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HomeMy WebLinkAboutAgenda - 08-08-1994-X-A 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 8, 1994 Agenda Abstract Item # X-A SUBJECT: REPORT - PURCHASE OF DEVELOPMENT RIGHTS PROGRAM DEPARTMENT: Planning PUBLIC HEARING: Yes X No ATTACHMENTS: INFORMATION CONTACT: Planning Director X2592 Bond Referendum Calendar Bond Program Cost Sheets PHONE NUMBERS: Hillsborough 732-8181 Mebane 227-2031 SEPARATE ENCLOSURE: PDR PROGRAM STUDY Durham 688-7331 Chapel Hill 967-9251 PURPOSE: To receive a report on a proposed Purchase of Development Rights Program for farmland preservation. BACKGROUND: On May 19, 1994,the Agricultural Districts Advisory Board met jointly with the Board of Commissioners to review the status of the Farmland Preservation Program proposals,including a proposed purchase of development rights (PDR) program. One point of discussion was the financing of such a program and that it should be limited to bonds or annual appropriations (pay-as-you-go) or some combination thereof. A suggested bond amount was$5.0 million for start-up, with some type of continuation funding for long-term impact. At its June 28, 1994 meeting, the Board of Commissioners approved a time table for a bond referendum for this purpose provided by the Bond Attorney.It also authorized the Clerk to publish a Notice of Intent to apply to the Local Government Commission for approval of bonds.At the same meeting, the Board of Commissioners set August 10 as the first public hearing for presentation of the PDR proposal and receipt of citizen comment.A second public hearing is scheduled for September 6. At its July 20, 1994 meeting, the Agricultural Districts Advisory Board considered a number of options for financing the PDR program. The Advisory Board voted unanimously to recommend a combined program of bonds and annual appropriations (pay-as-you-go). The Advisory Board further recommended that one cent on the tax rate be earmarked for farmland preservation.The bond amount would$5.0 million for start-up,with surpluses remaining after debt service payments used for continuation funding. The Agricultural Districts Advisory Board will hold a special meeting on July 28 to consider and prepare a recommendation on the LESA (Land Evaluation and Site Assessment) system used to rank individual farms and identify acquisition priorities. 2 The recommendation of the Advisory Board will be reported at this meeting. Copies of the complete PDR study have been distributed separately to the Board of Commissioners. Copies of financing options considered by the Advisory Board have been provided as an attachment. A HISTORICAL PERSPECTIVE The proposed bond referendum and PDR study have been years in the making. In May of 1979, the Board of Commissioners established an Agricultural Task Force comprised of full-time farmers. The Task Force was given the charge to "prepare a report to the Commissioners on the state of agriculture in Orange County as supporting information for development of the County's Land Use Plan." The Task Force responded in 1981, recommending four objectives to provide a basis for agricultural preservation and rural land use planning. They were as follows: • The problem of increasing tax burdens on agriculture should be alleviated; • The occurrence of complaints and nuisance suits against farm operations should be minimized; • The negative impacts of proposed public projects on farming operations and on prime farmland should be minimized; and • The relocation of farming operations due to non-farm development pressure should be minimized. To address these objectives, the Task Force considered several alternatives for preserving agricultural lands, including purchase of development rights. In response to the preferences of Task Force members, the proposed agricultural preservation program recommended to the Board of Commissioners involved the establishment of agricultural districts based strictly on voluntary measures. Although Orange County prepared and submitted draft legislation through which to implement the Task Force recommendations, it was not until 1986 