Town wants financial study of swap

By Allison Brophy Champion

Published: September 3, 2008

As the town and county move toward ratification of an agreement that would create a regional water and sewer authority and expand the town’s corporate limits, several questions require answers. For instance:

- How much would it cost the town to provide services in the new Bus. 29 commercial corridor northeast of downtown?

- And what would the town gain in new tax revenues?

- What would the county lose in tax revenues if it agrees to let the town grow in that area?

- How much is the town’s water and sewer system worth, and what is the value to the county of real estate taxes in areas under consideration via a proposed boundary line adjustment agreement?

The Town Finance Committee, therefore, has recommended “a thorough financial analysis of revenue, expenses and values” associated with the pending contract that would, as currently written, expand the town by nearly 1,900 acres.

The cost of the analysis through an independent consultant is not yet known, but the town hopes to split the expense with the county; the town manager was officially requesting as such Wednesday.

As part of the water and sewer/boundary line adjustment agreement, the town would relinquish control of its water and sewer system to the yet-to-be created authority — a seven-member board that would own, operate and set rates for water and sewer service in the town and county.

But before the town can “sell, rent, lease or otherwise dispose” of its water and sewer system, town voters in a special election must approve the transfer of the publicly owned assets, according to the town charter.

The proposed study of revenue, expenses and values comes before Town Council at its regular meeting Tuesday.

Preliminary estimates from town staff show that the town would operate at a deficit — new taxes vs. new services — for a few years if it absorbed the new areas around Target.

But those estimates are based on the “boundary map as currently drafted, not necessarily as it will be finally approved” by Town Council and the Board of Supervisors, Acting Town Manager Tom Huggard said last month.

Allison Brophy Champion can be reached at 825-0771 ext. 101 or .