Agenda - 05-28-2009 - 2 - Laserfiche WebLink

Browse Search

Scenarios For Possible Modifications to the FY 2009-10 Manager's Recommended Budget Orange County's FY 2009-10 Recommended Annual Operating Budget was balanced at the revenue neutral tax rate for the County. The Board of County Commissioners directed the County Manager to prepare scenarios for decreasing the recommended budget in order to attain a tax rate lower than the revenue neutral rate. The chart below outlines 5 scenarios ranging from reduction of the recommended tax rate by 112 cent to reduction of 2.4 cents. The chart also outlines the negative financial impact for County and School funding if the Board were to approve a tax rate less than the recommended rate and maintain the funding ratio of 48.1 % of General Fund revenues for local school districts and 51.9% for county operations. "Manager's Note: The following alternative scenarios reflect the areas that I have identified for progressive cuts to reduce the County's revenue neutral tax rate. The cuts in the first two columns could be considered and not dramatically erode County services and programs. Cuts identified in all columns, however, would negatively impact County employee pay and County funding for local school districts, Chapel Hill Carrboro and Orange County Schools. It is important to note, cuts beyond 1 cent will seriously erode County and School programs, in my opinion." FY 2009.10 One Cent Generates $1,505,352 Tax Rate Tax Rate Tax Rate Tax Rate Tax Rate Reduction of Reduction of Reduction of Reduction of Reduction of .5 cents 1 cent 1.5 cents 2 cents 2.4 cents FY 2009.10 Recommended Tax Rate (This is the revenue neutral rate for the County; reflected in 85.80 85.80 85.80 85.80 85.80 cents per $100 valuation) Possible Tax Rate Reduction (cents per $100 valuation) 0.50 1.00 1.50 2.00 2.40 Tax Rate After Tax Rate Reduction (cents per $100 valuation) 85.30 84.80 84.30 83.80 83.40 Total Dollar Equivalent of Tax Rate Reduction 752,676 1,505,352 2,258,028 3,010,704 3,612,845 Schools Share of Reduction (48.1% of total $362,037 $724,074 $1,086,111 $1,448,149 $1,737,778 recommended General Fund budget) County Share (51.9% of total recommended $390,639 $781,278 $1,171,917 $1,562,555 $1,875,066 General Fund budget)