MINUTES OF A PUBLIC HEARING HELD BY THE MAYOR AND COUNCIL OF THE TOWN OF CHAPEL HILL, TUESDAY, MARCH 19, 1991 AT 7:30 P.M.

Mayor Howes called the meeting to order.

Council Members in attendance were Julie Andresen, Joyce Brown, Joe Herzenberg, Nancy Preston, Alan Rimer, Arthur Werner and Roosevelt Wilkerson, Council Member Wallace was absent. Also in attendance were Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Finance Director James Baker, and Town Attorney Ralph Karpinos.

Mayor Howes noted that this evening's primary order of business was consideration of citizen comments concerning the Manager's preliminary budget report to the Council.

Town Manager Horton noted that a full preliminary budget report had been made to the Council on March 4th. Mr. Horton said that the Council had scheduled three additional work sessions on the proposed budget on April 1, 9 and 18. He noted that his recommended budget to the Council would be presented on April 22, with tentative adoption of the budget occurring on May 28th.

Mr. Horton noted that the Council might wish to have two additional budget work sessions following presentation of the Manager's recommended budget. He stated that a zero tax increase budget proposal had been presented to the Council, as had a variety of other options. Mr. Horton said that the staff would continue to work to refine its estimates and to deliver a recommended budget based on guidance by the Council.

Public Forum on Preliminary Budget Report

Dr. John Graham and Mr. Bill Oppold, representing Tax Watch, expressed several concerns about local government spending. Copies of Dr. Graham's and Mr. Oppold's remarks are on file in the Town Clerk's Office. Council Member Andresen requested a copy of Tax Watch's remarks to the Council. Dr. Graham said this information would be provided to the Council. Mayor Howes noted that Dr. Graham and Mr. Oppold were joined by six other members of Tax Watch at this evening's meeting.

Former Alderman R.D. Smith offered his services to assist with a local celebration recognizing veterans returning from the Middle East conflict. Mr. Smith noted that approximately $1 million in local funds had been expended on the Fordham Boulevard expansion to date. He said that future expenditures should be State, rather than local. Mr. Smith also urged the Council to prolong the life of every Town vehicle and to utilize all available personnel to get as many police vehicles as possible on the street. Mr. Smith said it would be less expensive for the Town to operate smaller buses during off-peak hours. Citing the cost of Parks and Recreation administration, Mr. Smith urged the Council to reduce the cost of all non-mandated services as a first priority in reducing spending by the Town.

Adrian Cuberlee said that the Town was no longer a favored retirement community, due to accelerating tax rates. Mr. Cuberlee reviewed budget rollovers and increases in budgets during the past four years, stating that actual expenditures had increased by approximately fifty-five percent during this period. Mr. Cuberlee urged the Council to scrutinize each budget request.

Rosemary Waldorf, a resident of Huntington Drive, said she agreed with efforts to restrain costs. She suggested that the Town either seek donation of, or lease approximately fifty-five acres on either side of Cleland Drive for recreational purposes. Ms. Waldorf noted that the Town could possibly establish a park facility in this area. Ms. Waldorf noted that the tract was in a relatively dense area, with bus service available nearby. She stated that Rainbow Soccer officials and Glen Lennox area residents both favored the proposal. Ms. Waldorf encouraged the Council to direct the staff to contract University officials concering her proposal.

Ron Stutts, a resident of Timberlyne Court, expressed his support for Ms. Waldorf's idea. Mr. Stutts said the proposal had a lot of potential. He stated that the fields were close to a number of neighborhoods, and required some intensive maintenance to make them more playable. Mr. Stutts said the proposal had numerous short-term possibilities. Council Member Werner noted that he had recently spoken to a University official who had expressed his willingness to further discuss the matter with Town officials.

Don Boulton, representing the Orange Community Housing Corporation, expressed his thanks to the Council for their support in working with fraternities on the renovation of big fraternity court. Dr. Boulton presented a brief report on the activities of the Housing Corporation. He noted that the program's main program during the current fiscal year was to provide low-cost housing opportunities for needy individuals and families. Dr. Boulton said that the corporation's proposed work program for FY 91-92 had been presented to the Manager, along with a funding request for $40,000. He noted that importance of local funds in filling gaps for low-income housing programs, due to the lessened availability of federal funding.

Dr. Boulton said that he, the board and staff of the corporation looked forward to working with the Town and Council in continuing to provide affordable housing opportunities. Dr. Boulton noted that he also served on the board of the Triangle Housing Partnership. He said that the partnership was dedicated to transitional and other types of housing.

Dr. Mike Stegman, representing Triangle Housing Partnership, said he looked forward to working with the Partnership in the future. Dr. Stegman said that the facilitation of development was one of the Partnership's key challenges, due to lack of adequate development capacity. He stated that the Partnership had recently brokered a $1.2 million housing investment with the City of Durham for affordable housing at Duke University, providing seventy-five low income housing units. Dr. Stegman said that the Partnership's Board of Directors offered a great expanse of expertise to the community at a very low cost.

Council Member Andresen expressed her appreciation for the Partnership's efforts to date. She sought Dr. Stegman's evaluation of the fact that the national housing affordability index was at its lowest point in twenty to thirty years. Dr. Stegman said this index reflected the flatness of the regular housing market. He noted that although the market was generally softer, there was relatively little positive impact for low-cost housing.

John Teague, representing the Chapel Hill Area Volleyball Club, expressed support for acquisition of an in-floor volleyball net system at Grey Culbreth Junior School. He said the system would require an increase in allocation from $400 to $653. Mr. Culbreth said the cost of the system could be spread between the Town, Carrboro and the school district. He requested that the Council permit a one-time increase in volleyball team fee charges to defray a portion of the costs for the volleyball net system.

