Orange County NC Website
Browse       Search
54 <br />County Participation <br />In addition to the expected tax increment for the Town, the County and the School District will <br />also see a tax increment proportional to their respective tax rates. The annual increment for the <br />County based on the development scenario shown above and using the current tax rate would be <br />$1,389,379 after build -out of phase one and $2,250,717 after build -out of phase three. For the <br />School District, using the same assumptions, their increment would be $337,467 after build out <br />of phase one and $546,678 after build out of phase three. In addition, based on the expected <br />number of multi - family housing units that will be built, it is anticipated that the project will <br />generate $1,922,570 in one -time school impact fees. A complete 20 year tax projection of tax <br />increment for all jurisdictions is shown in Attachment 1. <br />Although we believe that the project will ultimately generate a tax increment sufficient to satisfy <br />debt service needs, there may be an extended period of time when the Town's tax increment, by <br />itself, will be insufficient to cover debt service. The anticipated gap is shown in the following <br />graph: <br />0 Year Cost Benefit Comparison <br />u ufative Debt gerviee & Tawrt Prapertq Ta <br />$34,004,406 l plcra erxt <br />$18,004,406 <br />$16,000,406 <br />$14,000,000 <br />$1,000,400 <br />SIOA ,800 <br />E <br />s j $$000,000 <br />$6,o0o,4Do <br />$4,000,000 <br />$2,000,000 <br />$0 <br />v► +c n vo- c7 g ti n m a uti � n co- rn v� ra m� <br />}}ti r }}r rya a }}v }n} rw a }v ryya rw }n} rw rw r* }}► }}n r }}*► m <br />L4 Il t LL t t L4 t Yi t LL l4 t I.L t li 44 it li <br />Fiscal Year <br />Because of this potential insufficiency and because of the expected benefits the County will <br />receive from the tax increment, and other revenues associated with the renewal (sales tax, <br />occupancy tax and vehicle taxes), we are requesting that the County participate in the project by <br />pledging a portion of their incremental increase in property taxes toward the payment of debt <br />service for the project's public improvements. <br />Specifically we are requesting that the County pledge the lesser of 50% of the actual increment <br />or 50% of the actual annual debt service cost. By structuring the County's participation in this <br />