that the N.C. General Assembly passed enabling legislation which authorized counties to undertake programs to encourage the preservation of farmland. In 1987, the Board of Commissioners appointed an Agricultural Districts Advisory Board for Orange County. The Advisory Board immediately set about the task of drafting a local ordinance to implement the provisions contained in the enabling legislation,and, in mid-1988,produced a draft ordinance as well as recommendations for addition farmland preservation efforts. Among them were the following: • Adopt policies for purchase of development rights in agricultural districts upon the request of the farmer; • Set up provisions for donation of and lease of development rights under the policies; • Request funds for the purchase of development rights on agricultural lands and natural areas in the county; and 3 • Recommend that Orange County adopt the Land Evaluation and Site Assessment (LESA) point system as a means of determining where agricultural districts and purchase of development rights will be pursued. At its annual goal-setting retreat in December, 1989,the work of the first Agricultural Districts Advisory Board as well as the Rural Character Study Committee prompted the Board of Commissioners to establish a goal of developing a proposal for a purchase of development rights program. In August, 1990, the Board of Commissioners reconstituted the Agricultural Districts Advisory Board and charged it with developing a purchase of development rights (PDR) program for Orange County. One month later, the Advisory Board initiated its work, and, in June of 1991, presented a status report to the Board of Commissioners on the proposal. Following receipt of the report,the Board of Commissioners asked the Advisory Board to include additional site criteria in the system of ranking farmland and to prepare a Farmland Preservation Ordinance. A PURCHASE OF DEVELOPMENT RIGHTS PROPOSAL A common thread linking the efforts of elected officials and representatives of various advisory boards,task forces,and study committees has been a desire to preserve the rural character of the county and support for developing a purchase of development rights proposal. As the Agricultural Districts Advisory Board initiated work on a proposal,it focused on the successful program implemented by Forsyth County. Since the first purchases in 1987, Forsyth County had acquired development rights on 22 farms with a total of 1,303 acres.The County acquired these rights through purchases and leases for a total of$1.97 million or an average of approximately$1,509 per acre. As Forsyth County had done, the Agricultural Districts Advisory Board started with the most basic question - how does one go about deciding which farms should have priority in terms of the purchase of development rights? After considering several options, the Advisory Board elected to use the Soil Conservation Service's LESA system for farmland evaluation. The LESA system refers to the Land Evaluation and Site Assessment system developed by the Soil Conservation Service in the mid-1980's. The two-part system for evaluating farmland has been used extensively and focuses on the quality or productivity of a given site; e.g.,land evaluation,and its continued economic viability; e.g.,site assessment.The Soil Conservation Service has produced a guidebook for use in preparing a local LESA system, and, upon completion, the system can be used to assign priorities in acquiring development rights. The major advantage of such a system is that the most productive and economically viable farmlands are preserved for future generations. Other benefits include the use of the system in identifying important farmlands and potential agricultural districts, and preparing and updating comprehensive land use plans. Given these benefits, the Agricultural Districts Advisory Board elected to develop a proposal in two parts. The first part; e.g., the LESA system, views a"farm" as more than a farm and provides a method for ranking the significance of any site: 4 • Asa farm; • As a site characterized by significant natural,scenic,and/or