AGENDA #1

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Initial Public Forum on the Annual Budget, Capital Program, Use of Grants and Related Items and Potential Legislative Requests

 

DATE:             January 26, 2005

 

INTRODUCTION

 

The purpose of this memorandum is to provide background information for the Council’s public forum tonight.

 

We suggest that the Council receive comments tonight in a combined forum format in which citizens may make comments regarding any of the forum topics.

 

OVERVIEW OF THE BUDGET PROCESS

 

Through the Town's annual budget process, the Town Council makes decisions on the level and types of services provided to citizens with local, State and federal funds.

 

Adoption of a budget determines in many respects the level of resources to be available for Town services over the coming budget year. Normally, there are limited options for adding to the budget after it is adopted.

 

The budget process is both one of the most important functions and responsibilities of the Council and a key opportunity for citizens' participation in Town government.

 

BRIEF BACKGROUND

 

Process for Participation by Citizens

 

Additional public forums and hearings on the budget and related items will be held at 7:00 p.m. on:

 

March 23 -       Status report on development of a budget, preliminary capital program and proposed grant applications related to housing and community development.

 

May 18 -          Recommended budget for the service year beginning on July 1, 2004; use of transit grants; recommended 15-year capital program; Downtown Service District program.

 

Citizens may also make comments to the Mayor and Council by letter, fax, or e-mail at any time in the budget process.

 

Notice of the budget forum was published in the Chapel Hill News on January 23 (see Attachment 1). We mailed or emailed notices to community groups on January 20.  An ad regarding Community Development funds was published in the January 12th edition of the Chapel Hill Herald.

 

TOPICS FOR THE PUBLIC FORUM AND HEARING

 

Information on each topic for the forums tonight is provided below.

Page

Topic

3

Annual Budget: preparing the budget for the service year beginning on July 1, 2005.

4

Capital Program: capital improvement needs for 2005-2020.

5

Community Development Grant: use of the 2005-06 Community Development grant.

7

Housing Capital Fund Program : use of the 2005-06 federal Housing Capital Fund Grant for public housing improvements, renovations and services to public housing residents.

7

HOME Grant: use of 2005-06 federal HOME grant for housing and community development services in Chapel Hill and Orange County.

9

Public Transportation Grants: use of 2004-05 federal and State grants for transit capital projects, operating costs and transportation planning.

10

 

 

11

Downtown Service District: potential changes in services and tax district boundary for the year beginning on July 1.

 

Potential Legislative Proposals:  suggestions for legislation that might be sought in the 2005 session of the General Assembly.

 

MANAGER’S RECOMMENDATION

 

That the Council refer comments and questions to boards and commissions and to the Manager for consideration and recommendations in the budget process.

 

 

A. Annual Budget for 2005-06

 

This forum provides an opportunity for citizens to comment on any aspect of the Town's budget and budget documents, including services that should be added, eliminated or changed. The Town's 2005-06 budget and service year will begin on July 1, 2005 in accord with State law.

 

In addition, we invite citizens' comments on the preliminary budget information for 2005-06 included as Attachment 2.  This information provides an outline and summary of preliminary costs estimates for a base budget for 2005-06, and potential additional costs to the base budget considering information currently available.  Both the base budget and potential additions to the base are shown relative to total revenues estimated to be available in 2005-06 and the difference between estimated revenues and costs.  In addition, Exhibit 5 to Attachment 2 shows Components of Excess of Costs over Revenues in the General Fund, Exhibit 6 provides an Overview of Potential Future Debt Service and Exhibit 7 shows the Council Budget Calendar. 

 

Purpose

 

The annual budget includes primarily operating costs for police and fire protection, street maintenance, refuse collection, various other public works services, parks and recreation, public transit, the public library, planning, building inspection, engineering, legal, and administrative services.

 

The annual budget includes one year's funding for cash-financed small projects such as sidewalks, greenways, street paving, as well as debt service payments on other capital projects.

