HomeMy WebLinkAboutAgenda - 10-05-2010 - 3bORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 5, 2010
Action Agenda
Item No. 3 - b
SUBJECT: Resolution Supporting the November 2, 2010 Quarter Cent Sales Tax
Referendum
DEPARTMENT: Board of County PUBLIC HEARING: (Y/N) No
Commissioners
ATTACHMENT(S):
1. Proposed Resolution
2. Resolution Calling for Referendum
Adopted June 15, 2010
3. Resolution Regarding Planned Uses
of Revenues Adopted September 2,
2010
4. Sample Ballot -November 2, 2010
Election
INFORMATION CONTACT:
Valerie Foushee, Chair, 245-2130
Bernadette Pelissier, Vice-Chair, 245-2130
Board of County Commissioners, 245-2130
PURPOSE: To consider a proposed resolution supporting the November 2, 2010 quarter cent
sales tax referendum and encouraging Orange County voters to utilize the referendum as an
opportunity to broaden and diversify the County tax base.
BACKGROUND: During the 2007 legislative session, the North Carolina General Assembly
granted county boards of commissioners the authority to levy, subject to voter approval, an
additional one-quarter (1/4) cent county sales and use tax, referred to as the Article 46 sales
and use tax.
The BOCC held a public hearing on June 1, 2010 to solicit comments from the public on a
possible November 2, 2010 Special Advisory Referendum concerning the levy of cone-quarter
cent county sales and use tax in Orange County. At the June 15, 2010 meeting, the BOCC
approved a resolution calling for a November 2, 2010 Special Advisory Referendum concerning
the levy of aone-quarter cent county sales and use tax. The approved resolution included the
ballot language as prescribed by state law.
On August 17, 2010 the BOCC held a public hearing to further solicit comments from the public
on the possible uses for the one-quarter cent sales tax revenues, and at its work session on
August 19, 2010, the Board considered the comments received and formulated a draft
resolution addressing potential uses. The BOCC approved a resolution documenting the
intended uses of the revenues from a prospective one-quarter cent sales tax referendum on
September 2, 2010. The BOCC established a 5-year commitment to the following use of the
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tax proceeds: 42.5% equitably to the two school systems for the purpose of facility
improvements; 42.5% to economic development efforts; and 15% allocated equally to improve
Library and Emergency Services over a five year period.
The County has embarked upon a public education campaign to educate voters on the one-
quarter cent sales tax referendum. If a majority of voters approve the Article 46 sales tax
referendum on November 2, 2010, and the BOCC approves a resolution to levy the tax before
December 31, 2010, the new one-quarter cent sales and use tax could begin in Orange County
on April 1, 2011.
The proposed resolution expressing support for the one-quarter cent sales tax is provided ai
Attachment 1. Attachments 2 and 3 are copies of previously adopted resolutions on the issue.
Attachment 4 is a copy of the sample ballot for November 2, 2010.
FINANCIAL IMPACT: tf a majority of the voters approve the one-quarter cent sales and use
tax on November 2, 2010, and the BOCC approves implementation with an effective date of
April 1, 2011, the sales and use tax is projected to generate approximately $2,300,000 annually
for Orange County. If implemented on April 1, 2011, the sales and use tax is estimated to
generate approximately $575,000 during the remainder of FY2010-11.
RECOMMENDATION(S): The Manager recommends the Board:
1. Consider the proposed resolution supporting the November 2, 2010 One-Quarter Cent
Sales Tax Referendum; and
2. If adopted, authorize the Chair with the Clerk to the Board to submit a letter and signed
copy of the resolution to the Mayors of Chapel Hill, Carrboro and Hillsborough and the
Chairs of the Chapel Hill Carrboro City Schools and Orange County Schools Boards of
Education requesting their boards adopt resolutions endorsing the One-Quarter Cent
Sales Tax Referendum and encouraging residents to support the opportunity to broaden
and diversify the County revenue base.
