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34 <br /> 1 Commissioner Fowler said she recalls these incentive packages were about five years <br /> 2 and that if they met those criteria, they got back 75% of property tax. She asked how the 75% <br /> 3 amount was calculated. <br /> 4 Kirk Vaughn said it is also based on the anticipated investment that they make. <br /> 5 Commissioner Fowler said she thought that the awarded amount was 75% of their <br /> 6 property taxes for that year. She said if the bill is less in a year, then their bill will be 75%. <br /> 7 Kirk Vaughn said that is true but because of the other factors, it does not equal the same <br /> 8 percentages. He said for Medline, they invested more than the contracted amount and they are <br /> 9 still due to pay those even though the tax base may be lower over the next two years. He said <br /> 10 that Wegman's has a specific agreement that only 25% is affected. He said that Medline met <br /> 11 requirements earlier, so they were due sooner, and the county did not pay that then, so they are <br /> 12 paying it now. He said that Morinaga is uncertain because it is not built yet. <br /> 13 Commissioner Fowler asked why they were not paid earlier. <br /> 14 Chair Bedford said they all received deferments during the pandemic. <br /> 15 Kirk Vaughn said that this is the only one where this structure is not true. He said that <br /> 16 Morinaga has more flexibility, but they went with the amount that was put in to be conservative. <br /> 17 <br /> 18 Slide #59 <br /> Article 46 Sales Tax — page 76 <br /> • Due to weaker revenues and significant incentive payments in coming years, County <br /> may not be able to cover all services next year. If Article 46 can not make all <br /> incentive payments, General Fund will have to absorb. <br /> • There may be some flexibility: Unspent awards can be redirected to Incentives; not <br /> all Incentives will be due at earliest contracted time due to performance agreements. <br /> County can use one-time funds for FY 27 gap. <br /> Article 46 Funding FY25.26 FY26.27 FY26-27 FY27.28 <br /> evenue 5 3,195,999 5 3,323,839 5 3,456,793 5 3.595,065 <br /> ebt service 1 009 605 1,031,75S 015 514 819,0713 <br /> commit Develo.—t De artrn nt 5 458,060 5 523.312 $ 545,979 5 569,779 <br /> u rt for General Fund Expenditures $ 276,692 S 289,627 $ 303,208 $ 317,468 <br /> utsideGrants and Initlaclves $ 873,721 S 901,277 $ SK99D $ 886,134 <br /> ew Incentive Money 577,921 $ 577.868 5 725,102 $1,002,605 <br /> Oft Ardde 46 Cads <br /> ncentive Starting Balance $ 1,027,637 $ 516 728 $ $ <br /> ncentive Pavments $ 1,088,830 5 1,39L979 $ 739,494 $ 690,344 <br /> centive Deficit/Surplus S 518 M $ 297 3B3 $ 14 392 S 312 1 <br /> ORANGE COUNTY <br /> 59 NORTH CAROLINA <br /> 19 <br /> 20 Kirk Vaughn said slide #59 shows the base model. <br /> 21 Chair Bedford said that they have seen changes and four years ago, staff were paid from <br /> 22 this, so it varies. <br /> 23 Vice-Chair Hamilton asked about the debt service on infrastructure. <br /> 24 Kirk Vaughn said that is the debt service schedule for water and sewer investments. He <br /> 25 said that it includes Buckhorn-Mebane, RLP, and possibly the loop in Mebane. He said they <br /> 26 anticipate the loop being in the 2026 financing. He said the CIP does not include any water sewer <br /> 27 payments so debt service will start rolling off. He said they are twenty-year payment periods. <br /> 28 <br /> 29 <br />