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HomeMy WebLinkAboutAgenda - 10-13-2011 - 3ORANGE COUNTY BOARD OF COMMISSIONERS CARRBORO BOARD OF ALDERMEN ACTION AGENDA ITEM ABSTRACT Meeting Date: October 13, 2011 Action Agenda Item No. ~_ SUBJECT• Various Updates DEPARTMENT: PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Frank Clifton, County Manager, 245-2300 As Noted in Background Below PURPOSE: To receive updates on topics of mutual interest between the governing boards of Orange County and the Town of Carrboro and to discuss as necessary. BACKGROUND: A) Chapel Hill Carrboro City Schools Elementary #11 Status/Schools Adequate Public Facilities Ordinance (SAPFO)/Year Around Schools This topic provides the opportunity for the two governing boards to receive an update on the status of Chapel Hill Carrboro City Schools Elementary #11 and the Schools Adequate Public Facilities Ordinance (SAPFO). It also provides the opportunity to discuss Year Around schools as requested by the Town. The attached document provides background information for the discussion. Staff will provide any other information at the meeting, and the Boards can discuss issues related to this item as necessary. Attachment 3-a -October 4, 2011 Memo -Chapel Hill -Carrboro City Schools Elementary #11 B) Update on Carrboro Tourism Board This topic provides the opportunity for Carrboro Mayor Mark Chilton to provide an update on the status of the Carrboro Tourism Board. The attached document provides background information for the discussion. The Boards can discuss issues related to this item as necessary. Attachment 3-b -Documents Related to Town of Carrboro Tourism Board C) Future Meetings This topic provides the opportunity for the two governing boards to discuss future meetings. No Attachments FINANCIAL IMPACT: There is no direct financial impact associated with discussion of these topics. There are no action items requiring formal Board decisions. RECOMMENDATION(S): The Managers recommend the Boards discuss the topics listed and provide appropriate direction to the respective staffs. ~*` 3 OP-ANGE COL:T1~ Financier/ services Department 200 South Cameron Street_ Tel: 919-245-2453 Post Office Box 8181 Fax: 919 6443324 Hillsborough,_NC 27278 l~lemo To: Chair and Board of County Commissioners -Orange County Mayor-and Board of Alderman -Town of Carrboro From: Frank Clifton, County Manager- Orange County Clarence G. Grier, -Financial Services Director -Orange County Craig-Benedict, Planning Director -Orange County Date: October 4, 2011 Subject:. Chapel Hill -Carrboro City Schools Elementary #11 Due the potential overcrowding and recent projected increases in K-5 enrollment in Chapel Hill -Carrboro City Schools (CHCCS), the school system proposed the building -of Elementary #11 in the Town of Chapel HiIL Due to the Schools Adequate Public Facia-ities Ordinance {SAPFO) guidelines and budgetary funding constraints, the building of the school has been scheduled as noted below. Recently, CHCCS projected an increase in students the first 1D days of the school year, and projects that future enrollment for the system will exceed the SAPFO limit; however, the SAPfO Technical Advisory Committee (TAC) will provide the ordinance related projections after November 15 enrollment_numbers. The County Manager proposed and the Board of County Commissioners approved in the 2011 - 2016 Capital Investment Plan (CIP) the fnancing and funding of Elementary #11. Additionally an additional $664,000 was reserved in the County's General Fund Balance to fund any additional deconstruction costs of the existing building on the property. The County CIP also includes full funding ~f Elementary School #11 in FY 2012-13 when a majority of the construction for the new school will be completed. The current project schedule plans for the school to open in the August 2013. This matches the current (i.e. 2011 SAPFO TAC Report) school needs timeline. 4 The construction schedule for Elementary # 11 is as follows: Deconstruction -October 2011 through March 2012 Construction -April 2012 through July 2013 Opening =August 2013 Although the official SAPFO- student enrollment numbers are not due until November 15, 2011 and may not be over the SAPFO limit, the-County plates to issue the financing to construct the school in August 2012. The amount of the financing is expected to be approximately $20,575,000. The County will address the effects of the November -15 enrollments and subsequent projec#ions with the SAPFO TAC later this year. Clarence G. Grier, CPA, CITP Financial Service Director 5 GENERAL ASSEMBLY 4F NORTH CAROLINA SESSION 2001 SESSION LA'W 2001-439 SENATE BILL 92 AN ACT TO AUTI3ORIZE VARIOUS ATUNICIPALITIES AND C-OUNTI>/SS TO -LEVY ROOM OCCUPANCY TAXES. The General Assembly of North Carolina: enacts: SECTION 14.1. Occupancy tax. - (a)- Authorization -and Scope. -The governing body of the Town of Carrboro may levy-a room occupancy tax of up to three percent (3®/0)- of the gross r-eceipts derived from the rental of any rmom, lodgir}g, or aeoommodation fur~ushed by a--',~otel~ motel, iru:y tourist camp, or similar place within the town that is subject to sales tax imposed by the State under G.S. 105-164.4(a)(3). This tax is in addition to any State or 1-ocal sales tax. This tax does not apply to accommodations furnished by nonprofit charitable, educational, or religious organizations when furnished in furtherance of their nonprofit purpose. SECTI?