HomeMy WebLinkAboutAgenda - 04-07-2011 - 2
~~~~ ~~~
A~rfoN ~~i~~~ 1T~f~ 1"'1~ I ~~~
l~ee~ing ~~e: Aprfl ~, ~~~ ~
A~ofion Agenda
~~ern h~o~
UBJ~~'~ vl~ork Session fo discuss f~ropased Uses of Funds i:ron~ a f~over~f~er 8, ~0~~
Special Advisory Referendum Concerning the fwevy of a One-uar~er en#
1~ ~ounf Sales and Use Tax
p~~~f~T~IEN~'~ Manager f=financial Services PUBf,I HEARING ~Y~h~} Yes
ATT~O~fEN~`~~:
A~#ahren~ ~: Ural Resolution
Regarding Uses of
f'oten~iaf Revenues from
a One~~uar~erjent
~~~4} Coun#y Sales and
Use Tai
~~FoRi~ATIO~V oNTA~T:
Frank iiften, bounty fl~anager#
~~2300
Clarence rier~ Financial Services,
fichael Talf~erf:~ Finanoiaf Services,
PUff~oSE: To consider ar~d discuss.
~, Pubiio input received of the April ~~~ public hearing on potential uses for a One»
quarter Oen# {~14} Oounty additional Sales and Use Tax}
~. Board priorities and a f~raft Resoiutivn regarding uses of a potentiaf revenues from a
One-C~uarter Genf ~~I~~~ County additional Sales and Use Tai;
. Rubfic educa#ion efforts fo ensure vo#ers ire ftnou~ledgeable regarding the balfof question
in the resolution
BA~ROU~lDt f_acl governments in forth Oarolina have hisforCcalfy refied heavily upon ad
vaforem property taxes s their rnajor source of revenue For a r~un~ber of years, tf~e Orange
bounty Board of Counfy Oor~n~issioners, the hlor~h arofina Association of our~ty
Cornrr~issioners and many other focal governing hoards across the state loff~ie~ the North
Carofin General Asserr~bly for legislative authority to expand counties' revenue options,
theref~y lessening nounties~ reliance on propertytaxes.
f~uring the 00~ legislative session, tl~e North Carolina General Assembly granted county
boards of commissioners fhe authority fa levy, sub~eef to voter approval, an additional one
quaver cenf {~14~} county sales and use tax referred to s #be Aricfe ~ safes and use tax. As
authorised by tfe Oeneraf Assembly, tf~e Af~icfe ~ safes tax cannot apply to consumer food
purchases. There ~ also no iegisla#ive requirement} ar rr~ecbanism, far cour~fies fo share the
additional one-quarter cent sales faxv~rith municipalities
Beteen Nover~ber ~, ~gg7 and December ~, ~O~g, ~'7 referendums on the quarter~cent sales
tax have been hail in caunf~es, ~f those 7~`, ~ ~ ~rere approved and ~9 failed. This year one
referendum has been held fo date and the quarter~cent sales # eras approved in Halifax
Coun#y an February ~, ~~ , Thera arc o referendums scheduled far fhe rerr~ainder of g1 ~,
Cabarrus County ~ is scheduled for Nlay ~ 7, 2~~ ~ end Buncombe Coun# is scheduled for
November , ~Q~,
A pc[al Advisory Referendum Concerning fhe Levy of a ~ne~~uarter Cent {~l4~ Coun#~
dales and Use Tax eras held in grange Coun#~ on November , 0'I g, The election results
v~ere ~,~ votes casf ~~~ and ~~,9 votes AGAINST an additional one~quarter cent {~~~}
county sales and use fax, The first possible date the Board can consider fog a special Advisory
Referendum Concerning the Levy of one-Cuarter Cent {114} County dales and Use Tax
referendum, is November ~, ~0~~~ North Carolina General fatutes ~~-4~ states that "The
county board of elections shah fix the date of fhe special elecfian, except that the special
election sba[i not be held on fhe date or v~itbin 6g days of any biennial election of county
officers, nor uvifhin one gear from the date frar~ the date last preceding special elec#ion under
the sec#ion,"
Although a public bearing is naf required by fhe North Carolina General statutes, the Board
held a publio bearing on March ~ , X01 ~ to solicit comments from the public on a possible
November ~€ X01 ~ special Advisory Referendum Concerning fhe Levy of a ~ne,C~uarter Genf
{~~~} County dales and Use Tax After the public hearing, the Board discussed the pofentia[
referendum and directed staff fo place the attached Resalu#ion scheduling special Advisory
Referendum Canoerning the Levy of a Cne-quarter cent {1~4} Coun#}~ dales and Use Tax an
the April 5, ~~~~ meetingR fiver the past fey months the Board has discussed both Bduca#ion
and Fcor~ornic Development s having a high priority ~uhen considering pofential uses for
revenues generated from the ~ne~~uarter Dent {114~~ County dales and Use Tax. Along-term
oommitrnen# of ten ears has also been discussed. The Board also held a ublic hearin at the
Y ~ g
April ~, ~g~ ~ meeting, on the possible uses for the potential proceeds from the additional sales
tax if approved by voters.
