Officially, it’s called the “Memorandum of Understanding between the town of Culpeper, Virginia and the county of Culpeper, Virginia regarding creating a Regional Water and Sewer Authority, expanding town geographical area by agreed boundary adjustment, and related topics.”

More simply put, it’s the biggest swap of land and public utilities under consideration in Culpeper history.

But what, exactly, is contained in the 10-page MOU, circa 2008?

It is not to be confused with 2003’s water and sewer MOU between the town and county, which allowed the town to extend its utilities in areas of high growth just beyond its borders.

Five years later, town government is considering the eventual transfer — once approved by town voters — of its water and sewer systems and customers to a seven-member “Culpeper Service Authority.”

Town Council and the Board of Supervisors would appoint members to the authority, which would own, operate and set rates for town and county water and sewer customers.

In exchange for giving up sole control of its utility assets, the town gets to grow its borders by approximately 1,890 acres, primarily in the Bus. 29 corridor around Lowe’s — much of which is already being served with town water and sewer.

Included in the proposed new town areas are more than 80 businesses, including the Target and Starbucks’ shopping centers, and about 350 housing units, according to approximate figures compiled by County Planner John Egertson.

Unanswered questions
But is it a fair exchange?

How much would it cost the town to provide trash pickup and other municipal services, including police, in the new areas?

How much in new annual tax revenue would the town collect from the many new businesses and restaurants, including its local meals tax, which affected eateries currently don’t pay?

How much in new real estate taxes would the town collect?

And would the new revenue match, exceed or fall short of new costs associated with expanding the town beyond its 1968 borders?

Would the new revenue make up for lost tap and user fees earned annually by the town’s water and sewer system? And what is the value of the system?

These are questions Town Council and the Board of Supervisors will have to consider in coming weeks and months as they move to legally adopt the complicated concept of a large land swap for publicly owned utilities.

Time constraints
The county, ultimately, wants the town to make up its mind on these issues by September.

That’s because the county must start building its own sewer treatment plant and have it operational by the end of 2010 or it stands to lose the state’s allocation to do so. If it joins with the town on an authority, the allocation to treat sewer goes with the authority.

Meanwhile, Angler Development of Warrenton, through a public-private partnership with the county, has offered to build a $110 million water and sewer system to serve areas around the town — a proposal the Board of Supervisors will consider this month.

“The train is leaving the station,” Supervisor Larry Aylor told the town at Monday’s joint meeting with Town Council. “Get on it or get off. … It’s no secret time is of the essence.”

But now that the town and county have agreed, in concept, to the creation of the Culpeper Service Authority, the Angler deal could be dead in the water.

“We will be on multiple paths,” Supervisor Tom Underwood said Monday. “So we need to have all of this done by the third week of August,” he added of finalizing the authority and boundary line adjustment documents with the town.

What’s next?
According to County Attorney Dave Maddox, attorney Stanley Franklin from the northern Virginia firm of McGuire Woods is working on those “key documents” that — once signed by both governing bodies — would legally ratify the land/utility swap.

But add in the entirely separate push by businessman Joe Daniel to consolidate the town and county into one new Culpeper County and the Angler proposal, and the future of water and sewer in Culpeper is murky.

“I’m as frustrated as the rest of us,” said Town Mayor Pranas Rimeikis at Monday’s emotionally charged meeting with the county. “But I have a duty to look out for the town of Culpeper.

“This document, to me, is not ready for primetime,” added the mayor, one of two council members who voted against its adoption.

Councilman Jim Risner joined Rimeikis and Supervisor Steve Nixon — one of two town representatives on the county board — in voting against the MOU’s adoption at Monday’s meeting. Risner too felt there were too many unanswered questions and that the process was too rushed.

“I have to be able to explain to town citizens why it is in their best interests to give up their capital assets,” he said. “If we can’t get them to vote in a referendum to give up their assets, we are hamstringing the authority.”

Many questions still remain about final documents stemming from the MOU.

One thing is for sure, however: The document signed at a special ceremony Tuesday by Rimeikis and Nixon could lead to big changes in Culpeper.

MOU ’08: What’s it say?

Besides the aforementioned details, the latest memorandum of understanding addresses construction of a western loop road connecting Route 729 and U.S. 522.

The town and county should continue to contribute shared state funds for this project, the MOU says, “to expedite construction.”

As for agricultural land located in the county proposed to become part of the town, those parcels will remain so as “the town shall create agricultural zoning.” In addition, the Culpeper Farmer’s Co-Op, Petroleum Co-Op and County Farm Service will not become part of the town, though areas immediately adjacent will.

The MOU also specifies that the town and county will work together to plan land-use designations for the new areas, including development of “a master zoning plan.”

Further, Lake Catalpa, also known as Bald Run Lake, a 46-acre body of water northwest of downtown, will be transferred from the county to the town as part of the boundary shift.

The pending Culpeper Service Authority should, then, consider Lake Catalpa as “another surface water source … for the future water needs of the town and county.” This could include the possible expansion of Lake Catalpa, using wells to supplement water sources and pumping and piping water to Lake Pelham, the town’s main reservoir, from other water sources.

Also, “The town, county and Authority should plan for potential recreational use of areas around Lake Catalpa,” the approved MOU says.

The MOU ends with a section on “revenue balancing” in which the town and county “shall consider, determine, and agree upon a revenue balancing plan which considers the revenues and expenses which are gained and lost by the County and Town in the boundary adjusted areas.”

Under consideration will be gains in town taxes, losses in county taxes, additional town expenses and reduced county expenses. “The parties will seek to insure that there is a substantial balancing of revenues and expenses at the time of the boundary adjustment and will seek to preclude precipitous increases in taxes or fees for landowners in the boundary adjusted area,” the MOU concludes.

According to Maddox, final documents sealing the deals will be ready for the town and county’s consideration sometime this month. The Commission on Local Government and a special three-judge panel ultimately must endorse the final boundary line adjustment, a process that could take more than a year.