and
recreational program activities. Parks maintenance involves the development,
landscaping and beautification of 13 sites of, Town owned property which include
the community park, mini parks and public beach accesses. The recreational
program activities are: a summer program schedule which includes summer and
water sports; an indoor after -school program for 5-12 year olds; CPR classes and
indoor activities; and special events which includes a community day in the
park, beach volley ball tournament, surf -sun -sand celebration and other events.
Personnel in the Parks and Recreation Department include the Director, a
recreation program supervisor, a . permanent part-time secretary, parks
maintenance supervisor, one laborer and numerous volunteers.
Major equipment aside from recreational equipment includes: 1983 Ford
pickup truck, 1981 Toyota truck, 4-wheel drive truck, a 1979 Model 850 John
Deere tractor and implements, a John Deere AMT Model 600 and a 1985 Ford Bronco.
In regard to annexation, no additional equipment or personnel is needed for
parks maintenance. There are currently no tracts of land within the annexation
area owned by the Town which can be developed into park lands. The recreational
program activities are operated on a user fee basis. Therefore, increased
expenditures to serve residents in the annexation area will be offset by fees.
No additional program personnel will be needed. There is not a large resident
population in the annexation area and several residents from the area are
already taking advantage of the facilities and services of the Parks and
Recreation Department.
19

II
II
II
II
II
II
II
II
II
I
I
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i
i
The Town of. Wrightsville Beach, since December 1985 has operated under the
Board of Aldermen/Manager form of government. This form of government was
instituted to provide professional management for the general guidance,
coordination and evaluation of the activities of the Town Departments in their
implementation of polices and programs as authorized by the Board of Aldermen.
Some of the major objectives within this department are:
1. Develop and recommend annual budget and five year capital improvement
programs;
2. Manage all municipal funds in accordance with the North Carolina Budget
and Fiscal Control Act;
3. Research and propose alternative approaches to achieving the Board of
Aldermen's goals and community needs;
4. Insure prompt and efficient execution of the Board of Aldermen's
policies;
5. Interpret Board of Aldermen actions to Town departments, outside
organizations and citizens;
6. Maintain all records of Town's business and record all financial
transactions;
7. Encourage communications between citizens and all municipal officers --
emphasize friendly and courteous service to the public; and
8. Provide general management for all Town departments, including
coordination of legal and engineering services, personnel management
services and assistance in major purchases.
Personnel under general management departments include the Town Manager,
Town Clerk, Assistant Town Clerk, Office Assistant II and Office Assistant I.
With their approval of the 1987-88 budget, the Board of Aldermen included the
addition of the position of "Planning Assistant" to this department. This new
position will be filled in January and is responsible for working with
applicants for annexation, re -zonings, variances and conditional use permits.
The person filling this position is also the primary staff support for the
Planning Board. No increase in the cost of operating this department is
expected as a result of this annexation.
20
i

Water and Sewer Divisions of the Public Works Department
The Water Division operates and maintains eight wells, two water treatment
centers with 1,000,000 and 500,000 gallon ground level storage tanks
respectively for treated water, two elevated storage tanks (300,000 and 200,000
gallons) and all piping, connections and valves associated with water production
and distribution.
The Town has 8", 10" and 12" water lines along Wrightsville Avenue from a
new well site and treatment plant on Allens Lane, which serves the various
satellite annexations within the proposed annexation area. Construction was
completed in September -1987 of a•14" water line beneath the Intracoastal
Waterway which connects the Towns,water system on the beach to the new water
treatment center on Allen's Lane. The Town has also placed $270,000 in reserve
toward the future construction of an elevated storage tank at the new water
treatment center on Allens Lane.
There is within the proposed annexation area a private water system owned
and operated by Cape Fear Utilities Company.
It is the intent of the Town to negotiate the purchase of a portion of this
water system to serve the additional area added to the Town by annexation.
However, if a purchase agreement cannot be reached then Wrightsville Beach will
expand the Town's existing system to serve the total area of annexation.
It is estimated that it would cost $118,740 to construct water lines to
serve the annexed area. One hundred percent of the costs of utility line
extensions will be assessed to benefitting property owners under the procedures
contained in Article 10, Chapter 160A of the N.C. General Statutes. Property
owners will have the option of paying the assessment to the Town over 10 years
at 8% interest on the unpaid balance.
Wrightsville Beach has in effect Water and Sewer Extension Polices which
require property owners within the Town to connect to the water and sewer
systems within the corporate limits.
The $118,740 capital cost for providing water service in the annexation
area is based on an engineering study completed by Mr. Carl Farmer, P.E. of
Henry Von Oesen and Associates. Water lines and necessary appurtenances, storm
drainage and street improvements, to serve the area are shown on Map 2, 3 and 4.
21

