AGENDA #2

February 27, 2004

Public Works Department

Budget Presentation to the Mayor and Town Council

Fiscal Year 2004-2005

I. Mission Statement

To safely, efficiently and effectively provide Chapel Hill’s citizens with high quality public services including residential and commercial solid waste collection, municipal construction, street maintenance, traffic signal system maintenance, stormwater drainage system maintenance, public facilities maintenance, automotive fleet maintenance, urban forest management, development review, landscape maintenance and parks maintenance,  and to provide these services in a manner that empowers our employees and treats them with respect and dignity.

II. Brief Services Description

· maintenance of traffic signal system, signs and pavement markings

· administer street lighting policy

· overall maintenance of Town’s streets, including on-going patching, reconstruction and contracted resurfacing

· maintain rights-of-way, including streets, during periods of inclement weather, emphasizing timeliness and safety

· minor construction projects for Public Works and other Town departments

· maintenance of Town’s automotive fleet and public facilities

· maintenance of Town’s storm water utility system

· collection of refuse, including weekly collection of brush, for both residences and businesses

· seasonal collection of loose leaves and pine straw at curbside

· grounds maintenance services at public facilities, including maintenance at public parks and recreational areas

· review of development and design plans to assure compliance with Town’s Landscape and Tree Protection Ordinance

· plant and maintain street trees

· participation in timely development of new Town Operations Center  

III. Departmental Revenue Estimates

REVENUE SOURCE	Actual 2002-2003 Revenues	2003-2004 Budgeted Revenues	Estimated 2003-2004 Revenues	Proposed Revenues For 2004-2005
FEMA GRANT	956,100		240,300
POWELL BILL	1,490,126	1,394,000	1,314,000	1,314,000
STATE FEMA MATCH	318,700		80,100
GARBAGE COLLECT.	201,887	230,000	253,000	250,000
SP TRASH COLLECT.	7,985	14,000	9,000	10,000
COMPACTOR FEES	25,175	24,000	25,000	24,000
STREET CUTS	74,125	40,000	70,000	50,000
MOWING R/W’S	22,646		15,400	15,400
TRAFFIC SIGNALS	121,725	138,400	139,400	92,700
SAFETY REIMBURSE.	28,400
GARBAGE CITATIONS	7,425		12,800	6,000
ROLL CART SALES	2,390	3,000	3,000	3,000
MOTOR SALE-FUEL	10,385	8,000	14,500	23,700
PAY PHONE COMM.	26
TOTAL	3,267,095	1,851,400	2,176,506	1,788,800

Key Budget Issues:

· FEMA funding (both federal and state portions) only applies in years with declared disasters

· Powell Bill funding decreased due to lower population data

· commercial garbage collection fees increased 10% in FY 2003-04

· street cut revenues primarily relate to annual workload by OWASA

· state reimbursements for mowing rights-of-way highly erratic

· traffic signal maintenance revenues for Schedule D transferred to Engineering Department next year

· sale of fuel to outside agencies by Town anticipates increase in mark-up costs from 10% to 15%

IV. Departmental Base Budget Cost Estimates

CATEGORY	2003-2004 Original Budget	Requested 2004-2005 Budget
Personnel	6,281,306	6,409,424
Operations	4,696,593	4,914,088
Capital Equipment	35,600	0
TOTAL	11,013,499	11,323,512

Key Budget Issues:

· About 80% of cost increase next year for personnel relates to group insurance costs (up 6.3%, or $46,150) and workman’s compensation (up 30%, or $56,931).

· Operational account increases result from overall 2.1% ($38,033) allowable adds to most accounts.

· Accounts primarily comprised of internal charges, such as fleet use charges, vehicle replacement charges and computer replacement charges, increased 6.1% (or $176,054).

· Capital outlay for next year is included on departmental add list and is not part of base budget request.

V. Programs Going Well

· weekly curbside collection of residential refuse

· scheduled weekly collection of yard waste at curbside

· seasonal collection of loose leaves and pine straw at curbside

· routine street cleaning

· use of cost effective pavement treatments and maintenance practices

· fleet replacement program

· scheduled facilities maintenance program

· Streetscape improvements in Town Center

· timely review of development and design proposals for compliance with Town’s Landscape and Tree Protection Ordinance

VI. Programs That Could Be Improved

· maintenance of traffic signal system

· reconstruction of Town streets most in need of basic repairs

· snow and ice removal during periods of hazardous winter weather

· implementation of storm water management system

· maintenance servicing for Town’s automotive fleet

· capital maintenance program for public facilities

· landscape maintenance frequency

VII. Proposed Additions or Reductions

· enhanced traffic signal maintenance ($101,000, totally offset with revenues from NCDOT)

· enhanced storm-water utility services (costs to be determined)

· replacement of second of two down-town refuse compactors ($18,000)

· expansion of grounds maintenance staff ($40,700)

· restore funding for contracted street resurfacing ($27,000)

· restore funding for  reconstruction of selected streets town-wide ($36,000)

· expansion of fleet maintenance and repair program ($75,400)

· expansion of inclement weather service capacity ($23,500)

· secretary/receptionist for public works ($36,400)

· scissor lift and trailer for buildings ($21,000)

· increase building maintenance funding ($7,000)