HomeMy WebLinkAboutRES-2011-071 Resolution Regarding Uses of Potential Revenues from a One-Quarter (¼) Cent County Sales & Use Tax~j ~s -ao1l- ~~'l
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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 $2,500,000
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, based on the Average Daily Membership of each school system, 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
generally as shown on the attached chart and 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 wilt be established to
receive and account for the sales tax revenue. These funds will not supplant funding for the
Board's endorsed funding target of 48.1 % for annual spending on both school systems. The
funds will remain separate from the County's general fund to allow for 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 21St day of June, 2011.
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Bernadette Pelissier, Chair
Orange County Board of Commissioners
PROPOSED ECONOMIC DEVELOPMENT USES OF SALES TAX PR�JCEEDS
Focus Area Percenta e Estimated Exam le Activities �re uenc
g p q Y
�
of Funds Annual
Ex enditures
Debt Service on (Q% �75�,000 • Installation of water and sewer infrastructure in Annually for 10 years
Infrastructure EDDs
Collaborative 1.5% �15,��0 - �20,000 • Trade shows targeted to specific industry Annually for 10 years;
Outreach clusters amount of funding will
• Industry Appreciation events businesses vary
• Local "Economic Health" Summit
Collateral Materials 1.5% $20,000 • Updated Internet interface Funding only required
• Utilization of appropriate social media tools every 2 to 3 years
• Develo ment of informative brochures
Innovation Space 5 - 10% �75,000 - • Up fit of a county-owned innovation space Funding will vary with site
$125,000 • Rent subsidies and/or leasehold improvements improvement
on rivatel owned leasable s ace re uirements
Agricultural 2 —2Q% �25,000 - • Focused counseling for food-based businesses 10 years,but funding will
Economic �25� 000 graduating from PFAP vary with program
Development ' • Creation of a`culinary kitcheri facility to requirements
rovide facilities for PFAP raduates
Business 8°fo $10�,��0 • Advanced site preparation 10 years,but funding will
Investment Grants • Relocation assistance vary with project
Small Business 0% - 16% Up t0 �2�0,��� • Start-up capital and expansion funds for Orange After several years,
Loan Program for next few County small businesses program will be self
sufficient
years
Establishment of 12— 16% Up t0 �200,��0 • Develop public-private stand alone economic Expenditures in Years 2—
501c (4) entity for several years develop entity 5 for start up funding
1 Reflects the percentage of economic development funds,rather than overall funds
Sales Tax lnitiative- Orange County Economic Development June 13, 2011
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