The water system operating cost is 73 cents per 100 cubic feet (ccf) and is
based on the Town's existing system wide water analysis. It is estimated that
the residents and commercial uses in the annexation area will consume 24,398
ccf of water per year and cost the Town $17,810, not including depreciation.
The Town of Wrightsville Beach operates and maintains a central sewer
collection system. The system extends throughout the present corporate limits
(Wrightsville Island and Harbor Island) and includes 4 small lift stations and 1
main lift station. These lift stations pump all wastewater through the
Northeast Interceptor (201 Facility) to the City of Wilmington for treatment.
The Town of Wrightsville Beach's sewer system is currently connected to the
City of Wilmington's treatment plant. This connection was completed under the
Greater Wilmington Area 201 Facility Plan and was funded by U. S. Environmental
Protection Agency, State of North Carolina, City of Wilmington, New Hanover
County and the Town of Wrightsville Beach. It preceded the county wide sewer
system which is currently under construction. Phase I of the County's sewer
system is almost complete and it serves the area between Wrightsville Beach and
Wilmington and Eastwood Road to Hewletts Creek. Consequently, the entire
annexation area will be served by central sewer collection and treatment by New
Hanover County.
' The Town has leased sewer capacity to two residential developments outside
of the annexation area. They are:
DAL-HAR Investments, Inc. (MacCumber Terrace) 45,600 gallons per day
through August 31, 1988 with a one year renewable option.
Goforth Development Company (Landfall) 200,000 gallons per day through
' August 31, 1988 with a one year renewable option.
The Town of Wrightsville Beach anticipates no shortage of sewer capacity as
' a result of the annexation of the proposed area.
Water and Sewer Division Personnel
Personnel employed in the water and sewer division include one
superintendent and six line mechanics. The Town does not anticipate the need
for additional personnel in the water and sewer divisions as a result of
annexation.
22
1

REPORT
WATER, SEWER AND STORM DRAINAGE REQUIREMENTS
TOWN OF WRIGHTSVILLE BEACH, NORTH CAROLINA
DECEMBER 1987
Prepared By: Carl H. Farmer, Jr., P.E.
HENRY VON OESEN AND ASSOCIATES, INC.
Consulting Engineers & Planners
805 North Third Street -- P. O. Drawer 2087
Wilmington, North Carolina 28402
[phone]
=Z' SEAL `T=
8406
A�'1l N FARMEQ'
A7
3174-02 (123087) 23

I
7
u
II
1
WATER, SEWER AND STORM DRAINAGE REQUIREMENTS
TOWN OF WRIGHTSVILLE BEACH, NORTH CAROLINA.
I. INTRODUCTION
The municipal services required by the Town of Wrightsville
Beach to support the proposed annexation are described generally
in the Annexation Feasibility Report 1,repared by Thomas M.
Cassell. This report is intended to supplement the Annexation
Feasibility Study by setting out requirements for water, sewer,'
street and drainage improvements in the annexation area. As
required by N.C. General Statutes 160A-35, these services are to
be provided in accordance _with Town ordinances and policies
applicable to the rest of the Town prior to annexation.
II. WATER SYSTEM REQUIREMENTS
A. Description: The proposed annexation area is partially
served by water distribution lines of the Town of Wrightsville
Beach and by Cape Fear Utilities Company,*a private water
company. In addition, the City of Wilmington owns a 24-inch
finished water supply line which provides water for the Landfall
Development located northwest of the proposed annexation area.
The location of these facilities is shown on Plan Sheet No. 2
entitled "Annexation Facilities Plan - Water System".
The Town's distribution system in the annexation area
connects the Town's second water treatment facility and supply
well located on Allen's Lane with the -twelve (12) tracts
1 previously annexed by satellite procedures
1
The distribution
1
24

syster, consists of 12-inch, 10-inch and 8-inch mains with fire
hydrants and valving required to serve the existing annexed
tracts.
The 14-inch subaqueous connection beneath the Intracoastal
Waterway gives the Town flexibility of utilizing its eight supply
wells and combined elevated and ground storage of 1.5 million
gallons east of the Waterway to help meet its water supply needs
in the proposed annexation area. Because the Town serves twelve
(12) commercial users in the annexation area, the additional
water usage resulting from the proposed annexation area addressed
in this report should be in the 50,000 GPD range. The Town's
' past peak usage was 1,554,000 GPD. Thus, the additional
anticipated usage from the proposed annexation area plus the
' Town's past peak usage is within the Town's overall supply
capability of 1,950,000 GPD. However, in.order to provide a
' better balanced system and to back up the mainland ground
storage, the Town is planning construction of elevated storage at
its water treatment site on Allen's Lane. In addition, the Town
is seeking an additional well site on the mainland. Because
these proposed improvements are on -going separate additions to
the water system, which are not directly related to the proposed
' annexation, no capital, cost associated with them is included with
the annexation facilities improvements.
The location of the existing water system of Cape Fear
Utilities is shown on Plan Sheet #2. .The private system serves
' several commercial users and developments in and around the
annexation area. If the Town is unable to purchase the private
25

