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26 <br /> 1 to be effective, a certified copy of it must be delivered to the Secretary in Raleigh within 15 <br /> 2 calendar days after its adoption. If the board fails to adopt a resolution choosing a method of <br /> 3 distribution not then in effect in the county, or if a certified copy of the resolution is not timely <br /> 4 delivered to the Secretary, the method of distribution then in effect in the county shall continue <br /> 5 in effect for the following fiscal year. The method of distribution in effect on the first of July of <br /> 6 each fiscal year shall apply to every distribution made during that fiscal year." <br /> 7 <br /> 8 Frank Clifton said the current process has not been changed in years by the county. He <br /> 9 noted that Orange County is unique in that it has a school district with taxing authority. This <br /> 10 means that a switch to assessment base, then the Chapel Hill Carrboro City School district and <br /> 11 the fire districts would receive an appropriation. He said this is brought to the board each year <br /> 12 at this time and it is the Board's discretion to change it or leave it as is. <br /> 13 Clarence Grier said if the process is changed to the ad valorem, $1,053,217 in sales tax <br /> 14 credit would be gained. He said that Chapel Hill Carrboro City Schools would gain about $2.5 <br /> 15 million; and Chapel Hill downtown service district and Durham would receive $500,000 in <br /> 16 increases. <br /> 17 He noted that the individual towns would lose about $4m in sales tax revenue based on <br /> 18 the ad valorem property tax values. He said a cost sharing arrangement is possible and this <br /> 19 would be based on the population and the distribution of this is outlined on page 3 of the <br /> 20 abstract. He said that the manager recommends that the Board consider both options of the <br /> 21 distribution and provide directions to the staff for distribution options for 2013-14. <br /> 22 Commissioner Rich said this is nerve wracking for Chapel Hill Town Council, not <br /> 23 knowing what Orange County will do until April. She has requested that this discussion be done <br /> 24 earlier. She said this would be difficult for a town which is in the midst of budget and she <br /> 25 recommended no change for this year. She asked if the Board can consider these options <br /> 26 every other year instead of every year. She said this would give the towns a heads up instead <br /> 27 of changing it in April and leaving the towns to scramble in finding money for budgets. <br /> 28 Frank Clifton said the option is available for consideration every year, but the Board <br /> 29 does not have to consider it or change it. He said the only complication is the state giving the <br /> 30 final breakdown and not releasing it until April. He said the decision could be made using the <br /> 31 breakdown from the prior year if desired and those numbers don't change a tremendous <br /> 32 amount. <br /> 33 Clarence Grier said the certified numbers were just received from the state last week. <br /> 34 Commissioner Rich said this process is still very uncomfortable for the towns and she <br /> 35 suggested that a more user friendly conversation be set up with the towns prior to consideration <br /> 36 of this item by the County. <br /> 37 Chair Jacobs said the flip side is that the Board could make the decision earlier in the <br /> 38 year about changing the process and address the angst and the equity issues. He said that <br /> 39 there is no need to wait for the official numbers. <br /> 40 Frank Clifton said entities with an agreement have an assimilation of the two options. <br /> 41 He said that, you cannot take away the authority of future elected boards. <br /> 42 Commissioner McKee said his concern with an action of long term agreement for no <br /> 43 change would take away the power of future boards. He said that, considering the political <br /> 44 realities in Orange County, he understands the anxiety, but he feels it is misplaced. He does <br /> 45 not feel that this ratio will be changed. <br /> 46 Commissioner Rich said she has sat in a meeting with a former Commissioner who <br /> 47 threatened to make this change because of a discussion that was going on. She said that the <br /> 48 perception is there of this being a threat. <br /> 49 Commissioner Dorosin referred to the abstract on page three, regarding cost sharing <br /> 50 agreements, and said there are negotiated agreements between towns and County to find <br />