MINUTES OF A BUDGET PUBLIC HEARING HELD BY THE MAYOR AND COUNCIL

OF THE TOWN OF CHAPEL HILL, TUESDAY, MARCH 17, 1992 AT 7:30 P.M.

Mayor Broun called the hearing to order. Council Members in attendance were Julie Andresen, Joyce Brown, Joe Capowski, Mark Chilton, Joe Herzenberg, Alan Rimer and Roosevelt Wilkerson, Jr. Council Member Arthur Werner was absent excused. Also in attendance were Assistant to the Mayor Lisa Price, Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Finance Director James Baker and Town Attorney Ralph Karpinos.

Mr. Horton presented an overview of the budget development process, noting that $1,096,000 had been cut out of the current year budget, $696,000 from operating expenses and $400,000 by eliminating transfers from the Capital Improvements Program. He said the reductions would enable the Town to maintain a balanced budget despite a significant shortfall in revenues and a major reduction in the percentage of employee turnover. Mr. Horton stated that the proposed budget would provide a similar level of services with a property tax rate no higher than the current one. He noted that the budget excluded funding for market and merit pay increases. Mr. Horton said expenditure reductions were recommended in all departments excepting Public Safety, some divisions of Public Works, and cost accounting functions in the Finance Department. He stated that proposed General Fund expenditures for 1992-93 were $20,450,000, 2 1/2% less than current year expenditures. He briefly reviewed debt service expenditures for parks and open space, fire equipment, street improvements and library construction. Mr. Horton said he had outlined in his memorandum to the Mayor and Council a number of preliminary options for Council consideration in balancing the Town's budget.

Mr. Horton briefly reviewed the outlook for the Town's Transportation Fund, noting that negotiations continued between Town and City of Durham staffs to distribute federal transit funding between the two communities. Mr. Horton said that uncertain funding limited options for transportation services. He noted that the Council might consider, among other options, increasing the bus system's fare from sixty cents to seventy-five cents. Mr. Horton reported it would be possible to maintain the current landfill tipping fee without necessitating any changes in operations. He also said that parking funds would pay operating expenses and principal and interest on debt service. Mr. Horton stated that although no additional funding was recommended for a small capital improvements program, funding from the fund balance of the Capital Reserve Fund totalling $60,000 was recommended for the Town's traffic signal system and installation of a fuel tank monitoring system at the Public Works facility.

Mayor Broun invited citizen comments on the preliminary budget and capital improvements program.

John Latimer, Chairman of Tax Watch, presented a statement outlining suggested reductions in the Town's operating budget. A copy of Mr. Latimer's remarks are on file in the Clerk's Office.

Ron Davis, representing the Chapel Hill Senior Center, thanked the Council and Town staff for their assistance to date in developing the senior center facility. Mr. Davis said that over seven hundred contributions totalling over $70,000 had been received to date by the center. He also stated that the center had received a number of non-monetary contributions, such as professional services from an architect, interior designer and attorney. He briefly reviewed current program activity at the center, including tax assistance, blood pressure checks and an elder care resource fair. Mr. Davis stated that the center's initial fundraising goal of $100,000 had been increased to $200,000. He noted that several major contributors had promised contributions in the near future. Mr. Davis said he was completely confident of the center's future success.

David Peet, Executive Director of the Triangle Housing Partnership, emphasized the importance of providing low-income rental and home ownership opportunities. He noted that efforts were being made to involve equity partners and banking institutions in low-income housing programs. Mr. Peet requested that the Town continue to provide funding for affordable housing programs.

Keith Aldridge said he supported the Council's continuation of funding for affordable housing programs. He said the funding was drastically needed to support local programs, including the Orange Community Housing Corporation (OCHC). Mr. Aldridge said OCHC was requesting funding of $35,000 from the Town for fiscal year 1992-93. He noted that OCHC hoped to extend its activities into credit and job counseling programs in the near future. Mr. Aldridge said the Orange Community Housing Corporation was currently working on a twenty-unit development called Erwin Village, to provide ownership opportunities for first-time home buyers.

Charles Paddock, Chairperson of the Town's Housing Advisory Board, said the Board was formulating a program to provide housing assistance for persons not eligible for U.S. Housing and Urban Development housing programs. Mr. Paddock said this group included persons under the age of sixty-two, single persons, non-disabled persons and persons who were not financially disadvantaged under federal guidelines. He said that the Board would appreciate the Council's consideration of the proposed program. Council Member Andresen inquired whether the Town would serve as both owner and contractor for the program. Mr. Paddock said no, although he added that the Board had not specifically discussed this matter. Council Member Andresen thanked the Housing Advisory Board for presenting the proposal to the Council.

Josh Busby, representing several University fraternities and sororities involved in recycling activities, requested supporters of the proposed program to stand. Mr. Busby requested the provision of a curbside recycling program for tin and plastics. Noting that total sorority and fraternity membership compromised approximately one-quarter of the University's student population, he suggested that a cardboard pick-up and recycling program be instituted. Mr. Busby also requested the origination of permanent recycling drop-off sites for fraternities and sororities. He said that expanded recycling programs were a good investment for the Town. Mr. Busby urged the Council to consider expanded recycling programs as part of the Town's 1992-93 budget. He suggested that the programs could be implemented within the current budget or by increasing tipping fees.

