AGENDA #6a
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Recommended Budget Ordinance for 2001-2002
DATE:
INTRODUCTION
Attached is a recommended budget ordinance for 2001-2002 reflecting the items discussed by the Council in budget work sessions and agreed upon by the Council at its final work session on June 13.
The items as noted below would allow the Council to adopt a budget for 2001-2002 with an effective increase of 1.5 cents in the General Fund tax rate (setting a rate of 46.l cents), and an effective increase of .7 cents in the Transportation Fund tax rate (setting a rate of 4.3 cents). With these changes, the combined tax rate would be 50.4 cents for 2001-2002, a net decrease of 7.3 cents from the current rate of 57.8 cents.
Below is a brief summary of key actions decided by the Council for the General, Transportation, Capital Improvement and Vehicle Replacement Funds as discussed during budget work sessions. The amounts allocated for pay increases in the General and Transportation Funds were reduced by $224,000 as approved by the Council. These amounts are being held in the non-departmental accounts pending a final decision by the Council on pay options.
SUMMARY OF PROPOSED CHANGES
General Fund
The General Fund budget recommended for 2001-2002 would continue most services as in the current year. Fees for commercial garbage collections services would be charged as approved by the Council during the budget work sessions. The recommended budget also includes funding to provide full Town services to the Southern Village and Notting Hill areas annexed effective June 30, 2001. About $1,370,000 for these costs (offset by estimated annexation revenues) initially included in a reserve account has been allocated to the appropriate departments within the General Fund.
Below is a list of changes in the General Fund budget that are reflected in the attached revised budget ordinance based on the Council’s discussions in budget work sessions and the Council’s actions at the work session on June 13.
· 176,000 Pay plan reductions based on Council discussion at budget work session.
· 180,000 Estimated additional sales tax revenue due to population change with the 2000 Census.
· 105,000 Estimated additional Powell Bill revenue due to population change with the 2000 Census.
· 236,000 Additional net revenue from commercial garbage collection fees.
· 35,000 Estimated additional revenue from Cable Franchise fees.
· (90,000) Reduction in vehicle replacement costs based on change in financing terms.
· (85,000) Funding of Public Works lube pit and vehicle washing from 1996 bond funds.
· (100,000) Use of lease-purchase financing for Town Hall generator.
· (58,000) Funding Library capital maintenance items with a capital contribution from the Library Gift Fund.
· (85,000) Reductions in allocations for Town Hall carpet replacement and a space needs study.
· (65,000) Deletion of funding for Construction Manager position.
· 50,000 Increase in funding for sidewalks in the Capital Improvements Fund.
· 25,000 Increase to pay for $1 added to Landfill fee proposed by County, for a total increase of $3.
· 72,000 Increase in Grants to Others as approved by the Council.
With these adjustments as listed above, the revised General Fund budget for 2001-2002 would total $36,725,000, with a General Fund tax rate of 46.1 cents.
Transportation Fund
The recommended Transportation Fund budget for 2001-2002 would also provide transit services in the newly annexed areas, new services as requested by the University and Carrboro, the addition of 10 new buses, and the provision of fare-free service effective January 1, 2002, all approved by the Council during budget works sessions.
For the Transportation Fund budget, the adjustments approved by the Council during budget works sessions are as follows:
· 48,000 Pay plan reductions based on Council discussion at budget work session.
· 88,000 Estimated Town share of additional operating assistance anticipated in 2001-2002.
· 20,000 Additional cost for Town’s share of F Route service extension
With these changes, the revised Transportation Fund budget for 2001-2002 totals $8,973,000, with a Transportation tax rate of 4.3 cents.
Capital Improvements Fund
The Capital Improvements Fund budget would be adjusted for the deletions and additions of items as discussed above in the General Fund section. With these adjustments, the revised Capital Improvements Fund budget for 2001-2002 totals $1,155,500.
Library Gift Fund
Funding the proposed Library capital improvements of $58,000 from the Library Gift Fund as noted above would increase the total Library Gift Fund budget for 2001-2000 by $58,000, from $45,000 to $103,000.
Vehicle Replacement Fund
With the reduction in vehicle replacement costs of $90,000 as noted above in the General Fund section, the Vehicle Replacement Fund budget for 2001-2002 would also be reduced by $90,000, resulting in a revised total budget of $2,789,600.
Other Funds
For other funds, there were no changes from the recommended budget.
RECOMMENDATION
That the Council adopt the attached budget ordinance for 2001-2002 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, 2001 (2001-06-25/O-5)
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 225,375
Town Manager/Town Clerk 921,814
Personnel 525,850
Finance 1,286,534
Legal 210,448
Planning 885,275
Inspections 597,545
Engineering 923,386
Public Works 9,423,656
Police 8,615,239
Fire 4,593,203
Parks and Recreation 1,990,911
Library 1,811,099
Non-Departmental 4,714,665
OTHER FUNDS
Transportation Fund 8,973,004
Transportation Capital Reserve Fund 432,112
Debt Service Fund 2,423,000
Vehicle Replacement Fund 2,789,600
Fleet Maintenance Fund 837,572
Computer Replacement Fund 300,000
Public Housing Fund 1,470,858
Housing Loan Trust Fund 252,000
On-Street Parking Fund 626,500
Off-Street Parking Facilities Fund 1,107,000
Cablevision Public Access Fund 90,000
Library Gift Fund 103,000
Capital Improvements Fund 1,155,500
Downtown Service District Fund 68,000
TOTAL ALL FUNDS 57,353,146
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ARTICLE II
It is estimated that the following revenues will be available during the fiscal year beginning July 1, 2001 and ending June 30, 2002 to meet the foregoing appropriations. It is determined that where estimated revenues are higher than the previous year, the increases were warranted.
Property Taxes 17,984,000
Other Taxes & Licenses 998,000
State-Shared Revenues 11,980,000
Grants 429,000
Charges for Services 1,371,100
Licenses/Permits/Fines 1,445,500
Interest on Investments 440,800
Other Revenues 223,600
Transfers/Other Sources 1,053,000
Fund Balance Appropriated 800,000
OTHER FUNDS
Transportation Fund 8,973,004
Transportation Capital Reserve Fund 432,112
Debt Service Fund 2,423,000
Vehicle Replacement Fund 2,789,600
Fleet Maintenance Fund 837,572
Computer Replacement Fund 300,000
Public Housing Fund 1,470,858
Housing Loan Trust Fund 252,000
On-Street Parking Fund 626,500
Off-Street Parking Facilities Fund 1,107,000
Cablevision Public Access Fund 90,000
Library Gift Fund 103,000
Capital Improvements Fund 1,155,500
Downtown Service District Fund 68,000
TOTAL ALL FUNDS 57,353,146
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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, 2001 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) $0.461/$100
Transportation Fund
(for the payment of expenses related to
transportation approved by referendum) $0.043/$100
TOTAL $0.504/$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 25th day of June, 2001.