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HomeMy WebLinkAboutAgenda - 09-03-1996 - V-C R , 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. _�- ACTION AGENDA ITEM ABSTRACT Meeting Date: September 3, 1996 SUBJECT: Establishment of November 5 Election on the Question of Expanding Permissible Uses of the Chapel Hill-Carrboro District Tax DEPARTMENT: County Manager/Attorney PUBLIC HEARING: YES: 'NO: X BUDGET AMENDMENT: YES: NO: X ATTACHMENT(S): INFORMATION CONTACT: 8/15/96 CHCCS Memo/Resolution Rod Visser, ext 2300 Geof Gledhill, 732-2196 Resolution TELEPHONE NUMBERS: Ballot Hillsborough -732-8181 Extract from NCGS 115C-506 Chapel Hill -968-4501 Durham -688-7331 Mebane -227-2031 PURPOSE:. To call for an election on November 5, 1996, pursuant to a request by the Chapel Hill-Carrboro City Board of Education, on the question of expanding the permissible uses of the proceeds of the Chapel Hill-Carrboro District Tax. BACKGROUND: Pursuant to discussions between the two boards during 1996,the Chapel Hill-Carrboro City Board of Education has requested,by means of the attached resolution,that the Orange County Board of Commissioners call for an election on November 5 that could lead to expanding the permissible uses of the existing Chapel Hill-Carrboro district tax. According to North Carolina law, special school district taxes in general may be used to supplement"any item of expenditure in the school budget". However,because of restrictive ballot language when the Chapel Hill-Carrboro district tax was authorized by voters many years ago,the district tax is currently limited to providing funds to supplement the Chapel Hill-Carrboro City Schools current expense budget that is primarily funded by the Countywide ad valorem property tax. The County Attorney has drafted a resolution and a ballot for consideration by the Board. It is important that the Board approve the exact language that would appear on the ballot, so that absentee ballots may be printed and made available by September 17, as required by State law (50 days before the election). 2 Section 115C-508 of the North Carolina General Statutes provides that if the voters approve expanding the use of the district tax to include capital outlay, "the tax so authorized shall be levied and collected beginning with the fiscal year commencing July 1 next following such election". Accordingly, if approved by the voters on November 5, 1996,the Chapel Hill-Carrboro District Tax could be used for capital outlay, as well as current expense, for the fiscal year beginning July 1, 1997. RECOMMENDATION(S): The Manager recommends that the Board approve the attached resolution. 1, 3 CHAPEL HILL-CARRBORO CITY SCHOOLS Lincoln Center, Merritt Mill Road Chapel Hill, North Carolina 27516 Telephone: (919) 967-8211 Neil G. Pedersen Ann Hart, Assistant superintendent Superintendent for Instructional Services Chester Preyar, Assistant Superintendent for Support Services TO: Board of Education FROM: Neil G. Pederse Superintendent RE: Referendum to Expand the Use of the District Tax DATE: August 15, 1996 For the past year, the Chapel Hill-Carrboro City Schools Board of Education and administration have been working with the County Commissioners and Manager to develop a strategy for funding a new elementary and middle school and an addition to East Chapel Hill High School by the year 2000. The County Manager will be presenting a proposed funding plan to the County Commissioners on August 20 at the OWASA building. A copy of the plan is enclosed You may want to discuss it at your August 22nd Board meeting under this agenda item. It is apparent to me at this time, however, that having the option to use the school district tax for capital needs would be advantageous to our school district. It would provide one other source of revenue in addition to the impact fee and proceeds from the state bond referendum if it passes in November. I would encourage you to support this resolution if you believe that we should have at our disposal as many different funding sources as possible. On the other hand, it can be argued that constructing new schools is the legal responsibility of the County Commissioners and that it is unfair to the taxpayers in our school district to use the district tax to meet capital needs. Historically, all of the taxpayers in the County have shared in the costs associated with new schools. The problem that we are encountering now is that the new school construction needs differ so significantly between the two school districts that distributing CIP revenues to each school district on the basis of student enrollment, or even share their of the tax base, does not provide the Chapel Hill-Carrboro City Schools with sufficient funding for the new schools that they will need over the next five years. The district tax provides the County ' 4 'i Commissioners with an avenue to direct a disproportionate, but essential, share . of the funds available for capital needs to CHCCS. One cent on the district tax generates $325,911. One cent on the County property tax yields $494,442. If the revenue generated by the County tax is distributed on a per-pupil basis (which is not required for the capital budget), CHCCS receives $291,161. This has led some to favor the raising of the district tax. I believe that we