Minutes - April 10, 2012 Special Meeting

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BK:00024 PG:0846 LEE COUNTY ©ootz ca000e,aC9 cq Committed Today for a Better Tomorrow SPECIAL MEETING OF THE LEE COUNTY BOARD OF COMMISSIONERS FOR THE COUNTY OF LEE, STATE OF NORTH CAROLINA APRIL 10, 2012 The special called meeting of the Board of Commissioners for the County of Lee, State of North Carolina, to provide additional information to Commissioners regarding the issue of sales tax distribution, was held in the Commissioners' Room, First Floor, Lee County Government Center, 106 Hillcrest Drive, Sanford, North Carolina, on said date. Commissioners present were Richard B. Hayes, Larry "Doc' Oldham, Charles T. Parks, Nathan E. Paschal, Robert T. Reives, Linda A. Shook, and James K. Womack. Chairman Shook called the meeting to order and the following business was transacted: Commissioner Richard Hayes delivered the invocation by asking for a moment of silence. The pledge of allegiance was recited. Chairman Shook stated that the purpose of the special called meeting was to review information in reference to the issuance of sales tax distribution to the City of Sanford and Town of Broadway for the upcoming fiscal year. The proposed change would shift local tax distribution from the current per capital method (population- based) to an ad valorem method using a formula based on local tax base values. Ms. Shook further asked the Board to refrain from making motions during the meeting and wait until the April 16` regular meeting to vote on a proposed resolution for the change. It was further stated that were a lot of misinformation floating around and the purpose of the special called meeting was to provide more facts for the public. County Manager John Crumpton provide a power -point presentation outlining pros and cons of an ad valorem method and how that method would compare to a per capital method for the county and two municipalities (City of Sanford and Town of Broadway). It was noted that currently 55 counties use the per capital distribution method and 44 counties use the ad valorem method. Onslow County uses a combination of the two methods. Questions were asked and discussion followed the power -point presentation, with no action taken. Commissioner Reives expressed concerns about the consequences of the shift for Sanford and Broadway residents, pointing out that Sanford and Broadway leaders have mentioned a possible 6 -cent and 12 -cent property tax increase if the distribution is changed. Commissioner Parks proposed a joint meeting with the City and Broadway to discuss the matter. It was also noted that the change must be voted on by the end of April and a copy of the adopted resolution must be forwarded to the Secretary of State within 15 days of adoption.