MINUTES OF A PUBLIC FORUM AND PUBLIC HEARING HELD BY THE MAYOR AND

COUNCIL OF THE TOWN OF CHAPEL HILL, WEDNESDAY, JANUARY 22, 1992

Mayor Broun called the proceedings to order. Council Members in attendance were Joyce Brown, Joe Capowski, Mark Chilton, Joe Herzenberg, Alan Rimer and Roosevelt Wilkerson, Jr. Council Members Julie Andresen and Arthur S. Werner were out of town and were unable to attend the meeting.

Mayor Broun noted that this evening's session officially began the Town's budget formulation process for the next fiscal year. He noted that the forum was divided into two parts, the first part on the proposed budget and capital improvements program and the second on needs and objectives for the Town's community development block grant application.

Mr. Horton briefly reviewed the anticipated budget outlook for the Town. He noted that a net current year shortfall of $250,000 anticipated in November, 1991 had been updated to an estimated shortfall of $300,000 to $350,000 due to dropping interest rates and lower than anticipated revenues. Mr. Horton said some expenditure curtailments would be necessary this year to address the anticipated shortfalls. He reported that the Town's personnel turnover rate was approximately 2.5% at present, compared to 10 to 12% at most other times. Mr. Horton said the budget outlook for next year did not look much better due to shrinking revenues. He noted that there was some degree of uncertainty of how the State legislature would distribute revenues to local governments. Mr. Horton said some program costs such as landfilling, landscaping and maintenance of Fordham Boulevard and health insurance and worker's compensation costs would be very likely to increase during the next fiscal year. Mr. Horton said he would present a report at the January 27th meeting concerning acquisition of an improved accounting and budget monitoring system.

Mr. Horton reported that the Transportation Fund outlook was very problematic due to the Town's recent inclusion in the Durham Urbanized Area for Federal funding purposes. He noted that the Town's Transportation Fund budget could be up to one-third less than current levels. Noting that significant budgetary challenges lay ahead in the next year, Mr. Horton said efforts would be made to contact the Governor's Office, North Carolina Department of Transportation officials, United States representatives and senators.

Harrie Chamberlin, a resident of the Greenwood community, said he was representing twenty-eight households concerning the required installation of fifteen hundred feet of chain link fence in the area. Mr. Chamberlin expressed concern that the fencing would be out of keeping with the character of the area. He requested that landscaping be used to screen off as much of the fence as possible. While asking residents of the Greenwood community in attendance to rise, Mr. Chamberlin expressed hope that the Council would keep the needs of the Greenwood community in mind when developing the budget.

Melissa Stikeleather, a resident of the Greenwood community, said a committee had been formed to find appropriate types of plants to improve the appearance of the fenced area.

Wilson McKerrow said he had lived at 604 Emory Drive since January 23, 1973. He said that his property tax had increased $1,276 during this period. Mr. McKerrow noted that his income had remained fairly constant during this time. He requested that the Council not raise property tax rates for the next fiscal year.

Mickey Ewell, Vice-Chair of Tax Watch, said his organization was concerned about increasing tax rates. He urged the Council to make every effort to control spending. Mr. Ewell said as a business person he knew the reality of having to balance books. He requested that the Council attempt to minimize personnel costs. Mr. Ewell said Tax Watch was ready to work with the Council to seek out opportunities to reduce costs.

Irene Briggaman, representing CleanScape, said her organization performed Town-wide clean-ups twice per year. She noted that Clean Scape needed stable funding sources for continuation of its programs. Ms. Briggaman said her organization need the Council's support in order to continue its mission.

Steve Wallace briefly described the DARE program, noting that it had been developed in conjunction with the Los Angeles Police Department. He noted the importance of delivering effective drug education to young people. Mr. Wallace said a recent study of the DARE program had found it effective in the fifth and sixth grades, but making no significant difference at the high school level.

Mr. Wallace said that effective programs were essential to significantly reducing drug usage.

Ray Troutner, 108 Highland Drive, encouraged the Council to begin the development of phase one of the proposed Southern Community Park. He said the development of a soccer field at the park would not cost a lot of money. Mr. Troutner said recreational facilities were an important alternative to keeping young people off the streets.

Josh Busby suggested that the Town provide pick-up service or additional drop-off sites for recycling of cardboard. Mr. Busby said this program would be helpful in the Town reaching its recycling goal of 25%. He also requested that the Town implement an expanded curbside recycling program to include plastics and tin. Mr. Busby suggested that the Council should consider a unit-based pricing system for refuse collection fees as a means to encourage recycling.

Marion Carter expressed her concurrence with Mr. Busby's remarks. She also noted that the proposed new programs would be beneficial in increasing participation in recycling programs.

Adrian Cubberley expressed concern about the reappropriation of encumbrances from prior fiscal years. He said that this method was similar to debt financing. Mr. Cubberley also noted that thirty-six General Fund line items equalled or exceeded their annual allocation after six months of the fiscal year. He suggested that some line items with no expenditures to date might be deferred to future years. Mr. Cubberley expressed concern about the apparent lack of adequate fiscal controls in the Town's accounting system.

Noting that no expenditures had been made in line items for affordable housing, contingency funds or the small capital improvements program, Mr. Cubberley suggested that these funds be used to offset the anticipated budget shortfall in the current fiscal year. He suggested that the Council request the Manager to draft a 1992-1993 budget with expenditures less than the current year.

Phillip Sullivan, President of the Oaks Villas Homeowners Association, stated that personnel costs accounted for approximately sixty-five percent of the Town's operating costs. Mr. Sullivan noted that the Manager's preliminary recommendation was for no pay raises for the next fiscal year. He urged the Council to accept the Manager's recommendation in this regard. Mr. Sullivan also expressed concern about the recent increase in crime.

