TO: Mayor and Members of City Council
THRU:
FROM: Douglas J. Hewett, ICMA-CM, City Manager
DATE: February 25, 2019
RE:
Title
Consideration of Adopting a Resolution in Support of Legislative Action to Direct Shared Allocations of Food and Beverage Tax Proceeds between Cumberland County and its Municipalities
end
COUNCIL DISTRICT(S):
Council District(s)
ALL
b
Relationship To Strategic Plan:
Goal II - Diverse and Viable Economy
Executive Summary:
Background:
Pursuant to the authority contained in Chapter 413 of the 1993 Session Laws, the Cumberland County Board of Commissioners levied a one percent (1%) tax on prepared food and beverages sold within Cumberland County, which is required by that law to be transferred to the Cumberland County Civic Center Commission exclusively for debt service and any other costs of acquiring, constructing, maintaining, operating, marketing and promoting the arena or expanded arena facilities. Cumberland County operates the Crown Complex which commenced operations in October 1997 and features a 10,000 seat coliseum, an Expo center with up to 60,000 square foot, a 9,200 square foot Ballroom, a 2,400 seat performing arts theatre, and an 11,500 square foot arena. All current outstanding debt issued for the construction and renovation of these facilities will be fully retired in December, 2024. Cumberland County exclusively receives proceeds of occupancy taxes and prepared food and beverage taxes on sales within Cumberland County and its municipalities, and exclusively receives ABC Mixed Drink Surcharge and Profit Distributions from stores within Cumberland County and its municipalities. The City of Fayetteville is the only municipality of the ten largest in North Carolina that does not receive revenues from shared distributions from one or all of occupancy tax proceeds, prepared food and beverage tax proceeds or ABC mixed drink surcharges and profit distributions.
Residents of the Fayetteville make...
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