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HomeMy WebLinkAboutMinutes - 19650211Minutes of the Board County Commissioners ` Februa 11 1965 The Orange County Board of Commissioners met in special session on Thursday, February 11, 1965, at 7:30 o'clock P.M., in the Commissioners Room at the Courthouse in Hillsboro, N. C. Members present: Chairman Harvey D. Bennett, Commissioners Gordon B. Cleveland, William C. Hay, Henry S. Walker, and Carl Smith. Members absent: None The purpose of this meeting was to give each tax levying authority in the County an opportunity to plead its case for any assessment ratio it desires the County to use, and also for the Board to set the assessment ratio. The governmental unite listed below exercise tax levying authority in Orange County and, as such, were entitled to be heard: Orange County Town of Hillsboro Town of Chapel Hill Town of Carrboxv Town of Mebane Special Districts: Chapel Hill Schools Greater Chapel Hill Fire Tyson Clayton, Assistant Tax Supervisor, was present to represent S. M. Gattis who was unable to attend. Mr. Clayton handed out copies of the following statements which had been prepared by Mr. Gattis: Items To Consider Prior To The Selection of An Assessment Ratio Orange County: From the point of view of the County, at least the following items should be considered before an assessment ratio is selected. Tax Hate The greater the assessment ratio, the lower the tax rate will be: The real significance of this is not found in the total rate levied, but rather in the fact that for certain purposes a maximum rate to be levied is prescribed by law. Therefore, if one is currently levying near the maximum rate, it might be desirable to have the total valuation increased dramatically. In Orange County the tax rate limitation is so far above the sates presently levied, it is highly improbable taat the County could be caught in an embarrassing position because of this. As you remember, the North Carolina Constitution sets a limitation of 20¢ on the $100.00 of property valuation as the maximum a county may levy for General Fund purposes. There is no maximum limit for Schools, Welfare, Debt. Retirement, Public Health or the other major areas in which we operate. Principally because A B C revenues are deposited in our General Fund, we are able to operate almost all departments of our government except those just mentioned above with no tax levy at all. If we were to loose our A. B C revenue, legally, at least we would be able to finance the General Fund within the presently imposed 20¢ limit. Credit Bating Unquestionably, the higher the property valuation, all other things being equal, the better credit rating a county has. As we will in all probability seek to borrow money again in the not too distant future, this point is worthy of consideration. Debt. Limit In the absence of special legislation to the contrary, counties have a debt limit of 5% for school purposes. On January 1, 1964, our property valuation was $116,000,000 and today our school debt is about $4,000,000 on the basis of these figures, we could today issue school bond of about $1,800,000. Assessment Complaints Without a doubt, the higher the. assessment ratio the more complaints are filed over tax assessments. For the first few years after the revaluation of 1954, a substantial number of com- plaints about property assessments were filed each year. In the last five years, however, as real estate values have risen rapidly, and tax assessments have fallen to little more than 50% of current market price, the number of assessments appeals has dwindled away to almost nothing. For 1964 tax, we assessed about 500 buildings and 1,500 tracts of land. There were less than twenty complaints filed with the tax office and none of these appealed to the Board of Equalization and Review. The Towns: The choice of an assessment ratio by the County affects, of course, the towns tax rate, credit rating and debt limit in the same manner it affects the County. As the cities in Orange County maintain no property assessment machinery, they are not confronted with assessment appeals. Since I an not familiar with the financial position of the towns involved, I cannot comment on any particular situation. However, representatives of the towns will be at the hearing to plead their case. X382 Special Districts: Chapel Hill Schools Tax Fate: Since the maximum supplement that can be levied for the Chapel Hill Schools is 20¢ on the $100.00 the selection of an assessment ratio directly affects the total tax that may be levied for the School