AGENDA #4i

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Tentatively Scheduling a Council Meeting on July 26, if necessary, to Adopt a Final Budget for 2002-03  

DATE:             June 10, 2002

Adoption of the attached resolution would tentatively schedule a Council meeting at 8:00 a.m. on Friday, July 26, in the Council Chamber for the purpose of adopting a final 2002-03 budget, if a final budget has not already been adopted. 

BACKGROUND

It still appears likely that the Council may need to adopt an Interim Budget, with adoption of the Final Budget postponed in hopes that the General Assembly will enact legislation protecting the Town’s portions of the utility franchise taxes and beer and wine taxes (about $2.2 million).  If the General Assembly were to adopt appropriate protective legislation, then the Council would be able to use the funds to reduce the tax rate, provide for employee compensation increases, and allocate funding for additional capital improvement projects.

The Town Attorney has advised us that the latest date for setting the tax rate is August 1.  Therefore, August 1 also is the latest date for adoption of the Final Budget.  Polling of  Council Members determined that July 26 is the most convenient date for the Council. 

The proposed meeting will not be necessary if the General Assembly acts on the proposed legislation in time for the Council to adopt a Final Budget in June.  We will closely monitor the legislation and will keep the Council informed.   

RECOMMENDATION

That the Council adopt the attached resolution, tentatively scheduling a Council meeting at 8:00 a.m. on Friday, July 26, in the Council Chamber for the purpose of adopting a final 2002-03 budget, should such action be necessary. 

A RESOLUTION TENTATIVELY scheduling a Council meeting at 8:00 a.m. on Friday, July 26, in the Council Chamber for the purpose of adopting a final 2002-03 budget, SHOULD SUCH AN ACTION BE NECESSARY (2002-06-10/R-9)

WHEREAS, the Council may need to adopt an Interim 2002-03 Budget by July 1; and

WHEREAS, the latest date for setting the Town tax rate and adopting a 2002-03 Final Budget is August 1; and

WHEREAS, if the General Assembly adopts appropriate protective legislation, then the Council would be able to use the funds to reduce the tax rate, provide for employee compensation increases, and allocate funding for additional capital improvement projects;

NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby tentatively schedules a Council Meeting at 8:00 a.m. on Friday, July 26, in the Council Chamber of Town Hall for the purpose of adopting a Final 2002-03 Budget, should such an action be necessary.  

This the 10^th day of June, 2002.