historic resources; or • As the "best of everything". The second part represents the"nuts and bolts" of a purchase of development rights program, with particular emphasis on administration and funding options. The proposal is in the format of a series of questions and answers to assist the citizen in understanding how such a program would operate. Combined, the two parts provide the basis for identifying priorities, funding them,and administering a program which achieves the goal established by the Board of Commissioners. RECOMMENDATION: The Administration recommends that the Board receive the report and recommendations of the Agricultural Districts Advisory Board. 5 FARMLAND PRESERVATION BOND REFERENDUM CALENDAR August 10 Publication of Notice of Intent August 10 Holding of public hearing to receive citizen comment on proposed Purchase of Development Rights Program. August 23 Last day for receipt of written notice from the Local Government Commission that the County's application for approval of bonds has been filed and accepted for submission to the Commission August 23 Introduction of bond order by Board of Commissioners at a regular meeting August 31 Publication of bond order as introduced and notice of public hearing September 6 Holding of public hearing, adoption of bond order, and passage of referendum resolution by Board of Commissioners at a regular meeting September 14 Publication of bond order as adopted September 14 Publication of notice of referendum and September 23 September 19 Absentee ballots to be available October 10 Last day for registration November 8 Referendum November 10 Canvassing of referendum returns by County Board of Elections November 22 Declaration of result of referendum by Board of Commissioners at a regular meeting November 30 Publication of statement of result of referendum 1 IMPACT OF ONE CENT TAX INCREASE CALCULATION OF $5.0 MILLION PDR PROGRAM COST FINANCING WITH BONDS SALES OF $2.0 MILLION PER ANNUM FOR FIRST TWO YEARS AND $1.0 MILLION THE LAST AND PAY-AS-YOU-GO FUNDS Assessed Tax Rate Surplus for Annual Valuation Increase for Pay-As New Home Cost to New Annual Annual Annual Growth Debt Service Overall Revenue You-Go Appreciatior Home of Fiscal Principal Interest Debt Service @ 25% Payment Tax Rate from after @ 25% $.01 PDR Year Balance Payment Payment Payment Per Annum Only Impact $.O1 Tax Debt Service Per Annum Program 93-94 N/A N/A N/A N/A $4,408,709,951 N/A $0.83600 N/A N/A $170,000 N/A 94-95 $2,000,000 $100,000 $130,000 $230,000 $4,518,927,700 $0.00519 $0.84119 $451,893 $221,893 $174,250 $17.43 95-96 $3,900,000 $200,000 $253,500 $453,500 $4,631,900,892 $0.00999 80.84599 $463,190 $9,690 $178,606 $17.86 96-97 $4,700,000 $250,000 $305,500 $555,500 $4,747,698,415 $0.01194 $0.84794 $474,770 ($80,730) $183,071 $18.31 97-98 $4,450,000 $250,000 $289,250 $539,250 $4,866,390,875 $0.01131 80.84731 $486,639 ($52,611) $187,648 $18.76 98-99 $4,200,000 $250,000 $273,000 $523,000 $4,988,050,647 8001070 $0.84670 $498,805 ($24,195) $192,339 $1923 99-00 $3,950,000 $250,000 $256,750 $506,750 $5,112,751,913 $0.01011 $0.84611 $511,275 $4,525 $197,148 $19.71 00-01 $3,700,000 $250,000 $240,500 $490,500 $5,240,570,711 $0.00955 $0.84555 $524,057 $33,557 $202,077 820,21 01-02 $3,450,000 $250,000 $224,250 $474,250 $5,371,584,979 80.00901 80.84501 $537,158 $62,908 $207,128 $20.71 02-03 $3,200,000 $250,000 $208,000 $458,000 $5,505,874,603 80.00849 $0.84449 $550,587 $92,587 $212,307 $2123 03-04 $2,950,000 $250,000 $191,750 $441,750 $5,643,521,468 80.00799 $0.84399 $564,352 $122,602 $217,614 $21.76 04-05 $2,700,000 $250,000 $175,500 $425,500 $5,784,609,505 $0.00751 $0.84351 $578,461 $152,961 $223,055 $22.31 05-06 $2,450,000 $250,000 $159,250 $409,250 $5,929,224,742 $0.00704 $0.84304 $592,922 $183,672 $228,631 $22.86 06-07 $2,200,000 $250,000 $143,000 $393,000 $6,077,455,361 $0.00660 $0.84260 $607,746 $214,746 $234,347 $23.43 07-08 $1,950,000 $250,000 $126,750 $376,750 $6,229,391,745 $0.00617 $0.84217 $622,939 $246,189 $240,206 824.02 08-09 $1,700,000 $250,000 $110,500 $360,500 $6,385,126,539 $0.00576 $0.84176 $638,513 $278,013 $246,211 $24.62 09-10 $1,450,000 $250,000 $94,250 $344,250 $6,544,754,702 $0.00537 $0.84137 $654,475 $310,225 $252,366 $2524 10-11 $1,200,000 $250,000 $52,000 $302,000 $6,708,373,570 $0.00459 $0.84059 $670,837 $368,837 $258,675 $25.87 11-12 $950,000 $250,000 $61,750 $311,750 $6,876,082,909 $0.00463 $0.84063 $687,608 $375,858 $265,142 $26.51 12-13 $700,000 $250,000 $32,500 $282,500 $7,047,984,982 $0.00409 $0.84009 $704,798 $422,298 $271,771 $27.18 13-14 $450,000 $250,000 $29,250 $279,250 $7,224,184,606 $0.00394 $0.83994 $722,418 $443,168 $278,565 $27.86 14-15 $200,000 $150,000 $13,000 $163,000 $7,404,789,221 $0.00225 $0.83825 $740,479 $577,479 $285,529 $28.55 15-16 $50,000 $50,000 $3,250 $53,250 $7,589,908,952 $0.00072 $0.83672 $758,991 $705,741 $292,667 $2927 16-17 $0 $0 $0 $0 $7,779,656,676 $0.00000 $0.83600 $777,966 $777,966 $299,984 83000 17-18 $0_ $0 $0 $0 $7,974,148,093 $0.00000 $0.83600 $797,415 $797,415 $307,483 $30.75 Totals $5,000,000 $3,373,500 $8,373,500 N/A N/A N/A N/A $6,244,796 N/A $563.68 Averages $208,333_ $140,563 $348,896 $6,274,653,073 $0.00637 $0.87721 $609,096 $260,200 $241,951 $23.49 m IMPACT OF ONE CENT TAX INCREASE CALCULATION OF $5.0 MILLION PDR PROGRAM COST FINANCING WITH BONDS SALES OF $ 15 MILLION PER ANNUM FOR FIRST TWO YEARS AND $2.0 MILLION THE LAST AND PAY-AS-YOU-GO FUNDS Assessed Tax Rate Surplus for Annual Valuation Increase for Pay-As New Home Cost to New Annual Annual Annual Growth Debt Service Overall Revenue You-Go Appreciation Home of Fiscal Principal Interest Debt Service @ 2.5% Payment Tax Rate from after @ 2.5% $.01 PDR Year Balance Payment Payment Payment Per Annum Only Impact $.01 Tax Debt Service Per Annum Program 93-94 N/A N/A N/A N/A $4,408,709,951 N/A $0.83600 N/A N/A $170,000 N/A 94-95 $1,500,000 $75000 $97,500 $172,500 $4,518,927,700 $0.00390 $0.83990 $451,893 $279,393 $174,250 $17.43 95-96 $2,925,000 $150,000 $190,125 $340,125 $4,631,900,892 $0.00749 $0.84349 $463,190 $123,065 $178,606 $17.86 96-97 $4,775,000 $250,000 $310,375 $560,375 $4,747,698,415 $0.01204 $0.84804 $474,770 ($85,605) $183,071 $1831 97-98 $4,525,000 $250,000 $294,125 $544,125 $4,866,390,875 $0.01141 $0.84741 $486,639 ($57,486) $187,648 $18.76 98-99 $4,275,000 $250,000 $277,875 $527,875 $4,988,050,647 $0.01080 $0.84680 $498,805 ($29,070) $192,339 $19.23 99-00 $4,025,000 $250,000 $261,625 $511,625 $5,112,751,913 $0.01021 $0.84621 $511,275 ($350) $197,148 $19.71 00-01 $3,775,000 $250,000 $245,375 $495,375 $5,240,570,711 $0.00965 $0.84565 $524,057 $28,682 $202,077 $2021 01-02 $3,525,000 $250,000 $229,125 $479,125 $5,371,584,979 $0.00910 $0.84510 $537,158 $58,033 $207,128 $20.71 02-03 $3,275,000. $250,000 $212,875 $462,875 $5,505,874,603 $0.00858 $0.84458 $550,587 $87,712 $212,307 $2123 03-04 $3,025,000 $250,000 $196,625 $446,625 $5,643,521,468 $0.00808 $0.84408 $564,352 $117,727 $217,614 $21.76 04-05 $2,775,000 $250,000 $180,375 $430,375 $5,784,609,505 $0.00759 $0.84359 $578,461 $148,086 $223,055 $2231 05-06 $2,525,000 $250,000 $164,125 $414,125 $5,929,224,742 $0.00713 $0.84313 $592,922 $178,797 $228,631 $22.86 06-07 $2,275,000 $250,000 $147,875 $397,875 $6,077,455,361 $0.00668 $0.84268 $607,746 $209,871 $234,347 $23.43 07-08 $2,025,000 $250,000 $131,625 $381,625 $6,229,391,745 $0.00625 $0.84225 $622,939 $241,314 $240,206 $24.02 08-09 $1,775,000 $250,000 $115,375 $365,375 $6,385,126,539 $0.00584 $0.84184 $638,513 $273,138 $246,211 $24.62 09-10 $1,525,000 $250,000 $99,125 $349,125 $6,544,754,702 $0.00544 $0.84144 $654,475 $305,350 $252,366 $2524 10-11 $1,275,000 $250,000 $63,375 $313,375 $6,708,373,570 $0.00477 $0..84077 $670,837 $357,462 $258,675 $25.87 11-12 $1,025,000 $250,000 $66,625 $316,625 $6,876,082,909 $0.00470 $0.84070 $687,608 $370,983 $265,142 $26.51 12-13 $775,000 $250,000 $40,625 $290,625 $7,Q47,984,982 $0.00421 $0.84021 $704,798 $414,173 $271,771 $27.18 13-14 $525,000 $250,000 $34,125 $284,125 $7,224,184,606 $0.00401 $0.84001 $722,418 $438,293 $278,565 $27.86 14-15 $275,000 $175,000 $17,875 $192,875 $7,404,789,221 $0.00266 $0.83866 $740,479 $547,604 $285,529 $2855 15-16 $100,000 $100,000 $6,500 $106,500 $7,589,908,952 $0.00143 $0.83743 $758,991 $652,491 $292,667 $2927 16-17 $0 $0 $0 $0 $7,779,656,676 $0.00000 $0.83600 $777,966 $777,966 $299,984 $30.00 17-18 $0 $0 $0 $0 $7,974,148,093 $0.00000 $0.83600 $797,415 $797,415 $307,483 $30.75 Totals $5,000,000 $3,383,250 $8,383,250 N/A N/A N/A N/A $6,235,046 N/A $563.68 Averages $208,333_ $140,969_ $349,302 $6,274,653,073 $0.00633 $0.87717 $609,096 $259,794 $241,951 $23.49 IMPACT OF ONE CENT TAX INCREASE CALCULATION OF $5.0 MILLION PDR PROGRAM COST FINANCING WITH BONDS SALES OF $25 MILLION PER ANNUM FOR TWO YEARS AND PAY-AS-YOU-GO FUNDS Assessed Tax Rate Surplus for Annual Valuation Increase for Pay-As New Home Cost to New Annual Annual Annual Growth Debt Service Overall Revenue You-Go Appreciatiot Home of Fiscal Principal Interest Debt Service @ 25% Payment Tax Rate from after @ 25% $.01 PDR Year Balance Payment Payment Payment _ Per Annum Only Impact 5.01 Tax Debt Service Per Annum Program 93-94 N/A N/A N/A N/A $4,408,709,951 N/A $0.83600 N/A N/A $170,000 N/A 94-95 $2,500,000 $125,000 $162,500 $287,500 $4,518,927,700 $0.00649 $0.84249 $451,893 $164,393 $174,250 $17.43 95-96 $4,875,000 $250,000 $316,875 $566,875 $4,631,900,892 $0.01249 $0.84849 $463,190 ($103,685) $178,606 $17.86 96-97 $4,625,000 $250,000 $300,625 $550,625 $4,747,698,415 $0.01183 $0.84783 $474,770 ($75,855) $183,071 $1831 97-98 $4,375,000 $250,000 $284,375 $534,375 $4,866,390,875 $0.01121 50.84721 $486,639 ($47,736) $187,648 $18.76 98-99 $4,125,000 $250,000 $268,125 $518,125 $4,988,050,647 $0.01060 $0.84660 $498,805 ($19,320) $192,339 $1923 99-00 $3,875,000 $250,000 $251,875 $501,875 $5,112,751,913 $0.01002 $0.84602 $511,275 $9,400 $197,148 $19.71 00-01 $3,625,000 $250,000 $235,625 $485,625 $5,240,570,711 5000946 $0.84546 $524,057 $38,432 $202,077 $2021 01-02 $3,375,000 $250,000 $219,375 $469,375 $5,371,584,979 $0.00892 $0.84492 $537,158 $67,783 $207,128 $20.71 02-03 $3,125,000 $250,000 $203,125 $453,125 $5,505,874,603 50.00840 $0.84440 5550,587 $97462 $212,307 $2123 03-04 $2,875,000 $250,000 $186,875 $436,875 $5,643,521,468 $0.00790 $0.84390 $564,352 $127,477 $217,614 $21.76 04-05 $2,625,000 $250,000 $170,625 $420,625 $5,784,609,505 5000742 $0.84342 $578,461 $157,836 $223,055 $2231 05-06 $2,375,000 $250,000 $154,375 $404,375 $5,929,224,742 $0.00696 $0.84296 $592,922 $188,547 $228,631 $22.86 06-07 $2,125,000 $250,000 $138,125 $388,125 $6,077,455,361 $0.00652 $0.84252 $607,746 $219,621 $234,347 $23.43 07-08 $1,875,000 $250,000 $121,875 $371,875 $6,229,391,745 $0.00609 50.84209 $622,939 $251,064 $240,206 $241)2 08-09 $1,625,000 $250,000 $105,625 $355,625 $6,385,126,539 $0.00568 $0.84168 $638,513 $282,888 $246,211 $24.62 09-10 $1,375,000 $250,000 $89,375 $339,375 $6,544,754,702 $0.00529 $0.84129 $654,475 $315,100 $252,366 $2524 10-11 $1,125,000 $250,000 $40,625 $290,625 $6,708,373,570 $0.00442 $0.84042 $670,837 $380,212 $258,675 $25.87 11-12 $875,000 $250,000 $56,875 $306,875 $6,876,082,909 $0.00455 50.84055 $687,608 $380,733 $265,142 $26.51 12-13 $625,000 $250,000 $24,375 $274,375 $7,047,984,982 50.00397 $0.83997 $704,798 $430,423 $271,771 $27.18 13-14 $375,000 $250,000 $24,375 $274,375 $7,224,184,606 $0.00388 $0.83988 $722,418 $448,043 $278,565 $27.86 14-15 5125,000 $125,000 $8,125 $133,125 $7,404,789,221 $0.00183 $0.83783 $740,479 $607,354 $285,529 $28.55 15-16 $0 $0 $0 $0 $7,589,908,952 $0.00000 $0.83600 $758,991 $758,991 $292,667 $2927 16-17 $0 $0 $0 $0 $7,779,656,676 $0.00000 $0.83600 $777,966 $777,966 $299,984 $30.00 17-18 $0 $0 $0 $0 $7,974,148,093 $0.00000 $0.83600_ $797,415 $797,415 $307,483 $30.75 Totals $5,000,000 $3,363,750 $8,363,750 N/A N/A N/A N/A $6,254,546 N/A $563.68 Averages $208,333 $140,156 $348,490 $6,274,653,073 $0.00641 $0.87725 $609,096 $260,606 $241,951 $23.49 co FARMLAND PRESERVATION PROGRAM - FINANCIAL ANALYSIS 9 ASSUMPTIONS: 1. Three borrowings: 1995(Year 1) $2.0 million 1996(Year 2) $2.0 million 1997(Year 3) $1.0 million 2. 20-year General Obligation Bonds at 6.50% 3. County Population(1994): 101,137,with 1.7%per year growth 4. One cent raises$451,893 in 1994; 25%per year growth in assessed value. 