MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Public Forum and Hearing on the Status Report of the 2000-2001 Budget, Preliminary Capital Improvements Program, Preliminary Grant Proposals, and Other Budget Related Items
DATE: March 29, 2000
INTRODUCTION
The purpose of this memorandum is to provide background information for the Council’s public forum and hearing tonight.
We suggest that the Council receive comments tonight in a combined forum format in which citizens may make comments regarding any one or more of the forum or hearing 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 to citizens. The Town’s service year begins on July 1st in accordance with State law.
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 responsibilities of the Council and a key opportunity for citizens' participation in Town government.
BRIEF BACKGROUND
Process for Participation by Citizens
In addition to the public forum tonight, an initial budget forum was held on January 31st. A public hearing on the Manager’s recommended budget and capital improvements program will be held at 7:00 p.m. on May 10th.
Citizens may also make comments to the Mayor and Council or the Town Manager by letter or fax at any time in the budget process at the following address and fax number:
306 North Columbia Street
Chapel Hill, North Carolina 27516
FAX: 919-967-8406
Comments are also welcome by electronic mail to:
Notices of the budget forum and hearing were published in the Chapel Hill News on Friday, March 24th, and Sunday, March 26th. Letters inviting citizens to attend and speak at the forum were mailed last week to about 200 community organizations and citizens. A copy of the notice is attached.
Copies of the status report on the development of the budget, capital program and plans for using grants are available for citizens to read at Town Hall, at the reference desk of the Chapel Hill Public Library and posted on the Town’s website.
TOPICS FOR THE PUBLIC FORUM AND HEARING
Tonight we present a status report on the development of the 2000-2001 budget, preliminary capital improvements program and preliminary plans for using grants. Information summarizing each topic for the forums tonight is provided below.
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Topic |
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A. Status report on development of the 2000-2001 budget. |
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B. Preliminary report on the 2000-2005 Capital Improvements Program. |
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C. Proposed Community Development Plan for 2000-2001. |
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D. Proposed 2000-2001 HOME program for housing and community development programs in Chapel Hill and Orange County. |
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E. Proposed 2000-2001 Comprehensive Grant Program for public housing renovation and resident services. |
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F. Proposed Use of Transportation Grants in 2000-2001 |
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G. Use of Downtown Service District tax funds. |
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H. Potential Legislative Requests |
That the Council refer comments and questions to the Manager for consideration in the budget development process.
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A. Status Report on Development of the 2000-2001 Budget
Purpose
This forum provides an opportunity for citizens to comment on the Manager’s status report on development of the 2000-2001budget and on any aspect of the Town's budget, including services which should be reduced, added, eliminated or changed. (See Attachment A.)
Annual budget
The annual budget includes operating costs for police and fire protection, street maintenance, refuse collection, various other public works services, recycling, landfill services, parks and recreation, public transit, the public library, planning, building inspection, housing, engineering, legal, and administrative services.
The annual budget includes funding plans for cash financed small capital projects such as sidewalks, greenways, street paving, and other similar 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, transit, development review, inspections, recreation services, and other Town services as part of the budget.
Current 1999-2000 Budget
Copies of the current 1999-2000 budget, which includes key service objectives for each Town department, are available for reading and copying at the Library Reference Desk and at the Clerk's Office in Town Hall.
Quarterly and annual reports, which are also available at the Library and Town Hall, provide additional background information on Town services.
Next Steps
On April 24th, we will submit to the Council a recommended 2000-2001 budget.
The Council has scheduled a public hearing for Wednesday, May 10th.
Additional budget work sessions are scheduled for April 5th and April 26th.
Under State law, a budget or interim budget must be adopted by June 30th.
B. Preliminary 2000-2001 Capital Improvements Program
Purpose
The purpose of this forum is to receive citizens' suggestions and comments regarding capital projects in the next five years. (See Attachment B.)
Capital Improvements Program
A capital improvements program is a plan for major projects and purchases including:
buying land for parks, open space or other Town services;
sidewalks;
bikeways;
greenways;
park improvements;
construction, renovation, expansion and improvement of Town buildings;
road, bridge and related improvements;
other major equipment.
Chapel Hill's capital improvements programs have normally included a list of capital projects with cost estimates, a potential schedule and priorities for five years, and existing or potential future funding methods for each project. This year we are also including a greater emphasis on planning for long-range capital needs, to begin addressing the Council’s goal of developing a fifteen year Capital Improvement’s Program.
Funding sources may include current general revenues, money previously reserved for capital projects, installment financing contracts, grants and bond issues.
Projects in the first year of a five-year capital improvements program are normally funded as part of the annual budget.