R~ s- a o i o- o ~ 3 }~~ad.~I-~
ORANGE COUNTY BOARD OF COMMISSIONERS
A Resolution Supporting the November 2, 2010 One-Quarter Cent
Sales Tax Referendum and Encouraging Orange County Voters to
Utilize the Referendum as an Opportunity to Broaden and Diversify
the County Tax Base
WHEREAS, Orange County is confronted with significant economic development, public
education, human and social needs caused by demand and expectations for service
excellence; and
WHEREAS, it is necessary to provide Orange County taxpayers with responsible alternatives to
reliance upon the property tax to help address these and other concerns for community
improvement and investment; and
WHEREAS, the levy of an Article 46 one-quarter cent County sales and use tax would provide a
new source of revenue and generate approximately $2,300,000 annually for the County; and
WHEREAS, it is vital that Orange County establish a more robust environment for stimulating
and sustaining existing business enterprises, new businesses, and jobs creation; and
WHEREAS, it is important and intentional that the County partner aggressively with the Towns
of Chapel Hill, Carrboro, Hillsborough and the Cities of Durham and Mebane to shape these
shared interests into economic reality; and
WHEREAS, outstanding public schools are corollary to a sound local economy; and
WHEREAS, quality Library Services and Emergency Medical Services further reflect the values
of a caring and secure community; and
WHEREAS, the Board of Commissioners has established a 5-year commitment to allocate
Article 46 one-quarter cent county sales and use tax proceeds as follows:
42.5% will be allocated in an equitable manner between the County's two school systems
dedicated for the purpose of facility improvement 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 the Board of County Commissioners.
2. 42.5% 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.
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3. 15% will be allocated equally to improve Library and Emergency Medical Services over a
five-year period; and
WHEREAS, if additional funding does not come from the one-quarter cent sales and use tax,
the property tax will remain the principal funding source available for public schools, economic
development initiatives, and library and emergency medical services; and
WHEREAS, to distinguish and separate the revenues generated by the one-quarter cent sales
and use tax, if approved by Orange County voters, a Special Revenue Fund will be established
to receive and account for the sales and use tax revenue, with the funds remaining separate
from the County's General Fund to allow more accurate tracking of revenues and expenditures
in accordance with the initial five year allocation plan outlined within this resolution; and
WHEREAS, the Orange County Board of Commissioners strongly asserts its aim to use the
revenues from the Article 46 one-quarter cent sales and use tax, if approved by the voters, for
the needs thus stated for a period of five years, with a scheduled implementation date of April 1,
2011;
NOW, THEREFORE, BE IT RESOLVED THAT the Orange County Board of Commissioners
without reservation urges all Orange County voters to seize the opportunity presented on the
November 2, 2010 ballot to vote FOR the local sales and use tax at the rate of one-quarter
percent in addition to all other state and local sales and use taxes in Orange County.
BE IT FURTHER RESOLVED THAT the Orange County Board of Commissioners sincerely
calls upon the elected boards of the Towns of Chapel Hill, Carrboro, and Hillsborough and the
Chapel Hill Carrboro City Schools and Orange County Schools Boards of Education to adopt
similar resolutions urging resident voters to also avail themselves of the opportunity to vote FOR
the local sales and use tax on the November 2, 2010 general election ballot.
This the 5th day of October, 2010.
Valerie Foushee, Chair
Orange County Board of Commissioners
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RESOLUTION CALLING FOR A NOVEMBER 2, 2010 SPECIAL ADVISORY
- REFERENDUM CONCERNING THE LEVY OF AONE-QUARTER CENT (114¢)
COUNTY SALES AND USE TAX
WHEREAS, the North Carolina General Assembly has enacted the "One-Quarter
Cent (1/4¢) County Sales and Use Tax Act," Article 46 of Chapter 105 of the
North Carolina General .Statutes (Session Law 2007-323), which authorizes
counties to levy a local sales and use tax; and
WHEREAS, in order to levy the local sales and use tax, the County of Orange
must conduct an advisory referendum in accordance with the provisions of the
North Carolina General Statutes Section 163-287;
NOW, THEREFORE, BE IT RESOLVED by the Orange County Board of
Commissioners that:
Section 1: In accordance with the North Carolina General Statutes, a special
advisory referendum is hereby called to be held between the normal time the
polls are open on Tuesday, November 2, 2010, at which there shall be submitted
to the qualified. voters of the County of Orange the question set forth in Section 3
of this Resolution.
Section 2: The Orange County Board of Elections shall conduct -said
Referendum.
Section 3: The ballot question shall be in the following form:
[ ]FOR [ ]AGAINST
Local sales and use tax at the rate of one-quarter percent (0.25%) in addition
to all other State and local sales and use taxes.
Section 4: The Clerk to the Board of Commissioners is authorized and directed to
transmit a certified copy of this Resolution to the Orange County Board of
Elections within three (3) days after the passage hereof.
Section 5: The Board - of Elections shall publish legal: notice of the special
advisory referendum 'in accordance with North Carolina General Statutes Section
163-287.