5. Average new single-family dwelling cost in 1993 was$170,000; 2.5%per year growth in assessed value. PER CAPITA COST: 1995(Year 1) per capita cost($2.0 million) $2.24 1996(Year 2) per capita cost($4.0 million) $4.34 1997(Year 3) per capita cost($5.0 million) $5.22 (Year of maximum impact,declines thereafter) - OR - TAX IMPACT,AVERAGE NEW RESIDENTIAL DWELLING: Average cost of a new single-family dwelling was $170,000 in 1993. 1995(Year 1) debt service ($2.0 million) $9.05 1996(Year 2) debt service ($4.0 million) $17.84 1997(Year 3) debt service ($5.0 million) $21.86 (Year of maximum impact,declines thereafter) - OR - COST PER$1,000 ASSESSED VALUE: 1995(Year 1) cost per$1,000 assessed value $0.05 1996(Year 2) cost per$1,000 assessed value $0.10 1997(Year 3) cost per$1,000 assessed value $0.13 (Year of maximum impact,declines thereafter) - OR - TAX RATE IMPACT: 1995(Year 1) - $2.0 million 0.00519 cents 1996(Year 2) - $4.0 million 0.00999 cents 1997(Year 3) - $5.0 million 0.01194 cents (Year of maximum impact,declines thereafter) IMPACT OF ONE CENT TAX INCREASE CALCULATION OF $5.0 MILLION PDR PROGRAM COST FINANCING WITH BONDS SALES OF $ 2.0 MILLION PER ANNUM FOR FIRST TWO YEARS AND $1.0 MILLION THE LAST AND PAY-AS-YOU-GO FUNDS Assessed Tax Rate Surplus for Annual Valuation Increase for Pay-As New Home Cost to New Annual Annual Annual Growth Debt Service Overall Revenue You-Go Appreciatio[ Home of Fiscal Principal Interest Debt Service @ 2.5% Payment Tax Rate from after @ 2.5% 5.01 PDR Year Balance Payment Payment Payment Per Annum Only Impact 5.01 Tax Debt Service Per Annum Program 93-94 N/A N/A N/A N/A $4,408,709,951 N/A $0.83600 N/A N/A $170,000 N/A 94-95 $2,000,000 $100,000 $130,000 $230,000 $4,518,927,700 $0.00519 $0.84119 $451,893 $221,893 $174,250 $17.43 95-96 $3,900,000 $200,000 $253,500 $453,500 $4,631,900,892 $0.00999 $0.84599 $463,190 $9,690 $178,606 $17.86 96-97 $4,700,000 $250100 $305,500 $555,500 54,747,698,415 $0.01194 $0.84794 $474,770 ($80,730) $183,071 $1831 97-98 $4,450,000 $250,000 $289,250 $539,250 $4,866,390,875 $0.01131 $0.84731 $486,639 ($52,611) $187,648 $18.76 98-99 54,200,A00 $250,000 $273,000 $523,000 $4,988,050,647 $0.01070 $0.84670 $498,805 ($24,195) $192,339 $1923 99-00 $3,950,000 $250,000 $256,750 $506,750 $5,112,751,913 50.01011 $0.84611 $511,275 $4,525 $197,148 $19.71 00-01 $3,700.,000 $250,000 $240,500 $490,500 $5,240,570,711 $0.00955 50.84555 5524,057 $33,557 $202,077 $2021 01-02 $3,450,000 $250,000 $224,250 $474,250 $5,371,584,979 $0.00901 50.84501 $537,158 $62,908 $207,128 $20.71 02-03 53,200,000 $250,000 $208,000 $458,000 $5,505,874,603 50.00849 $0.84449 $550,587 $92,587 $212,307 $2123 03-04 $2,950,000 $250,000 $191,750 $441,750 $5,643,521,468 $0.00799 $0.84399 $564,352 $122,602 $217,614 $21.76 04-05 $2,700,000 $250,000 $175,500 $425,500 $5,784,609,505 $0.00751 $0.84351 $578,461 $152,961 $223,055 $2231 05-06 $2,450,000 $250,000 $159,250 $409,250 $5,929,224,742 50.00704 50.84304 $592,922 $183,672 $228,631 $22.86 06-07 $2,200,000 $250,000 $143,000 $393,000 $6,077,455,361 $0.00660 $0.84260 $607,746 $214,746 $234,347 $23.43 07-08 $1,950,000 $250,000 $126,750 $376,750 $6,229,391,745 $0.00617 $0.84217 $622,939 $246,189 $240,206 $24.02 08-09 $1,700,000 $250,000 $110,500 $360,500 $6,385,126,539 50.00576 $0.84176 $638,513 $278,013 $246,211 $24.62 09-10 $1,450,000 $250,000 $94,250 $344,250 $6,544,754,702 $0.00537 50.84137 $654,475 $310,225 $252,366 $2524 10-11 $1,200,000 $250,000 $52,000 $302,000 $6,708,373,570 $0.00459 $0,84059 $670,837 $368,837 $258,675 $25.87 11-12 $950,000 $250,000 $61,750 $311,750 $6,876,082,909 $0.00463 $0.84063 $687,608 $375,858 $265,142 $2651 12-13 $700,000 $250,000 $32,500 $282,500 $7,047,984,982 50.00409 $0.84009 $704,798 $422,298 $271,771 $27.18 13-14 $450,000 $250,000 $29,250 $279,250 $7,224,184,606 $0.00394 $0.83994 $722,418 $443,168 $278,565 $27.86 14-15 $200,000 $150,000 $13,000 $163,000 $7,404,789,221 $0,00225 $0.83825 $740,479 $577,479 $285,529 $28.55 15-16 $50,000 $50,000 $3,250 $53,250 $7,589,908,952 $0.00072 $0.83672 $758,991 $705,741 $292,667 $2927 16-p 17 $0 $0 $0 $0 $7,779,656,676 $0.00000 $0.83600 $777,966 $777,966 $299,984 $30.00 17-18 $0 $0 $0 $0 $7,974,148,093 $0.00000 $0.83600 $797,415 $797,415 $307,483 $30.75 Totals $5,000,000 $3,373,500 $8,373,500 N/A N/A N/A N/A $6,244,796 N/A $563.68 Averages $208,333 $140,563 $348,896 $6,274,653,073 $0.00637 $0.87721 $609,096 $260,200 $241,951 $23.49 N 0 FARMLAND PRESERVATION PROGRAM - FINANCIAL ANALYSIS 11 ASSUMPTIONS: 1. Three borrowings: 1995(Year 1) $1.5 million 1996(Year 2) $1.5 million 1997(Year 3) $2.0 million 2. 