should do all that we can to encourage the County Commissioners to use revenues generated on a county basis to meet the most critical school capital needs, regardless of the proportion that each school district will receive. At the same time, however, I believe that it is to our advantage to have the flexibility to use school district tax dollars for capital needs in the event that this is necessary. The School Board's and County's attorneys concur that the legislation authorizing the district tax does not permit it to be used for capital outlay, including the construction of new schools. At the same time, the district tax rate is $.20 and the County Commissioners are authorized to raise it to as much as $.35. Therefore, I am recommending that we seek authority through the school district voters to expand the applicable use of the present school district tax to include capital outlay for construction. RESOLUTION: Be it, therefore, resolved that the Board of Education requests the County Commissioners to hold a referendum in November, 1996 which would expand the use of the district tax to include payment for capital outlay, including the construction of new schools, effective July 1, 1997. This resolution was approved on a vote of 7-0 by the Chapel Hill-Carrboro City Board of Education at its regularly scheduled meeting on Thursday, A ust 22, 1996. /`�✓./. `,`••.G��PELH/4*0, Neil G. Pedersen, Superintendent " • N + r • ob :o ; o � �,''ORo cri��GL''V,�, S NORTH CAROLINA RESOLUTION ORANGE COUNTY WHEREAS, on May 23 , 1967 the voters of the Chapel Hill School District approved a special tax not exceeding thirty-five cents ($ . 35) per one hundred dollar ($100) property valuation within the District to supplement the local current expense fund of the Chapel Hill-Carrboro School Administrative Unit in order to operate schools of a higher standard; and WHEREAS, by resolution approved on August 22 , 1996, the Chapel Hill-Carrboro Board of Education petitioned the Board of County Commissioners for an election to expand the use of the special district tax so that proceeds from the tax may be used to supplement the capital outlay fund of the Chapel Hill-Carrboro School Administrative Unit; and WHEREAS, the capital outlay fund of the Chapel Hill-Carrboro School Administrative Unit includes appropriations for: (1) The acquisition of real property for school purposes, including but not limited to school sites, playgrounds, athletic fields, administrative headquarters, and garages. (2) The acquisition, construction, reconstruction, enlargement, renovation, or replacement of buildings and other structures, including but not limited to buildings and other structures, including but not limited to buildings for classrooms and laboratories, physical and vocational educational purposes, libraries, auditoriums, gymnasiums, administrative offices, storage, and vehicle maintenance. 6 (3) The acquisition or replacement of furniture and furnishings, instructional apparatus, data-processing equipment, business machines, and similar items of furnishings and equipment. (4) The acquisition of school buses as additions to the fleet . (5) The acquisition of activity buses and other motor vehicles . (6) Such other objects of expenditures as may be assigned to the capital outlay fund by the uniform budget format . The cost of acquiring or constructing a new building, or reconstructing, enlarging, or renovating an existing building, shall include the cost of all real property and interests in real property, and all plants, works, appurtenances, structures, facilities, furnishings, machinery, and equipment necessary or useful in connection therewith; financing charges; the cost of plans, specifications, studies, reports, and surveys; legal expenses; and all other costs necessary or incidental to the construction, reconstruction, enlargement, or renovation; and WHEREAS, N.C. Gen. Stat. § 115C-506 provides: " . . . it shall be the duty of [the] board of county commissioners to call an election and fix the date for the same, upon being presented with a petition requesting a special election bearing the approval of the board of education of the local administrative unit. " J 7 NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Orange County: 1 . A special referendum is hereby called in the Chapel Hill-Carrboro School District of Orange County to be held on November 5, 1996 wherein the registered voters in the Chapel Hill-Carrboro School District may vote on whether or not to expand the use of the special tax in the district so that the proceeds of the tax may be used to supplement the local current expense fund and the capital outlay fund of the Chapel Hill- Carrboro School Administrative Unit and thereby operate schools of a higher standard. 2 . The official ballot for the special referendum shall be as prescribed in Exhibit A to this resolution. 