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25 <br /> 7. Authorize a 3% tax on prepared food and beverages, with proceeds to be spent on capital <br /> facilities which may include entranceway improvements, Streetscape improvements and <br /> placing utilities underground. <br /> Manager's comments: The Council in 1991 requested and then withdrew a request for <br /> authorization of a "meals tax" to generate funds for street and right-of-way <br /> improvements in commercial areas of the Town. <br /> 8. Authorize the Town to enact an entertainment tax of up to $1 per ticket on large <br /> entertainment venues and/or an admissions tax of 3% on tipkets to entertainment events in <br /> venues with more than 50 seats; with exemptions authorized for high school events. <br /> Manager's comments: The Council has requested authorization for an entertainment <br /> tax in past years. If approved, such a tax could generate several hundred thousand <br /> dollars annually. The University has opposed an entertainment tax because of <br /> concerns about its effect on the Smith Center. <br /> 9. Authorize a local real estate transfer tax of up to 1%. <br /> Manager's comments: A realty transfer tax could be used for purchase of park land, <br /> open space and greenways. Such a use would be consistent with the State's use of real <br /> estate transfer revenues for the State's parks and recreation trust fund. The amount of <br /> potential annual revenue to the Town from a real estate transfer tax is difficult to <br /> estimate without experience and would be subject to fluctuation with economic <br /> cycles. <br /> 10. Authorize an increase from $15 to$20 in the Town's motor vehicle license tax. <br /> Manager's comments: In 1995, the Council increased the motor vehicle license fee <br /> from $10 to $15 annually. This fee generates about$325,000 annually. An increase to <br /> $20, if authorized, would generate about $108,000 of additional revenue, the <br /> equivalent of about one-half cent of the property tax rate. <br /> 11. Adjust the State's formula for distributing library funds so that municipal libraries receive <br /> funds on the same basis as County and regional libraries. <br /> Manager's comments: Current law results in municipal libraries receiving less State <br /> funding per capita than county and regional libraries. For 1996-97, the Town received <br /> about $28,464 or 0.65 cents per person in Chapel Hill, while the Hyconeechee <br /> Regional Library serving Orange, Caswell and Person Counties received $325,396 or <br /> $2.78 per person served in the three counties excluding Chapel Hill. (Population data <br /> used in these calculations are from the State Library staff.) <br /> 3 <br />