water system within the annexation area, the Town will install
water mains parallel to the private system where required, i.e.,
Stokley Drive and Airlie Road. The costs associated with the
installation of parallel water mains are used in this report.
B. Proposed Extensions: Location and sizes of the proposed
additional water mains required to serve the annexation area are
shown on Plan Sheet #2. These main extensions will provide water
service and fire protection to the several streets not now
served, including Airlie Road, Stokley Drive, Canal Drive, Dick
Avenue, Burke Avenue, Eastwood Road and Wrightsville Avenue.
C. Cost Determination:
1. Preliminary cost
estimate for
the water system
improvements is as follows:
Wrightsville Ave. 12" water
main, 1,000
if
® $24 = $ 24,0001
Airlie Road ,, 8" water
main, 1,450
if
® $18 = 26,100
Stokley Drive 8" water
main, 1,400
if
@ $18 = 25,200
Eastwood Road 8" water
main, 1,400
if
® $18 = 25,200
Burke Avenue 6" water
main, 400
if
® $12 = 4,800
Dick Avenue 6" water
Canal Street 6" water
main, ' 520
main, 600
if
if
® $12 = 6,240
® $12 = 7,200
Total
$118;740
'
1Cost.estimates for water mains include
valves, hydrants and
other appurtenances. Water
services costs
are not included
'
because the normal tap fee would compensate
for this cost.
2. F=oposed assessable
frontage for
each street:
'
Wrightsville Avenue
1,135 if
Airlie Road
11980 if
Stokley Drive
2,690 if
'
Eastwood Road
1,300 if
Burke Avenue
660 if
Dick Avenue
880 If
'
Canal Street
1,050 if
Total
9,695 if
1
26

Note: Assessable frontage does not equal twice water main
length because tracts previously annexed and served
by the Town's existing system are not included.
Tracts on opposite side of street of annexation area
which front only one side of a street are deleted.
Corner tracts are partially exempt (up to 150 feet)
for assessment against each frontage.
3. Assessment amount equals:
$118,740
9,695 if = $12.25 per foot
D. Assessment Procedure: After the Town completes the
annexation, the proposed water mains will be installed under the
procedure specified in Chapter 160A, Article 10 of the North
Carolina General Statutes entitled, "Special Assessments". After.
the final costs are determined,.100 percent'of the costs will be.
assessed against the property owners fronting the water lines in
accordance with the statutory procedures. Once the water mains
are accepted and put in service by the Town, all existing
structures requiring water services must connect within six (6)
months. In the event the Town does not purchase the private
water system, all customers of Cape Fear Utilities within the
annexation area will be required to connect to the Town's system
within the same six (6) months period. If the Town purchases the
private water system, all annexed developed properties fronting
the private mains will be required to connect within six (6)
months after purchase of the system.
27

III. SE-iWER SYSTEM REQUIREMENTS
1 A. Description: Sewage disposal for the proposed annexation
area is provided by New Hanover County's Phase one sewer system
' which has been completed in the subject area. New Hanover County
anticipates connections to their sewer system within the
annexation area will begin in January, 1988. Then all customers
I
must connect within six (6) months. A, plan of the existing
system is shown on Plan Sheet #3. No additional sewerage
collection lines are anticipated to serve the annexation area.
New Hanover County requires that any new development must provide
sewer collection lines for its facility. Property within the
Town will be required to connect to the sewer system on the same
schedule as that established by the County for properties outside
the Town. (Please refer to the Annexation Feasibility Report for
a description of• capacities and the Town's relationship with the
New Hanover County Sewer Authority).
IV. STREET AND STORM DRAINAGE REQUIREMENTS
A. Description: The proposed annexation area is served
almost entirely by existing public streets which are either N. C.
Department of Transportation primary or secondary streets. The
locations of existing. streets and existing storm drainage systems
are shown on Plan Sheet #4. The three streets which would be
maintained by the Town are Dick and Burke Avenues and Canal
Street.
99

B. Proposed Improvements:
1:, Streets: At the time of the preparation of this
report construction of Dick Avenue is underway by private
developers. Burke Avenue would be improved under the Town's
existing policy when a valid petition is received. The only
other street improvement required could be the improvement of
the end of Canal Street, which is approximately 50 feet in
length.
2.' Storm Drainaae: Because the existing storm drainage
systems are maintained by the N. C. Department of
Transportation and/or are associated with existing private
development, no major storm drainage improvements are
anticipated or included in the capital .costs. However, in an
effort to address possible environmental concerns, a
preliminary, drainage study of the annexation area was
prepared and is made a part of this facilities report as
Attachment No. 1.
C. Cost Determination - Burke Avenue and Canal Street
Improvement: Assume 25-foot street width with concrete curb and
gutter and asphalt pavement with an estimated construction cost
of $75 per lineal foot of street:
330 if @ $75.00 per foot = $24,750
Proposed Street Assessment:
1. Assessable footage: 660 linear feet
2. Assessment amount equals $24,750 x 2/3 = $25 per foot
660 per street side
29

