Agenda - 10-06-1997 - 10e - Laserfiche WebLink

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Attachment 2 4 Manager's Message - continued Sales Tax ' The half cent sales tax revenue which is earmarked for capital projects and debt service continues to grow at a healthy rate of between 6 and 7 percent. We are projecting this revenue source to increase by 5 percent next Change in Sales Tax Revenue year, based on information t5% 12.23% com carx we have received from the 10.94% 01n Cant North Carolina Association to% 887% 06% 7 ;} 6.05% 7.67% 7,48x, of County Commissioners. _ 4 6 5.04% .,= 5% ra z 3. At the December :996 w planning retreat we alerted 90-91 91 92 92.93 93-94 94-95 9596 L247• 97.98 the Board to a possible 5% -2.75% shortfall in revenue from the one cent local option sales ,.05% tax. As you see in this chart, we are anticipating receiving less revenue from the one cent in 1996-97 than we received during 1995-96. Information we received from the Department of Revenue regarding reimbursements to non-profit agencies and State and local governments supports our theory that 1996-97 is abnormal and that this decline in -revenue is not expected to continue. For 1997-98 we are anticipating growth of 3 percent over the 1996-97 estimated revenue. _ The Board has asked Staff to recommend as part of this budget a funding source for reimbursing local non-profit agencies for impact fees paid for affordable housing projects. We are suggesting that the Board consider earmarking one half of the yearly growth in the one cent sales tax. This amount for 1997-98 is anticipated to be $66,000. We are recommending that the Board adopt this earmarking for a three year period, which in the year 2000 would be reviewed to determine what adjustments, if any, need to be made. 1997-98 funding will begin to address the commitment the Board has made to the Carolina Springs affordable housing project, and other eligible projects. Intergovernmental Social Services - The impact of Work First is increasing the funds we receive for daycare by $1.1 million over the 1996-97 original budget_ This increase in daycare is driving the major increases in the 1997-98 expenditure budget of Social Services. Federal and State funding for daycare is a critical component in the success of welfare reform. The County must remain vigilant in retaining and seeking resources for daycare, transportation, and skill development if Work First(welfare reform) is to succeed. Human Rights and Relations - When the Board of Commissioners adopted the Civil Rights Ordinance and created the Human Rights and Relations Department, we had anticipated federal revenue of $150,000 per year for three years for capacity building. Under revised federal guidelines, this revenue stream has been changed. We now anticipate receiving $131,900 for the Page 1 - 3