AGENDA #6a
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Recommended Budget Ordinance for the 2003-2004 Fiscal Year
DATE: June 9, 2003
The attached budget ordinance would approve a final budget and set the tax rate for the 2003-2004 fiscal year at 55.3 cents, a combined rate unchanged from the current year.
INTRODUCTION
The recommended final budget would include a proposed increase in the Transportation tax rate of .8 cent (from 4.3 cents to 5.1 cents) to continue current Transportation services and would be offset by a corresponding .8 cent decrease in the General Fund tax rate (from 51.0 cents to 50.2 cents). The resulting combined tax rate of 55.3 cents would then remain the same as in the current year.
SUMMARY OF TENTATIVE COUNCIL DECISIONS
The final recommended budget includes additional allocations tentatively agreed to by the Council at budget work sessions and at the public hearing on May 14. A total of $670,000 for all funds would be allocated for pay adjustments as approved by the Council on May 21. This allocation would be equivalent to an increase of about 3% of payroll, with provision for special increases for the entry level pay for Police Officers and for Firefighter I in the Police and Fire Departments to address problems in recruiting employees in these departments. After careful consideration of options for allocating pay adjustments, we recommend a general 3% increase for all eligible employees below and above the job rate as the most equitable way to insure that all eligible employees receive a pay adjustment.
A summary of the Council's tentative decisions, including pay adjustments, is summarized by fund as follows:
General Fund
The recommended final budget for the General Fund would include the original base budget recommendations as presented to the Council on April 28, and additional allocations to the base budget as follows:
· 524,000 for pay adjustments as noted above.
· 3,630 for pay adjustments of 3% for the Mayor and Council.
· 64,120 for optional group health insurance for the Mayor and Council.
· 80,000 for an additional sanitation crew (9 months funding).
· 50,000 or a Fire Training Officer position (9 months funding).
· 439,000 for additional allocations to the base budget for human service contracts, hotel/motel allocations and grants to other agencies, all at the same level as in past years.
· 10,000 for an increase in the allocation for Orange Community Housing Land Trust.
· 10,000 for the N.C. High School Athletic Association.
· 25,000 to reinstate funding for the July 4th celebration (previously approved by the Council).
· 30,000 for the Home Start program of the Interfaith Council.
· 40,000 in additional funding for the Public Arts Commission.
· 1,000 for Membership in the U. S. Conference of Mayors.
· 1,000 for recognition of service on Town Advisory Boards.
· 1,000 for the Historic District for mediation related to demolition permits.
· 21,000 for the purchase of bio-diesel fuel.
· 1,000 for the Fiesta del Pueblo.
· 1,500 for issuing $1 parking coupons at the holiday season.
With these additions to the recommended base budget, the final General Fund budget for next year would total $40,366,000. The General Fund budget would be balanced by using $523,000 of the $1,080,000 that the Council had reserved for potential use in balancing the budget, leaving about $557,000 of these funds reserved for future use. The General Fund tax rate would be reduced by .8 cents to offset the proposed tax increase of .8 cents in the Transportation Fund, effectively allowing a shift of $341,000 from the General Fund to the Transportation Fund. With this reduction, the General Fund tax rate for next year would be 50.2 cents.
Transportation Fund
For the Transportation Fund, the final recommended budget would include the additions to base budget as discussed and approved by the Council on May 21. These additions include the following:
With these additions, the final recommended budget for the Transportation Fund next year would total $10,711,048. This budget would require an increase of .8 cents in the current Transportation tax rate (from 4.3 cents to 5.1 cent), increasing property tax revenues by $341,000. The increase in the Transportation tax rate would be offset by a corresponding reduction of .8 cents in the General Fund tax rate as previously noted, so that the combined tax rate would remain at 55.3 cents for 2003-04.
The Transportation budget does not include additional service requests by the University or Carrboro currently under discussion. Any additions to the budget would be handled through amendments to the adopted budget, with funding for additional service being provided by the requesting party in accord with previous funding agreements.
Capital Improvements Fund
The final recommended Capital Improvements Fund budget would include the recommended options to the base budget approved by Council on May 21. This budget would total $1,225,000 as originally recommended.
Other Funds
For the Parking and Housing Funds, the reserves for pay adjustments would be adequate to fund the adjustments approved by the Council as noted above. For all other funds, there are no proposed changes from the recommended budget.
RECOMMENDATION
That the Council enact the attached budget ordinance reflecting changes to the recommended budget approved by the Council during budget work sessions and at the meeting on May 21.
AN ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2003 (2003-06-09/O-4)
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 338,744
Town Manager/Town Clerk 990,045
Human Resources 594,406
Finance 931,404
Information Technology 582,698
Legal 235,943
Planning 990,128
Inspections 707,597
Engineering 975,565
Public Works 10,116,076
Police 9,650,604
Fire 5,321,401
Parks and Recreation 2,197,961
Library 1,959,490
Non-Departmental 4,773,938
OTHER FUNDS
Transportation Fund 10,711,408
Transportation Capital Reserve Fund 599,942
Debt Service Fund 2,552,000
Vehicle Replacement Fund 2,376,000
Fleet Maintenance Fund 897,423
Computer Replacement Fund 395,000
Public Housing Fund 1,659,462
Housing Loan Trust Fund 291,300
On-Street Parking Fund 614,000
Off-Street Parking Facilities Fund 1,278,360
Cablevision Public Access Fund 90,000
Library Gift Fund 45,000
Capital Improvements Fund 1,225,000
Downtown Service District Fund 70,000
TOTAL ALL FUNDS 63,170,895
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ARTICLE II
It is estimated that the following revenues will be available during the fiscal year beginning July 1, 2003 and ending June 30, 2004 to meet the foregoing appropriations. It is determined that where estimated revenues are higher than the previous year, the increases were warranted.
Property Taxes 21,117,306
Other Taxes & Licenses 1,028,000
State-Shared Revenues 12,084,310
Grants 473,335
Charges for Services 1,315,600
Licenses/Permits/Fines 1,457,200
Interest on Investments 202,500
Other Revenues 362,000
Transfers/Other Sources 1,002,749
Fund Balance Appropriated 1,323,000
Transportation Fund 10,711,408
Transportation Capital Reserve Fund 599,942
Debt Service Fund 2,552,000
Vehicle Replacement Fund 2,376,000
Vehicle Maintenance Fund 897,423
Computer Replacement Fund 395,000
Public Housing Fund 1,659,462
Housing Loan Trust Fund 291,300
On-Street Parking Fund 614,000
Off-Street Parking Facilities Fund 1,278,360
Cablevision Public Access Fund 90,000
Library Gift Fund 45,000
Capital Improvements Fund 1,225,000
Downtown Service District Fund 70,000
TOTAL ALL FUNDS 63,170,895
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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, 2003 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) $0.502/$100
Transportation Fund
(for the payment of expenses related to
transportation approved by referendum) $0.051/$100
TOTAL $0.553/$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 9th day of June, 2003.