I�
' ATTACHMENT NO. 1
PRELIMINARY DRAINAGE STUDY
PROPOSED ANNEXATION AREA
'TOWN OF WRIGHTSVILLE BEACH, N. C.
1 I. SCOPE
II
This study is prepared to address possible storm drainage
requireme..ts in the proposed annexation area.
II. DRAINAGE STUDY METHODS
A. General
The methodology used in developing the estimated
__stormwater runoff and the capacities of the existing storm drain
systems was established in several steps. After the storm drain
systems were located and plotted on the topographic sheet, each
major drainage basin was delineated. The major drainage basins
were subdivided into sub -basins according to the topography and ex-
isting storm drain systems. The limits of the drainage basins and
sub -basins as defined are shown. on Plan Sheet No. 4 which accom-
panies this report. Also shown on these sheets.are all visible ex-
isting drainage structures.
B. Runoff Calculations
The Rational Method was used to estimate stormwater quan-
tities because of the small areas involved and the subsequent smal-
ler size drainage systems. As set out in the basic project scope,
the stormwater quantities were developed for each sub -basin for a
10-year and 100-year recurrent interval rainfall event. The basic
.formula for the Rational Method is: Q = CiA, in which "Q" repre-
30

sents the peak runoff in cubic feet per second (cfs), "C" is a
runoff coefficient depending on the physical characteristics of the
drainage area, "i" is the average rainfall intensity in inches per
hour (in./hr.), and "A" is the size of the drainage area in acres
(ac.).
The Rational Method is based on the following
assumptions:
(1) The peak rate of runoff at any point is a direct
function of the average rainfall intensity during the time of
concentration to that point.
(2) The frequency of the peak discharge is the same as•'
the frequency of the average rainfall intensity.
(3) The time of concentration is the time required for
the runoff to become established and flow from the most remote
part of the drainage area to the point under design.
The runoff coefficient "C" was calculated for each major basin
using the relative degree of development. This involved the
development of a composite runoff coefficient for each sub -basin
based on the percentage of different types of surfaces in the
drainage area. In other words, areas which have a high degree of
impervious surfaces (pavement, roofs, etc.) will have a higher com-
posite runoff coefficient than areas with lesser levels of such
development.
The estimated quantities of stormwater runoff for each
basin was tabulated for each basin with facilities for the 10 and
100-year storm events. These calculations are shown in Table 1.
Following the runoff calculations, an analysis of the ex-
isting storm drainage system was developed using the 10-year storm
31

I
' hater quantities as set forth in the above noted table. The 10-
year storm was selected as the "preliminary design storm" because
of the prohibitive costs involved in sizing drainage systems for
the larger rainfall events. A summary of the analyses is shown in
Table 2.
III. DESCRIPTION
The study area has two primary drainage basins which are lo-
cated in and around the annexation area. These basins are the one
which contributes to Motts Creek and the area adjacent to the
Intracoastal Waterway. Because of the size of the Motts Creek
basin, the study covered areas outside the proposed annexation
area.
' 32

TABLE 1
STORM IER RUNOFF CALCULATIONS
DRAINAGE BASIN CHARACTERISTICS
Number Location Area
"C"
Value
STORMWATER QUANTITIES
Peak 10-Year Storm Peak 100-Year Storm
Sub -Area Cumulative Sub -Area Cumulative
Comments
MOTTS CREEK AND LAKE
A-1 U.S.74 at Land-
35 nc
.4
35 cfa
50.4 cfs
tc- 1. hour
fall
A-2 West side Plaza
62 ac
.4
57 cfs
92 cfs
82.08 cfs
132.5 cfs
tc- 1 hour '
East
A-3 NE side Plaza East
28.7 ac
.6
43.05 cfs
135 cfs
61.99 cfs
194.5 cfs
tc= 1 hour
A-4 NE side Wrights-
7.2 ac
.7
12.60 efs
147.60 cfs
18.14 cfs
212.63 cfs
tc- 1 hour
ville West
A-5 NE side Canal St.
5.0 ac
.4
5.00 cfs
152.6 cfa
7.20 cfs
219.8 cfs
tc- 1 hour
B-1 South side Allen's
9.4 nc
.4
9.4 cfs
13.5 cfs
tc- 1 hour
Lane
B-2 Wrightsville Ave.
15.17 nc
.4
15.7 cfs
25.10 cfs
22.6 cfa
36.1 cfs
tc- 1 hour
at Stokley
B-3 Eastwood Road at
9.4 ac
.4
9.4 cfs
34.50 cfs
13.54 cfs
49.6 cfs
t - 1 hour
Canal Street
_
c
C-1 U.S.74 and 76
3.5 ac
.5
6.3 cfs
8.8 cfs
tc- 30 minutes
Total Into Motts Lake
193.4 cfa
278.24 cfs
INLAND INTRACOASTAL WATERWAY
D-1 East Summers
2.7 ac
-.75
7.5 cfs
10.5 cfs
t - 30 minutes
Rest Road
c
F U.S.74 and 76
1.5 ac
.7-5
4.2 cfs
5.9 cfs
t - 30 minutes
at Drawbridge
o
G U.S.74 and 76
1.5 ac
.75
4.2 cfs
5.9 cfs
t - 30 minutes
at Airlie
c
11 Airlie Road
4.7 ac
.40
6.9 cfs
9.7 cfs
No defined outlet;
sheet flow