 

In addition to setting Town service levels and property tax rates, the Council makes decisions on whether to adjust or adopt service fees for refuse collection, recreation programs, transit, development review, inspections and other services as part of the budget.

 

Next Steps

 

On March 23rd, the Council will hold a public forum at which we will submit to the Council a status report on preparing the 2005-06 budget.  After presentation of the report, the forum will provide an opportunity for comments and requests from citizens or community groups regarding the budget status report, or any aspects of the Town’s budget for 2005-06.

 

On May 9th, we will submit a recommended budget for the Council's consideration and invite comments by citizens at a public hearing scheduled for May 18th. The Council's adopted budget process includes consideration of adopting a budget on June 27th.

 

 

 

 

 

B. 2005-2020 Capital Program

 

The purpose of this forum is to receive citizens' suggestions and comments regarding capital projects in the next 15 years.

 

Purpose

 

A capital improvements program is a plan for major projects and purchases including:

 

·        buying land for parks, open space or other Town services;

·        sidewalks;

·        streetscape;

·        bikeways;

·        greenways;

·        park improvements;

·        construction, renovation, expansion and improvement of Town buildings; and

·        road, bridge and related improvements.

 

The Town’s capital programs have typically included a list of capital projects with cost estimates, a potential schedule and priorities for 15 years, and existing or potential future funding methods for each project.

 

Identified funding sources may include current general revenues, money previously reserved for capital projects, grants, gifts and bond issues.

 

Many projects in the first year of the capital program normally are funded as part of the annual budget. Projects in the second through fifteenth years are normally not funded in the budget for the next year, although some may be financed through past bond issues, installment purchase contracts and other sources. Funding for most projects in the second through fifteenth years is considered in future annual processes.

 

Planning Process

 

Each year, the Town Council, citizens, boards and commissions, and staff consider the Town's capital project needs and possible funding sources for needed projects.

 

This process results in decisions by the Town Council regarding capital improvements that the Town may undertake as funding becomes available and is appropriated.

 

2005-06 Funding

 

As indicated in the initial 2005-06 budget information, we have assumed in our financial estimates that up to $1.745 million may be allocated for capital projects.   Of this amount, $631,000 is for projects under contract (Base Budget) and $1,114,000 is for projects not currently under contract (Potential Additions to Base).

 

2005-2020 Capital Program

 

A summary of the current capital program and long-range projections as adopted by the Council is attached as background information (please see Attachment 3).  We have received some advisory board comments (Attachment 3a).

 

 Next Steps

 

On March 23rd, we will submit a preliminary capital program for 15 years to the Council.  Attached are preliminary comments from several advisory boards that considered the Capital Improvements Program over the past month.  The Council normally refers the preliminary capital program to various Town boards for review and comment. We recommend that you do so this year.

 

A public forum to receive citizens' comments on the preliminary capital program is scheduled for March 23rd.

 

Various boards and commissions will make recommendations to the Council regarding capital projects.  We will submit a recommended capital program on May 9th for a public hearing on May 18th.

 

The Council normally adopts a Capital Improvements Program in June as part of overall decisions on the budget. 

 

C. 2005-2006 Community Development Grant

 

The purpose of this hearing is to receive citizens' comments on how the Town should use federal Community Development grant funds in 2005-2006.

 

All citizens' comments received in writing and at public hearings will be compiled and addressed in a Community Development plan to be submitted to the Department of Housing and Urban Development in May.

 

Purpose

 

The Town receives a federal grant each year to benefit low- to moderate-income families through projects such as:

 

·        Housing repairs;

·        Property acquisition;

·        Neighborhood revitalization;

·        Capital improvements; and

·        After school programs.

 

Attachment 4 provides a summary of the ways in which Community Development grants can be used.

 

Estimated 2005-2006 Funding

 

The U.S. Department of Housing and Urban Development has informed us that the Town may receive $666,392 of Community Development funds for 2005-2006.

