Agenda - 04-19-2011 - 4d - Laserfiche WebLink

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2 A Special Advisory Referendum Concerning the Levy of aOne-Quarter Cent (1/4¢) County Sales and Use Tax was held in Orange County on November 2, 2010. The election results were 20,896 votes cast FOR and 21,953 votes AGAINST an additional one-quarter cent (1/4¢) county sales and use tax. The first possible date the Board can consider for a Special Advisory Referendum Concerning the Levy of aOne-Quarter Cent (1/4¢) County Sales and Use Tax referendum, is November 8, 2011. North Carolina General Statutes 105-465 states that "The county board of elections shall fix the date of the special election, except that the special election shall not be held on the date or within 60 days of any biennial election of county officers, nor within one year from the date from the date last preceding special election under the section." Although a public hearing is not required by the North Carolina General Statutes, the Board held a public hearing on March 15, 2011 to solicit comments from the public on a possible November 8, 2011 Special Advisory Referendum Concerning the Levy of aOne-Quarter cent (1/4¢) County Sales and Use Tax. The Board discussed the potential referendum and approved a Resolution Calling for a Special Advisory Referendum Concerning the Levy of a One-Quarter cent (1/4¢) County Sales and Use Tax on the April 5, 2011. The Board held a public hearing on April 5, 2011 and received public comments on the possible uses for the potential proceeds from the additional sales tax if approved by voters. Over the past few months the Board has discussed both Education and Economic Development as having a high priority when considering potential uses for revenues generated from the One- Quarter cent (1/4¢) County Sales and Use Tax. Along-term commitment of ten years has also been discussed. An extensive Board discussion on the possible uses for the potential proceeds from aOne- Quarter cent (1/4¢) County Sales and Use Tax occurred at the April 7, 2011 work session. Economic Development Director Gary Shope presented possible Economic Development initiatives for the Board to consider including: expanding the Small Business Loan Program, funding Innovation Centers for new businesses, funding for Agricultural Economic Development, and Business Development Grants. The Board discussed these Economic Development initiatives without finalizing a funding formula and discussed a 50% allocation of potential proceeds from the additional sales tax to allocate towards Economic Development. The Board also discussed allocating 50% of potential proceeds from the additional sales tax to Education. There was consensus on an equitable allocation between both school systems, with capital improvements of older schools and the procurement of technology having the highest priorities. The Board discussed making a request that each school system furnish a detailed list of prioritized projects that could be completed over the next ten years for Board of Commissioners' consideration. If a majority of voters approve the sales tax referendum, the Board will be required 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 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 105-466, the earliest date the additional sales tax could become effective following a November 8, 2011 referendum would be April 1, 2012.