r� r� r r r r r �w ■� r�� r r� r r�r r r
TABLE 2
STORM DRAINAGE FACILITIES ANALYSIS
EXISTING FACILITY CHARACTERISTICS
Number Location Size Capacity
EXISTING SYSTEM CAPABILITY
10-Yenr Deficlency Comment
Run-off
A-1
U.S. 74 at Landfall
48" RCP
35 efs
35 cfs
None
A-2
West side Plaza East
60"/36" CMP
'' 60 efs
92 cfs
32 cfs
Storage capacity avnilable
in Motts Creek
A-3
NE side Plaza East
48" cMP
80 cfs
135 cfs
55 cfs
Storage capacity available
60" RCP
150 cfs
None
in Motts Creek
A-4
Wrightsville West
Open ditch
147.6 cfs
None
A-5
NE side Canal Street
Open ditch
152.6 cfa
None
B-1
South side Allens Lane
15" RCP
7.5 cfs
9.4 cfs
2.0 cfs
B-2
U.S. 76 at Stokley Drive
18" RCP
10 cfs
15.7 cfs
5.7 cfs
NCDOT system
B-3
U.S. 74 at Canal Drive
18" RCP
15 efs
34.5 cfs
19 cfs
NCDOT system
a C-1
U.S. 74 and 76
18" RCP
10 cfs
6.3 cfs
None
Total
Summers Rest Road
Concrete
270 cfs
193 cfs
None
bridge w/
8' weir
D-1
East of Summers Rest Road
15"/18" RCP
15 cfs
7.5 cfs
None
F
U.S. 74 and 76 at
15"/18" RCP
15 cfs
4.2 cfs
None
Drawbridge
G
U.S. 74 and 76 at Airlie
15" RCP
7.5 cfs
4.2 cfs
None
H
Airlie Road
None
9.7 cfs
No system

IV. CONCLUSIONS
A. The Motts Creek drainage basin has 65 percent of the area
outside the proposed annexation area. The Town should require the
existing water course area west of Plaza East to remain to provide
some storage of peak flows.
B. The Town's existing stormwater policy of requiring reten-
tion of the first 4 inches of runoff .from paved surfaces will
mitigate stormwater problems.
C. The N.C. Division of Environmental Management require-
ments beginning on January 1 1988 will require retention from new
development and will help mitigate effects from areas outside the
Town's control.
D. The N.C. Department of Transportation should be ap-
proached on improving drainage at the intersection of U.S. Highways
74 and 76.
� F
35

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I'
Property Tax (Ad valorem Tax)
The assessed value of real property in the annexation area was provided by
the New Hanover County Tax Office. * Real property in New Hanover County
underwent its most recent octenial revaluation in 1983 and is assessed at 100%
of its appraised value. The property tax rate in the Town of Wrightsville Beach
for FY 1986-87 is 35 cents per $100 valuation. The Town has had an average
collection rate of 98.4% for the ,past three fiscal years. The table below
illustrates that approximately $42,295 additional property taxes are
anticipated.
-" Property Taxes
Area 1
Total Assessed Value $12,280,830
ad valorem levy $ 42,983
98.4% proceeds $ 42,295
* As of September 24, 1987. Personal property, excluding household furnishings
was estimated based on the unincorporated area of New Hanover County.
II
37

III
Local Government Sales and Use Tax
New Hanover County levies two one percent sales and use tax. The taxes are
imposed on the same transactions. However, the taxes differ in the manner in
which revenues are allocated to the counties. After collection by the State,
the net proceeds of the one percent tax are distributed quarterly to the county
in which collected for distribution among the county and municipal governments.
The net collections from the other one percent tax are allocated on the
basis of county population.
The net proceeds of both taxes are distributed among the county and
municipal governments on the basis of ad valorem levies or population. In New
Hanover County, the distribution is -based on ad valorem levies.
Annexation will not affect the net proceeds from these taxes as allocated
to the county. It will affect the internal distribution of the taxes among the
county government and its municipalities.
The formula for distribution in FY 1986-87 is as follows:*
Ad valorem levy (184-85) Percent
New Hanover County
$27,676,802
68.30885
Carolina Beach
1,114,301
2.75020
Kure Beach
287,394
0.70931
Wilmington
10,487,990
25.88531
Wrightsville Beach
950,665
2.34633
$40,517,152
100.00000
• Wrightsville Beach's annexation would change the formula as follows:
Ad valorem levy Percent
New Hanover County $27,676,802 68.23762
Carolina Beach 1,114,301 2.74733
Kure Beach 287,394 0.70857
Wilmington 10,487,990 25.85832
Wrightsville Beach 992,960 2.44816
$40,559,447 100.00000
For FY 85-86, the net sales and use tax (1 1/2%) for New Hanover County and
municipal governments was $9,103,985.35.* Based on the formula above,
Wrightsville Beach's share after annexation can be expected to increase as
follows:
Before After Increase
$213,609.54 $222,880.13 $9,270.59
*Source: New Hanover County Finance Dept. Mr. Andy Atkinson personal
conversation 2/5/87. The 1 1/2% tax was increased to 2% in September 1986 and
the first allocation was in February 1987.
1
38

