Orange County puts quarter-cent sales tax on Nov. 8 ballot

Orange County officials have been working hard to inform voters of the quarter-cent sales tax on the Nov. 8 ballot, but officials are still debating how the revenue generated from the tax will be used.

Residents voted down the sales tax during last year’s elections.

If passed this year, half of the tax’s anticipated $2.5 million in revenues will be used for education, while the other half will go toward economic development.

Of the $1.25 million for economic development, 60 percent will be devoted to infrastructure improvements like sewer and water lines.

But some officials worry that the funds will be devoted solely to less-developed rural areas, glossing over needs in places like Chapel Hill and Carrboro.

Developing the county

Carrboro Mayor Mark Chilton said revenue will be used to build infrastructure such as sewer lines at Orange County’s three economic development districts near Efland and Hillsborough.

He said similar infrastructure problems exist in Carrboro and Chapel Hill that might be worth addressing.

“The county is focused on these three large projects, but maybe there are similar returns to be achieved in other areas,” he said. “Let’s take a look and make sure that whatever infrastructure projects we do really stack up from a financial point of view.”

Chilton said he brought the issue up with the commissioners, who expressed a willingness to look into the problems in Chapel Hill and Carrboro.

Chapel Hill Town Council member Penny Rich, who is co-chairwoman of a committee that advocates for the tax, said because Chapel Hill has little room to expand, emphasis will be placed on developing more rural areas along Interstate 40.

“What we’re trying to do is make it more desirable for companies to come to Orange County,” Rich said. “They don’t like it when areas are very rural.”

She said commissioners would have the final say on which projects the tax would support and when.

“It’s going to be entirely up to the county commissioners to decide which monies go to infrastructure on which project first,” Rich said.

Other uses for revenue

County Commissioner Chairwoman Bernadette Pelissier said besides infrastructure improvements, the board will also devote tax proceeds to business investment grants, agricultural economic development and for developing a public-private economic development entity.

She said up to 16 percent of revenues will go to start-up capital and expansion funds for Orange County small businesses.

“We would like to increase loans so we can encourage more people to start businesses,” Pelissier said.

Pelissier said commissioners are hoping to diversify the tax base and alleviate the burden on property tax payers by bringing in new businesses.

Amanda Abbott, a Carrboro resident, said she will vote for the tax but wishes it placed less emphasis on economic development and more on schools.

“The school system is so broke,” she said. “Kids aren’t getting the education they need and teachers are not paid enough.”

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