Item:
Title
Interlocal Cooperation Agreement for the Division of Sales Tax Between the County of Durham and the City of Durham July 1, 2018- June 30, 2023
Body
Date of BOCC Meeting: April 23, 2018
Request for Board Action:
Agenda Text
The Board is requested to approve a renewable interlocal cooperation agreement with the City of Durham for the division of collected Article 39, 40, & 42 sales tax between the two jurisdictions. The current interlocal between the County and City ends June 30, 2018. The new interlocal agreement would extend the agreement 5 additional years, through June 30, 2023.
The current agreement, in effect since July 1st, 2013, splits all collected sales tax for both the City and County, with the County receiving 58% of the total amount and the City 42%. This agreement was reached to avoid the county changing the distribution method from the current per capita distribution to an ad valorem distribution method. Projections for the next five years indicate that this method for sharing the per capita distribution of sales taxes is beneficial to both the County and City.
The Durham City Council is set to approve this new interlocal cooperation agreement at their April 3rd meeting, continuing the current collected sales tax revenue split at 58% for the County and 42% for the City for the next five years.
Alignment with Strategic Plan: Goal 5: Accountable, Efficient, and Visionary Government
Resource Persons: S. Keith Lane, Budget & Management Services Director
County Manager’s Recommendation: The County Manager recommends that the Board approve the new interlocal cooperation agreement (see attachment) for the division of sales tax between the County of Durham and the City of Durham for the period July 1, 2018 through June 30, 2023 and authorize the County Manager to sign of this agreement.
Signature
County Manager: ____________________________