3 . The expense of the election shall be paid by the Chapel Hill-Carrboro Board of Education as provided by law. Upon motion duly made and seconded, the foregoing resolution was passed by the following votes: Ayes : Commissioners Noes: I, Beverly A. Blythe, Clerk to the Board of Commissioners for the County of Orange, North Carolina, DO HEREBY CERTIFY that the foregoing has been carefully copied from the recorded minutes of the Board of Commissioners for said County at a regular meeting of said Board held on , 1996, said record having been made in Minute Book of the minutes of said 8 Board beginning at page and ending at page and is a true copy of so much of said proceedings of said Board as relates in any way to the passage of the resolution described in said proceedings . WITNESS my hand the corporate seal of said County, this day of 1996 . Clerk to the Board of Commissioners lsg-6 disttax.res • Exhibit A 9 '. OFFICIAL BALLOT SPECIAL REFERENDUM IN THE CHAPEL HILL- CARRBORO SCHOOL DISTRICT ORANGE COUNTY, NORTH CAROLINA November 5, 1996 INSTRUCTIONS 1 . To vote "FOR" expanding the use of the tax make a cross (x) mark in the square to the left of the word "FOR. " 2 . To vote "AGAINST" expanding the use of the tax make a cross (x) mark in the square to the left of the word "AGAINST. " 3 . If you tear or deface or wrongly mark this ballot, return it and get another. FOR expanding the use of the present Chapel Hill-Carrboro School District special tax levied and collected on all of the taxable property within the Chapel Hill- Carrboro School District at a rate not to exceed thirty-five cents ($ .35) per one hundred dollars ($100) of property valua- tion used to supplement the local current expense fund of the Chapel Hill-Carrboro School Administrative Unit, to permit the use of the special tax to supplement the local current expense fund and the capital outlay fund of the Chapel Hill-Carrboro School Administrative Unit and thereby operate schools of a higher standard. [� AGAINST expanding the use of the present Chapel Hill-Carrboro School District special tax levied and collected on all of the taxable property within the Chapel Hill- Carrboro School District at a rate not to exceed thirty-five cents ($ .35) per one hundred dollars ($100) of property valua- tion used to supplement the local current expense fund of the Chapel Hill-Carrboro School Administrative Unit, to permit the use of the special tax to supplement the local current expense fund and the capital outlay fund of the Chapel Hill-Carrboro School Administrative Unit and thereby operate schools of a higher standard. Special Election November 5, 1996 Orange County, North Carolina [Facsimile signature of Orange County Board of Elections Chairman] Chairman Orange County Board of Elections Au -29-96 09: 12A Coleman Gledhill Har rave 919 732-7997 10 - §115C-506 ART, 36. TAX SUPPLEMENTS FOR SCHOOLS §1150-506 • CASE NOTES w Time for Holding Subsequent Moo- election on the subject-Weesner v.Daw tion Revoking Local Tax.—The ps- idson County, 182 N.C. 604, 109 S.E. rind in which no election may be had 863(1921),decided under former corre- should be computed from the last valid sponding provisions. § 115C-506. Action of board of county Commis- sioners or governing body of munici- pality. Petitions requestin special school elections and bearing the ap- proval of the board of education of the local school administrative unit shall be presented to the board of county commissioners,and it - shall be the duty of said board of county commissioners to call an election and fix the date for the same: Provided, that the board of education requesting the election may,for any reason deemed suffi- _ t cient by said board which shall be specified and recorded in the minutes of the board,withdraw the petition by the twenty-fifth day 'I before the election,and if the petition be so withdrawn,the election shall not be held unless by some other provision of law the holding - of such election is mandatory. In the case of a city administrative -_ unit in any incorporated city or town and formed from portions of contiguous counties,said petition shall be presented to the govern- ing body of the city or town situated within, coterminous with, or _=-- embracing such city administrative unit, and the election shall be ordered by said governing body,and said governing body shall per- form all the duties pertaining to said election performed by the board of county commissioners in elections held under this Article. (1955,c. 1372,art. 14,s.6; 1959,c. 72; 1981,c.423,s. 1; 1993(Reg. - Sess., 1994), c. 762, s. 9.) i Editor's Note.—Session Laws 1993 Effect of Amendments.—The 1993 1 (Reg.Sees.,1994),c.762,a.73 provides, (Reg.Secs., 1994)amendment,effective -- I in part. "Prosecutions for, or sentences Jana.-• 1, 1995, and applicable to all based on, offenses occurring before the primax.es and elections occurring on or -` effective date of any section of this act after that date, substituted "by the are not abated or affected by this act and twenty-fifth day before the election"for the statutes that would be applicable to "before the close of the registration those prosecutions or sentences but for books" in the proviso in the first een- - the provisions of this act remain applica- tence. ble to those prosecutions or sentences." T CASE NOTES I Duty of County Commissioners only and may be enforced by mandamus. Ministerial. — The county commis- Board of Educ. v. Board of County sioners have no discretion to order or not Comm're, 189 N.C. 650, 127 S.E. 692 • order an election.After the board of edu. (1925), decided under former corre- cation has approved the petition, the spwWing provision. -- L duty of the commissioners is ministerial 1 tit.. ' 385