Projects in the second through fifth years are normally not funded, although some may be financed through past bond issues, lease-purchase or installment plans. Funding for projects in the second through fifth years is considered in future annual budget processes.
Planning Process
Each year, the Town Council, citizens, boards and commissions, and staff consider the Town's capital projects and funding needs for capital maintenance and improvement projects.
This process results in decisions by the Town Council regarding capital improvements that the Town may undertake over a five-year period as funding becomes available and is appropriated.
2000-2001 Funding
As indicated in the preliminary budget report, we have assumed in financial projections that $795,000 may be allocated for capital repair and maintenance projects. We have submitted a preliminary plan for 2000-2005, with specific funding for the projects in the 2000-2001 fiscal year.
Current Capital Improvements Program for 1999-2004
Copies of the current capital improvements program as adopted last spring are available for citizens to read in the Clerk’s office at Town Hall and at the Chapel Hill Public Library at 100 Library Drive.
Next Steps
We will submit a recommended capital improvements program on April 24th for a public hearing on May 10th.
The Council generally adopts a capital improvements program in June as part of overall decisions on the budget. Normally the Council appropriates funds only for the first year of a capital improvements program and for projects funded with bonds.
C. Proposed Community Development Plan for 2000-2001
Purpose
The purpose of this hearing is to receive citizens' comments on a proposed plan for use of 2000-2001 Community Development grant funds. (See Attachment C.)
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.
Community Development grants
The Town receives a federal grant each year to benefit low- to moderate-income households through activities such as:
community services,
housing repairs,
property acquisition,
neighborhood revitalization,
economic development, and
capital improvements.
Estimated 2000-2001 Funding
The Department of Housing and Urban Development has informed us that the Town will receive $426,000 in Community Development funds for 2000-2001. In addition, we are including $40,000 in program income that we anticipate receiving in Fiscal Year 2000-2001 in the proposed budget, for a total of $466,000.
Current 1999-2000 Program
Last April, the Council adopted a plan for using 1999-2000 Community Development funds. The 1999-2000 plan focuses on public housing rehabilitation, neighborhood revitalization and
development of the Scarlette Drive Affordable Townhomes.
Proposed 2000-2001 Program
The Town intends to use $190,000 of 1999-2000 Community Development funds for public housing renovations (primarily at the Lindsey Street community), neighborhood revitalization, and the development of the Meadowmont Affordable Town homes and administration.
Consolidated Plan with Orange County
In May 2000, the Town and Orange County will submit to the U.S. Department of Housing and Urban Development a new five-year revised plan using Community Development and HOME program funds. The Consolidated Plan identifies housing and community development needs of Chapel Hill and Orange County, and establishes priorities among these needs.
The new five-year plan will reflect the 2000-2001 Community Development and HOME program when approved by the Town Council, Orange County Commissioners, Carrboro Board of Aldermen, and the Hillsborough Commissioners and will show how the 2000-2001 activities will address needs identified in the 2000-2005 Consolidated Plan.
Next Steps
On April 24th we plan to recommend that the Council consider a Community Development plan for 2000-2001. We plan to recommend a new 5-year Consolidated Plan to the Council on May 8, 2000. The consolidated plan is due to the U.S. Department of Housing and Urban Development by May 15, 2000.
D. Proposed 2000-2001 HOME program
Purpose
Tonight’s hearing provides an opportunity for citizens to comment on a proposed plan for use of HOME program funds in 2000-2001 in Chapel Hill and Orange County. (See Attachment E.)
HOME grants
The HOME program was established to fund various types of housing programs to benefit low and moderate income families. HOME Program funding is in addition to Community Development grants, federal rental assistance, and grants for public housing operations and improvements currently received by the Town and Orange County. Normally there is a local match requirement for this program.
2000-2001 Funding
We have received notice from the U.S. Department of Housing and Urban Development that the 1999-2000 grant will be $438,000. Local governments will contribute a local match of $98,100. Therefore, the total available for the program is $534,100. The Town’s share of the match is $40,406. We propose to use the local Housing Loan Trust Fund to pay the match.
The preliminary plan for using the 2000-2001 HOME Program funds is attached. The plan proposes using funds for community revitalization, site development, new construction activities, urgent repair, rehabilitation and administration.
Orange County HOME Consortium
In 1992, the governing boards of Carrboro, Hillsborough, Chapel Hill and Orange County formed a Consortium to receive federal HOME Program funds. Orange County is the lead agency, and administers HOME program activities.
Current 1999-2000 HOME Program and Funding
In 1999-2000 funds were budgeted for comprehensive property acquisition, site improvements for a home ownership program, an urgent repair program, and new construction activities.
