Agenda - 05-30-2013 - 2 - Laserfiche WebLink

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Factors impacting operational expenses include: • School Districts Requests • School District Debt Service • Emergency Services Needs • Increases in the County's contributions to employee Health Insurance retirement reserves. • Projected annual increases in health insurance costs of 8 to 15 percent. • Employee Compensation Adjustment Adjustments were made to offset stagnant revenues and increased expenses where possible. Revenues County revenues come from limited sources. Major revenues include property and sales taxes, funds from other governments, and fees for services. In prior budget discussions with County Commissioners, staff anticipated revenues to only increase one and a half percent in total for the upcoming year. There continues to be little growth in the County's tax base, consumer spending has increased slightly, and the State is coming to terms with a major budget deficit that may result in a state reduction of revenues received by the County. State budget mandates and the transfer of State funding expenses to the County continue to have an impact on our budget. Assessed Property Valuation and Property Tax Rate Orange County's last property revaluation was effective January 1, 2009. The County's current total assessed valuation, including real, personal, public utility property and motor vehicles, equals $16,326,472,800. The tax levy for the current year is $140,081,137. Real property values increased from $15.1 billion budgeted in FY 2012 -13 to $15.5 billion in FY 2013- 14, an increase of 2.7 %. Valuations for motor vehicles have increased $23.2 million due to continued new vehicle purchases in FY 2012 -13 which represents a 2.8% increase over the previous fiscal year. This results in an overall increase in total property valuation of 2.7 %. This is a positive indicator of an improving local economy. Recommended Tax Rate Ad Valorem Tax Rate - Revenues generated by the County's ad valorem property tax support day -to- day County and School operations budgeted in the General Fund. The current ad valorem property tax rate is recommended to remain the same for fifth consecutive year at 85.8 cents per $100 of assessed valuation. One cent on the property tax rate will generate $1,606,869. Chapel Hill Carrboro City Schools District Tax -The voter approved Chapel Hill City Schools District Tax provides additional revenue to that school district over and above the County's allocation to education. This budget provides for the District tax rate to remain the same at 18.84 cents per $100 assessed value. Based on this tax rate, the District will receive an estimated $19,387,964 or $1,584 per pupil above the County's allocation to education. One cent on the school special district tax rate will generate $1,029,085. Voters in the Orange County School District have not authorized a special district tax to supplement the amount received from the County's General Fund for education. P