Section 6: This Resolution shall take effect upon its passage.
ADOPTED this the Lday of , 2010.
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ORANGE COUNTY BOARD OF COMMISSIONERS
A Resolution Regarding Uses of Potential Revenues
from aOne-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 annuaWy 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 afive-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 %4 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 safes 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 2"d day of September, 2010.
Valerie Foushee, Chair
Orange County Board of Commissioners
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BALLOT MARKING INSTRUCTIONS: • Clerk of Superior Court
a. With the marking device provided (You may vote for ONE)
completely
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fill in the oval O to the left of each o James C. (Jamie) Stanford
candidate or selection of your US Senate Democrat
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Democrat
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Democrat
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Candidates for PARTISAN (You may vote for ONE)
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Party. o Ellie Kinnaird o Robert C. (Bob) Hunter
b. You may vote a Straight Party
AND ALSO vote for a candidate of Democrat
Ran A. Hilliard
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o Barbara Jackson
R
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a different party in any individual NC House of Representatives
office. Court of Appeals Judge
c. In any multi-seat office, a District 50
(You may vote for ONE) (You may vote for ONE)
Straight Party vote is a vote for
ALL candidates of that party. If o Bill Faison o Sanford Steelman
you individually vote for ate( Democrat
candidate in a multi-seat office,
you must also individually mark all Rick Smith .
o Re unrcan
Court of Appeals Judge
other candidates in that offlce for ~ District Attorney ~ (Y~ may vote for ONE)
whorh you wish to vote in order for
District 15B
alt votes for that office to be (You may vote for ONE) o Ann Marie Calabria
counted
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d. If you do not vote a Straight o Jim Woodall o Jane Gray
Democrat
Party below, you may vote by
marking each offlce separately. Board of Commissioners Court of Appeals Judge
e. A Straight Party vote does not At-Large (You may vote for oNE)
include unaffiliated candidates, (You may vote for oNt7
nonpartisan offices, issues or
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Board of Commissioners O Steven Walker
District 1
Straight Party (You may vote for oNE) Court of Appeals Judge
(You may vote for ONE) o Alice Gordon (You may vote for ONE)
Democrat
Board of Commissioners o Martha Geer
District 2
o Democratic (You may vote for ONE) O Dean R. Poirier
o Republican o Earl McKee
Democrat
o Libertarian o Greq~Andrews
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Lin a North Carolina c Ballot Style 2 ~ J
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District Court Judge ~ ,
District 15B County Sales and Use Tax
(You may vote for ONE)
o Joseph (Joe) Moody
Buckner
Constitutional Amendment Local sales and use tax at the rate
of one-quarter percent (0.25%) in
addition to all other State and
Soi l and Water Conservation
Constitutional amendment local sales and use taxes.
District Supervisor providing that no person convicted
(You may vote for Two) of a felony may serve as Sheriff. o For
o W. Chris Hogan o For o Against
o Morris Lee Shambley o Against
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SPECIAL INSTRUCTIONS -INSTANT RUNOFF VOTING:
a. Choose up to 3 candidates for the following office in order of your preference: 1 st, 2nd, 3rd.
b. Sel ect a different candidate for each choice.
c. Your 2nd and 3rd choices will not count against your 1st choice; they will only be considered in a runoff if
your 1st choice is not in the runoff.
Court of Appeals Judge
Fill in only one oval per choice -
1st 2nd 3rd
1 Mark your
1st choice here Mark your
.,, 2nd choice here Mark our
.1 3rd choice here
o John F. Bloss o John F. Bloss o John F. Bloss
o ~ J. Illlesley Casteen o J. Wesley Casteen O 'J. Wesley Casteen ..
o Chris Dillon O Chris Dillon o Chris Dillon
o Jewel Ann Farlow o Jewel Ann Farlow o Jewel Ann Farlow
o Daniel E. Garner o Daniel E. Garner o Daniel E. Garner
o Stan Hammer o Stan Hammer O Stan Hammer
o Mark E. Klass O Mark E. Klass o Mark E. Klass
O Doug McCullough O Doug McCullough O Doug McCullough
o Anne Middleton o Anne Middleton o Anne Middleton
O Harry E. Payne, Jr. O Harry E. Payne, Jr. o Harry E. Payne, Jr.
o John Sullivan o John Sullivan O John Sullivan
o Cressie Thigpen o Cressie Thigpen o Cressie Thigpen
o Pamela M. Vesper o Pamela M. Vesper O Pamela M. Vesper
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