Item:
Title
Interlocal Cooperation Agreement for the Division of Sales Tax Between the County of Durham and the City of Durham July 1, 2021- June 30, 2022
Body
Date of BOCC Meeting: January 11, 2021
Request for Board Action:
Agenda Text
The Board is requested to approve a one-year interlocal cooperation agreement with the City of Durham for the division of collected Article 39, 40, & 42 sales tax between the two jurisdictions. City administration has agreed to extending the current interlocal agreement between the County and City per established guidelines for an additional year. The new interlocal agreement would exist for one fiscal year, through June 30, 2022.
The current agreement, in effect since July 1st, 2020, splits all collected sales tax for both the City and County, with the County receiving 56% of the total amount and the City 44%. This agreement was reached to avoid the county changing the distribution method from the current per capita distribution to an ad valorem distribution method.
The proposed interlocal agreement would continue to split all collected sales tax for both the City and County, with the County receiving 56% of the total amount and the City 44% and extend the terms of the ILA through June 30, 2022.
The Durham City Council is set to approve this annual interlocal cooperation agreement at an upcoming City Council meeting, reflecting a collected sales tax revenue split at 56% for the County and 44% for the City for the next fiscal year (FY 2021-22).
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 an 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, 2021 through June 30, 2022 and authorize the County Manager to sign of this ...
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