 

The 2004-2005 Community Development grant was $711,000.

 

Current 2004-2005 Program

 

On April 26, 2004, the Council adopted a plan for using 2004-2005 Community Development funds. The 2004-2005 plan focuses on public housing rehabilitation and neighborhood revitalization in the Northside and Pine Knolls neighborhoods, affordable housing initiatives with Orange Community Housing and Land Trust and community service activities.

 

Please see Attachment 5 for a summary of the Town’s 2004-2005 Community Development program.  

 

2000-2005 Consolidated Plan

 

In May 2000, the Town and Orange County submitted to the U.S. Department of Housing and Urban Development a five-year consolidated plan which addressed the housing and community development needs of Chapel Hill and Orange County, and prioritized these needs for use of Community Development and HOME funds.  The purpose of the Consolidated Plan is to enhance coordination of community development and affordable housing programs between the Town and County. 

 

On May 13, 2005, we will submit an annual update to the 2000-2005 Consolidated Plan that will include a 2005-2006 Community Development program approved by the Town Council, and a 2005-2006 HOME program approved by the Town Council, the Orange County Commissioners, and the Hillsborough and Carrboro Boards of Aldermen. 

 

This year, the Orange County HOME Consortium will submit a new five-year Consolidated Plan to the U. S. Department of Housing and Urban Development covering program years 2005-2006 through 2009-2010.  We are in the process of selecting a consultant to complete this Plan to be submitted to the U.S. Department of Housing and Urban Development by May 13, 2005.

 

Next Steps

 

Citizens will have an opportunity to comment on a proposed 2005-2006 Community Development Plan at a public hearing scheduled for March 23rd.

 

We recommend the Council refer this program to the Town’s Housing and Community Development Advisory Board for comments and recommendations.

 

On May 9, 2005, we plan to recommend that the Council consider a 2005-2006 Community Development Plan.

 

D. 2005-06 Housing Capital Fund Grant

 

The purpose of this forum is to receive citizens’ comments on using the 2005-06 Housing Capital Fund.

 

Purpose

 

The Town may use annual Housing Capital Fund for renovating and otherwise improving the public housing neighborhoods, and for services to public housing residents.

 

Federal rules give priority to work needed to meet requirements such as:

 

 

Estimated Grant for 2005-06

 

The 2004-05 grant was $ 530,628.  We have not received notice of the amount for 2005-06, but estimate that it would be about the same as this year.

 

Current grant funds are being used primarily for renovations at the Airport Gardens public housing neighborhood.  This year, renovation is expected to be completed in 18 of the 26 apartments in the Airport Gardens neighborhood. 

 

Next Steps

 

We will submit a proposed plan for using the 2005-06 Housing Capital Fund Grant for citizens’ comments at the public hearing on March 23, 2005.

 

We recommend that the Council refer this program to the Housing and Community Development Advisory Board and other interested boards for comments and recommendations.  On May 9, 2005, we plan to recommend that the Council consider a 2005-06 plan for using these funds.

 

E. HOME Program

 

The forum tonight provides an opportunity for citizens to comment on how to use 2005-2006 federal HOME program funds in Chapel Hill and Orange County.

 

Please contact the Planning Department or the Orange County Department of Housing and Community Development for an application for funding. 

 

Purpose

 

Congress established the HOME program in 1992 to fund various housing services to benefit low-income families. HOME funding is in addition to Community Development grants, federal rental assistance, and grants for public housing operations and improvements. 

 

Attachment 6 provides a summary of the ways under which HOME Program funds can be used.

 

2005-2006 Funding

 

The U.S. Department of Housing and Urban Development has informed the HOME Consortium that the 2005-2006 grant will be $707,948. There will be a local match requirement for these funds.  As in past years, we will propose to use funds from the Housing Loan Trust Fund for the Town’s portion of local match.  If this level of funding is received, we estimate that the Town’s share of the match could be approximately $65,300.

