DATE: February 21, 2019
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator/CFO
Shauna Billingsley, City Attorney
SUBJECT:
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Consideration of An Interlocal Agreement (COF Contract No. 2019-0050) With Williamson County, The City Of Franklin, And The Franklin Special School District To Redistribute A Portion Of The Half Of The One-Half Percent Sales And Use Tax Increase That Is Not Allocated For Schools. (02/26/19 WS)
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning a proposed interlocal agreement between the City of Franklin, The Franklin Special School District, and Williamson County to provide funding to Franklin Special School District for capital improvements and debt service needs.
Background
In February of 2018, Williamson County voters approved a referendum to increase the local option sales tax by one-half of one percent (0.5%). This increased the total local option sales tax to 2.75%. Per state law, half of all local sales tax proceeds go to public education and half is directed to the local government within which the sales transaction occurred. In advance of the vote on the new sales tax, the City of Franklin and other Williamson County cities committed to provide their portion of the new sales tax to schools for school debt purposes to support capital improvements and new construction of schools for a period of three years from the enactment of the new sales tax increment. This agreement was memorialized through an interlocal agreement between Williamson County and the City of Franklin (attached). With voter approval, the additional 0.5% sales tax went into effect on April 1, 2018.
The half of local option sales tax dedicated to public education (both the existing and "new" local option sales tax) is distributed between Williamson County Schools (WCS) and Franklin Sp...
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