Agenda 09-03-19 Item 8-a - Minutes

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8 1 Travis Myren said they peak out at about 44.4 million, and once this peak has been hit, 2 and nothing is changed, then the debt service will start falling off, and the sitting board may 3 choose to reduce the tax rate as the debt is satisfied and paid off. 4 Bonnie Hammersley said they hit the peak at 21-22, and the board sitting at that time 5 can make a decision to keep the rate the same or change it. 6 Commissioner Price asked if this type of vote will be needed every year, on this same 7 debt. 8 Bonnie Hammersley said if the Board chooses to do it up front, it will not have to be 9 done next year, as the up front will be there; but if the Board chooses to phase it in, the sitting 10 Board will always have the option to change it from year to year. She said the upfront format is 11 just an option, and she did not recommend this option because there are uncertainties in place 12 and it may or may not be needed. 13 Commissioner Dorosin said he will vote against the higher up front rate, given the 14 economic uncertainties. 15 Chair Rich said this is one of the reasons why Bonnie Hammersley recommended the 16 1.5-cent tax increase. She said doing yearly increases may result in greater costs over the long 17 run, but that is just part of the reality. 18 Commissioner McKee said he would not support the upfront tax. 19 Commissioner Price said she would support the Manager's recommendation. 20 Commissioner Marcoplos said he thinks there are potential net savings with the upfront 21 tax, but given the things that have been mentioned already, he would support the Manager's 22 recommendation. 23 Chair Rich said there is consensus to go with the Manager's recommendation. 24 Bonnie Hammersley said then there is no need for Amendment#10. 25 Commissioner Dorosin suggested doing all of the school amendments next 26 (Amendments #3-8). 27 Bonnie Hammersley said the Board needs to vote on amendments # 9 & 10 first. 28 29 A motion was made by Commissioner Dorosin, seconded by Commissioner McKee to 30 reject amendments #9 and #10. 31 32 VOTE: UNANIMOUS 33 34 Amendment 003 - (Decrease the CHCCS special district tax by 1.00 cent. The purpose of 35 this amendment is to address the funding inequity in the two school systems.) 36 37 Commissioner Dorosin said this amendment seeks to accomplish two goals: maintain a 38 high level of education funding, and try to address funding inequities and distribute funding and 39 resources more equitably throughout the County. He said this amendment takes a small step 40 toward addressing the inequitable distribution of resources, while maintaining a high level of 41 funding for education. 42 Commissioner Dorosin said this is a one-cent increase on the ad valorem tax, bringing in 43 over$2 million, all of which will be dedicated to education. He said the Board will increase the 44 County's contribution to the per pupil allocation, which will go up, and at the same time the 45 Board will reduce the special district tax in Chapel Hill Carrboro City Schools (CHCCS) by 1- 46 cent. He said there is no reduction in educational spending, and CHCCS will receive the same 47 amount of money proposed by the Manager's budget, but this would change the pots from 48 which the money comes. He said CHCCS will get a bigger chunk of money from the ad valorem 49 pot, and an offsetting smaller chunk from the district tax pot. He said there is no net loss of 50 funding, and there is no proposal to determine how the funds are used, but rather is designed to 51 recognize long-standing disparities between the school districts. He said school funding