 

Orange County Local Governments' Consortium

 

In 1992, the governing boards of Carrboro, Hillsborough, Chapel Hill and Orange County formed a consortium to receive HOME funds. Orange County is the lead agency in administering the HOME program.

 

Current 2004-2005 HOME Program and Funding

 

In 2004-2005, the HOME program in Orange County totaled $905,336.  This amount includes the grant award ($757,000), the local matching funds and funds reallocated from previous years. 

 

In accord with an agreement in signed in 2002, the local matching funds requirements (in accordance with 2000 Census population figures) are as follows:

 

Locality Share

·          Chapel Hill 41%

·          Orange County       40%

·          Carrboro                14%

·          Hillsborough             5%

 

This year HOME funds have been budgeted primarily for property acquisition and second mortgage assistance.  Please see Attachment 7 for a summary of the 2004-2005 HOME Program Plan. 

 

Next Steps

 

In 2000 the participating governments established a HOME Program Review Committee that consists of elected officials and staff representatives from Orange County, Chapel Hill, Carrboro and Hillsborough.  This Committee will prepare a proposed plan for using HOME funds.  The Council will hold a public hearing on the proposal on March 23rd.  In February, the Board of Orange County Commissioners will also hold a public hearing to receive citizen comment on the proposed plan.  The 2005-2006 HOME program must be approved by the Town Council, the Orange County Commissioners, and the Hillsborough and Carrboro Boards of Aldermen prior to submission to the U.S. Department of Housing and Urban Development.

 

This year, the Orange County HOME Consortium will submit a new five-year Consolidated Plan to the U. S. Department of Housing and Urban Development covering program years 2005-2006 through 2009-2010.  This Plan will include the 2005-2006 Community Development and HOME Program plans.  We are in the process of selecting a consultant to complete this Plan to be submitted to the U.S. Department of Housing and Urban Development by May 13, 2005.   

 

We recommend that the Council refer this program to the Town’s Housing and Community Development Advisory Board for comments and recommendations.

 

On May 9th we will ask the Council to consider a plan for use of these funds.

 

F. 2005-06 Public Transportation Grants

 

The forum tonight is an opportunity for citizens to comment on transit services and projects in 2005-06 including the use of federal and State grants for transit operations, capital projects and transportation planning.

 

Purpose

 

Transportation services, projects and planning activities are intended to provide alternatives to the use of single-occupant vehicles, reduce traffic congestion, reduce air pollution and assist people with disabilities affecting their mobility.

 

Estimated Funding

 

For 2005-06, federal funding for transit services is estimated to be about $1.5 million and State funding is estimated to be about $2.9 million.

 

Sharing of Local Costs

 

The University and Towns of Carrboro and Chapel Hill have agreed to share the local cost for transit services. The cost-sharing formulas are set forth in separate contracts with the University and Carrboro.

 

2005-06 Services

 

Chapel Hill Transit provides:

 

 

G. Downtown Service District

 

The purpose of this forum is to receive comments and suggestions from downtown business people, property owners and other interested citizens regarding:

 

·        the use of Downtown Service District taxes in 2005-06;

·        the scope of projects and programs in the service plan for the Downtown District.

 

Purpose

 

In 1989, the Council established a Downtown Service District in response to requests from several downtown businesses and property owners.

 

State law allows the Council to establish this service district and to apply a supplemental property tax to promote the economic vitality of downtown, enhance Town services in the downtown district and other, related activities.

 

Most of the property in the Town Center-1 and -2 zones is in the district.  Several properties used only for residential purposes are not in the service district.

 

Estimated Funding in 2005-06

 

We estimate that funding will remain the same for the Downtown Service District in 2005-06 as in 2004-05 at $70,000.  Since Orange County revalued all County properties to adjust real property for changes in market values as of January 1, 2005, we would use the new values as the basis for assessing property taxes for fiscal year 2005-06. 

