Sample Costs per Household

Area

Tax Value

Water Units
Used
(12 months)

Household Cost
Increase/(Decrease)

  
Timber Creek $97,600

102

($181)

 Detailed costs
Cardinal $120,600

102

($72)

 Detailed costs
River Hills $151,700

122

($15)

 Detailed costs
River Hills $135,700

95

$33

 Detailed costs
Brookrun $142,300

82

$123

 Detailed costs
Brookrun $126,400

65

$126

 Detailed costs
Cardinal $164,000

86

$209

 Detailed costs
Timber Creek $114,700

31

$227

 Detailed costs
Study Average $165,930

84

$227

 Detailed costs
Cardinal $261,600

130

$473

 Detailed costs
Cardinal $344,700

77-Main,
52-Sprinkler
(water only)

$902

 Detailed costs

*Methodology Notes: The 10 sample single family households were selected at random from each of the three annexation study areas that contain a significant number of households (Timber Creek, Cardinal-River Hills and Brookrun). Each household’s appraised real property tax valuation was secured from the Guilford County Tax Department as of July 1, 2007. An estimation of the household’s appraised personal property tax valuation is calculated by using a countywide average ratio where personal property tax valuation is 10% of real property tax valuation. The number of motor vehicles is assumed to be two. For calculation of annexation costs, the Pre-Annexation property tax expense includes property tax now paid to their respective Fire District; this is assumed to be 8¢ per hundred, a rate which is typical of the annexation areas. The corresponding City property tax is based on the current rate of .635¢ per hundred. All 10 sample households received City water and sewer service, and this costs reflects their actual annual utility fees (one household also included a second meter for irrigation). Upon annexation, water and sewer fees will drop by 50 percent, and this reduction is reflected in the Post-Annexation column. All 10 households were assumed to have private solid waste collection services costing $192 per year. Upon annexation, this service is included in the household's property tax, and this reduction is reflected in the Post-Annexation column. Upon annexation, households will be subject to a $4.80 annual cost for Household Hazardous Waste disposal and a $10 per year annual motor vehicle tax. Stormwater fees are based on the square footage of the property’s impervious surface. This estimate assumes that the household falls within the middle tier (Tier II), a fee of $32 annually. Local taxes are deductible from a household's Federal and State income taxes. The estimate assumes that each household itemizes their income tax deductions and will realize a deduction for local taxes paid. For Federal income tax, this is assumed to be 15 percent of their local property tax expense; for State income tax, the estimate is 7 percent of their local property tax expense. Calculation of the “Average” household net cost of annexation reflects a similar set of assumptions. The real property tax valuation of $165,930 is the average value of the ten sample households.  Water consumption is based on 84 units annually, which is the average consumption amount for non-City residential customers.