Next Steps
On April 24th, we will ask the Council to consider a plan for using this grant.
Approval by the governing boards of each locality in the Orange County Consortium is necessary to submit a joint plan to the U.S. Department of Housing and Urban Development for use of the HOME Program grant.
As the lead agency, Orange County would compile material from each locality to submit a joint Consolidated Plan to the U.S. Department of Housing and Urban Development by May 15th.
E. Proposed 2000-2001 Comprehensive Grant Program
· Operating Assistance
These funds would support services of the public transit system in the Chapel Hill/Carrboro area, which currently operates fifteen bus routes, demand responsive shared ride service and service for elderly and handicapped people.
The estimated amount of federal and State operating assistance to be requested for 2000-2001 is $1.3 million, or about 19% of the cost of the transit system.
· Capital Projects
Up to $2,894,000 of federal funds would be requested. If this full amount of grant funding were approved in 2000-2001, the local matching funds may be appropriated in a future year as needed. In addition, State grant funds would be requested to help cover matching costs. Proposed uses of grants are:
1) Replace fourteen 1990 transit buses, replace three lift-equipped vans and replace one maintenance truck; and
2) buying major spare parts such as engine and transmission rebuilds, air conditioning compressors, and bus tires.
· Planning
About $158,000 of federal funds would be requested for short-range transit planning projects.
Purpose
The purpose of this forum is to receive citizens' comments on using the 2000-2001 Comprehensive Grant. (See Attachment D.)
Comprehensive Grants
The Town may use annual Comprehensive Grants for renovating and otherwise improving public housing neighborhoods, and for services to public housing residents.
Federal rules give priority to work needed to meet requirements such as:
· testing for and removing or otherwise controlling lead-based paint.
· testing for and removing or otherwise controlling asbestos.
· renovations to meet the needs of disabled citizens.
Estimated Grant for 2000-2001
We have not received notice of the amount for the coming year. However, a preliminary proposal for 2000-2001 has been prepared based on last year’s funding amount of $460,000. Funding for 2000-2001 would go toward renovations at Lindsay Street, Residents’ activities, administration and professional services fees. We plan to recommend that the Council consider a 2000-2001 Comprehensive Grant Program on April 24th.
G. Downtown Service District
Purpose
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 2000-2001 and an amendment of the Downtown Service District map to exclude a property now being redeveloped for residential use. (See Attachment G.)
In 1989, the Council established a Downtown Service District in response to requests from several downtown business 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 and enhance Town services in the downtown district.
Estimated Funding in 2000-2001
The present downtown district tax rate is 6.2 cents per $100 of value. This rate generates about $46,000. We will make a recommendation on April 24th on the district tax rate.
1999-2000 Downtown District Services
In the current service year, downtown district funds are allocated for marketing and promotion of downtown, operation of a Welcome Center, supplemental sidewalk cleaning, assistance and communication to downtown businesses, and support of promotional events.
The non-profit Chapel Hill Downtown Commission, Inc. is responsible for providing these services through a performance agreement with the Town. The Downtown Commission has indicated they wish to continue performing these services for the Town.
F. Proposed Transportation Grants
2000-2001 Funding
These funds would support services of the public transit system in the Chapel Hill/Carrboro area, which currently operates fifteen bus routes, demand responsive shared ride service and service for elderly and handicapped people.
The estimated amount of federal and State operating assistance to be requested for 2000-2001 is $1.3 million, or about 19% of the cost of the transit system.
· Capital Projects
Up to $280,000 of federal funds would be requested. In addition, State grant funds would be requested to help cover matching costs. Proposed uses of grants are:
1) replace three lift-equipped vans and replace one maintenance truck; and
2) buying major spare parts such as engine and transmission rebuilds, air conditioning compressors, and bus tires.
· Planning
About $158,000 of federal funds would be requested for short-range transit planning projects.
H. Potential Legislative Requests for 2000-2001
(Note: Copies of the attachments are available in the Clerk’s office in Town Hall, the reference desk of the Chapel Hill Public Library, and posted on the Town’s website: www.ci.chapel-hill.nc.us).
A. Status report on development of the 2000-2001 budget.
B. Preliminary report on the 2000-2005 capital improvements program.
C. Proposed Community Development Plan for 2000-2001.
D. Proposed 2000-2001 HOME Program Funding
E. Proposed 2000-2001 Comprehensive Grant Program for public housing renovation and resident services.
F. Proposed Transportation Grants for 2000-2001.
G. Proposed Downtown Service District map amendment and use of Downtown Service District tax funds.
H. Potential Legislative Requests