 

We estimate that real property values have increased about 22% over previous values, based on information now available.  The present downtown district tax rate is 6.2 cents per $100 of value. This rate generates about $70,000 of revenue. To maintain the current amount of revenue, the tax rate is estimated to be 5.1 cents.  Below we show an estimated equalization rate that would allow the Council to raise the same amount in revenues as would have been raised without the revaluation. 


 

 Downtown District Services

 

Currently, downtown district funds are allocated entirely to the Downtown Economic Development Corporation.

 

Next Steps

 

We will develop recommendations for use of the downtown district funds and for any changes in the service plan as part of the budget process this spring.

 

The Council will hold an additional forum on March 23rd and a public hearing on May 18th.

 

The Council normally adopts the downtown district tax rate in June with the overall budget and makes decisions concerning services and the district boundary during June.

 

H. Potential Legislative Proposals

 

Tonight’s forum is also an opportunity for citizens and Council Members to propose potential legislative requests for the upcoming 2005 legislative session of the North Carolina General Assembly.  Please also see separate memorandum on this forum.

 

Next Steps

 

After hearing ideas from the public, the Council will have the opportunity to discuss these and any additional Council requests among themselves, and to share the ideas and requests with our local legislative delegation before submitting them for consideration by the General Assembly.

 

ATTACHMENTS

 

Budget

 

1.         Notice of January 26th forums (p. 13).

2.               Budget Issues and Preliminary Estimates, dated January 13, 2005 (p. 15).

 

Capital Program

 

3.                    Summary of 2005-2020 capital program (p. 30).

a.         Comments from Advisory Boards (p. 33).

 

Community Development

 

4.         National objectives of Community Development legislation and related list of services and projects which can be funded (p. 35).

5.               Summary of 2004-05 Community Development activities (p. 36).

 

 

HOME Program

 

6.        Uses and Objectives of HOME Program funds (p. 40).

 

7.         Summary of 2004-05 HOME program (p. 41).

 

 

ATTACHMENT 1

 

 

 

 PUBLIC FORUM ON TOWN BUDGET

BY THE MAYOR AND TOWN COUNCIL OF CHAPEL HILL

7 p.m., Wednesday, January 26, 2005

Council Chamber, Town Hall

306 North Columbia Street

 

You are invited to express your views at a public forum by the Mayor and Town Council of Chapel Hill at 7 p.m. on Wednesday, January 26th, regarding:

 

 

 

 

 

 

 

 

 

The forum on January 26th is an initial step in the Mayor and Council's process for developing the 2005-2006 budget and related items listed above.

 

An initial report by the Town Manager regarding the 2005-2006 budget is available for citizens to review in the Town Manager's and Clerk's offices in Town Hall and at the reference desk at the Chapel Hill Public Library.

 

 

 

 

 

Additional hearings and forums will be held on:

 

March 23 -       (Status report on development of budget; preliminary 15-year                 capital program; use of Community Development, HOME and

Comprehensive grants, etc.); and

 

May 18 -          (recommended budget and capital program).

 

 

If you would like to express your views in writing at any time, please feel free to send a letter to:

 

Mayor and Town Council

Town of Chapel Hill

306 North Columbia Street

Chapel Hill, NC 27516

 

You may also send a letter by fax to the Town at 919-967-8406 or by electronic mail to [email protected]. Town staff will forward your letter or comments to the Mayor and each Council Member.