[J
II
Intangibles Tax
North Carolina taxes several types of intangible property (e.g. stocks,
mutual funds, bonds, accounts receivable) on behalf of local governments. The
revenue generated is collected by the State and the net proceeds are returned to
the county where 'generated. Net proceeds are distributed to each county.
Within the county, the distributable share is divided among the county
government and its municipalities according to their ad valorem levy imposed
during the fiscal year preceding the distribution.
The formula for distribution in New Hanover County for FY 1986-87 is the
same as the formula under Local Government Sales and Use Tax. For FY 1985-86,
the net Intangibles- Taxes allocated to New Hanover County was $1,839,930.85.
Based on the formula above, Wrightsville Beach's share after annexation can be
expected to increase as follows:
Before After Increase
$43,170.85 $45,044.45 $1,873.60
Franchise Tax
The State levies a tax on three groups: utilities, business corporation
and a railway group. Within the utility groups, which includes primarily
electric power, gas and telephone companies, a 3.22% tax is levied by the State
on the gross receipts. Each municipality is entitled to an amount equal to the
proceeds of a tax of 3.092 of the public utility companies' gross receipts from
sales within its boundaries. In addition, municipalities may tax certain types
of franchises which are not taxed by the State (e.g. cable TV); however, this is
a relatively minor source of revenue in most cases.
It is difficult to accurately estimate the increase in franchise tax
revenue expected in Wrightsville Beach as a result of annexation since a
tabulation of gross receipts of taxable enterprises within the annexation area
is not available. Population would not be an adequate basis for estimation
since the area is so heavily developed commercially. The Franchise tax revenues
should, however, be somewhat proportional to ad valorem receipts within the area
Based on 1984-85 franchise tax revenue of $0.126 per dollar of property tax
levied (120,000 divided by 950,665) and an increase in the personal tax levy of
$42,983, it is reasonable to conclude that additional franchise tax revenue of
approximately $5,416 can be expected.
�M

I
1
11
.r
I,
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II
State Street Aid (Powell Bill)
North Carolina's gasoline tax is 14 cents per gallon plus 3% of the average
wholesale price .of motor fuel. This tax rate was effective July 15, 1986.
North Carolina's towns' and cities' share increased from 1-3/8 cents to 1-3/4
cents, effective with the 1987 allocation. The proceeds of the 1 3/4 cents .is
distributed annually in October, according to a two part formula. Seventy-five
(75) percent is distributed on a per capita basis, while twenty-five percent
(25%) is distributed on the basis of the number of miles of non -state streets in
each municipality. Street mileage information is provided by annual reports
from each municipality to the NC Department of Transportation, while annual
population estimates are provided by.the NC Department of Administration.
The rates of return to municipalities as of September 22, 1986, were $14.52
per capita and $1,011.24 per mile and Wrightsville Beach received a total of
$58,855.53 based on population of 3,162 and street mileage of 12.80.*
The Town of Wrightsville Beach's population will increase by an estimated
138 persons (55 residences x 2.51 persons per residence) and its non -state
street mileage by 0.1894 miles as a result of annexation, yielding $2,003.76 and
$191.53 respectively. Therefore, annexation will result in approximately
$2,195.29 in added Powell -Bill Revenues.
New Hanover County Revenue Sharing
Another significant revenue source for the Town is the New Hanover County
Revenue Sharing Fund. This money was initially distributed to the
municipalities within the county on the basis of the ad valorem levy like the
sales tax and the intangibles tax. However, the amount has remained constant
for several years. For FY 1986-87, Wrightsville Beach expects to receive
$74,575 from New Hanover County. Annexation will not affect the amount received
by the Town.
Building Permits
For FY 1987-88, building permit fees within the Town are expected to
generate approximately $60,000. It is difficult to predict the amount of
building starts in the annexed area since so many outside forces (e.g. interest
rate, local, state, national economy, etc.) play a key role. However, for our
purposes it is projected at approximately 15% increase over the existing fees or
$9,000.
40
* N.C. Dept. of Transportation, Incorporated Municipalities, Municipal
Officials, ana State Street Aid Allocation, Sept. 1956.

Interest on Investment and Rents
In 1987-88 the Town expects to receive $30,000 as interest on investments
and $25,600 from rent of real property. While these are major revenue sources
for the Town in FY 1986-87, it is not expected to change appreciably after
annexation. Consequently, no increase in revenue is projected from this source.
Other Major Revenue Sources
Refuse Collection Charges (sanitation)
The Town of Wrightsville Beach provides solid waste collection service on a
user -fee basis. It is anticipated that in FY 1987-88, the Town will collect
$329,000 for this service. These revenues offset the costs of providing this
service. It is the intent of the Town to continue to operate the solid waste
collection service on a user -fee basis following the proposed annexation.
Single family residential uses are charged $9.00 per month. Fifty-five
single family residential uses would generate $5,940 per year. The collection
fees for commercial refuse depend upon the size of the container and the
frequency of collection. It is estimated that the total revenue generated from
the commercial uses would be approximately $61,020 per year. Therefore, total
revenue from commercial and residential uses would be approximately $66,960.
Water Fees
Water system revenue is based on fixed and variable charges. The variable
charge is 55 cents per 100 cubic feet (ccf). The fixed charge depends on the
water meter size. The fixed charge for a 3/4" - 5/8" meter or a 1" meter is
$7.00 per month. It is estimated that the residents and commercial users in the
annexation area will consume 24,398 ccf of water per year and will generate
approximately $19,299. The difference between this revenue amount and the cost
of $17,810 described earlier provides funds for water system repairs and
replacement. Revenues from impact fees and tap fees are not accounted for in
the above since impact fees are used for major new capital facilities such as
water treatment plants and wells, elevated tanks and general system
improvements. Tap fees are intended to cover the cost of labor, equipment and
material used in installing a tap and will not produce substantial amounts of
net income.
41

