Orange County NC Website
Browse       Search
13 <br /> 1 for the Orange County Assembly of Governments <br /> 2 January 29, 2019 <br /> 3 <br /> 4 Article 46: Historic Overview <br /> 5 • A supplemental "1/4 cent retail sales tax" was passed by Orange County voters in a <br /> 6 Nov. 2011 referendum. <br /> 7 • Orange County Board of Commissioners adopted a Resolution in Dec. 2011 to outline <br /> 8 the core uses of the new"Article 46" funds. <br /> 9 • The County received the initial Article 46 funds from the N.C. Department of Revenue <br /> 10 beginning in the Spring of 2012. <br /> 11 • Annual revenues (estimated at $2.5 million total in 2011) are split 50/50 between <br /> 12 Education (Orange County Schools & Chapel Hill/Carrboro City Schools) & Economic <br /> 13 Development, with each group to receive approx. $1.25 million. <br /> 14 • By 2018, the County's total Article 46 revenues were projected to be approx. $3.6 million <br /> 15 for the new fiscal year, due to a steady 5% - 7% annual growth rate in the local <br /> 16 economys retail sales collections. <br /> 17 • Within the Economic Development portion of Article 46 funds ($1,825,976.00 estimated <br /> 18 for the FY 2018-2019 budget), approx. 50% - 60% of annual proceeds have historically <br /> 19 funded long-term debt obligations for the cost to install water & sewer lines in the <br /> 20 County's various Economic Development districts. To date, 2 major utility projects to <br /> 21 install needed infrastructure in the Efland, Buckhorn Road & Mebane areas have been <br /> 22 completed. <br /> 23 • The County's successful recruitment of the Morinaga factory was made possible <br /> 24 by the completion of this initial utility work. Current business prospect activity is <br /> 25 expanding and focusing on new sites that have more recently gained utility line <br /> 26 infrastructure. <br /> 27 • Of the remaining 50% of Economic Development's available Article 46 funds each year, <br /> 28 a variety of successful programs are underway to support the growth, expansion & <br /> 29 retention of existing small businesses, promote new business recruitment, <br /> 30 entrepreneurial incubator support, and local agriculture &food processing. <br /> 31 • These programs, to include the award winning LAUNCH incubator, the County's small <br /> 32 business loan and grant programs, the agriculture/food processing grant program, and <br /> 33 related collaborative business networking events held with the Towns, directly benefit <br /> 34 the local economies of Carrboro, Hillsborough & Chapel Hill by supporting their many <br /> 35 small businesses. <br /> 36 • Special events & new programs that enhance the County's & Towns' economy and <br /> 37 livability are also funded by the remaining half of Article 46 funds, to include the annual <br /> 38 Orange County Agriculture Summit, the new LocalFest event, a reintroduction of the <br /> 39 annual Orange County Economic Summit, and, innovative support for the "Orange <br /> 40 Connect" scholarship program for Orange County's students attending the Hillsborough <br /> 41 campus of Durham Technical Community College. <br /> 42 • In conclusion, the intent of the various economic development programs funded by <br /> 43 Article 46 is to benefit all Orange County residents by supporting a thriving local <br /> 44 economy. <br /> 45 <br /> 46 Article 46 Sales Tax: Orange County's Resources for Economic Development Funding <br /> 47 for FY 20187-19 (chart) <br /> 48 <br />