~N-14.1.{b) Administration_ - A tax levied under this section shall be levied, administered, collected; and repealed asprovided -~ G.S. i60A-213. The penalties provided in G:S. 160A-215 apply to a_tax levied under this section. SECTION 14.1.(c) Distribution and Use of Tax Revenue. -The Town of Carrboro shall,. on a quarterly basis, remit the net proceeds of the occupancy tax to the Carrboro Tourism Development Authority. The Authority shall use at least two-thirds- of the funds remitted to it under this subsection to promote travel and tourism in Carrboro and shall use.the remainder for tourism-related expenditures. The following definitions apply in this subsection: (1) Net proceeds. - Gross proceeds less the cost to the town of- administering and collecting the -tax, as determined by the finance officer, not to .exceed three percent {3%) of the first five hundred thousand dollars ($500,000) of gross proceeds collected each year and one percent (1 %) of the remaining gross receipts collected each year. (2) Promote travel and tourism. - To advertise or market an area or activity, publish and distribute pamphlets and other materials, conduct market research, or engage in similar promotional activities that attract tourists or business travelers to the area. The term includes administrative expenses incurred in engaging in these activities. 6 (3) Tourism related expenditures. -1xpenditures that; in the judgment of the Tourism Development Authority, -aze designed to increase the use of lodging facilities, meeting facilities, and-convention facilities iu a town by attracting tourists or business travelers to the town. The term includes tourism-related capital expenditures. SECTION Y4 ~. Carrbor-o Tourism Development Authority. - (a) Appointment and Membership. - ©Vhen the gover-Wing -body of the Towri of Carrboro adopts a resolution. levying a room occupancy tax_ under this Part, it shall also adopt a resolution creafmg a Tourism Development Authority, which shall-be a public. authority under the Local Government Budget and Fiscal Control Act. The resolution shall provide -for the-~rnembership of the Authority, including the members' terms of-office, anal for the filling of vacancies on the A~zthoriiy. At least one-third of the members must be individuals who aze affiliated-with businesses that collect the #ax in the t©wn, and at Ieast three-fourths of the members must be individuals wh-o are currently active in the _promotion of travel and-tourism in the town. -The-governing=b-ody -of the Town of Carrboro shall designate one member of the Authority as chair and shall determine tie compensation, i_f any, to-be paid to members of the Authority. The Authority shall meet- at the call of the chair and -shall adopt rules -of procedure rto govern its- meetings. The Finance Officer for the Town of Carrhoro shall be the eX officio finance officer of the Authority. SECTION 14.2.(b) Duties. -The Authority shall expend the net proceeds of the tax levied under this Part for the purposes provided irr tlii.s Part. The Authority shall promote travel, tourismrand conventions in the town, sponscar tourist-related events and- activities in the town, and dance tourist-related capital projects in the town. SECTION 14:2.(c) Reports. -The Autfiarity shall repor-t quarterly and at the close of the fiscal year to the governing body of the Town of Carrboro on its receipts and expenditures for the preceding-quarter and for the year in such detail as the board may require. 7 ATTACHi1~NT C -1 A RESOLUTION ESTABLISHING A HOTEL ROOM OCCITPANCY TAB WHEREAS the Town of Carrboro was authorized by Chapter 439,~Part XIV of the 2001 Session Laws to adopt a resolution.tevying-a-tax of up xo 3%-on the.gross receipts derived from the rental of hotel or motel rooms; and WF~REAS~ G.B. § i60A-215 establishes procedures for-the adoption, administ~afion ancl~ ~enforcement_ of such a tax; NOW 'THEREFORE, THE BOARD OF ALDEI~ME'1~ OF T'FlE TO=WN OF CAI~itSOR~ RESOLVES: Section 1_ The Carrboro Town Code-is amended by adding a zrew Chapter 8A as follows CHAPTER-.8A HOTEL ANI} MDTEL ROOM OCCUPANCY T'AX Section 8A-1. Tax Levied= There is hereby levied a room occupancy tax ofthree percent (3%} of -the gross receipts derived-from the rental of any room, lodging~or-accommodation furnished by a hotel, motel, inn, tourist camp, or similaz place within the town that is subject to sales tax imposed by the State under G.S. 10~-164.4(a}(3}. This tax is in addition to any State or local sales tax. This tax daes not apply to accommodations fiunished by nonprofit charitab're, educational, or religious orgauazattons when furnished in