AGENDA #6a

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Consideration of Final Budget and Related Items 

 

DATE:             June 14, 2004

 

 

Adoption of the attached resolution (R-13) would establish the budget for 2004-05 and authorize a variety of related actions.  Alternatively, the Council may choose to vote on each item separately or may choose to make adjustments in any of the separate items before voting on the comprehensive Resolution (R-13).

 

Separate items follow that:

 

• Summarize the final budget decisions made by the Council and offer a Budget Ordinance for action by the Council.
• Establish a Stormwater Management Fund.
• Authorize an inter-local agreement with Orange County for billing and collection of stormwater fees.
• Authorize projects for construction through the Council’s 15-Year Capital Improvement Program.
• Amend the position classification and pay ordinance to reflect changes recommended by the Manager and considered in the Council’s budget discussions.
• Authorize the Manager to negotiate and execute performance agreements with agencies as recommended by the Human Services Advisory Board.
• Establish fees for a variety of Town services.
• Authorize the Manager to negotiate and execute transit services contracts with the University of North Carolina and the Town of Carrboro.
• Authorize the Manager to apply for federal and State public transportation grants.
• Authorize the installation of portable toilets in Town parks to provide restrooms during winter months when regular facilities are not operable.

 

We recommend that the Council adopt Resolution R-13.

 

DISCUSSION

 

We are pleased to bring to you the package of items that upon adoption would constitute the annual budget for 2004-05.  The final budget proposal continues basic services, provides a fare free transit system as in past years, provides pay adjustments to hire and retain a high-quality work force necessary for high-quality service, allows the Town to continue using environmentally-friendly biodiesel fuel and provides for improvement the Town’s web-site.  The budget preserves spending for human services contracts and includes added support for public art.  The Council’s vision for downtown development is also reflected in the 2004-05 budget.

 

At the same time, the budget includes funds to continue the work necessary to develop the new Town Operations Center in 2006, and to begin the work approved by voters in the November 2003, bond referendum for additional sidewalks, parks, energy efficient projects and design work for a major library expansion.  Capital programs continue to provide necessary maintenance of current Town facilities.

 

The major new feature of the proposed budget is that it will establish a Stormwater Management Fund as a utility to protect water quality, improve Chapel Hill streams and provide for long-term mitigation of flood hazards.  The main source of funding for this new program will be from an annual fee based on the amount of impervious surface on properties.  The attached Ordinance will set the fee at $39 annually for each 2,000 square feet of impervious surface on a property.

 

The recommended final budget would require an increase in the General Fund tax rate of 1.40 cents (from 50.2 cents to 51.6 cents) and an increase in the Transportation tax rate of .80 cents (from 5.1 cents to 5.9 cents).  The resulting combined tax rate would be 57.5 cents.

 

 

The proposed budget reflects decisions made by Council on May 19.  It also includes a cost reduction of about $50,000 across all Town funds based on results of a Workers’ Compensation premium audit conducted by the Human Resources staff.

 

The recommended fee schedule includes only changes that will have a significant effect on revenues, both of which were discussed and tentatively approved by the Council:

 

• Fees charged to the University for review of development Plan and Site Development Permit applications are projected to result in additional revenue of about $21,000.

 

• Fees charged for commercial garbage collection services would increase by about 46% to recover a larger portion of the cost of providing such service.  Revenues are estimated to increase by a total of about $125,000.

 

RECOMMENDATION

 

We recommend that Council adopt the attached resolution to establish a budget and authorize related work for 2004-05.

A RESOLUTION ADOPTING THE BUDGET FOR 2004-05 AND AUTHORIZE A VARIETY OF RELATED ACTIONS (2004-06-14/R-13)

 

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby adopts the following resolutions and enacts the following ordinances as submitted by the Town Manager in regard to the following:

 

 

b.	Recommended Budget Ordinance for the 2004-2005 Fiscal Year (O-8).
c.	Establishment of a Stormwater Management Utility and a Stormwater Management Utility Advisory Board (O-9).
d.	Authorization to Execute an Inter-local Agreement with Orange County for Stormwater Management Utility Fee Billing and Collection Services (R-14).
e.	Manager’s Recommended 2004-2019 Capital Improvements Program (R-15).
f.	Ordinance Establishing a Position Classification and Pay Plan Effective July 1, 2004 (O-10).
g.	Recommended 2004-2005 Human Services Performance Agreements (R-16).
h.	Recommended User Fee Policies for 2004-2005 (R-17).
i.	Authorization to Enter into Contracts with the University of North Carolina and the Town of Carrboro for Provision of Public Transportation Services (R-18).
j.	Authorization to Apply for Federal and State Grants for Public Transportation (R-19).
k.	Installation of Portable Toilets in Town Parks (R-20).

 

This the 14^th day of June, 2004.