Minutes 05-27-2021 Virtual Business meeting

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31 Commissioner McKee asked if the net amount of transferring the economic development position could be identified. Travis Myren said the net savings is $25,000, picked up from North Carolina State. Commissioner McKee asked if the use of the Article 46 sales tax fund balance is assumed to be one time. Bonnie Hammersley said this happened last year, and she is recommending continuing it going forward, similar to the Visitor's Bureau use of the occupancy tax. She said because of physical challenges, and because primary focus of the department is economic development, she is recommending the County support the operation with Article 46. Commissioner McKee said he does not have an issue with that. Commissioner Hamilton said the resolution regarding the 50-50 split of the Article 46 Sales Tax fund between education and economic development ends in April 2022, and after that it can be used however the County wants. She said she will suggest that the Board takes a look at determining how the money should be spent, to ensure it is being done efficiently and by their priorities. She said using it for economic development makes sense given challenges of this year, but she would like to look into using the money for other purposes in future years if needed, such as to address aging public school facilities. Commissioner Fowler asked if this amount is coming out of the reserve balance, or is it what is left. Paul Laughton said this amount is what remains after using $418,158 for personnel. Commissioner McKee said in 2010 and 2011 there was a lot of discussion about uses of Article 46 money. He said the use of half for economic development has brought in infrastructure and good paying jobs. He said the Board must be careful about starting a conversation about directing it away from economic development, given results and the promises to the taxpayers and voters. He said the guaranteed way to strangle progress made, as well as that on the horizon, is to transfer the funds away. He said a lot of this money is committed for debt service. He said the people in this department are doing an excellent job of vetting and recruiting companies, taking inquiries and following up. He encouraged the Board to be careful when talking about redirecting. Chair Price said there will not be any redirection for this year, but the Board can have a conversation. Commissioner McKee said he had a long conversation with constituents that are very concerned that the BOCC may be moving away from commercial development. Commissioner Bedford asked for a chart on how these investments are paying off in increasing commercial economic development revenues. Travis Myren said he will work with Economic Development staff on that. Chair Price said she wonders if there is enough in economic development. She said she would like to see a comparison before and after the economic development department was created. She said she would also like to see results of loan and grant programs, and how small businesses have been able to be created and sustained. Travis Myren said staff would pull together the outcome information. Commissioner McKee said the Recommended Budget Document shows 1,095 new jobs, and other factual information. He agreed it would be interesting to get that info on the return on investment. Bonnie Hammersley said staff can provide that information. She said the Economic Development staff tracks everything they do, and every interaction they have had with any potential prospect, which has increased significantly over the past seven years since she has been with the County. She said Orange County is recognized as a place where there is interest from prospects. She said that information does not show as much as return on investment, but it puts Orange County on the map as a place where they may be interest from prospects.