furtherance-of theiz nonprnf t purpose. Section 8A-2. Payment of Tax. (a) As provided .izn G.S. 1b0A-215(c), a retailer who is required to remit to the DepaFhment of Revenue the State sales tax imposed by G.S. 105-164..4(a)(3) on accommodations is required to remit a room occupancy tax to the town on and after the effective date of this Chapter. The room occupancy tax applies to the same gross receipts as the State sales tax on accommodations -anrl is calculated in the saute manner as that tax. A rental -agent or a facilitator, as defined in G.S_ 105-164.4(a)(3), has the same responsibility and liability under the room occupancy tax as the rental agent or facilitator has under the Sta'Ce sales tax on accommodations. (b) If a taxable accommodation is furnished as part -of a package, the bundled transaction provisions in G.S. 106-164.4D apply in determining the sales price of the taxable accommodation. If those provisions do not address the type of package offered„ the person offering the package may determine an allocated price for -each item in the package based on a reasonable allocation of revenue that is supported by the person's business records kept in the ordinary course of business and calculate tax on the allocated price .of the taxable accommodation. 8 ATTACffiV>t~NT C - 2 (cj A retailer must separately state the room-occupancy tax.. Room occupancy taxes paid to a retailerere-held in trust for and on account of the town. (d) The town shall design and fumisl~ ~ all appropriate businesses and_persons in the town the aecessaiy forms. for Sling returns and instructions to ensure the full- collection of the tax_ An operator of a business who collects a room occupancy tax may deduct tram the-amount remitted to the town a discount equal to the-discount the State allows the retailer for State sales and use tax. {e) As provided in G.S: 3.-60A-215{d), the tax levied by tlvs- Chapter sha11 be due and payable to the town finance officer in monthly installments- on- or before the 20~' day of the month following the month in whl-ch the tax accrues. Every person, Srm, corporation, or association-liable for-the tax shall, on or-before the 20~'-day of-each month, prepare and render a return on a form-pr~scn-bed by the town.. The return sbatl.state the total_gross receipts derived in .the preceding~onth from rentals upon: which the-ta~c is levied: A room occupancy tax return Sled wi#h the-town is not a public record-and-may not be disclosed except in accordance with- G.S. 160A-208.1. Section BA-3. Penalties. As provided in G.S. 160A-21 ~{e), a person, firm, corporation, or association who fails or refuses to file a room occupancy-tax return or pat a room occupancy tax as required by_ this Chapter shall be subject to the civil and criminal penalties set by G.S. 105-236 for faihire to pay or~le-a return for State sates and use taxes. The Board of Aldermen has the same authority to waive the penalties for a room occupancy tax that the Secretary of ,Revenue has to waive the penalties for.State sales and use taxes. Section 8A-4. Distributiotrand Use of Tax Revenue: The_town shall, on a quarterly~.basis, remit the net proceeds of the occupancy tax to the Carrboro Tourism Deve1-opment Authority (CTDA). The CTDA shall use at least two-thirds of the funds remitted to it under this section to promote travel and tourism in Carrboro and shall use the remainder for tourism related expenditures. The following definitions apply in this section: (1) Net Proceeds. Gross proceeds less the cost to the town of administering and collecting the #ax, as determined by the finance officer, not to exceed three percent (3%) of the fast five hundred thousand dollars ($500,000) of gross proceeds collected each year and one percent (1%} of the remaining gross receipts collected-each year. . (2) Promote travel and tourism To advertise or market an area or activity, publish and distribute pamphlets and other materials, conduct market research, or engage in similar promotional activities that attract tourists or business travelers to the area. The term includes administrative expenses incurred in engaging in these activities. 9 ATTACHIVVIENT C - 3 (3) Tourism-related-expenditures. Expenditures that, in the judgment of the CTDA, are designed to increase the use of lodging facilities, meeting facilities, and conxention facilities in the town by attracting tourists or business travelers to thu town. The term includes tourism-related capital expenditures. Section 8A-5. Carxboro Tourism Development Authority: Ap-pointmen~and Membership: (a) The Carrboro Tourism Development Authority (CT-DA)- is hereby created, which shall be a public authority under the Loral. Government Budget and Fiscal Control Act. (b) The CTDA shall consist of three members appointed by the Board of Aldermen. Members need no reside- within the xown,- but at least one-third of the members must be individuals who are affiliated with businesses-that collect the tax in the town, and at least three- fourths-.of the-members must be individuals wha-are currently