Agenda - 01-16-1997 - 2 - Laserfiche WebLink

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John Link stated that the double taxation would apply if you are talking about ad valorum taxes and property tax. The expenditure of these funds for economic development are coming from the 1/2 cents sales tax revenue which generated statewide and appropriated back to each unit of government based on population. All revenues for County Capital Improvement Plan come from that 1/2 cent sales tax. Alderman Bryan felt that was appropriate unless it was a substitution of one source of funds for another. OWASA customers are concerned that they will have to pay twice - for OWASA projects and County projects. The County Water and Sewer Policy cannot be amended by this Task Force. Commissioner Gordon felt that the best approach would be to have the Area Boundary Agreement state exactly was decided by this Task Force. She pointed out that the Water and Sewer Policy could be changed at any time by the Board of Commissioners which would defeat the purpose of this group if that document was being used in this agreement. Councilmember Andresen felt that the County costs are not actually recovered in economic development projects. Commissioner Carey stated that costs are recovered when the amount of taxes the business pays increases above what they were at the time of the investment. If the increase in the taxes over a five year period match the amount invested, the County considers that repayment of the investment. Councilmember Andresen disagreed with this. She pointed out that growth always costs. She requested a limitation on the amount that the County could spend on this type of project. Chair Carey stated that he felt that it was appropriate to ask for that limitation, however, this document is not the way to do it. The budget process would be the way to address this request. Councilmember Capowski asked for an example of a County project where it would not be practical to recover costs. John Link mentioned the Efland sewer project. The citizens who are on the system are paying sewer fees. In 1986 The Board of Commissioners acknowledged the need to expand the system because there are additional failing septic systems. Next week Tara Fikes will present to the Board of County Commissioners a proposal that the County apply for $800,000 in CDBG funds to help address Phase 2 and 3 of the Efland Sewer Systems. Those funds will require a match from the County which would be approximately $300,000 out of General Tax Funds. The families that would benefit from this money are not in a position to repay their portion within the next 3 to 5 years.