Agenda - 04-23-2013 - 7d - Laserfiche WebLink

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K Estimated amounts of revenues gained by the County & Special Taxing Districts: o Orange County $ 1,053,217 • Chapel Hill Carrboro City Schools $ 2,537,681 • All Fire Districts $ 478,995 • Chapel Hill Downtown Service District $ 29,842 • Durham $ 1,892 Estimated amounts of revenues lost by the Cities & Towns • Carrboro $ 907,823 • Chapel Hill $ 2,988,589 • Hillsborough $ 117,094 • Mebane $ 88,120 State law currently provides only two options for the County to select. Some counties have successfully sought additional options that allow balance between the two existing options. There are also counties that have agreements (Memoranda of Understanding) with their local municipalities that provide for a compromise position between the two existing options. If the County changed from the `Population' to the `Ad Valorem' option, it gains $1,053,217 and the towns give up $4,101,626. Using a cost sharing arrangement between the towns to make the County whole based upon the percentage of sales taxes each town receives would provide the following impacts: Orange County $1,053,217 Increase Chapel Hill (67.55 %) ($711,493) Decrease Carrboro (22.95 %) ($241,683) Decrease Hillsborough (7.31%) ($ 76,965) Decrease Mebane ( 2.15 %) ($ 22,695) Decrease Durham ( 0.04 %) ($ 381) Decrease Certainly, no municipality desires a change from the current method selected by the County for sales tax distribution which would reduce their sales tax revenues. However, each municipality also remains at risk that the County might one day in the future select the other available option. Each year a future Board of County Commissioners will decide this issue within the authority granted by State law. There is an effort within the NC General Assembly (a NC Municipal League legislation goal) to put further limits on a County's ability to make this decision in the future.