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RESOLUTION OF SUPPORT FOR THE APPROVAL OF THE ONE-HALF CENT <br />(1/2¢) LOCAL GOVERNMENT SALES AND USE TAX FOR CABARRUS <br />COUNTY <br /> <br /> WHEREAS, the State of North Carolina withheld revenues due the City of <br />Concord in Fiscal Year 2001-2002 that resulted in a loss of approximately $1.7 <br />million and dramatically impacted departmental budgets last year; and <br /> <br /> WHEREAS, the State of North Carolina adopted a budget for the current <br />Fiscal Year 2002-2003 that totally eliminated the $1,670,988 in reimbursement <br />revenues due the City of Concord; and <br /> <br /> WHEREAS, these losses during the past two fiscal years has resulted in a <br />total loss of money over the past two years equivalent to the amount that 6 <br />cents on the property tax rate would generate; and <br /> <br /> WHEREAS, the Concord budgets adopted during the past two fiscal years <br />contained a ~,umber of cuts because of very conservative revenue projections <br />due to the economic downturn and Iow investment earnings, and the FY 2002- <br />2003 budget is over $1.6 million less than the previous fiscal year; and <br /> <br /> WHEREAS, the FY 2002-2003 budget includes the appropriation of over <br />$2.4 million from Fund Balance to cover previous revenue losses and public <br />safety and infrastructure improvements and the City had to implement a <br />contingency plan with dramatic cuts that has resulted in direct impacts on <br />services and capital expenditures because no replacement revenues have been <br />provided to the $1.6 million; and <br /> <br /> WHEREAS, Concord's residential population continues to grow along with <br />the demand for high levels of service with the State of North Carolina estimating <br />that Concord grew by over 2000 residents in 2001 while large, urban <br />subdivisions are being approved outside the City's borders and placing <br />additional demands on the City's infrastructure; and <br /> <br /> WHEREAS, the General Assembly gave North Carolina counties the <br />option of replacing these revenues by adopting a third one-half cent (1/2¢) Local <br />Government Sales and Use Tax authorized by Section 34.14(a) of Session Law <br />2001-424 and codified as Article 44 of Chapter 105 of the General Statutes of <br />North Carolina; and <br /> <br /> WHEREAS, the delay in adopting this amendment has already resulted in <br />the City losing at least $900,000 in replacement revenues for FY 2002-2003 <br />because deadlines for adopting the additional tax to impact this fiscal year have <br />passed; and <br /> <br /> <br />