TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, City Manager ICMA-CM
Telly C. Whitfield, Ph.D., Assistant City Manager
FROM: Tracey Broyles, Budget and Evaluation Director
DATE: January 9, 2019
RE:
Title
Discussion of Sales Tax Distribution Interlocal Agreement
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal V: Sustainable Organizational Capacity
Objective A: To ensure strong financial management with fiduciary accountability and plan for future resource sustainability by aligning resources with City priorities
Executive Summary:
In February, 2016, City Council authorized a three-year extension of the Sales Tax Distribution Interlocal Agreement with the County and other local municipalities which will conclude at June 30, 2019.
At a special meeting held on October 10, 2018, City Council authorized staff to forward a proposal for an amendment and extension of the agreement to Cumberland County.
At a meeting of the Mayor's Coalition on December 18, 2018, Cumberland County shared a proposal for an amendment and extension of the agreement. The County has imposed a deadline of January 31, 2019 for all jurisdictions to execute the proposed agreement.
The Sales Tax Committee is being asked to consider the County's proposal and provide direction for next steps for consideration of the full Council.
Background:
State statute authorizes the County to choose the distribution method for sales tax revenues among the County and municipalities using either the per capita (population based) method or the ad valorem (tax levy based) method. The County must decide in April of each year which method will be used for distribution for the next fiscal year.
Historically, sales taxes within Cumberland County have been distributed on a per capita basis. As municipal populations grew through annexation, the County's relative share of per capita distributions declined. In October, 2003, the ...
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