Not all Forsyth County commissioners are in agreement with a proposal to use the money the county received from Dell Inc. to cut property taxes next year.
Dell recently paid the county $7.9 million as a refund for incentives used to lure the computer-maker here in 2004.
Commissioner Gloria Whisenhunt proposed last Thursday that the county consider a 1.7-cent reduction in the tax rate as a way to return to the taxpayers the $6 million that the county spent for site improvements for Dell.
Some commissioners think that other uses for the money should be considered. Commissioner Richard Linville said he's worried that a tax cut next year could lead to a tax increase the year after.
Under Whisenhunt's plan, the county would keep about $1.9 million of the Dell money in its general fund. That money consists of annual incentive payments made to Dell and is based on the company's tax bill.
The county tax rate is 67.4 cents for every $100 of taxable property. A 1.7-cent reduction would drop the tax bill of the owner of a $150,000 property from $1,011 to $985.50 -- a savings of $25.50.
Tonight, the commissioners will vote on a proposal to formally accept the Dell repayment, less about $20,000 that was discounted because the company repaid money in this month, rather than waiting until February after the plant is closed.
Some board members are also upset that Winston-Salem Mayor Allen Joines negotiated the repayment without a formal vote from the county.
Joines did discuss the deal with David Plyler, the chairman of the county board, who told Joines that he agreed with the discount to get back the money early.
Last week, Paul Fulton, the county's finance director, predicted that the county would not completely make up the $20,000 discount through investing the Dell money -- at least not before the time Dell was to have paid the full amount. Fulton said that the county might come within "a couple thousand dollars" of the total.
Commissioner Walter Marshall said it would be nice for the tax rate to go down 1.7 cents, but that it might not be the best use of the money.
"We need to invest in economic development," Marshall said. Marshall argued against adopting any resolution that would publicly commit the county to lowering the tax rate before the county begins its budget planning next spring.
The wait-and-see approach was the one most commissioners appeared to support. "Then in 2010, see what to do about the tax rate," Commissioner Debra Conrad said.
wyoung@wsjournal.com
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