AGENDA #6i
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Recommended Budget Ordinance for 2000-2001
DATE: June 26, 2000
INTRODUCTION
Attached is a recommended budget ordinance for 2000-2001 reflecting the items discussed by the Council in budget work sessions and agreed upon by the Council at its final work session on June 5.
The items as noted below would allow the Council to adopt a budget for 2000-2001 with an increase of 1.1 cent in the General Fund tax rate (from 52.4 cents to 53.5 cents), and an increase of .4 cents in the Transportation Fund tax rate (from 3.9 cents to 4.3 cents). With these changes, the combined tax rate would be 57.8 cents for 2000-2001, a net increase of l.5 cents over the current rate of 56.3 cents.
Below is a brief summary of key actions decided by the Council for the General, Transportation, Capital Improvement and Capital Reserve Funds as discussed and tentatively approved during budget work sessions.
SUMMARY OF PROPOSED CHANGES
General Fund
Below is a list of the General Fund items included in the attached budget ordinance based on the Council’s discussions in budget work sessions and the Council’s actions at the work session on June 5.
· (66,000) Pay plan reductions based on delaying implementation one pay period and a reduction of .25% in pay ranges.
· (119,000) Departmental 2% reductions.
· 164,000 Additional funding for School Resource Officers with $110,000 in funding from Chapel Hill-Carrboro Schools (50% of the total cost of $220,000).
· 25,000 Funding for additional $1 increase in Landfill tipping fee proposed by the County.
· 10,000 Additional funding for Land Trust, for a total of $18,000.
· (300,000) Reduction in General Fund transfers to Capital Reserve Fund and Capital Improvements Fund to be replaced by one time funding from fund balance in the Capital Reserve Fund.
· (20,000) Reduction in estimated planning fee revenue from reduction in planning review fees for private, non-profit organizations exempt from ad valorem property taxes.
· 3,600 Funding for automatic folder/inserter machine as discussed during budget work sessions.
With these adjustments as listed above, the revised General Fund budget for 2000-2001 would total $33,235,000.
Transportation Fund
The Transportation Fund for 2000-2001 would include the adjustments for pay plan changes as noted above which reduces the total Transportation Fund budget by $17,500. The Town’s portion of this reduction based on its share of expenses of 44.5% would be $7,787, which is not large enough to have an effect on the proposed tax rate for next year. With this change, the revised Transportation Fund budget for 2000-2001 would be $ 6,943,580.
Capital Improvements Fund
For the Capital Improvements Fund budget, we recommended additions and reductions to the proposed budget as follows:
· $28,000 Additional funding for the first year lease-purchase payment on the purchase of five infrared cameras for enhanced firefighting capabilities. (This purchase is being jointly funded by advance contributions of $30,000 from the University, and $20,000 from UNC Hospitals, with the balance of funding from the Town. We recommended funding the Town’s share for the first year lease-purchase payment ($12,500) from interest earnings in the Capital Improvements Fund. The balance of the University and UNC Hospitals contributions would be held for future payments and shown as a reserve for future purchases).
· (50,000) Reduction in proposed reappropriations for Hargraves Center renovations inadvertently included in the recommended budget in error.
With these adjustments the Capital Improvements Fund budget for 2000-2001 would total $1,216,500.
Capital Reserve Fund
As noted above, the proposed General Fund contributions to the Capital Reserve Fund and Capital Improvements Fund would be reduced by $300,000. Funding for the Capital Improvements Program would come from a one time appropriation of $350,000 from existing fund balance in the Capital Reserve Fund. With this adjustment, the revised Capital Reserve Fund budget for 2000-2001 would total $350,000.
Downtown Service District Fund
No changes are proposed for the Downtown Service District next year, and the district tax rate is proposed to remain at 6.2 cents.
Other Funds
For other funds, there were no changes from the recommended budget.
RECOMMENDATION
That the Council adopt the attached revised budget ordinance for 2000-2001 reflecting actions agreed to by the Council during budget work sessions.
AN ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2000 (2000-06-26/O-11)
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 184,339
Town Manager 858,907
Personnel 508,154
Finance 1,115,972
Legal 202,629
Planning 910,873
Inspections 547,412
Engineering 894,021
Public Works 9,094,384
Police 7,781,188
Fire 3,830,854
Parks and Recreation 1,894,349
Library 1,763,241
Non-Departmental 3,675,677
OTHER FUNDS
Transportation Fund 6,943,580
Transportation Capital Reserve Fund 165,482
Debt Service Fund 2,539,000
Vehicle Replacement Fund 2,529,590
Computer Replacement Fund 250,000
Public Housing Fund 1,403,385
Housing Loan Trust Fund 205,406
On-Street Parking Fund 611,000
Off-Street Parking Facilities Fund 1,048,000
Cablevision Public Access Fund 80,000
Library Gift Fund 36,000
Capital Improvements Fund 1,216,500
Capital Reserve Fund 350,000
Downtown Service District Fund 46,000
TOTAL ALL FUNDS 50,658,943
ARTICLE II
It is estimated that the following revenues will be available during the fiscal year beginning July 1, 2000 and ending June 30, 2001 to meet the foregoing appropriations. It is determined that where estimated revenues are higher than the previous year, the increases were warranted.
General Fund Property Taxes 16,056,600
Other Taxes & Licenses 868,000
State-Shared Revenues 10,904,000
Grants 463,000
Charges for Services 998,900
Licenses/Permits/Fines 1,409,000
Interest on Investments 602,000
Other Revenues 248,500
Transfers/Other Sources 885,000
Fund Balance Appropriated 800,000
OTHER FUNDS
Transportation Fund 6,943,580
Transportation Capital Reserve Fund 165,482
Debt Service Fund 2,539,000
Vehicle Replacement Fund 2,529,590
Computer Replacement Fund 250,000
Public Housing Fund 1,403,385
Housing Loan Trust Fund 205,406
On-Street Parking Fund 611,000
Off-Street Parking Facilities Fund 1,048,000
Cablevision Public Access Fund 80,000
Library Gift Fund 36,000
Capital Improvements Fund 1,216,500
Capital Reserve Fund 350,000
Downtown Service District Fund 46,000
TOTAL ALL FUNDS 50,658,943
ARTICLE III
There is hereby levied the following tax on each one hundred dollars ($100) valuation of taxable property, located within the Town of Chapel Hill, as listed for taxes as of January 1, 2000 for the purpose of raising revenue from property tax as set forth in the foregoing estimates of revenues, and in order to finance the foregoing appropriations.
General Fund
(for the payment of expenses of
the Town of Chapel Hill) $0.535/100
Transportation Fund
(for the payment of expenses related to
transportation approved by referendum) $0.043/$100
TOTAL $0.578/$100
ARTICLE IV
There is hereby levied the following tax on each one hundred dollars ($100) valuation of taxable property located in the Downtown Revitalization Municipal Service District established by the Town Council's resolution of June 12, 1989:
Downtown Service District Fund $0.062/$100
This the 26th day of June, 2000.