Herschel Slater, a member of the Parks and Recreation Commission, said he was impressed with Ms. Waldorf's and Mr. Stutts' earlier proposal concerning parkland facilities. Mr. Slater noted that approximately $300,000 of the Parks and Recreation Department budget was covered by user fees and charges, which were rolled into the General Fund. He said that a large portion of departmental administration costs were tied to the hotel-motel tax and staff support for general recreation. Mr. Slater also presented a statement concerning the proposed capital improvements. A copy of these remarks is on file in the Town Clerk's Office.

Runyon Woods, representing Culbreth Park, requested follow-up funding assistance of $180,000 for leveraging of low-cost homes. Mr. Woods expressed hope that funding would be provided for subsidizing deferred mortgages. Council Member Andresen inquired about the implication of non-funding of Culbreth Park's request. Mr. Woods responded that repayment of the loan would need to occur at a much higher interest rate than the Community Development Block Grant sponsored rate of 2.25%. Mayor Howes inquired whether it would be possible for Culbreth Park to present its funding request in writing. Mr. Woods said this was possible. Council Member Andresen inquired about the sales of market rate housing to date. Mr. Woods responded that this process was quite frustrating, with qualification requirements changing frequently. He noted that several closings were scheduled to occur during the next few months.

Grainger Barrett urged the Council to adopt a no tax increase budget, including eight new public safety officer postions. He noted that this would be a very difficult task. Mr. Barrett said that deferral of costs and real cuts were needed to attain this objective.

Gene Tyson, 993 Cleland Drive, said that the Town was proposing to acquire a fifty acre site next to his house for a wetland park. Mr. Tyson said the park would cost an estimated $200,000. Mr. Tyson said that $30,000 had been expended to date for architect fees. He suggested that the balance of money be aplied to other needs in the recreation department. Mr. Tyson said parkland was needed on Cleland Drive, since there were adequate facilities in other parts of the Town.

Barbara Stocking thanked the Council for the early public participation in the budgetmaking process. She stressed the need to provide housing assistance for working poor in the community. Ms. Stocking also urged the Council not to emphasize affordable housing for middle-income persons and families. She stated that most Town residents simply desired decent refuse removal and adequate police protection. She expressed hope that the Council would adopt once weekly backyard refuse collection. Ms. Stocking said this alternative arrangement would likely increase recycling program participation. Ms. Stocking also questioned the need for a new senior citizen center in the southeastern portion of the Town.

Adele Thomas expressed hope that the Council would continue to support rental housing for those who could not afford regular housing.

Expressing his appreciation for citizen comments this evening, Mayor Howes noted that another public hearing on the Manager's recommended budget would be held in the future.

COUNCIL MEMBER WERNER MOVED, SECONDED BY COUNCIL MEMBER RIMER, TO REFER COMMENTS TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).

Public Forum on 1991-1996 Capital Improvements Program

Mr. Horton noted that some capital needs did not currently have identifiable funding sources. He noted that a number of projects transcended the five year planning horizon.

Carolyn Leith requested funding consideration for the auditorium at Chapel Hill High School. She noted that a recent tour of the auditorium building uncovered a number of serious flaws in the structure. Ms. Leith expressed the need for lighting rehabilitation at the facility. She added that the entire facility was in poor repair. Ms. Leith noted that a number of non-school groups had used the building during the past two years. Mayor Howes noted that Orange County was holding a hearing on March 26th concerning proposed bonding for school district capital facilities.

Adele Thomas urged the Council not to construct a ten foot wide pavement along Bolin Creek, as proposed in the preliminary Capital Improvements Program.

Council Member Andresen requested follow-up on all questions raised this evening, including Ms. Waldorf's proposal. Mr. Horton said this would occur.

COUNCIL MEMBER RIMER MOVED, SECONDED BY COUNCIL MEMBER WERNER, TO REFER COMMENTS TO THE TOWN MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).

Public Hearing on Community Development Fund Usage

Housing and Community Development Director Tina Vaughn noted that this evening's hearing was the second of two hearings on the proposed spending plan for community development projects.

Ms. Vaughn noted that a recommended spending plan would be presented to the Council for consideration at their April 22nd meeting. She briefly the proposed plan, noting that $127,000 was allocated for rehabilitation, $134,000 for repairs to units and $65,000 for general administration.

There were no citizen comments or Council questions on the proposed plan.

COUNCIL MEMBER WILKERSON MOVED, SECONDED BY COUNCIL MEMBER PRESTON, TO CLOSE THE HEARING. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).

Setting Date for Continuation of Chapel Hill North Hearing

COUNCIL MEMBER HERZENBERG MOVED, SECONDED BY COUNCIL MEMBER PRESTON, TO HOLD THE CONTINUATION OF THE CHAPEL HILL NORTH PUBLIC HEARING ON THURSDAY, APRIL 4TH AT 7:30 P.M., IN THE TOWN COUNCIL CHAMBER, 306 NORTH COLUMBIA STREET.

Council Member Rimer inquired about the types of new information to be provided at the continuation of the Chapel Hill North public hearing. Mr. Horton responded that a variety of supplementary information would be provided by the applicant and neighborhood representatives and other parties. Mayor Howes noted that the Council might also act on the Chapel Hill North application at its meeting on April 4th.

THE MOTION WAS PLACED ON THE FLOOR AND ADOPTED UNANIMOUSLY (8-0).

Council Member Brown inquired when detailed expense information concerning the budget would be presented to the Council. Mr. Horton said the information would be presented on April 22nd. Mayor Howes noted that the High School Athletic Association would sponsor the men's and women's basketball tournament in Town this weekend. He encouraged all to attend, noting that it was a very exciting event.

The meeting stood adjourned at 9:34 p.m.