1. FY 2015 & FY 2016 Revenue Projections Presented by Chris Nida NCLM Director of Research & Policy Analysis

2. Revenue Projections Revenue SourceProjected, FY2014 to FY2015 Projected, FY2015 to FY2016 Local Sales Tax+7.5%+4% Powell BillN/A<-1% Electricity Sales Tax+30%+2% Telecommunications Sales Tax-1.5%-3% Piped Natural Gas Sales Tax-35%-2% Solid Waste Disposal Tax+5.5%+2.5% Local Video Programming Revenues+1.5%-2% Beer & Wine Taxes+5%+3%

5. Caveats Projections are rough estimates Not assuming ANY Legislative changes to current revenue structure Keep up with weekly Legislative Updates

6. Sales Tax Significant growth statewide FY 2016 payments: 10/15/15 to 9/15/16 Utilize calculation spreadsheet –Download from email or NCLM.org –Incorporate county growth rate, and distribution share Change in County distribution?

7. Powell Bill SB 20 reduced motor fuel tax rate from 37.5 cents/gallon to 36 cents/gallon on 4/1 FY 2016 PB Estimate –$146.1 Million –Less than 1% less than FY 2015 Projected Distributions –$20.39 per capita –$1,629.43 per street mile

8. Electricity/Natural Gas Taxes Started FY 2015 Electricity +17% in Q1, +58% in Q2 (compared to FY2014 Franchise Tax) Project +30% for FY 2015, -35% for Gas No law change predicted Project +2% for FY 2016, -2% for Gas

9. Other Taxes Continued downward trend for Telecomm Construction activity increasing solid waste disposal Video upward, contrary to industry trends Increased beer & wine sales projections Don’t forget to report boundary changes!

10. Questions?

11. NCLGBA Summer Conference July 8 th -10 th, Shell Island, Wrightsville Beach $175 for NCLGBA Members, $235 for Non-members $75 Students & First-Timers Hotel Rooms $189/night (+Tax) Speakers Dr. Jim Johnson Lee Roberts, NC Budget Office Director To learn more, visit www.nclgba.org