J
'
Parking Meter - On Street and Parking Meter Civil Penalties
Another. significant source of revenue for the Town is derived from parking
meters and civil penalties for parking violations. In FY 1987-88 it is
anticipated that approximately $105,000 and $45,000 will be available from these
two sources, respectively. However, for the annexation area, no metered parking
is planned and civil penalties are not expected to generate significant revenue.
'
Consequently, no revenue is forecasted from these sources.
ABC Net Revenues and Beer and Wine Tax
The principal sources of revenues from Alcoholic Beverage Control are 75%
of the store profits from the store, located in Wrightsville Beach and the local
share of the State excise taxes imposed on beer and wine.
The 75% share of ABC store profits are retained by the Town. The
'
collection period for which the share of beer and wine excise taxes are
determined is the twelve months ending September 30 and distributions are
tgenerally
made in November. Local governments receive 23.75% of the total state
collections from the excise tax on beer and local governments receive 62% and
22% of the excise tax on unfortified and fortified wine, respectively.
For FY 1987-88, the Town of Wrightsville Beach is anticipating $101,000
from ABC net revenues and $14,500 from the beer and wine excise tax.
While the new ABC store is located in the proposed annexation area
(satellite annexation occurred September, 1986) it is not expected that revenues
beer
would change appreciably as a result of annexation. The revenue from the
and wine excise tax should increase as a result of the annexation. The exact
amount of increase is difficult to predict since it is based on sales.
j
Nevertheless, the total revenue received should not change the relative position
'
of this revenue source from the others.
'
Privilege Licenses
The Town currently receives approximately $8,000 per year in privilege
license fees from 103 businesses operating within the Town or approximately $77
the 147 businesses
per business annually. Based on this average, additional
included in the proposed annexation would increase this source of revenue by
$11,319 annually.
42

II
Other Minor Revenue Sources
Other minor. revenue sources for the
Town of Wrightsville Beach and the
amount which is expected to be received in
FY 1987-88 are as follows:
Minor Revenue Source
Revenue
'
Dog Licenses
$ 2,300
Auto Licenses
5,700
Court Fees
6,000
1
CAMA Permit Reimbursement
2,000
Miscellaneous Revenue
6,000
Gasoline Tax Refund
3,400
Cable TV Franchise Fee
12,000
TOTAL
$37,400
In this case, a reasonable and conservative
estimate of the amount of
increase in revenue would be a percentage
increase in population as a result df
' annexation. Most of these revenue sources are related to the number of persons.
The population is projected to increase by 4.36% (138 divided by 3162).
Therefore, the 'Town can expect an additional $1,630 from all of these other
minor revenue sources as a result of annexation.
�J
II
1
43

REVENUE -EXPENDITURE SIRMARY FROH THE PROPOSED ANN MTION AREA
FY 1989-1993
44

li
' REVENUE -EXPENDITURE SUMMARY FROM THE PROPOSED ANNEXATION AREA
FY 1989-1993
On the following page is a Revenue -Expenditure Summary for the proposed
' annexation. Costs are divided into operating and capital cost. The operating
costs are the annual expenses the Town will have for providing the service to
' the proposed annexation area. Annual operating costs are projected to increase
at a rate of 6 percent per year.
The capital costs represent the following: a new police car for the new
patrol; water system extensions; 45 new commercial refuse collection containers;
' and 55 new residential containers and street,and storm drainage improvements.
The police car is proposed to be replaced in the 3rd year and 5th year at 'SR
increase per year over its purchase price in the first year. -
' Annual revenues are projected to increase 11 percent per year based on an
analysis of the Town's 1980-86 general fund revenues. Water fees are projected
' to increase 12.2 percent per year based on an analysis of the Town's 1981-86
water and sewer fund revenues.
In estimating the revenues and expenditures, there was an attempt to be
conservative; that is, the attempt was made to make any error in revenue
' estimations reflect revenue less than actual revenues to be received, while any
error in expenditures were made in the direction of overstating expenditures.
Tap fees or utility system impact fees in water fee revenues have not been
' included, as another way to assure that the projections are conservative,
although there certainly will be revenues from this source.
As projected, the Town will realize a positive cash flow from the
annexation in Year 4.
II
II
1 45

