Agenda - 04-30-2007-e - Laserfiche WebLink

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owner of agricultural property under certain circumstances to pay property tax at approximately 10% of what would be owed if the land were not in agriculture. Use value supports local agriculture, he said, but it limits the amount of revenue that is available for County services. Mr. Copeland added that while the intent of use value is to support lazger farms, there are a number of people with relatively small acreage farms (10-15 acres) who are taking advantage of the exemption. Mr. Copeland added that the County has purchased a lot of land for greenways, pazks, a reservoir, etc. which, if it were in private ownership -even if were taxed at use value rates -- would generate more revenue for education. I recognize the need to preserve. land, he said, but at some point we-need to ask how these public land purchases are affecting both of our school districts. Dr. Kelley noted that the overwhelming source of funding for local public education comes from the property tax. This places a burden on property owners in both school districts, he said. He asked group members to understand that "every retiree in the city schools district does not have a 401K," and there are a number of people in the city district who aze very stretched financially. High taxes can lead to people being displaced, Dr. Kelley noted. "Some people who have lived here their whole lives can no longer pay their taxes, and they have to leave. There aze a number of impacts from raising property taxes that we all have to~realize." To me, he said, it comes back to either raising the property tax or reallocating the distribution of tax revenue between schools and non- school expenditures: There is no other source of revenue for schools other than property tax that is appazent to me. Fair Funding Solutions . Commissioner Gordon, noting that it was 4:05, said that she wanted to hear more from group members about solutions. Group members took turns putting forth ideas, as follows. Mr. Whitling noted that while OCS is not expected to need new schools over the next ten years, CHCCS will need approximately $120 million for. new facilities. He expressed concern that the County's debt service over the next 3-7 years in support of capital needs is going to "drive out" operating funds, so that the schools "will never" get what they need for operations. "We'll never get ahead of the curve," he said. Ms. Hough said that she shazed Mr. Whitling's concern. "My taxes will continue to go up three cents a year to pay for the debt service on Chapel Hill schools," she said, "which impacts operational funding for both school systems." Ms. Hough also expressed concern about the CHCCS district tax being 30% of the city district's local funding. She acknowledged that the city district does not want to fund its entire operating budget increase through the district tax and that the BOCC "would never zero out their commitment to operational funding for OCS." However, she said, "under a worst case scenario," CHCCS could rely entirely on the district tax to expand its operating budget and a.s a result the Commissioners would not have to provide additional operating funds to OCS. "If nothing else," she said, this scenario provides "the direct 6.