HomeMy WebLinkAboutRES-2011-033 Resolution Regarding Uses of Potential Revenues from 1/4 cent Sales and Use Tax~~ ~ ~~ i~
RES - 2011 - 033 76
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 $2,500,000
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, the Board of Commissioners establishes aten-year commitment to allocate
Article 46 one-quarter cent (1/4¢) County sales and use tax proceeds as follows:
a. 50% of the funding will be allocated in an equitable manner between the County's two school
systems for the dedicated purpose of funding capital projects, including but not limited to
facility improvements at `older' schools and the procurement of technology. The Board
requests that each school system. furnish the Board of Commissioners with a detailed list of
prioritized projects that could be completed with anticipated funding over the next ten years.
The Board will evaluate the projects and approve aten-year plan which will be incorporated
into the County's Capital Investment Plan. As part of the Capital Investment Plan annual
review, progress will be evaluated annually and adjustments made according to needs agreed
upon by the School Boards and Board of County Commissioners;
b. 50% of the funding will be allocated to Economic Development initiatives including but
not limited to: funding utility infrastructure needed to recruit and locate new
businesses, small business loans to help existing businesses expand, innovation
centers to provide space for new start-up businesses, funding support for the County's
agricultural businesses, and Business Investment Grants. The Board of
Commissioners will approve aten-year Economic Development Plan as part of the
County's Capital Investment Plan; and
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
and economic development initiatives; and
WHEREAS, to distinguish and separate the revenues produced through 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 fore more accurate tracking of revenues and expenditures in
accordance with initial ten-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 and public school capital needs for a period of ten
years, with a scheduled implementation date of April 1, 2012.
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 19t" day of April, 2011.
Bernadette Pelissier, Chair
Orange County Board of Commissioners