active..in the promotion-of travel and tourtsm3n the.town. (c) Subject to subsection (d), members shad br appointed for teens of one yeaz~ The initial terms of alt appointees shall expire on January 3I of the year that follows the initial appointments. Subsequent terms shat} run from. February 1 of one year to January 31 of the following year. Vacancies shall be filled-for the remainder of the unexpired term. Members may be appointed to successive terms without limitation. (d) Members shall serve at the pleasure of the Board of Aldermen and may be removed by the Boazd at any time with or without~cause. - (e) Members shall serve without compensation. Bection Bpi-ti. Meetines of CTDA. (aj 'The CTDA shall meet as necessary to carry out its Bowers and duties as specified below. All meetings shall be meld in conformity with the Open Meetings Law. (b) A quorum for the CTDA shall consist. of- three members, except that if one seat is vacant, a quorum shall consist of two members. All actions of the CTDA shall be taken by majority-vote, a quorum being present. (c) Upon the ixutia-1 appointment of members to the CTDA and upon the commencement of each new term, the Board of Aldermen shall -appoint one member to serve as chair of the CTDA during that term. If a vacancy occurs during a temp, the Board shall designate another member to serve as chair for the remainder of that term. The chair may take part in all deliberations and vote on all issues. Section 8A-7. Powers and Duties of the CTDA. 10 ATTA~CH1VVIi+;NT C - 4 (a) The C~'DA sliail expend the net proceeds of the tax levied under this Chapter for-*~e purposes provided in this section 8A-4_ The Authority shall promote travel, tourism, and conventions in the town, sponsor }ourist -rebated events and activities in the town, and finance tourist related capital-pro}eets in-the town. The town's finance officer shall serve ex officio as the finance officer €o~cthe-CTDA. (b) The CTDA shall report quarterly and at the close. of the fiscat year to the Board of Aldermen on its receipts aad. expenditures for the preceding quarter and for the year in such detail as the Board may r-equine. Section 2. This resolution shall -became e$eetive on the fast day of the second marsh following its adoption. 11 ATTACHMENT ~ -1 MEMORANDUM 1V~femorandum to; Steve Stewart From: Mike Brough Subject: Hotel Occupancy T'ax Date: March 1, 2011 Attached is a resolution adding a new Chapter &A to the Town Code to Ievy a hotel and motel room occupancy tax. it is in format a resoluti~an rather than an -ordinance because G.S. 160A- 215, which establishes procedures for the adoption, administration, and enforcement of such a tax, specifies~or some..reason that this must be -done--by-resolution. i .believe- the format is irrelevantr~i.e. the-resolution has the-same-fnrce as au ordinance: , While the above cited general statute establishes procedural requirements for those municipalities that have-the power to levy such atax,=flie-substantive authority forsuch a tax is found in local -legislation. Many municipalities have such- local acfis, and apparently all such local acts are essentially identical. In..fact, I spoke with Bob Homik today, and he told me that he was advised by a member of the Legislative.Dr-afring staff in Raleigh that it was a waste of time for Hillsborough to ask for anything_different than had-been approved for other municipalities. I mention this because some of the provisions of our local act aze far from ideal and not what I would have drafted had there been a choice. In particular, not .only are there limitations on the-way this tax money can be spent, but the expenditures wdI actually be made by the Carrboro Tourism Development Authority, not the Board of Aldermen. In other words, the CTDA is not an advisory boazd but an independent authority. However., the BOA appoints the members o£ the CTDA and can remove_them at the Boazd's discretion. In addition; this draft establishes one year, non-staggered terms for the entire membership of the CTDA. Hopefully, this will assure that the CTDA is not operating at cross purposes with the Boazd's policies~ There is one other peculiarity, and that is the local act's requirement that one-third of the members of the CTDA must be "individuals who are affiliated with businesses that collect the tax," and three-fourths of the members must be "individuals who are currently active in the promotion- of travel and tourism in the town." I think the latter requirement can be interpreted fairly loosely to include business owners who depend on walk-in traffic, and so it should not be difficult to meet this requirement. But it seems to me the- former requirement will require an appointment of someone associated with our one hotel. For that reason, as well as the reason expressed above, this draft provides for only three members on the CTDA. The Board may decide that a larger membership is preferable, and I would be happy to revise the draft accordingly. Please feel free to let me know if you have any questions or comments