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<br /> Commissioner Fowler said she recalls these incentive packages were about five years
<br /> and that if they met those criteria, they got back 75% of property tax. She asked how the 75%
<br /> amount was calculated.
<br /> Kirk Vaughn said it is also based on the anticipated investment that they make.
<br /> Commissioner Fowler said she thought that the awarded amount was 75% of their
<br /> property taxes for that year. She said if the bill is less in a year, then their bill will be 75%.
<br /> Kirk Vaughn said that is true but because of the other factors, it does not equal the same
<br /> percentages. He said for Medline, they invested more than the contracted amount and they are
<br /> still due to pay those even though the tax base may be lower over the next two years. He said
<br /> that Wegman's has a specific agreement that only 25% is affected. He said that Medline met
<br /> requirements earlier, so they were due sooner, and the county did not pay that then, so they are
<br /> paying it now. He said that Morinaga is uncertain because it is not built yet.
<br /> Commissioner Fowler asked why they were not paid earlier.
<br /> Chair Bedford said they all received deferments during the pandemic.
<br /> Kirk Vaughn said that this is the only one where this structure is not true. He said that
<br /> Morinaga has more flexibility, but they went with the amount that was put in to be conservative.
<br /> 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
<br /> Revenue $ 3,195,999 $ 3,323,839 $3,456,793 $3,595,065
<br /> Debt Service $ 1,009,605 $ 1,031,755 $ 1,015,514 $ 819,079
<br /> Economic Development Department $ 458,060 $ 523,312 $ 545,979 $ 569,779
<br /> Support for General Fund Expenditures $ 276,692 $ 289,627 $ 303,208 $ 317,469
<br /> Outside Grants and Initiatives $ 873,721 $ 901,277 $ 966,990 $ 886,134
<br /> New Incentive Money $ 577,921 $ 577,868 $ 725,102 $ 1,002,605
<br /> Net Article 46 Costs $ $ $ $
<br /> Incentive Starting Balance $ 1,027,637 $ 515,728 $ - $ -
<br /> Incentive Payments $ 1,088,330 $ 1,391,979 $ 739,494 $ 690,344
<br /> Incentive Deficit/Surplus $ 516,728 $ 297,383 $ 14,392 $ 312,261
<br /> 59 ORANGE H cn COUNTY
<br /> Kirk Vaughn said slide #59 shows the base model.
<br /> Chair Bedford said that they have seen changes and four years ago, staff were paid from
<br /> this, so it varies.
<br /> Vice-Chair Hamilton asked about the debt service on infrastructure.
<br /> Kirk Vaughn said that is the debt service schedule for water and sewer investments. He
<br /> said that it includes Buckhorn-Mebane, RLP, and possibly the loop in Mebane. He said they
<br /> anticipate the loop being in the 2026 financing. He said the CIP does not include any water sewer
<br /> payments so debt service will start rolling off. He said they are twenty-year payment periods.
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