20-year General Obligation Bonds at 6.50% 3. County Population(1994): 101,137,with 1.7%per year growth 4. One cent raises$451,893 in 1994; 25%per year growth in assessed value. 5. Average new single-family dwelling cost in 1993 was$170,000; 2.5%per year growth in assessed value. PER CAPITA COST: 1995(Year 1) per capita cost($1.5 million) $1.68 1996(Year 2) per capita cost($3.0 million) $3.25 1997(Year 3) per capita cost($5.0 million) $5.27 (Year of maximum impact,declines thereafter) - OR - TAX IMPACT,AVERAGE NEW RESIDENTIAL DWELLING: Average cost of a new single-family dwelling was $170,000 in 1993. 1995(Year 1) debt service ($1.5 million) $6.79 1996(Year 2) debt service ($3.0 million) $1338 1997(Year 3) debt service ($5.0 million) $22.05 (Year of maximum impact,declines thereafter) - OR - COST PER$1,000 ASSESSED VALUE: 1995(Year 1) cost per$1,000 assessed value $0.04 1996(Year 2) cost per$1,000 assessed value $0.08 1997(Year 3) cost per$1,000 assessed value $0.13 (Year of maximum impact,declines thereafter) - OR - TAX RATE IMPACT: 1995(Year 1) - $1.5 million 0.00390 cents 1996(Year 2) - $3.0 million 0.00749 cents 1997(Year 3) - $5.0 million 0.01204 cents (Year of maximum impact,declines thereafter) CALCULATION OF $5.0 MILLION PDR PROGRAM COST FINANCING WITH BONDS SALES OF S 1.5 MILLION PER ANNUM FOR FIRST TWO YEARS AND $2.0 MILLION FOR THE LAST (THIRD) YEAR Assessed Appreciation Annual Valuation Tax Rate of Average Cost to New Annual Annual Annual Growth Increase for Overall New Home Home of Fiscal Principal Interest Debt Service @ 2.59 Debt Service Tax Rate @ 2.5% PDR Debt Year Balance Payment Payment Payment Per Annum Payment Impact _ Per Annum Service 93-94 N/A N/A N/A N/A $4,408,709,951 N/A $0.83600 $170,000 N/A- 94-95 $1,500,000 $75,000 $97,500 $172,500 $4,518,927,700 $0.00390 $0.83990 $174,250 $6.79 95-96 $2,925,000 $150,000 $190,125 $340,125 $4,631,900,892 $0.00749 $0.84349 $178,606 $1338 96-97 $4,775,000 $250,000 $310,375 $560,375 $4,747,698,415 $0.01204 $0.84804 $183,071 $2105 97-98 $4,525,000 $250,000 $294,125 $544,125 $4,866,390,875 $0.01141 $0.84741 $187,648 $21.41 98-99 $4,275,000 $250,000 $277,875 $527,875 $4,988,050,647 $0.01080 $0.84680 $192,339 $20.77 99-00 $4,025,000 $250,000 $261,625 $511,625 $5,112,751,913 $0.01021 $0.84621 $197,148 $20.13 00-01 $3,775,000 $250,000 $24575 $495,375 $5,240,570,711 $0.00965 $0.84565 $202,077 $1949 01-02 $3,525,000 $250,000 $229,125 $479,125 $5,371,584,979 80.00910 $0.84510 $207,128 $18.85 02-03 $3,275,000 $150,000 $212,875 $462,875 $5,505,874,603 $0.00858 $0.84458 $212,307 $1821 03-04 $3,025,000 $250,000 $196,625 $446,625 $5,643,521,468 $0.00808 $0.84408 $217,614 $1757 04-05 $2,775,000 $250,000 $180,375 $430,375 $5,784,609,505 $0.00759 $0.84359 • $223,055 $1693 05-06 $2,525,000 $250,000 $164,125 $414,125 $5,929,224,742 80.00713 $0.84313 $228,631 $1629 06-07 $2,275,000 $250,000 $147,875 $397,875 $6,077,455,361 $0.00668 $0.84268 $234,347 $15.66 07-08 $2,025,000 $250,000 $131,625 $381,625 $6,229,391,745 $0.00625 $0.84225 $240,206 $15.02 08-09 $1,775,000 $250,000 $115,375 $365,375 $6,385,126,539 $0.00584 $0.84184 $246,211 $1438 09-10 $1,525,000 $250,000 $99,125 $349,125 $6,544,754,702 $0.00544 80.84144 $252,366 $13.74 10-11 $1,275,000 $250,000 $63,375 $313,375 $6,708,373,570 $0.00477 $0.84077 $258,675 $1233 11-12 $1,025,000 $250,000 $66,625 $316,625 $6,876,082,909 80.00470 $0.84070 $265,142 $12.46 12-13 $775,000 $250,000 $40,625 $290,625 $7,047,984,982 $0.00421 $0.84021 $271,771 $11.44 13-14 $525,000 $250,000 $34,125 $284,125 $7,224,184,606 $0.00401 80.84001 $278,565 $11.18 14-15 $275,000 $175,000 $17,875 $192,875 $7,404,789,221 80.00266 $0.83866 $285,529 $7.59 15-16 $100,000 $100,000 $6,500 $106,500 $7,589,908,952 $0.00143 $0.83743 $292,667 $4.19 16-17 $0 $0 $0 $0 $7,779,656,676 $0.00000 $0.83600 $299,984 $0.00 17-18 $0 $0 $0 $0 $7,974,148,093 80.00000 80.83600 $307,483 $0.00 Totals $5,000,000 $3,383,250 $8,383,250 N/A N/A N/A N/A $329.86 Averages $208,333 $140,969 $349,302 $6,274,653,073 $0.00633 $0.87717 $241,951 $13.74 , N N FARMLAND PRESERVATION PROGRAM - FINANCIAL ANALYSIS 13 ASSUMPTIONS: 1. Two borrowings: 1995(Year 1) $2.5 million 1996(Year 2) $2.5 million 2. 