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<br />Using a cost sharing arrangement between the towns to make the County whole based upon <br />the percentage of sales taxes each town receives would provide the following impacts: <br />Orange County $ 874,082 Increase <br />Chapel Hill (65.65%) ($573,807) Decrease <br />Carrboro (23.99%) ($209,689) Decrease <br />Hillsborough (8.14%) ($ 71,168) Decrease <br />Mebane (2.16%) ($ 18,870) Decrease <br />Durham (0.06%) ($ 548) Decrease <br />Certainly, no municipality desires a change from the current method selected by the County for <br />sales tax distribution which would reduce its sales tax revenues. However, each municipality <br />also remains at risk that the County might one day in the future select the other available option. <br />Each year a future Board of County Commissioners will decide this issue within the authority <br />granted by State law. There is an effort within the N'C General Assembly ~a North Carolina <br />League of Municipalities' legislative goal} to place further limits on a County's ability to make <br />this decision in the future. <br />REC~MMENDATI~N~S~: The Manager recommends no change in the options selected at this <br />time. However, the County has limited ability to increase or control future revenues beyond <br />property taxes and the distribution of sales tax revenues, <br />During a difficult budget period, a future Board of Commissioners might view a change in the <br />sales tax distribution formula from a different perspective Ito the detriment of the towns at that <br />time}. <br />Growth management practices and a lack of utility infrastructure in the rural ~non~municipal} <br />areas of Grange County ensure that the `Population' method of sales tax distribution will always <br />benefit the municipalities. As urban centers intensify density and sales tax revenues grow, the <br />disparity between the two formula options will increase. <br />