Agenda Abstract - Assembly of Governments Discussion Items

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10 As a result, Board of Commissioner leadership, supported by the strong endorsement of public and public agencies, the two Chambers of Commerce, and our locally elected officials, proposed to enact a supplemental "'/4 cent retail sales tax" in early 2011. Following a year-long public information campaign on the merits of the proposed 1/4 cent sales tax and its' uses, Article 46 was successfully passed by Orange County voters in a November 2011 referendum. The Orange County's Board of Commissioners then adopted a Resolution in December 2011 to outline the purpose of the new "Article 46" funds. This new revenue stream was determined to equally fund both education and economic development, and, for an initial 10-year test period. The core uses of Article 46 as proposed to voters in 2011, today generally follow the same key programs that were adopted in the Resolution by Board of County Commissioners 7 years ago. The County received the initial Article 46 funds from the N. C. Department of Revenue beginning in the spring of 2012. Since that first year, annual revenues (estimated at a total of $2.5 million in 2011) are split 50/50 between Education (for Orange County Schools & Chapel Hill/Carrboro City Schools) & for the County's Economic Development program, with each group receiving approx. $1.25 million for that year. By 2018, the County's total Article 46 revenues are higher and projected to be approximately $3.6 million total for the new fiscal year, due to the County's steady 5% - 7% annual growth rate from our local economy's rising retail sales collections. Within the Economic Development portion of Article 46 funds ($1,825,976.00 estimated for the FY 2018-2019 budget), approximately 50% - 60% of annual proceeds have historically funded long-term debt obligations for the cost to install water & sewer lines in the County's various Economic Development districts. To date, two major utility projects to install needed infrastructure in the Efland, Buckhorn Road & Mebane areas have been completed. The County's successful recruitment of the Morinaga factory was made possible by the completion of this initial utility work. Current business prospect activity is now expanding and seriously focusing on new sites that have more recently gained utility line infrastructure. Of the remaining 50% of the County's Economic Development annual Article 46 funds, a variety of successful programs have since been created and are underway to support the growth, expansion & retention of existing small businesses, promote new business recruitment, entrepreneurial incubator support, and local agriculture & food processing. These programs, to include the award winning LAUNCH incubator, the County's small business loan and grant programs, the renowned agriculture/food processing grant program, and related collaborative business networking events held with the Towns, directly benefit the local economies of Carrboro, Hillsborough & Chapel Hill by supporting their many small businesses. Special events & new programs that further enhance the County's & Towns' economy and livability are also funded by the remaining half of Article 46 funds dedicated to Economic Development, to include the annual Orange County Agriculture Summit, the new LocalFest event, a reintroduction of the annual Orange County Economic Summit, and, innovative support for the "Orange Connect" scholarship program for Orange County's students attending the Hillsborough campus of Durham Technical Community College.