 

If you would like to have additional information, please feel free to visit the Town Manager's Office at Town Hall, send a fax or e-mail as indicated above, or write to:

 

W. Calvin Horton, Town Manager

306 North Columbia Street

Chapel Hill, NC 27516

 

By phone:

Annual budget

Finance Department (968-2706)

Capital improvement program

Planning Department (968-2728)

Community Development grant

Planning Department (968-2728)

HOME grant

Planning Department (968-2728)

Transit grants

Transportation Department (968-2755)

Housing Capital Fund Grant for public housing renovations and related items

Housing Department (968-2850)

Downtown Service District

Manager's Office (968-2743)

 

ATTACHMENT 2

 

BUDGET ISSUES AND PRELIMINARY ESTIMATES

FOR 2005-06 BUDGET

 

GENERAL FUND

 

Brief Update on Current Year Budget

 

Revenue in the current year is on target with budgeted amounts except:

 

 

We believe that revenues at year end are likely to be about $300,000 above the original budget.  At this point, we also believe that expenditures may be about $500,000 below the original estimate.  Therefore, we should be able to maintain a balanced budget in the General Fund and save $800,000 for use next year, consistent with practice in previous normal years. 

 

Overall Budget Issues for 2005-06

 

Key issues for the upcoming budget for 2005-06 include:

 

 

 

 

 

 

 

 

 

Property Taxes and Revaluation

 

Every four years Orange County revalues all County properties to adjust real property for changes in market values.  The County just completed a revaluation and has established current values for County properties as of January 1, 2005.  The new values will be the basis for assessing property taxes for fiscal year 2005-06. 

 

We estimate that real property values have increased about 22% over previous values, based on information now available and exclusive of normal growth of $50 million.  Below we calculate an estimated equalization rate that would allow the Council to raise the same amount in revenues as would have been raised without the revaluation.  Current tax rates are 51.6 cents and 5.9 cents for the General Fund and the Transportation Fund, respectively, with a combined rate of 57.5 cents.  The estimated equalization rates are 41.9 cents and 4.9 cents for the General Fund and the Transportation Fund, respectively, with a combined equalization rate of 46.8 cents.

 

The chart below shows the estimated equalization rate for the Town’s property tax rates based on the revaluation:

 

 

Note: All tax rates are calculated in cents per $100 of assessed value.

 

Before revaluation, the property tax base was estimated to increase by about 50 million to $4.45 billion next year, assuming about a 1.5% growth over an estimated base this year of $4.4 billion.  Revenue on the estimated base would be about $22.6 million.  After revaluation, the property tax base was estimated to be about $5.4 billion.  Using the equalization rate of 41.9 cents, the General Fund would collect the same $22.6 million.

 

Assumptions and Preliminary Estimates of Major Revenues in the General Fund for 2005-06

 

 

 

 

 

 

 

 

 

In summary, we estimate total General Fund revenue of about $41.8 million, including normal use of $800,000 saved from this year for use in 2005-06.

 

General Fund Cost Issues and Preliminary Estimates for 2005-06

 

Base Budget

 

 

 

 

 

 

 

Potential Additions

 

 

 

 

 

 

Considering the issues notes above, attached is a summary of our preliminary cost estimates for a base budget for 2005-06, and estimates for potential additions to the base budget.

 

Beyond 2005-06

 

The Council will need to continue to review the plan for the issuance of the remaining General Obligation debt of $25 million (authorized in November 2003), along with issuances for planned capital improvements, vehicle and computer replacement.  Attached is a graph of the Town’s possible future debt payments using current plans for borrowing.  The chart shows that Town debt is expected to increase gradually because of the planned General Obligation sales in 2006-07 ($7,750,000), 2008-09 ($8,805,000) and 2009-10 ($8,805,000). 

 

General Fund Conclusion

 

 

 

 

 

These additions could require additional revenue of about $2.7 million next year, equivalent to about 5.0 cents on the tax rate.

 

·        A base budget of $44.5 million plus $2.5 million in potential additions would result in a total General Fund budget of $47 million and would require a tax rate of 51.5 cents or, 9.6 cents above the equalization rate.

 

 

TRANSPORTATION FUND

 

Preliminary Revenue Estimates for 2005-06

·        A major issue for the Transportation Fund each year is the level of federal operating and capital grants and State operating assistance available for transportation services.

