Agenda - 11-04-2010 - 7b - Laserfiche WebLink

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2 Seventeen out of 100 North Carolina counties have approved the Article 46 one quarter cent (1/4¢) county sales and use tax. An additional 12 counties scheduled a referendum on the tax for November 2, 2010. The Board of Commissioners held a public hearing on June 1, 2010 to solicit comments from the public on a possible November 2, 2010 Special Advisory Referendum concerning the Levy of a One-Quarter Cent (1/4¢) County Sales and Use Tax. At its June 15, 2010 regular meeting, the Board considered and approved a resolution scheduling a November 2, 2010 Special Advisory Referendum concerning the Levy of a One- Quarter Cent (1/4¢) County Sales and Use Tax. The Board held a public hearing on August 17, 2010 to solicit comments from the public on the possible uses for the One-Quarter Cent sales tax revenues. The Board considered potential uses at an August 19, 2010 work session and gave direction to staff to formulate a resolution addressing the potential uses for consideration at the Board's September 2, 2010 regular meeting. On September 2, 2010 the Board adopted a resolution to document the Board's intended uses of the revenues from a prospective One-Quarter Cent (1/4) Sales and Use Tax. If a majority of voters approve the Article 46 sales tax referendum, the Board will be required under the North Carolina General Statutes to give ten (10) days public notice of the Board's intent to levy the tax. The Board would then hold a required public hearing and consider a new resolution to actually levy the tax. The Board must adopt that additional resolution by December 31, 2010 in order for the tax to take effect by April 1, 2011. The North Carolina Association of County Commissioners recommended that counties undertake a public education campaign to educate voters. County staff developed an education initiative similar to those the County has undertaken for past voter approved bond referenda. The Board approved an amount not to exceed $40,000 for a public education campaign for the November 2, 2010 referendum. The County has made an extensive effort to educate voters on the sales tax referendum by printing and distributing 100,000 brochures and 100 posters. The distribution of materials has been coordinated with both school systems and the business community. There were also block ads in local news papers, radio advertisements on both WUNC and WCHL, and the Department on Aging's television show, "In Praise of Age", dedicated finro shows to educating Orange County voters. Numerous elected and appointed County officials have made public service announcements and written letters to the editors of local news papers in an effort the educate the public on this issue. FINANCIAL IMPACT: There is no financial impact associated with follow-up on the November 2, 2010 Special Advisory Referendum and discussion on the next steps/course of action required by the Board of Commissioners if the ballot measure is approved by Orange County voters. If a majority of voters approves the sales tax and the Board of Commissioners implements the sales tax on April 1, 2011, the Article 46 sales and use tax would generate approximately $2,300,000 annually for the County. The sales tax would generate approximately $575,000 during the remainder/last quarter of FY 2010-11. RECOMMENDATION(S): The Manager recommends the Board: 1) follow-up on the November 2, 2010 Special Advisory Referendum;