Minutes 05-18-2010 - Laserfiche WebLink

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� he said that he looked at ones that were duplication of services, etc. He suggested that the County might want to look at the '/4-cent sales tax because the land transfer tax has failed and continues to fail in other counties. He suggested having a referendum phrased so that the public would know clearly what the money was being directed toward. It would only produce $500,000 in this year's budget because it would take about three or four months after it was implemented before the County received funds. He thinks that it would probably be two to three years before true results were seen. As of 2008, Orange County ranked #2 in the State in per capita income. In that same year, Orange County ranked #77 out of 100 counties in sales tax collections per capita. This means that the people that live in Orange County are shopping elsewhere. He thinks that this needs to be a priority— increasing the sales tax by increasing economic development. Frank Clifton said that he did move the Arts function to be funded under tourism because it is a steady source of revenue and it is tied to overnight stays. There is a close relationship between the Arts function, economic development, and tourism in Orange County. Also, the tourism function has two taxes —the Town of Chapel Hill and Orange County. The County dedicates 100% of tourism revenues to the tourism function and the Town of Chapel Hill designates 15% of its collections. Theoretically, Orange County could move 85% of those revenues out of tourism and into some other County function. He would like to continue to have dialogue with the Town of Chapel Hill about how it might participate at a higher level toward the promotion of tourism within Chapel Hill and Orange County. Also, there was a reserve fund set up a while ago in the tourism budget in the amount of about $200,000, so it has been moved back to Economic Development for small business loans. Frank Clifton made reference to ways of further reducing the budget and said that roughly 50% goes to education and that leaves 50% for County functions. Of that 50%, probably 25% of the 50% would be federal or state dollars being passed through to supplement services delivered under federal and state guidelines. The remainder of it is property tax, sales tax, and fees for service. He said that they have wiped out County budgets this year and there is no capital except for minor things. He said that there are only four new employees and they are for EMS. There was also some restructuring done in EMS and he eliminated six middle management positions. These are now paramedic slots. Frank Clifton said that there are no salary or cost-of-living increases. There will be an increase in health insurance of about $200,000. Retiree insurance is going to increase by $250,000 and there was a mandated increase in retirement benefits. The living wage has been maintained at $10.12/hour. Frank Clifton said that this was one of the most difficult budget cycles that he has had to deal with. He said that Orange County does more for its residents than any local government that he has been associated with. It is very difficult to balance the budget without affecting people in a dramatic way. Commissioner Jacobs asked if the 48.1% for schools included the $1.8 million for non- mandated safety net and Frank Clifton said no. He said that the Board has had a chart every year. He would like to request this chart to have total County effort toward school funding that includes capital debt and per-pupil compared to other counties in North Carolina. Commissioner Jacobs said that when the Board had the retreat about advisory boards, it talked about hearing from advisory boards before any decisions were made about the dissolution or changing of boards and commissions. He said that he is fully supportive of the concept of the Arts Commission moving under the Visitor's Bureau, but he thinks that those respective boards should discuss this before the budget is adopted on June 15tn