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HomeMy WebLinkAboutAgenda - 02-12-2008-3ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 12, 2008 Action Agenda Item No. __ SUBJECT: Local Revenue Options Referendum DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) No ATTACHMENT(S): None INFORMATION CONTACT: Laura Blackmon or Rod Visser, 919-245- 2300 Donna Coffey, 919-245-2151 PURPOSE: To discuss next steps leading up to a decision at the February 19, 2008 Orange County Commissioners' meeting regarding what local revenue option(s) to include in a referendum to be placed on the May 6, 2008 ballot. BACKGROUND: As part of a comprehensive and complicated "swap" of county and state revenue sources approved by the North Carolina General Assembly during its 2007 Session, the legislature authorized county Boards of Commissioners to enact one of two new local revenue sources, subject to voter approval in each county considering implementation of the new revenue source. Commissioners may conduct a referendum on a land transfer tax (of up to four-tenths percent, in one-tenth increments), aone-quarter cent additional sales tax, or both. Commissioners can only implement one of the two taxes if voters approve both. In Fall 2007, the Orange County Commissioners indicated their intention to place one or both revenue options on the May 2008 ballot for voter approval. The established timeline for the Board to make a decision on what to include as the subject of a May 6, 2008 referendum is at the February 19, 2008 regular meeting. The BOCC must communicate its decision to the Orange County Board of Elections before the end of February in order to meet practical and statutory requirements regarding the calling and advertising of elections and the availability of ballots for absentee voting. On February 5, 2008, the Board of Commissioners held a public hearing to receive citizen comments regarding the two possible revenue mechanisms. The Board also approved that evening an agreement with Hertzog Research, LLC to conduct and present- findings from a telephonic survey of approximately 400. registered Orange County voters likely to participate in the May 2008 elections regarding their attitudes towards the available local revenue options. Dr. Mark Hertzog, principal of the research firm, will make a presentation to the Commissioners regarding his findings at the February 19 meeting. This work session affords the Board the opportunity to discuss possible uses of the proceeds from one of these revenue options. There is no provision for the ballot to contain language that specifically and legally earmarks proceeds to particular uses. That notwithstanding, presenters at local revenue option seminars sponsored by the North Carolina Association of County Commissioners in September 2007 and January 2008 repeatedly stressed the importance of 2 explaining clearly and concisely to voters what a Board of Commissioners' intent may be with regard to the proceeds. It will be helpful to members of the Local Revenue Options Education Advisory Committee to understand the Board's outlook on planned uses for the proceeds so that information can be incorporated into educational materials to be disseminated to Orange County residents later this spring. The Board may also use time at this February 12 work session to discuss or identify any additional information needs that Commissioners may have in preparation for the February 19 meeting. FINANCIAL IMPACT: There is no direct financial impact associated with this agenda item. Preliminary estimates provided by the North Carolina Association of County Commissioners suggest that based on historical patterns, Orange County could expect additional annual sales tax revenue of roughly $3.0 million, or annual proceeds of approximately $4.0 million from a .4 percent land transfer tax, if approved by voters and implemented by the Board of Commissioners. RECOMMENDATION(S): The Manager recommends that the Board discuss the local revenue options issue and provide any necessary direction to the Manager and staff ahead of the planned BOCC decision item on this subject as part of the February 19 regular meeting agenda.