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<br /> Commissioner Greene reviewed amendment OP-B01, which she sponsored. She asked
<br /> the County Manager to discuss the reduction of incentive payments.
<br /> Travis Myren said for them to have the funds to spend on operating on Durham Tech, the
<br /> funds must come from somewhere. He said it would not have to come from the incentive
<br /> payments, and it could come from another area, but these may not as dramatic.
<br /> Commissioner McKee asked what the other options would be because he wants to keep
<br /> a balance in the incentive fund.
<br /> Commissioner Greene said these are incentives that have already been obligated.
<br /> 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 26-27.
<br /> Article46 Funding FY25.26 FY26-27 FY27-28 FYZS-29
<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 $ 303,209 $ 317,468
<br /> Outside Grants and Initiatives+Durham Tech's Operating Gap $ 918,100 $ 946,987 $ 914,071 $ 934,627
<br /> New Incentive Money $ 533,542 $ 532,158 $ 678,021 $ 954,112
<br /> Net Article 46 Costs $
<br /> Incentive Starting Balance $ 1,027,637 $ 472,349
<br /> Incentive Payments $ 1,088,830 $ 1,391,979 $ 739,494 $ 690,344
<br /> Incentive Deficit/Surplus $ 472,349 $ (387,472) $ (61,473) $
<br /> ORANGE COUNTY
<br /> 16 NORTH CAROLINA
<br /> Chair Bedford referred to slide #16. She said that it really is a timing issue.
<br /> Commissioner McKee said it sets a precedent for going to that fund when they need to.
<br /> He said that is his opposition. He said he would prefer to find another revenue source.
<br /> Commissioner Fowler said they will have to pay that no matter what so the rest will come
<br /> from the general fund.
<br /> Chair Bedford said it is a timing issue and next year they will have to supplement. She
<br /> said there is a long list of where it could come from, but they do a budget amendment every
<br /> month, so maybe if scholarships are not funded, they could adjust the money.
<br /> Commissioner McKee said he will vote against the second part and not the first part.
<br /> Vice-Chair Hamilton asked if the incentive starting balance is the fund balance in Article
<br /> 46.
<br /> Travis Myren said it is the balance in that particular project.
<br /> Vice-Chair Hamilton asked if there are other Article 46 balances.
<br /> Kirk Vaughn, Budget Director, said to close accounts and gaps, they review each balance
<br /> every year and reallocate them towards to incentives. He said that Article 46 has projects that are
<br /> getting funding and there are some that have not gone forward.
<br /> Commissioner McKee said it makes sense.
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