GENERAL FUND REVENUE -EXPENDITURE SUMMARY ESTIMATE FOR PROPOSED ANNEXATION AREA
GENERAL FUND
OPERATING EXPENDITURES:
POLICE PROTECTION
FIRE PROTECTION
SANITATION SERVICE
STREETS MAINTENANCE
TOTAL OPERATING EXPENDITURES
CAPITAL EXPENDITURES:
POLICE PROTECTION
SANITATION SERVICE
STREETS CONSTRUCTION
TOTAL CAPITAL EXPENDITURES
TOTAL GENERAL FUND EXPENDITURES
REVENUES:
AD VALOREM (PROPERTY) TAX
SALES AND USE TAX
INTANGIBLES TAX
FRANCHISE TAX
STATE STREET AID (POWELL BILL)
BUILDING PERMITS
SANITATION FEES
PRIVILEGE LICENSE FEES
OTHER MINOR REVENUES
STREET ASSESSMENTS
INTEREST ON ASSESSMENTS
TOTAL GENERAL FUND REVENUES
REVENUES OVER (UNDER) EXPEND.
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
$54,900 $58,194 $61,686 $65,387 $69,310
5,038 5,340 5,661 6,000 6,360
70,040 74,242 78,697 83,419 88,424
4,555 4,828 5,118 5,425 5,751
134,533 142,605 151,161 160,231 169,845
14,000 0 13,230 0 14,586
25,821 0 0 0 0
3,750 21,000 0 0 0
43,571 . 21,000 13,230 0 14,586
178,104 163,605 164,391 160,231 184,431
42,295
46,947
52,112
57,844
64,207
9,271
10,291
11,423
12,679
14,074
1,874
2,080
2,309
2,563
.2,845
5,416
6,012
6,673
7,407
8,222
2,195
2,436
2,704
3,002
3,332
9,000
9,990
11,089
12,309
13,663
66,960
74,326
82,501
91,577
101,650
11,319
12,564
13,946
15,480
17,183
1,630
1,809
2,008
2,229
2,474
375
2,475
2,475
2,475
2,475
0
270
2,022
1,794
1,326
150,335 169,201 189,263 209,359 231,451
(27,769) 5,596 24,871 49,128 47,020
NOTE: COLUMNS MAY NOT SUM TO TOTALS DUE TO ROUNDING.
LL4

WATER & SEWER FUND REVENUE -EXPENDITURE SUMMARY ESTIMATE FOR PROPOSED ANNEXATION AREA
UTILITY FUND
OPERATING EXPENDITURES:
WATER PRODUCTION & DISTRIBUTION
CAPITAL EXPENDITURES:
WATERLINE CONSTRUCTION
TOTAL UTILITY FUND EXPENDITURES
REVENUES:
WATER USAGE FEES AND
SYSTEM MAINTENANCE CHARGES
WATER ASSESSMENTS
INTEREST ON ASSESSMENTS
TOTAL UTILITY FUND REVENUES
REVENUES OVER (UNDER) EXPEND.
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
0 $17,810 $18,879 $20,011 $21,212
118,740 0 0 0 0
118,740 17,810 18,879 20,011 21,212
0
19,299
21,653
24,295
27,259
0
16,578
16,578
16,578
16,578
0
0
11,936
10,610
9,284
0
35,877
50,167
51,483
53,121
(118,740)
18,067
31,289
31,472
31,909
NOTE: COLUMNS MAY NOT SUM TO TOTALS DUE TO ROUNDING.
NOTE: REVENUES CONTAIN NO ALLOWANCE FOR UTILITY SYSTEM IMPACT FEES WHICH
WOULD BE PAID BY PROPERTY OWNERS AT THE TIME NEWLY CONSTRUCTED
BUILDINGS ARE CONNECTED TO THE TOWN'S WATERLINES.
47

N
Pa
yO
ypH
U
Cy7
H
U
0
m m m m m r m = = m m i r = r m m m m

II
II
FINANCING THE COSTS OF SERVICES
General Statute 160A-35, which lists the prerequisites to annexation,
requires that the annexation study, "set forth the method under which the
municipality plans to finance extension of services into the area to .be
annexed". Reference to the revenue and expenditure projections on the preceding
two pages shows that in the first year after annexation the Town will spend
$27,769 more in providing General Fund services to the annexed area than it will
receive in revenues. Because of the conservative approach to estimating
revenues and expenditures, the shortfall in revenues may be overstated.
However, the additional revenue needed to cover the projected shortfall is
equivalent to approximately 3/4 of a cent on the Town's tax rate. The Town will
accommodate this projected shortfall through its tax rate, if necessary.
The revenue and expenditure projections for the Utility Fund show'.a
- shortfall of revenues in the first year after annexation of $118,740. The
amount of this shortfall is the cost of building waterlines in the newly annexed
area. Since the waterlines will not be in place until in .the first year
following annexation, no revenue from customers connected to the lines has been
projected during the first year. However, beginning with the second year after
annexation the sale of water, the repayment to the Town of assessable waterline
construction costs and interest on assessments will return the total cost of the
waterline construction to the Town before the end of the sixth year following
annexation.
Cash available in the Water and Sewer Fund as of June 30, 1988, is
projected to be at least $235,000, not including any income from operations
during the current year or revenue from Utility System Unit Use Fees to be paid
by property owners connecting newly constructed buildings to the water system.
In addition to this cash, the Town also has the capacity to issue $106,000 in
bonds during fiscal 1988-89 under the authority of General Statute 159-49(2).
However, construction of new waterlines in the proposed annexation area, and the
provision of water service to properties in the area, can be accomplished by the
Town under its current policies and rate schedule without the sale of bonds.
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