Agenda - 05-01-2008-4g - Laserfiche WebLink

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/ Solid Waste Enterprise Fund -Effective July 1, 2008, the State of North Carolina will require a $2 per ton excise-tax on every ton received at the landfill (NCGS 48-9-101, 48- 9-104 and 48-9-109). This will result in a $2 increase to Mixed Use and Construction and Demolition fees that will go directly to the state each month. In addition, Solid Waste staff has worked with Town of Chapel Hill staff to begin charging a fee for Regulated Material Permit equivalent to 8 percent of applicable building permit fees - an arrangement similar to the one the County currently has in place with the Town of Hillsborough. / Visitors Bureau Fund -Senate Bill 622 of the 1991 session of General Assembly gave Orange County the authority to levy up to a 3% room occupancy tax on the gross receipts derived from the rental of accommodations in the County. The Board of County Commissioners adopted resolution, on February 19, 2007, to consider a 1 % increase in the tax. The increase would take the tax from its current rate of 2% to the maximum rate of 3%. The effective date of the new fees and occupancy tax is July 1, 2008. The attached spreadsheet, Civil Penalty, Fee and Occupancy Tax Changes for Fiscal Year 2008-09, offers details regarding individual fee changes. On April 17, 2008, the Board directed staff to move forward with updating the County's current fee schedule and occupancy tax, and bring an agenda item to the May 1 regular meeting for approval of the proposed penalty, fee and occupancy tax rates. This will allow departments to conduct public outreach campaigns and notify the public during May and June 2008 of the changes. FINANCIAL IMPACT: Staff projects that the proposed increases will have the following impacts on individual departments: / Animal Services -Additional revenue from civil penalties/fees increases estimated at $1,500 for fiscal year 2008-09 / Health Department - A majority of Health Department patients fall in the zero to 20 percent pay scale; therefore, staff projects revenue generated by the fee increases will be minimal. / Social Services -Based on the projected cases, staff projects little, if any, additional revenues. / Solid Waste Enterprise Fund -This tax is a State imposed revenue and the County plans to pass the monies on to the State. Staff anticipates no additional County revenue from the tax. Staff anticipates revenues generated by the Regulated Material Permit, to be paid to the County by the Town of Chapel Hill, will generate an additional $30,000 next fiscal year. / Visitors Bureau -Staff anticipates that the 1 % increase in Occupancy Tax will generate approximately $250,000 in fiscal year 2008-09. The Bureau plans to use the additional funds to meet the demands of increased competition for tourism. RECOMMENDATION(S): The Manager recommends that the Board of County Commissioners approve the proposed 2008-09 civil penalty, fee, and occupancy tax changes and direct staff to begin public outreach campaigns to notify the public during May and June 2008 of the changes.