Notebook - Agenda - 06-21-2011, Item 8g

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i • V. ORANGE COUNTY REVENUES A variety of revenue sources provide the funding for the Orange County Bus and Rail Investment Plan. Those revenues include: • A new one-half-cent sales tax in Orange County • A new$7 vehicle registration fee levied by Orange County • An increase of$3 to the existing$5 vehicle registration fee currently levied by Triangle Transit in Orange County • Revenue from Triangle Transit's rental car tax • NC State Government contributions to funding • Federal Government contributions to funding The initial proceeds for each local revenue stream for Orange County in 2012 for transit are assumed to be: • Yz-cent sales tax: $5.1 million • $7 vehicle registration fee: $770,000 • $3 vehicle registration fee increase: $330,000 • Rental car tax revenue: $560,000 Growth rates assumed for each revenue source: • • %-cent sales tax: o Growth rate from 2011 through 2014: 1.5% o Growth rate from 2015 through 2035: 3.6% • $7 vehicle registration fee: 2.0% • $3 vehicle registration fee increase: 2.0% • Rental car tax revenue: 4.0% $28 million would be borrowed over the life of the plan. This borrowing would allow for the large capital expenditures necessary during a small number of the years in the plan. Any borrowing would be from capital markets through government bonds,would require approval by the NC Local Government Commission, and would have to meet debt to revenue ratios required by the capital markets for bond issuance. Further details for each revenue source follow. A. One-half cent sales tax in Orange County A one half-cent sales tax in Orange County means that when individuals spend $10.00 on certain goods and services,an additional five cents($0.05) is added to the transaction to support the development of the Bus and Rail Investment Plan. Purchases of food, gasoline, medicine, health care and housing generally are excluded from the tax. 5/26/2011-Page 11