Minutes - 20020429 - Laserfiche WebLink

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which is about a 7-cent tax rate increase. He made reference to two handouts he distributed — Commercial Garbage Collection, dated April 24, 2002; and Information on Pay As You Throw, dated April 29, 2002. He said that both of these ideas are affected by County policy. Preliminary implications from County staff indicate that any changes in commercial garbage collection charges might be problematic. He said that he would be glad to answer any questions from the County Commissioners. Commissioner Carey asked if Chapel Hill is assuming that the state is not going to come through with the reimbursements in building its budget. Cal Horton said that they have based their budget proposal on the fact that the state will not come through with the reimbursements. He said that he understands that the League of Municipalities and the North Carolina County Commissioners Association will ask for legislation to protect the counties and the towns. Senator Ellie Kinnaird said that there is talk of accelerating the % cent sales tax that can be levied, which may be a possibility. Representative Verla Insko said that it would be more likely that we would be able to pass legislation to protect the beer and wine franchise tax rather than the reimbursements, because reimbursements go through the general fund. She said that the Governor, through the Executive Budget Act, has the authority to take anything in the general fund. She is not sure how it happened that the other funds were taken this year, but she hopes that will not happen again. Mayor Nelson asked about the collection fee schedule and the statement made by County staff that it would be problematic to make changes to that this year. He asked in what way it would be problematic. Cal Horton deferred this question to the County staff. Chair Jacobs said that this is not an item on the agenda tonight, but Solid Waste Director Gayle Wilson can give a brief overview since Mayor Nelson may have to leave early. Solid Waste Director Gayle Wilson said that any significant changes in the commercial collection sector that would shift significant quantities of waste from being delivered to our County landfill would seem to be contrary to the interlocal agreement. The principle upon which this is based is that the waste disposal should carry the burden of funding the solid waste system to the extent possible. The profits from the waste delivered to our facilities are all used to fund the waste reduction and recycling program. If the waste is taken out of the County to be disposed of somewhere for less, then the County loses money to fund the waste reduction and recycling program and the private sector receives the profit. Mayor Nelson said that there is a way to set up franchise agreements so that franchisees are required to take the waste to the landfill. Hillsborough Eric Peterson said that the impact from the withholding of funds in Hillsborough is about $250,000, which is over six cents on its tax rate. The possibility next year is a ten-cent equivalent on the tax rate, which is ten percent of the general fund revenues. The Town basically cut the budget down as low as it could possibly go. There will actually be a 6.6% decrease in the expenditures for next year. This includes things like no cost-of-living increases, no merit, the elimination of one position, and elimination of commercial dumpster collection. They are also going to use an exclusive franchise agreement, which requires that waste be taken to the landfill. This will save Hillsborough 3.5-4.0 cents on the tax rate. Even with doing all of that, they are looking at a bare minimum increase of 3.75 cents to be able to maintain status quo. Commissioner Brown asked what state funding Hillsborough would lose and Eric Peterson said that the utility franchise tax would account for six cents on the tax rate. The inventory and intangibles and the ABC revenues are smaller.