AGENDA #6b
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Recommended Budget Ordinance for the 2004-05 Fiscal Year
DATE: June 14, 2004
The attached budget ordinance would approve a final budget and set the tax rate for the 2004-05 fiscal year at 57.5 cents for a combined tax rate increase of 2.2 cents.
INTRODUCTION
The recommended final budget would include a proposed increase in the General Fund tax rate of 1.40 cents (from 50.2 cents to 51.6 cents) and a proposed increase in the Transportation tax rate of .80 cents (from 5.1 cents to 5.90 cents). The resulting combined tax rate would be 57.5 cents.
COUNCIL DECISIONS AT BUDGET WORK SESSIONS
The decreases and increases decided on by the Council at the May 19th budget work session are included by fund in the list below. Pay adjustments authorized by the Council have been distributed to the appropriate funds and are proposed to begin on October 2. (The Council had proposed an October 1 start date, but the Town pay periods make an October 2 start date a better administrative choice.) In addition, the attached budget amendment reflects a Town-wide reduction in Workers’ Compensation costs from our original estimates by about $50,000 as a result of an audit conducted by the Human Resources staff.
General Fund
The recommended final budget for the General Fund includes the base budget recommendations as presented to the Council and changes directed by the Council as follows:
Personnel
· 635,400 Pay adjustments as noted above.
· 36,000 Web programmer/analyst position (6 months funding).
· 3,000 Three high school interns for the summer.
· 66,700 Addition of a traffic signal technician, to be offset by an increase in a traffic signal grant from the North Carolina Department of Transportation.
· 40,926 Increase in the cost of health benefits for the Mayor and Council.
Operating Costs
· 26,000 Increase for police ammunition to meet State-mandated training and qualifications requirements.
· 10,000 First year of a three-year handgun replacement plan for police.
· 42,500 Update aerial photography topographic GIS coverage.
· 17,000 Credit card processing fees.
· 20,000 Addition for athletic field maintenance.
· 40,000 Cost of stormwater fees on Town property.
· (151,000) Decrease in Vehicle Replacement charges.
· 20,000 Increase in animal control contract costs.
· 60,000 Additional cost for police Mobile Data Units.
· 69,500 Increase in cost of gasoline and biodiesel fuel.
· 34,000 Increase in Transportation Planning Grant match.
· (40,000) Reduction in Workers’ Compensation premium.
· 7,400 Cost of portable toilets for winter use in parks.
Capital Equipment
· 7,300 Cost for Fire Department power rescue equipment.
· 3,000 Cost to replace one automatic defibrillator.
Debt Service
· 150,000 Estimated payment on Town Operation Center design and site work.
· 202,500 Estimated payment on $4 million issuance of new General Obligation bonds.
· (55,000) Cell tower rental fees applied to debt service.
Transfer for Capital Improvements
· (50,000) Estimated sidewalk and bicycle Capital Improvements allocation that could be applied to debt service.
· 361,000 Total proposed additions for Capital Improvements. (See “Capital Improvements Fund” below for details.)
· 55,000 Cell tower rental fees from Capital Improvements Fund.
Special Programs and Service Contracts
· 266,000 Downtown Chapel Hill economic development consultant - next phase
for Lots 2 and 5.
· 70,000 Contract with new Economic Development entity.
· 75,000 Addition to contingency reserve for Transit Master Plan.
· 587,700 Human services contracts, hotel/motel allocations and grants to other agencies as follows:
Human Services Agencies
o 206,000 Human Services Advisory Board Recommendation.
o 30,000 Special allocation to Interfaith Council.
o 500 Cultural Arts Dinner.
o 18,900 JOCCA.
o 30,000 Friends of the Chapel Hill Senior Center.
Hotel/Motel Tax Allocation
o 67,000 Chapel Hill Visitors Bureau (Includes $58,000 from base budget.)
o 10,000 Arts Center.
o 125,000 Chapel Hill Public Arts Commission.
o 30,000 NC High School Athletics Association.
Orange County
o 12,300 Retired Senior Volunteer Program.
o 6,000 Economic Development Commission.
Housing
o 110,000 Orange County Housing and Land Trust.
Additional Revenues
· 1,204,000 First year reimbursement impact of Stormwater Management Fund.
· 66,700 Increase in traffic signal maintenance fees from the North Carolina Department of Transportation to offset cost of new position if added.
· 21,000 Increase in University of North Carolina development application fees.
· 125,000 Increase in commercial garbage rates.
· 208,000 Federal Emergency Management Agency tipping fee reimbursement.
· 125,000 Carol Woods donation.
· 42,000 Additional revenue from revised sales tax estimate (from $7.3 million to $7.4 million).