fending approval of the Referendum Resolution concerning fhe Levy of ~ne^~uarter Genf
{~14} Coun#y dales and Use Tax, the Baas[ may also ~ran# to consider discussing any public
education efforts fo ensure voters are kr~o~uledeable regarding the ballot question. The North
Carolina Association of County Commissioners recommends that counties under#alCe a pubiic
education campaign to educate vo#erst Tho County did undertake a publio education effork for
the previous Nvvernber g1 g sales tax referendum,
if a nna~ority of voters approve fhe sales tax ~eferendurn, the Board ~vill be required to give fen
{~ 0} days public notice of the Board's in#en~ to levy the fax. The Board v~ould then .hard a
required public bearing and consider a neuv resolution to actually levy the tax The Board musf
adopt that additional resolution in order far fhc tax to tale effect. Based an election certification
timeframes, the Board of Comrr~issioners' regular meeting schedule, and timing and ofher
requirements associated ~vith fhe North Carolina Department of Revenue and Noah Carolina
Genera[ statute ~ g~M4~, the earliest date the adds#iar~l sales tax could become effective
fol~o~ring a November ~, X01 ~ referendum ~rould be April , 2g ~
FINA11~C1~41~ I1PAT': there i no financial impact associated vii#h hafding publio hearing on
potential uses for a ne~~uarter dent ~~1~4~} noun#y ~ and Case lax.
If a rna~ori#y of voters approve the sales #a~t, and the Board of ornrnisioner in~plen~en# #ho
sales tax as soon affer the November ~, ~ ~ referendum as possible, ~# couid have an
effec#i~re da#~ of April ~ ~ ~~~. Approximately ,000 ~rould be generated during the
rerr~ainderllast quarter of FY 20~ ~ ~~ . As n add i#ional revenue source in the follo~ring years,
the sales and use taxv~rould generate approxin~atel~ ~,OO,ooo annually forthe ~ounty~
~~~l~I~~N~ATiN{}; ~fhe Manager recorn~ends the Board:
~ } Revie and discuss proposed uses of the potential sales #a~c revenues;
~~ Provide any direction to #aff in prepara#ion for the Board's ac#ion as
appropriate be considered at the Aprii ~8, ~~ ~ regular meeting
} Provide direr#ion to s#aff on next steps relating to any public educa#ion
efforts #o ensure voters are knovtiriedgeable regarding the ballot goes#ion in
the resolution.
DRAFT
ORANGE COUNTY BOARD OF COMMISSIONERS
A Resolution Regarding Uses of Potential Revenues
from aOne-Quaver Cent (114¢} County Sales and Use Tax
UvH~~~A, there are significant pressing infrastructure economic development, school, and
other County capital needs that are precipitated by growth pressures and the nevi economic
reality facing Orange bounty; and
1fvHBR~A, it is important to provide Orange County taxpayers Frith alternatives to the
pressure to raise propertytaxes to address these and other County needs; and
v~fHBRBAB, the levy of a Article ~ one~quarter cent ~~14~} County sales and use tax Mould
provide a new County revenue source and v~rauld generate appraxirr~ately ,50a,aaa
annually forthe County; and
UvH~R~AB, it i important far Orange County to plan for future economic development that
v~ill enable the County to recruit, retain, grow, and generate businesses and jobs that are
desirablet and
UIfH~R~~~ it is important that Orange County expand collaboration and cooperation of
econor~ic develop~ent efforts and decisions bet~veen Orange County and the to~rns of
Chapel Hill, Carrbara and Hillsborough and the cities of Mebane and ~~urham; and
l~1fH~REA, it is important far Orange County to meet public schaol needs; and
Ulf HBR~AB, the Beard of Commissioners establishes a year commitr~ent to allocate Article
4 one-quarter cent ~~~~} County sales and use tax proceeds as folla~rs:
a. 5g°l~ of the funding Mill be allocated in an equitable manner betvueen the County's t~ra
school systems for the dedicated purpose of facility in~proven~ents at ;alder' schools
~rithin all of Orange County and the procurement of technologyr each school system
v~ill establish a list of prioritized greeds far older schools vuithin the County Funding
provided by the passage of the referendum gill be allocated to those priaritixed
projects, Progress v~ill be evaluated annually and ad~ustn~ents made according to
needs agreed upon by the schaol Boards and Beard of County Commissioners;
b. 0°l~ of the funding ~vill be allocated to fund infrastructure improvements needed for
economic develaprnent initiatives that recruit ne~f businesses, expand existing
businesses, provides fundi~rg far small business loans to grog businesses in Orange
County;
UIfH~REA~ if additional funding does not came from the one-quarter Dent {~1~4~ County
sales and use tax, the property tax vrill be the primary funding source available far schools
and economic developrrrrrt initiatives;
5
DRAFT
I~v[~EREA, to distinguish and separate the revenues produced by this % cent ~[~ tax it
approved b grange bounty voters, a pec'rai Revenue Fund rii~ be established tv receive
and accoun# for the sales tax revenue. These funds vuill remain separate from the county's
general fund to ~Ilo~r fir r~~re accurate tracl~ing of revenues and expenditures in accordance
pith initial five year a[locativn plan established as part of this reso[utian;
l~l~ily, THB~BFORB, BB lT RE~L116~ TFIAT the grange bounty Board of orr~rnisi~ner
hereby states ~ its intent to use the revenues from the Article 4 on~~quarter cent ~~~~}
bounty sales and use tax, if approved by the voters of grange County, far currently unfunded
or underfunded econan~ic development and public school capita[ needs far a priad of ten
years ~vith a scheduled irnpler~er~tatior~ data of Agri[ ~ , ~0~ ~.
BE lT FURTI~BR R~LVB~ THAT proceeds from the one^,quarter cent ~~~4~} County sales
and use tax in later years aril[ be used to address priorities as established by the Board of
omr~issioners in the County's Capita[ lnvestr~ent Plan
This the day ~f , ~~~~~
Bernadette Pelissierf Chair
grange County Board of Con~n~issi~ners