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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: February 12, 2008 <br />Action Agenda <br />Item No. __ <br />SUBJECT: Local Revenue Options Referendum <br />DEPARTMENT: County Manager PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />None <br />INFORMATION CONTACT: <br />Laura Blackmon or Rod Visser, 919-245- <br />2300 <br />Donna Coffey, 919-245-2151 <br />PURPOSE: To discuss next steps leading up to a decision at the February 19, 2008 Orange <br />County Commissioners' meeting regarding what local revenue option(s) to include in a <br />referendum to be placed on the May 6, 2008 ballot. <br />BACKGROUND: As part of a comprehensive and complicated "swap" of county and state <br />revenue sources approved by the North Carolina General Assembly during its 2007 Session, <br />the legislature authorized county Boards of Commissioners to enact one of two new local <br />revenue sources, subject to voter approval in each county considering implementation of the <br />new revenue source. Commissioners may conduct a referendum on a land transfer tax (of up to <br />four-tenths percent, in one-tenth increments), aone-quarter cent additional sales tax, or both. <br />Commissioners can only implement one of the two taxes if voters approve both. <br />In Fall 2007, the Orange County Commissioners indicated their intention to place one or both <br />revenue options on the May 2008 ballot for voter approval. The established timeline for the <br />Board to make a decision on what to include as the subject of a May 6, 2008 referendum is at <br />the February 19, 2008 regular meeting. The BOCC must communicate its decision to the <br />Orange County Board of Elections before the end of February in order to meet practical and <br />statutory requirements regarding the calling and advertising of elections and the availability of <br />ballots for absentee voting. <br />On February 5, 2008, the Board of Commissioners held a public hearing to receive citizen <br />comments regarding the two possible revenue mechanisms. The Board also approved that <br />evening an agreement with Hertzog Research, LLC to conduct and present- findings from a <br />telephonic survey of approximately 400. registered Orange County voters likely to participate in <br />the May 2008 elections regarding their attitudes towards the available local revenue options. <br />Dr. Mark Hertzog, principal of the research firm, will make a presentation to the Commissioners <br />regarding his findings at the February 19 meeting. <br />This work session affords the Board the opportunity to discuss possible uses of the proceeds <br />from one of these revenue options. There is no provision for the ballot to contain language that <br />specifically and legally earmarks proceeds to particular uses. That notwithstanding, presenters <br />at local revenue option seminars sponsored by the North Carolina Association of County <br />Commissioners in September 2007 and January 2008 repeatedly stressed the importance of <br />