With these additions to the recommended base budget, the final General Fund budget for next year would total $42,712,000. The General Fund budget would be balanced by using Council’s one time reserve of $491,000 and the usual $800,000 in fund balance reserves and a property tax increase of 1.40 cents.
Transportation Fund
For the Transportation Fund, the final recommended budget would include the additions to base budget as discussed and approved by the Council on May 19. These additions include the following:
Personnel
· 58,176 Pay adjustments as noted above (total cost of $186,053 for all partners).
· 7,920 Addition of a part-time EZ Rider/Shared Ride reservationist position (total cost of $23,757 for all partners).
· 13,330 Addition of a full-time EZ Rider transit operator position (total cost of $39,981 for all partners).
Operating Costs
- 3,652 Increase in the cost of gasoline (total cost of $11,266 for all partners).
With these additions, the final recommended budget for the Transportation Fund next year would total $11,416,600. This budget would require an increase of .8 cents in the current Transportation tax rate (from 5.1 cents to 5.9 cents), increasing property tax revenues by about $354,000. The proposed increase in the Transportation tax rate of .8 cents combined with the increase in the proposed tax rate for the General Fund of 1.4 cents would give a combined total tax rate of 57.5 cents for 2004-05.
The Transportation budget does not include additional service requests by the University or Carrboro currently under discussion. Any additions to the budget would be handled through amendments to the adopted budget, with funding for additional service being provided by the requesting party in accord with previous funding agreements.
Capital Improvements Fund
The final recommended Capital Improvements Fund budget would include changes directed by the Council. This budget would total $927,000.
Base Budget
- 122,000 Installment payment on Town Operations Center land.
- 163,000 Installment payment on Hargraves Center and A. D. Clark Pool.
- 238,000 Meadowmont School Gym payment.
- 38,000 Installment payment on roof repairs: Town Hall and Fire Stations 2 and 3.
Additions
- 25,000 Picnic shelter at Meadowmont Park.
- 50,000 Extraordinary maintenance, emergency repairs.
- 15,000 Weaver Dairy and Sedgefield Road repairs.
- 25,000 Curb repairs, Americans with Disabilities Act compliance.
- 50,000 Capital repairs to bike paths, paved trails and public parking areas.
- 50,000 Small park improvements.
- 56,000 Design work for Community Center capital maintenance.
- 21,000 Homestead Park.
- 19,000 Police generator.
- 55,000 Transfer to Debt Service.
Other Funds
Stormwater Management Fund
The Stormwater Management Fund budget remains as presented on May 19 with a budget of $1,760,000. The budget is based on a funding through assessment of fees of $39 per each 2,000 square feet of impervious surface on property.
Grant Fund
In the past we have included grants from others in the General Fund. Most governmental entities use a separate fund for grants, and we recommend budgeting for new grants in a separate fund. Grants already accepted by the Council total $110,830 in 2004-05.
Other funds have been adjusted to allocate the proposed pay adjustments, stormwater management fees, debt service payments and the reduction in the workers’ compensation insurance premium. No other changes have been made in other funds.
RECOMMENDATION
That the Council enact the attached budget ordinance reflecting decisions made by the Council during budget work sessions and the addition of separate funds for grants received and for stormwater management.
AN ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2004 (2004-06-14/O-8)
BE IT ORDAINED by the Council of the Town of Chapel Hill, the following appropriations are hereby made:
ARTICLE I
GENERAL FUND
Department Department Total
Mayor/Council 339,481
Town Manager/Town Clerk 1,068,311
Human Resources 614,415
Finance 986,651
Information Technology 704,512
Legal 247,118
Planning 1,112,087
Inspections 760,210
Engineering 916,312
Public Works 10,761,566
Police 10,080,655
Fire 5,575,478
Parks and Recreation 2,318,311
Library 2,014,554
Non-Departmental 5,212,339
GENERAL FUND TOTAL 42,712,000
OTHER FUNDS
Transportation Fund 11,416,600
Transportation Capital Reserve Fund 470,244
Debt Service Fund 2,837,500
Vehicle Replacement Fund 1,800,000
Fleet Maintenance Fund 965,198
Computer Replacement Fund 433,760
Public Housing Fund 1,653,685
Housing Loan Trust Fund 98,777
On-Street Parking Fund 623,720
Off-Street Parking Facilities Fund 1,264,120
Cablevision Public Access Fund 100,000
Library Gift Fund 80,000
Capital Improvements Fund 927,000
Downtown Service District Fund 70,000
Stormwater Management Fund 1,760,000
Grants Fund 110,830
TOTAL ALL FUNDS 67,323,434