District. As the assessment ratio is increased the maximum amount of tax that may be levied is also increased. Greater Chapel Hill Fire The same relationship between assessment ratio and total tax that prevails with the School District, also exists with the Fire District. -" Comparison of 1964 & 1965 Real Estate Assessments Township Real Real 8 1964 1965 Increase Tittle River $ 3,357,000 $ 4,570,000 368 Cedar Grove 7,246,600 10,141,900 408 Cheeks 7,410,000 10,025,000 358 Hillsboro 15,828,500 17,367,600 98 Eno 6,510,000 7,490,000 238 Bingham 5,288,800 8,469,100 608 Chapel Hill 83655 6,00 114,541,400 378 Total. $129,296,500 $172,605,000 Misc. Items 4 000 000 1 6 l 0 6 "M 61 9 5 Rea value ® 10 05 % $17 1 Overall increase $ 47,308,500 or 378 Comparison of 1964 1965 Real Estate Assessments in Certain Units N Unit 1964 Real 1965 Real Increase Town of Chapel Hill 47,701,900 64,199,000 358 Town of Carrbor6 7,083,400 8,442,300 198 Town of Hillsboro 3,712,928 3,699,100 - 4/10 of 1% Chapel Hill Schools 80,942,000 110,702,0001 37% Chapel Hill Fire 12,510,450 16,889,1002 35% 1. This is an estimate based on the assumption that all personal property in Chapel Hill Township is located inside the School District. The tota*1 valuation is, therefore, slightly understated. I? 2. This is an estimate based on the assumption that real property valuation located in the Fire District will increase 358. Chairman Bennett Called for any comments or questicr* from the representatives of the above mentioned governmental units. Mayor Fred Claytor and Councilman Everette Forrest were present to-express the opinions for the Town of Hillsboro. Mayor Claytor felt that since the 1965 Real Estate Assessment in the Town of Hillsboro had decreasa4, and the Town would have to accept the assessment ratio established by the County, the Town would prefer that the assesement ratio be set at 809. This ratio would enable the Town to collect the necessary revenue without raising the Town taxes. Aldermen Paul Wager and Roland Giduz represented the Town of Chanel Hill. They felt that the higher the ratio could be set, the fewer inequities would occur. Mr. Giduz advocated a 1008 ratio,,or at least as close to 1008 as possible. R. B. Todd, Town Clerk of Carrboro, stated that he had no definite recommendation to make to the Board, but that the Town of Carrboro did not want to raise its taxes. There was no representative from Mebane present. Superintendent Howard Thompson and Board members Edwin Tenney and Nss. Mary. Scruggs repre- sented the Chapel Hill School Unit. The opinion of this unit was that since the real estate Asses- sment in their unit had increased, the present assessment ratio of 7Q% would be sufficient if their supplementary tax of 20¢ per $100.00 valuation remains the same. Tyson Clayton expressed the opinion of S. M. Gattis, Tax Supervisor, that the present assessment ratio of 708 should be retained. After considerable discussion, Chairman Bennett called for a motion. it was moved by Commissioner Smith and seconded by Commissioner Ray that orange County adopt a 10% assessment ratio. After discussion and questions Chairman Bennett aalled fora vote. The motion passed with a vote of h ayes and 1 no, Commissioner Cleveland voting "no". Chairman Bennett advised the Board that he had met with the Board of Aldermen of Chapel-Hill to inform them of the petition presented to the Board at the February 1, 1965 meeting by citizens of the Homestead Community, requesting that said Community be zoned. Chairman Bennett advised the Chapel Hill Board that the County felt that this community should be zoned and that Chapel Hill and Carrboro•should work together on this matter. Chairman Bennett also informed the Board that a meeting was being called to consider the possibility of a combined planning board, consisting of the planning areas of Chapel Hill, Carrboro, and Orange County. Definite plans for such a board would be worked out later, if the groups in these areas endorsed the idea. Discussion ensued. Upon motion of Commissioner Cleveland, seconded by Commissioner Smith, and unanimously adopted, the Board agreed to endorse a canbi.ned planning board. Commissioner Smith reported that he would no longer be able to serve on the d In his hity Action Advisory Board, and reconmmended that Commissioner Cleveland be appointed place. Chairman Bennett then appointed Commissioner Cleveland to said Board. There being no further business to come before the Board, said meeting was adjourned. Harvey D. Bennett, Chairman Jerry M. Kenion, Acting Clerk Betty June Hayes, Clerk ',