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Draft 1.1 -- Not for Distribution or Circulation Local Gift Card – The region could create a gift card that is usable only at locally owned businesses in Cabarrus County would help introduce residents and tourists to unfamiliar local businesses. It's a great stocking- stuffer, and a terrific promotional item to be sold to tourists. Generally, gift card programs are more attractive to local businesses than debit, credit, or loyalty programs, because they are more likely to award a dollar for dollar redemption. Whereas every dollar a business accepts in a local debit, credit, or loyalty transaction means surrendering some percent in fees and discounts (typically 3 -5 %), a dollar accepted through a gift card usually gets completely paid. The administrative costs of gift card programs are covered by lost, discarded, or unused cards, called "shrinkage," often amounting to 15 -25% of total card purchases. Local Currency – One estimate suggests there are more than three thousand local currency efforts worldwide and several dozen within the United States. The two most advanced systems in the United States are Ithaca HOURS and Berkshares, both of which print paper bills for the community. Very popular in Europe and Australia are LETS systems in which buyers and sellers exchange virtual money online. Because credits (whether paper credits or virtual credits) can only be exchanged for local goods and services, these systems promote local purchasing. "Demurrage" systems devalue bills over time, which encourages people to spend them faster —which in theory stimulates the local economy. Few local money systems have any means of covering administrative costs, and instead exist simply because of volunteer efforts and charitable contributions. In theory, though, annual membership fees (to consumers, businesses, or both) and small transaction fees could support the systems. Successful systems during the Great Depression involved municipal governments, which dedicated staff to their implementation. Time Dollars The concept of Time Dollars, developed by law professor Edgar Cahn, facilitates a community -wide bank of volunteered time for certain categories of social service. John, a teenager, mows a lawn for Ted (who's sick), Joan tutors John, Phil teaches Joan how to play the flute, etc. Unlike most barter or local currency transactions, Time Dollars are tax exempt in the United States. Communities can download for free software programs to facilitate local exchanges. Like local currency experiments, these tend to be run by volunteers or by staff paid by foundation grants. Business models are possible for Time Dollars, but not yet tested. For example, a local government might provide local tax credits for Time Dollars spent and deploy municipal staff to run the system. The rationale would be that, say, a 10% tax credit unleashes social assistance in the community at a 90% discount saving the community tens or hundreds of thousands of dollars and more than enough to justify the staff expense. B2B Marketplace – In the 1980s and early 1990s, the Oregon Marketplace operated out of six offices in which staff tried to help local businesses purchase local "inputs" from other local businesses: "I see you're making flags and importing cloth from Japan. Suppose we found you a cloth manufacturer in 36 Attachment number 1 1 -4 Page 338