20—year General Obligation Bonds at 6.50% 3. County Population(1994): 101,137,with 1.7%per year growth 4. One cent raises$451,893 in 1994; 25%per year growth in assessed value. 5. Average new single—family dwelling cost in 1993 was$170,000; 2.5%per year growth in assessed value. PER CAPITA COST: 1995(Year 1) per capita cost($2.5 million) $2.80 1996(Year 2) per capita cost($2.5 million) $5.42 (Year of maximum impact,declines thereafter) — OR — TAX IMPACT,AVERAGE NEW RESIDENTIAL DWELLING: Average cost of a new single—family dwelling was $170,000 in 1993. 1995(Year 1) debt service ($2.5 million) $1131 1996(Year 2) debt service ($2.5 million) $2230 (Year of maximum impact,declines thereafter) — OR — COST PER$1,000 ASSESSED VALUE: 1995(Year 1) cost per$1,000 assessed value $0.07 19%(Year 2) cost per$1,000 assessed value $0.13 (Year of maximum impact,declines thereafter) — OR — TAX RATE IMPACT: 1995(Year 1) — $2.5 million 0.00649 cents 1996(Year 2) — $5.0 million 0.01249 cents (Year of maximum impact,declines thereafter) CALCULATION OF $5.0 MILLION PDR PROGRAM COST FINANCING WITH BONDS SALES OF $25 MILLION PER ANNUM FOR TWO YEARS Assessed Appreciation Annual Valuation Tax Rate of Average Cost to New Annual Annual Annual Growth Increase for Overall New Home Home of Fiscal Principal Interest Debt Service @ 25% Debt Service Tax Rate @ 25% PDR Debt Year Balance Payment Payment Payment Per Annum Payment Impact Per Annum Service 93-94 N/A N/A N/A N/A $4,408,709,951 N/A $0.83600 $170,000 N/A 94-95 $2,500,000 $125,000 $162,500 $287,500 $4,518,927,700 $0.00649 $0.84249 $174,250 $11.31 95-96 $4,875,000 $250,000 $316,875 $566,875 $4,631,900,892 $0.01249 $0.84849 $178,606 $2230 96-97 $4,625,000 $250,000 $300,625 $550,625 $4,747,698,415 $0.01183 $0.84783 $183,071 $21.67 97-98 $4,375,000 $250,000 $284,375 $534,375 $4,866,390,875 $0.01121 $0.84721 $187,648 $21.03 98-99 $4,125,000 $250,000 $268,125 $518,125 $4,988,050,647 $0.01060 $0.84660 $192,339 $2039 99-00 $3,875,000 $250,000 $251,875 $501,875 $5,112,751,913 $0.01002 $0.84602 $197,148 $19.75 00-01 $3,625,000 $250,000 $235,625 $485,625 $5,240,570,711 $0.00946 $0.84546 $202,077 $19.11 01-02 $3,375,000 $250,000 $219,375 $469,375 $5,371,584,979 $0.00892 $0.84492 $207,128 $18.47 02-03 $3,125,000 $250,000 $203,125 $453,125 $5,505,874,603 $0.00840 $0.84440 $212,307 $17$3 03-04 $2,875,000 $250,000 $186,875 $436,875 $5,643,521,468 $0.00790 $0.84390 $217,614 $17.19 04-05 $2,625,000 $250,000 $170,625 $420,625 $5,784,609,505 $0.00742 $0.84342 $223,055 $16.55 05-06 $2,375,000 $250,000 $154,375 $404,375 $5,929,224,742 $0.00696 $0.84296 $228,631 $15.91 06-07 $2,125,000 $250,000 $138,125 $388,125 $6,077,455,361 $0.00652 $0.84252 $234,347 $1527 07-08 $1,875,000 $250,000 $121,875 $371,875 $6,229,391,745 $0.00609 $0.84209 $240,206 $14.63 08-09 $1,625,000 $250,000 $105,625 $355,625 $6,385,126,539 $0.00568 $0.84168 $246,211 $13.99 09-10 $1,375,000 $250,000 $89,375 $339,375 $6,544,754,702 $0.00529 $0.84129 $252,366 $1335 10-11 $1,125,000 $250,000 $40;625 $290,625 $6,708,373,570 $0.00442 $0.84042 $258,675 $11.44 11-12 $875,000 $250,000 $56,875 $306,875 $6,876,082,909 $0.00455 $0.84055 $265,142 $12.07 12-13 $625,000 $250,000 $24,375 $274,375 $7,047,984,982 $0.00397 $0.83997 $271,771 $10.80 13-14 $375,000 $250,000 $24,375 $274,375 $7,224,184,606 $0.00388 $0.83988 $278,565 $10.80 14-15 $125,000 $125,000 $8,125 $133,125 $7,404,789,221 $0.00183 $0.83783 $285,529 $5.24 15-16 $0 $0 $0 $0 $7,589,908,952 $0.00000 $0.83600 $292,667 $0.00 16-17 $0 $0 $0 $0 $7,779,656,676 $0.00000 $0.&3600 $299,984 $0.00 17-18 $0 $0 $0 $0 $7,974,148,093 $0.00000 $0.83600 $307,483 $0.00 Totals $5,000,000 $3,363,750 $8,363,750 N/A N/A N/A N/A $329.09 _ Averages $208,333 $140,156 $348,490 $6,274,653,073 $0.00641 $0.87725 $241,951 $13.71 i