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15 <br /> 1 Commissioner Greene reviewed amendment OP-B01, which she sponsored. She asked <br /> 2 the County Manager to discuss the reduction of incentive payments. <br /> 3 Travis Myren said for them to have the funds to spend on operating on Durham Tech, the <br /> 4 funds must come from somewhere. He said it would not have to come from the incentive <br /> 5 payments, and it could come from another area, but these may not as dramatic. <br /> 6 Commissioner McKee asked what the other options would be because he wants to keep <br /> 7 a balance in the incentive fund. <br /> 8 Commissioner Greene said these are incentives that have already been obligated. <br /> 9 <br /> 10 Slide #16 <br /> Operating Amendments <br /> • 0P-B01 may expand the modeled gap in the Article 46 fund in FY 2026-27 <br /> • The gap can be reduced by reallocating unspent balances each year to fund incentives, by reducing other <br /> investments in the fund, or if Incentive schedule is lighter than modeled due to lower tax burdens, slowed <br /> investments or missing performance benchmarks. <br /> • Gap would be expanded if Article 46 Sales Tax revenues continue to miss budgeted targets. <br /> • Because the funding gap is non-structural, county may be able to use one-time revenues to cover in FY 26-2T <br /> Anicle 46 Funding FY25-26 FY2&27 FV21-28 FY28-29 <br /> avenue 3 19S,999 Is 2,329,939 3 45G 793 3 595,065 <br /> Debt Service 1 t709 605 1 031 755 1 O15 514 819,079 <br /> conomlc Development Depa rtment S 452 OG0 $ S73 312 S S45 979 S69 779 <br /> uppat for General Fund Expenditures 276 692 289 627 303,208 317,468 <br /> utside Grants and InKlatives+Durham Tech's Operating Gap, 5 918 100 $ 946,997 S 914,071 $ 934,627 <br /> hiEw Incentive Money 533 542 532,159 679,021 954 112 <br /> Met Ardde 46 Costs S ' S 5 <br /> ncentive Starting Balance $ 1,027r637 $ 472 349 <br /> ncentive Payments $ 1.088.SK 5 1,392,979 5 739,494 S 690,344 <br /> ncentive DeHck Ius 3 472,149 $ W7.4721 $ 71 261788 <br /> ORANGE COUNTY <br /> 16 NORTH CAROLINA <br /> 11 <br /> 12 Chair Bedford referred to slide #16. She said that it really is a timing issue. <br /> 13 Commissioner McKee said it sets a precedent for going to that fund when they need to. <br /> 14 He said that is his opposition. He said he would prefer to find another revenue source. <br /> 15 Commissioner Fowler said they will have to pay that no matter what so the rest will come <br /> 16 from the general fund. <br /> 17 Chair Bedford said it is a timing issue and next year they will have to supplement. She <br /> 18 said there is a long list of where it could come from, but they do a budget amendment every <br /> 19 month, so maybe if scholarships are not funded, they could adjust the money. <br /> 20 Commissioner McKee said he will vote against the second part and not the first part. <br /> 21 Vice-Chair Hamilton asked if the incentive starting balance is the fund balance in Article <br /> 22 46. <br /> 23 Travis Myren said it is the balance in that particular project. <br /> 24 Vice-Chair Hamilton asked if there are other Article 46 balances. <br /> 25 Kirk Vaughn, Budget Director, said to close accounts and gaps, they review each balance <br /> 26 every year and reallocate them towards to incentives. He said that Article 46 has projects that are <br /> 27 getting funding and there are some that have not gone forward. <br /> 28 Commissioner McKee said it makes sense. <br />