·        Our preliminary estimate of federal operating assistance includes an anticipated increase from $1,024,000 to $1,116,000, or about $92,000. 

·        We anticipate that we will receive State operating assistance of $2,894,000 for 2005-06, the same amount that we expect to receive in 2004-05.

·        We anticipate that the University and Carrboro will continue to contribute to the system at current levels. 

·        We anticipate an increase in operating revenues for Tar Heel Express and special events of approximately $40,000.  Revenues for these services have been trending upward over the past several years. 

·        Our preliminary estimate of total revenues available for next year would be about $12.6 million.

·        The tax rate for Transportation for 2004-05 is 5.9 cents.  The equalization rate for Transportation is estimated as 4.9 cents.

 

Preliminary Cost Estimates for 2005-06

 

Base Budget

 

·        Our preliminary estimate of costs to continue current routes and fare-free service is $12.4 million.

·        Estimates include expected medical insurance increase of 15% ($144,000) and workers’ compensation increases of 5% ($13,498).

·        We anticipate an increase in the cost of fuel from about $700,000 to about $900,000 ($200,000), using a rate of $1.50 per gallon to cover an anticipated increase in the average cost per gallon.

·        The total base costs would be about $12.4 million next year using these estimates. Expenditures at this level could require no additional Town revenue. 

 

Potential Additions

 

·        Continuing adequate employee compensation adjustments to remain competitive in the Triangle labor market ($209,000).

 

Transportation Fund Conclusion

 

1 cent on the tax rate in 2005-06 is estimated to generate $540,000.

 

The estimated base Transportation Fund budget (excluding compensation adjustments) totals about $12.4 million.

 

Compensation adjustments of $209,000 are a potential addition to the base budget.

 

The addition would leave a balanced budget in the Transportation Fund.  No increase in the tax rate would be required based on these preliminary estimates.

 

 

Combined Potential Tax Rate Effects of General Fund and Transportation Fund

 

We have not received or reviewed budget proposals from Department Heads and have not heard the requests of Advisory Boards or citizens that will be presented at upcoming public forums.  We also have not received requests from our Transit partners, the University of North Carolina at Chapel Hill and the Town of Carrboro, regarding their interests.

 

The table below summarizes the preliminary budgets for the General Fund and the Transportation Fund and gives the property tax rate equivalents for the preliminary estimates.

 

OTHER FUNDS

 

·        Initial review of parking revenues and parking activity for the Town’s off-street parking lots this year indicates that parking revenues would be adequate to cover parking expenses and debt service.

·        For the Town’s public housing program, we anticipate a subsidy no higher than what we actually will be receiving in 2004-05.  Public housing’s subsidy was about $25,000 less than originally budgeted, because of changes if the way the federal government calculates the subsidy that were made subsequent to Town budget preparation.  In addition, changes in costs occurred after adoption of the Town’s Housing Department budget in April.  (The early schedule is required by federal regulation.)  The changes in cost are shown below:

§         $8,000       Federal Housing and Urban Development Department addition of resident participation allocation requirement

§         $18,000     Addition of Orange County recycling fee

§         $14,000     Addition of Town stormwater management fee

As a result of the additional costs and reduced subsidy, the Public Housing Department must decrease its spending by about $65,000 from the original 2004-05 budget.  We anticipate similar subsidy and cost issues for 2005-06 and will adjust the budget accordingly.

 

EXHIBITS

 

1.      General Fund Preliminary Revenue Estimates for 2005-06 (p. 23).

2.      General Fund Preliminary Cost Estimates for 2005-06 (p. 24).

3.      Transportation Fund Preliminary Revenue Estimates for 2005-06 (p. 25).

4.      Transportation Fund Preliminary Cost Estimates for 2005-06 (p. 26).

5.      Components of Excess of Costs over Revenues in the General Fund (p. 27).

6.      An Overview of Potential Future Debt Service (p. 28).

7.      Council Budget Calendar (p. 29).