HomeMy WebLinkAboutRES-2010-069 Resolution Regarding Planned Uses of Revenues from a Potential One-Quarter Cent (1/4¢) County Sales and Use Tax l� 5 9 Imo• aU10 o�q
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ORANGE COUNTY BOARD OF COMMISSIONERS
A Resolution Regarding Uses of Potential Revenues
from a One-Quarter Cent (1/4¢) County Sales and Use Tax
WHEREAS, there are significant pressing infrastructure, economic development, school, and
other County capital needs that are precipitated by growth pressures and the new economic
reality facing Orange County; and
WHEREAS, it is important to provide Orange County taxpayers with alternatives to the
pressure to raise property taxes to address these and other County needs; and
WHEREAS, the levy of a Article 46 one-quarter cent (1/4¢) County sales and use tax would
provide a new County revenue source and would generate approximately $2,300,000
annually for the County; and
WHEREAS, it is important for Orange County to plan for future economic development that
will enable the County to recruit, retain, grow, and generate businesses and jobs that are
desirable; and
WHEREAS, it is important that Orange County expand collaboration and cooperation of
economic development efforts and decisions between Orange County and the towns of
Chapel Hill, Carrboro and Hillsborough and the cities of Mebane and Durham; and
WHEREAS, it is important for Orange County to meet public school needs; and
WHEREAS, it is important to provide the residents of Orange County improved Library and
Emergency Medical Services to meet the increased demand of a growing population; and
WHEREAS, the Board of Commissioners establishes a 5 year commitment to allocate Article
46 one-quarter cent (1/4¢) County sales and use tax proceeds as follows:
a. 42.5% of the funding will be allocated in an equitable manner between the County's
two school systems for the dedicated purpose of facility improvements at 'older'
schools within all of Orange County and the procurement of technology. Each school
system will establish a list of prioritized needs for older schools within the County.
Funding provided by the passage of the referendum will be allocated to those
prioritized projects. Progress will be evaluated annually and adjustments made
according to needs agreed upon by the School Boards and Board of County
Commissioners;
b. 42.5% of the funding will be allocated to economic development efforts including
funding infrastructure improvements needed to recruit new businesses and expand
existing businesses; funding for business loans and grants to grow businesses in
Orange County; targeted business recruitment, retention, and expansion efforts; and
community branding and marketing;
c. 15% of the funding will be allocated equally to improve Library and Emergency
Medical Services over a five-year period.
WHEREAS, if additional funding does not come from the one-quarter cent (1/4¢) County
sales and use tax, the property tax will be the primary funding source available for schools,
economic development initiatives, and library & emergency medical services; and
WHEREAS, to distinguish and separate the revenues produced by this % cent sales tax if
approved by Orange County voters, a Special Revenue Fund will be established to receive
and account for the sales tax revenue. These funds will remain separate from the county's
general fund to allow for more accurate tracking of revenues and expenditures in accordance
with initial five year allocation plan established as part of this resolution;
NOW, THEREFORE, BE IT RESOLVED THAT the Orange County Board of Commissioners
hereby states its intent to use the revenues from the Article 46 one-quarter cent (1/4¢)
County sales and use tax, if approved by the voters of Orange County, for currently unfunded
or underfunded economic development, public school and library & emergency medical
services for a period of five years, with a scheduled implementation date of April 1, 2011.
BE IT FURTHER RESOLVED THAT proceeds from the one-quarter cent (1/4¢) County sales
and use tax in later years will be used to address priorities as established by the Board of
Commissioners in the County's Capital Investment Plan.
This the 2nd day of September, 2010.
Valerie Foushee, Chair
Orange County Board of Commissioners