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ORANGE COUNTY <br /> HILLSBOROUGH <br /> NORTH CAROLINA <br /> JV onn9ct e (flee E atatrad 1752 <br /> To: County Commissioners <br /> From: County Manager r • <br /> Subject: 1986-87 Budget Information <br /> Date: July 7, 1986 <br /> The following items are for your information regarding the 1986-87 budget: <br /> 1. Tentative Mark-Up List <br /> See attachment:' <br /> 2. Additional 1G Sales Tax <br /> The Senate has approved an amended bill authorizing counties to levy an <br /> additional sales tax. The amendment provides for earmarking 60% of the <br /> proceeds for school construction for two years and a declining percentage <br /> thereafter for a total of eleven years. <br /> The bill now is back in the House. The House may either concur with the <br /> Senate version of the bill or call,for a conference. The expectations, <br /> according to the County Commissioners Association, is for the House to concur, <br /> but this will probally not be known.until Monday evening (July 7) . <br /> Attached is some additional information regarding the estimated amount of the <br /> proceeds and two possible alternatives for their use for 1986-87. <br /> 3. New Hope Fire District Tax Rate <br /> The New Hope Fire District requested a lc tax increase for 86-87 (from 4c to 5C) <br /> in their original budget request. This tax increase was recommended by the <br /> County Manager during the Public Hearing on June 19. The District is expected <br /> to lose approximately $30 million in tax base through annexations by the Town <br /> of Chapel Hill. According to the law, the Town has the option of reimbursing <br /> the District in full for the revenue loss due to the annexation ar reimbursing <br /> z of the loss under a "first responder" contract. The amount of revenue loss <br /> to the District is estimated to be $9,000:- $10,000. <br /> It is not known at this time which option.. the Town will choose, as the Council <br /> is not expected to settle this isssue until a meeting on July 14th. <br /> Should the Town decide to reimburse for only z of the revenue loss, an additional <br /> 1/2c increase in the rate (beyond the 1p already recommended) would be needed to <br /> avoid an undesired reduction in the District's fund balance. <br />