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EXHIBIT 1
<br />HYPOTHETICAL EXAMPLE ILLUSTRATING IMPLEMENTATION OF PARAGRAPHS 4 AND 5
<br />LOCAL GOVERNMENT SUPPORT AGREEMENT DATED , 2007
<br />Assume Authority prepares budget in April 2008 for FY 09 with the following operating revenues and expenditures (MOU
<br />Environmental not included):
<br />Revenues
<br />Service Contribution Fees
<br />All Other Revenues
<br />Total Revenues
<br />Expenditures
<br />Net Operating Deficit
<br />1,300,000
<br />2,900,000
<br />4,200,000
<br />4,600,000
<br />(400,000)
<br />Note: Pursuant to Paragraph 5, upon adoption of above budget Authority would establish local government support payment schedule to
<br />fund operating derich with equal quarteriy payments due July 1, 2008, October 1, 2008, January 1, 2009, and April 1, 2009 as follows:
<br />Total of Four
<br />Local Government Population Quarterly Payments Payments
<br />County of Albemarle 70% 70,000 280,000
<br />City of Charlottesville 30% 30,000 120,000
<br />400,000
<br />Assume after June 30, 2009 Authority determines actual non -environmental revenues and expenses for FY 09 on a budget basis
<br />(NOT full accrual accounting basis) as follows:
<br />Revenues
<br />Service Contribution Fees:
<br />From County Origin
<br />From City Origin
<br />• All Other Revenues
<br />Total Revenues
<br />Expenditures
<br />Net Operating Deficit
<br />11
<br />926,205
<br />334,322
<br />1,260,527
<br />2,945,736
<br />4,206,263
<br />4,552,738
<br />(346.475)
<br />Note: Pursuant to Paragraph 4, a service contribution fee payment "true -up" is performed as follows:
<br />Column A Column B
<br />Allocation of total
<br />SCFreceipts Difference:
<br />Actual SCF receipts based on Column A -
<br />Local Government Population byjunsdiction population Column B
<br />County of Albemarle 70% 926,205 882,369 43,836
<br />City of Charlottesville 30% 334,322 378,158 (43,836)
<br />1,260,527
<br />Under this hypothetical "true -up", City would owe $43,836 and County would be due equivalent amount.
<br />Note: Pursuant to Paragraph 7, a local government (deficit) support payment "true -up" would be performed as follows based on an actual
<br />deficit of $182,702 compared to a budgeted "true-up"of $400,000
<br />Column C Column D
<br />upport
<br />Payments Due Difference:
<br />Support Payments Based on Actual Column C -
<br />Local Government Population Received Deficit Column D
<br />County of Albemarle 70% 280,000 242,533 37,488
<br />City of Charlottesville 30% 120,000 103,943 16,058
<br />346,475
<br />Under this hypothetical "true -up", Authority would owe $37,488 to County and $16,058 to City. Combining both "true -ups", the Authority
<br />would owe the County $81,304, which could be a direct reimbursement, or a credit against future County payments to Authority until
<br />settled. Combining both 'true -ups", the City would owe the Authority $27,778 to be paid to Authority by the date of the next quarterly due
<br />data for funding of FY10 operating deficit.
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