Category	Base Budget	Potential Additions to Base		Total
Personnel Costs - Base salaries and benefits plus full year cost of pay increase authorized for 9 months in 2005 -06	8,735,000	Potential costs of competitive employee pay adjustments effective October 1, 2006
Estimated potential increases of 11% in    medical insurance	111,000	l  General market and merit adjustments      as defined in Town Classification and      Pay Plan	223,000
Estimated potential increases of 12% in     workers compensation costs	66,000
Estimated potential increases in     unemployment insurance costs	11,000
				9,146,000
Operating Costs - Base operating costs	3,434,000
Increase in utilities	72,000
Increase in kerosene cost from $1,144,000    to $494,000 to reflect cost of fuel at    $2.50 per gallon	350,000
Increase in gasoline cost from $109,000 to    $139,000 to reflect cost of fuel at $2.20    per gallon	30,000
Increase in fuel costs because of move to    new Town Operations Center	130,000			4,016,000
Capital Equipment Costs - Replacement Equipment	269,000			269,000
Total Base Costs	13,208,000	Total Potential Additions	223,000	13,431,000
Estimated Total Revenue Available		Estimated Total Revenue Available
Chapel Hill Contribution	2,716,000			2,716,000
UNC Contract	4,659,000			4,659,000
Carrboro Contract	907,000			907,000
Other Revenue	4,466,000			4,466,000
Appropriated Fund Balance	-	Appropriated Fund Balance		-
Difference	(460,000)	Difference		(683,000)
	12,748,000