He said a natural inclination would be to hire more police officers. Mr. Sullivan said the Town's police officers were doing a great job of arresting criminals. He stated that the criminal justice system was doing an inadequate job of convicting and imprisoning criminals.

Caitlin Reed, UNC student liaison to the Council, expressed concern about the impact of possible reductions in Federal funding on the Town's transit system. She requested that the Council not increase bus fares or pass prices to offset these reductions. Ms. Reed expressed the willingness of students to assist in lobbying of elected officials concerning funding for alternative transportation. She suggested that the Council could possibly institute a surcharge on UNC parking permits to assist in funding the Town's bus system.

Donna Dyer, Executive Director of Orange County Community Housing Corporation, urged the Council to continue to fund the Town's affordable housing fund. She noted the importance to the community of the Tandler, Culbreth Park and other affordable housing projects. Ms. Dyer said she expected to make an announcement in the next two weeks concerning an affordable housing project in the Town's corporate limits. She said that the Town's investment in affordable housing was more than an altruistic action since many persons who worked in the Town could not currently afford to live here. She urged the Council to earmark at least $150,000 for affordable housing programs. Ms. Dyer also noted that Community Development Block Grant programs were intended to help low-income communities with a variety of programs. Ms. Dyer said she look forward to working on development and implementation of a county-wide affordable housing strategy.

Tim Stephens requested that the Council provide funding for sidewalks on North Columbia and Longview Streets in the Northside neighborhood. Mr. Stephens noted that he had submitted a petition signed by over two hundred area residents supporting this project.

Ruby Sinreich, representing the Student Environmental Action Coalition, urged the Council to include funding for bicycle education and bicycle lanes in the recommended Capital Improvements Program. Ms. Sinreich said it was imperative that the Council continue to provide adequate funding for the Town's bus system. She expressed concern that raising bus fares would negatively impact riders. Ms. Sinreich suggested that the Council consider instituting a volume-based fee system for refuse collection. She urged the Council to keep student needs in mind when developing the Town's budget.

Chris Baumann, representing the Student Environmental Action Coalition, urged the Council to place a priority on funding alternative transportation such as buses and bicycles.

Finis Dunaway urged to Council to expand the Town's recycling program by increasing landfill tipping fees and instituting a volume-based refuse collection fee. He noted the importance of protecting the Town's natural beauty.

Esphur Foster urged the Council to support Parks and Recreation programs at the Hargraves Center, particularly tutoring programs for young people.

Betty Maultsby expressed concurrence with Ms. Foster's remarks. She urged the Council to expand its recycling programs to include mixed paper. Ms. Maultsby said that municipal operations could be made more efficient by focusing on programs such as the reduction of solid waste. She inquired about the Town's cost of picking up leaves and white goods. Ms. Maultsby also suggested that construction permit fees be evaluated for possible adjustments.

Council Member Herzenberg read a brief letter from Anna Van der Horst, a young constituent requesting, additional bicycle lanes. He also called attention to a letter from his neighbor, Kathleen Cheape.

Council Member Wilkerson stated the importance of adequate fiscal controls. He noted that the Manager would be making a report to the Council on an improved accounting system at the January 27th meeting. Noting that next fiscal year would like be more challenging than the current one, Council Member Wilkerson requested that the staff prepare a report outlining costs and possible savings from the institution of an integrated recycling and curbside refuse pick-up program. Council Member Wilkerson said he was not sure that the State Department of Drug and Alcohol Education was the appropriate model for future Town programs. Council Member Wilkerson noted that he understood Mr. Wallace's concerns and shared some of them.

Council Member Capowski noted that the community would be having a school bond referendum and property tax reassessment in the near future. He expression appreciation for the efforts of the Tax Watch organization in providing oversight for local governments. Council Member Capowski requested the Manager to prepare a brief report on how revenue would vary based on various levels of landfill tipping fees. He also requested information on how fees for construction permits were determined.

Council Member Brown requested information concerning fees and costs related to yard waste, white goods and other Town refuse collection operations. She also expressed interest in student's willingness to assist the Council in efforts to maintain funding levels for the Town's bus system. Council Member Chilton said it was important to know not just the cost of refuse pick-up, but the volume of materials was also important in attaining a sense of efficiency.

Council Member Wilkerson requested information on anticipated health care and worker's compensation program costs. He also requested information on the Town's investment options.

Mayor Broun said the Council would be very interested in receiving the assistance of students in lobbying elected officials concerning future funding of programs such as the bus system. Mayor Broun also requested that the Manager prepare a response to Mr. Cubberley's concerns. Mr. Horton said he would be happy to meet with Mr. Cubberley and others about his concerns. Council Member Wilkerson said that Mr. Cubberley's concerns should be further investigated with the staff.

COUNCIL MEMBER HERZENBERG MOVED, SECONDED BY COUNCIL MEMBER CHILTON, TO REFER COMMENTS TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (7-0).

Mr. Horton noted that the Council needed to conduct a formal hearing on the Town's community development grant application. He requested that comments from the prior hearing be incorporated as part of the community development hearing. Mr. Horton said the community development program yielded about $317,000 to provide decent housing and suitable living environments for low and moderate income persons. He noted that the Town was in the third year of a three year program for rehabilitating the Town's public housing units. Mr. Horton also said that twenty-four public housing units were being developed on N.C. 86 North.

Mayor Broun inquired whether any citizens wished to address the Council on the proposed community development program. Hearing none, he inquired whether the Council had any questions or comments. There were no comments or questions.

COUNCIL MEMBER WILKERSON MOVED, SECONDED BY COUNCIL MEMBER BROWN, TO REFER THE MATTER TO THE MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (7-0).

Mayor Broun thanked all speakers who had addressed the Council this evening. The hearing concluded at 9:02 p.m.