Agenda - 04-05-2011 - 4g - Laserfiche WebLink

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The attached draft referendum resolution does not include language regarding the possible uses of the potential funds from the one-quarter cent sales tax. Pending approval of the attached referendum resolution, the Board may also want to consider discussing any public education efforts to ensure voters are knowledgeable regarding the ballot question. The North Carolina Association of County Commissioners recommends that counties undertake a public education campaign to educate voters. The County did undertake a public education effort for the previous November 2010 sales tax referendum. It is proposed that a potential public education effort be considered for discussion at the April 7 Board work session and Board action as appropriate be considered at the April 19, 2011 regular meeting. If the Board of Commissioners does decide to move forward with a referendum and a majority of voters approve the sales tax referendum, the Board will be required to give ten X10} 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 in order for the tax to take effect. Based on election certification timeframes, the Board of Commissioners' regular meeting schedule, and timing and other requirements associated with the North Carolina Department of Revenue and North Carolina general Statute 105-456, the earliest date the additional sales tax could become effective following a November S, 2011 referendum would be April 1, 2012 FINANCIAL IMPACT: There is no financial impact associated with consideration of the Resolution Calling for a November 8, 2011 Special Advisory Referendum Concerning the Levy of a Dne-Quarter Cent X114¢} County Sales and Use Tax. If a majority of~voters approve the sales tax, and the Board of Commissioners implements the sales tax as soon after the November 8, 2011 referendum as possible, it could have an effective date of Apr"rl 1, 2012. Approximately $525,000 would be generated during the remainderllast quarter of FY 2011-12. As an additional revenue source in the following years, the sales and use tax would generate approximately $2,500,000 annually for the County. The County will incur a cost of approximately $84,500 with the placement of the refierendum on the November S, 2011 ballot. Currently, the November 8, 2011 election only includes municipal issues and the towns are responsible for the costs. However, if the County schedules a referendum, a majority of the election costs became the responsibility of the County. This assumption by the County of the majority of election costs is further explained in Attachment 3 from Board of Elections Director Tracy Reams. RECOMMENDATION(S): The Manager recommends that the Board review, discuss, and consider the Resolution Calling fora November 8, 2011 Special Advisory Referendum Concerning the Levy of aOne-Quarter Cent (1/4¢) County Sales and Use Tax. Contingent upon approval of the referendum resolution, staff will plan for 1 }Board discussion at the April 7 work session on the possible uses of the potential sales tax funds in follow-up to the public hearing that appears on the agenda later during tonight's regular Board meeting; 2} Board discussion on a potential public education effort; and 3} potential Board action at the April 10, 2011 regular meeting on a second resolution regarding the planned uses of the potential sales tax funds.