AGENDA #6a

 

MEMORANDUM

 

TO:                  Mayor and Town Council

 

FROM:            W. Calvin Horton, Town Manager

 

SUBJECT:       Consideration of Final Budget and Related Items 

 

DATE:             June 27, 2005

 

 

Adoption of the attached resolution would establish the budget for 2005-06 and authorize a variety of related actions.  The resolution establishing the budget for 2005-06 would set a tax rate of 47.4 cents per $100 assessed value for the General Fund and 4.8 cents per $100 assessed value for the Transportation Fund for a combined tax rate of 52.2 cents per $100 assessed value. 

 

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.

 

Separate items follow that:

 

• Summarize the final budget decisions made by the Council and offer a Budget Ordinance for action by the Council.
• Establish fees for a variety of Town services.
• Amend the position classification and pay ordinance to reflect position changes recommended by the Manager and considered in the Council’s budget discussions along with pay changes to be effective October 1, 2005.
• Authorize projects for construction through the Council’s 15-Year Capital Improvement Program.
• Establish a project ordinance for the 2005-06 Community Development Program.
• Authorize the Manager to negotiate and execute performance agreements with agencies as recommended by the Human Services Advisory Board.
• Authorize contracts with the University of North Carolina at Chapel Hill and the Town of Carrboro for provision of public transportation services.
• Authorize the Manager to apply for federal and State public transportation grants (R-20).
• Authorize the acceptance of the Transit Capital Grant for 2005-06 Budget (O-7).

 

 

DISCUSSION

 

We are pleased to bring to you the package of items that upon adoption would constitute the annual budget for 2005-06.  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 build the Town Operations Center and includes allowance for the increased costs of fuel.  The budget increases spending for human services contracts and includes added support for public art.  The Council’s vision for downtown development is also reflected in the 2005-06 budget.

 

At the same time, the budget includes funds to continue 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 recommended final budget reflects the effect of property revaluation of an average of 20% in Orange County.  The recommended final budget would allow a decrease in the General Fund tax rate of 4.2 cents (from 51.6 cents to 47.4 cents) and in the Transportation tax rate of 1.1 cents (from 5.9 cents to 4.8 cents).  The resulting combined tax rate would be 52.2 cents.

 

 

In addition, the Downtown Service District Tax rate would be reduced from 6.2 cents per $100 assessed value to the equalization rate after revaluation of 5.3 cents.

 

The proposed budget reflects decisions made by Council on June 15. 

 

The recommended fee schedule includes the changes as presented in the Manager’s Recommended Budget, with a reduction in the increase in commercial garbage fees from $149,000 to $136,000 to reflect the Council’s decision to retain the first weekly garbage collection for apartments and multi-family units without charge. 

 

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 (2005-06-27/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 2005-2006 Fiscal Year (O-3).
c.	Recommended User Fee Policies for 2005-2006 (R-14).
d.	Recommended Salary Adjustments (Manager recommends R-15a; optional action R-15b, if desired by the Council).
e.	Recommended Position Classification and Pay Changes (O-4).
f.	Ordinance Establishing a Position Classification and Pay Plan Effective July 1, 2005 (O-5).
g.	Resolution Establishing Salary Increases for Town Employees Effective October 1, 2005 (R-16).
h.	Manager’s Recommended 2005-2020 Capital Improvements Program (R-17).
i.	Recommended Project Ordinance 2005-2006 Community Development Entitlement Program (O-6).
j.	Recommended 2005-2006 Human Services Performance Agreements (R-18).
k.	Authorization to Enter into Contracts with University of North Carolina and Town of Carrboro for Provisions of Public Transportation Services (R-19).
l.	Authorization to Apply for Federal and State Grants for Public Transportation (R-20).
m.	Project Ordinance for a 2005-06 Transportation Planning Grant (O-7).
n.	Revisions to Privilege License Fees (O-7.1).

 

This the 27^h day of June, 2005.