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4 <br /> ORANGE COUNTY BUDGET OFFICE <br /> Donna Dean, Budget Director <br /> 208 South Cameron Street, Post Office Box 8181 • Hillsborough, NC • <br /> 27278 <br /> Phone: 919-245-2151 • Fax: 919-644-3324 <br /> E-Mail: ddean @co.ora,rige.nc.us <br /> To: John Link, County Manager <br /> From: Donna Dean, Budget Director <br /> Subject: Update on CIP Revenues <br /> Date: September 21, 2001 <br /> Now that last fiscal year has ended and the-audit is nearing completion, I would like to <br /> update you on two major revenue sources that fund the County and Schools long-range <br /> capital projects-Y2 Cent Sales Tax Collections and School Construction Impact Fees. <br /> '/2 Cent Sales Tax <br /> Over the past few years, Y2 cent sales tax revenues have increased around 7 to 8 <br /> percent. You may recall, that last fall as we began planning for the current year's <br /> Capital Investment Plan (CIP) update, the economy was beginning to slow, and we <br /> were beginning to experience a slight decrease in our sales tax collections. <br /> At final count, Y2 cent sales tax collections for last fiscal year (2000-01) totaled <br /> $8,582,546. This was $325,740 less than budget. Fortunately, both the County and the <br /> School Capital Fund Balances hade sufficient balances to cover the shortfall we <br /> experienced, and we did not have to reduce funding for any projects. <br /> During the budget planning process this past spring, we anticipated that the economic <br /> slowing would continue, and we anticipated a 5 percent growth in budget for the Y2 cent <br /> sales tax revenues. In light of our experience over the last twelve months and the more <br /> recent national events, we may see further declines in our collections. <br /> The first quarter collections are due from the State in mid-November. I will provide an <br /> update for you at that time. <br /> School Construction Impact Fees <br /> Over the past few months the Board has discussed the potential use of School <br /> Construction Impact Fees as one method of paying for school projects that are not <br /> included on the November bond. Following the Towns' submission of the impact fees <br /> that they collected through June 30, 2001, 1 confirmed the impact fee amounts available <br /> for both school districts. - <br /> Chapel Hill-Carrboroa City Schools - The amount available in the CHCCS impact <br /> fee fund is $6.2 million. For the most part, this amount is the result of higher than <br /> anticipated collections over the past three years. Since fiscal year 1998-99, <br /> impact fees collected in the CHCCS district has ranged from $2.3 million to $2.7 <br /> Page 1 of 2 <br />