Rosemary Waldorf requested that the Town provide additional playing fields. She noted that no new fields had been added to the Town's inventory since the addition of Cedar Falls Park in the middle 1970's. Ms. Waldorf said she appreciated the staff's efforts to date in examining possibilities in the Glen Lennox area. She suggested that proposals for playing fields in the proposed Capital Improvements Program should be expanded. Ms. Waldorf said the provision of additional playing fields would jointly benefit the Town and University. She stated that improvements to the Glen Lennox facility could be made at a reasonable cost. Ms. Waldorf said she strongly favored the use of parks and open space funds for park development instead of land acquisition. Ms. Waldorf also suggested that the Town develop the Maddry property prior to developing the Southern Community Park. She also suggested that the Town develop the Southern Community Park in conjunction with the Town of Carrboro and Orange County.

Joe Nassif, former Alderman, Mayor pro tempore and Mayor of the Town, said he hoped that former elected officials of the Town would share their experience with the current Council. He noted that the Town had experienced serious problems with the Bolin Creek Interceptor in 1983-84, when the Orange Water and Sewer Authority had refused Town funds to repair the line. Mr. Nassif said he had reviewed the preliminary budget and found that it did not adequately address necessary structural changes. He suggested that future budget documents provide ten years of budget history and two or three years of budget projections. Mr. Nassif said restructuring of the organization would require an extensive review of the number of Town employees and employee benefits. He expressed concern that the Town's merit-based pay plan was not being administered as originally intended. Mr. Nassif said he would be happy to visit with any Council Members about his personal experiences in local governance.

Margaret Mobley expressed concern that the Town's mosquito control program was proposed for elimination in the preliminary budget. Ms. Mobley said she and her family greatly appreciated the program and the dramatic reduction in mosquitoes in her neighborhood. She requested that the Mayor and Council consider funding the program as part of the Town's 1992-93 budget. Council Member Andresen inquired whether area residents would be willing to pay an additional charge to receive the service from the Town. Ms. Mobley said she did not think her neighbors would mind paying a reasonable charge to continue to receive the service. Mayor Broun inquired whether the program had a noticeable impact in reducing the area's mosquito population. Ms. Mobley said yes. Council Member Rimer noted that counties in North Carolina had traditionally handled community health programs such as mosquito control. Ms. Mobley said she would speak to Orange County officials about her concerns.

Francis DiGiano, representing Cleanscape, Inc., requested that the Town consider providing $1,254 for funding Cleanscape's G'Litter Day program. Mr. DiGiano said the program existed to raise public awareness about roadside litter problems. He stated that G'Litter Day programs took place semi-annually with over seventy volunteers picking up roadside litter. Mr. DiGiano said that fundraising was particularly time-consuming for small organizations such as Cleanscape. He requested that the Council show its support for G'Litter Day 13 by providing $1,254 in requested funding. Council Member Rimer inquired whether the Landfill Owners Group could consider Cleanscape's funding request. Mr. Horton said this was possible if Orange County, Carrboro and the Town felt this was appropriate to do so. Council Member Rimer suggested that Mr. DiGiano make a presentation at the next Landfill Owners Group meeting.

Sue Johnson said that prior to the implementation of the Town's mosquito control program, residents of the Briarcliff and Ridgefield neighborhoods had been innundated with mosquitoes. Ms. Johnson said the mosquito control program provided a very positive outcome for a relatively low cost of $5,000. Ms. Johnson said she was willing to pay an additional charge, if necessary, to continue availability of the mosquito control program. Council Member Rimer noted that he had requested funding for mosquito control approximately fifteen years ago, when he had resided in the Briarcliff area. Ms. Johnson requested that the Council provide funding for the mosquito control program.

Tom Meehan said he had moved to Ridgefield in 1989. He stated that the mosquito control program was highly valued by his family and residents of the Ridgefield and Briarcliff neighborhoods. Mr. Meehan requested that the Council continue to fund the mosquito control program.

Andy Sachs, representing the Greenways Commission, emphasized the importance of providing funding for greenways programs. He noted that trails were currently located along Battle Branch and Tanyard Branch and Booker Creek. Mr. Sachs requested that funding for priority greenways projects be restored in the Town's proposed 1992-1997 Capital Improvements Program. He suggested that Town departments share resources such as heavy equipment to save money. Council Member Andresen inquired about the total estimated costs of the Greenways Commission's priority items. Mr. Sachs said total estimated costs through 1995 were $140,000. He noted that $10,000 of this year's $50,000 allocation for greenways this year would not be expended.

Lightning Brown said that money for affordable housing programs such as duplex development in the Northside neighborhood, were a good investment for the Town. Mr. Brown suggested that landlords and tenants work together to rehabilitate properties and improve living conditions. He also suggested that refuse pick-up could be expedited by providing flags to individual residences, to indicate when pick-ups were needed. Mr. Brown estimated that implementation of the program could reduce collection time by ten to fifteen percent.

Greg Gangi, representing the Sierra Club, requested that the Town's recycling program be extended to apartment complexes. He also requested that the Town institute a pilot program for collection of household hazardous wastes. Mr. Gangi suggested that the Council place a high priority on solid waste management programs, such as reducing refuse collection to once per week curbside pick-up. He also suggested that the Town seek additional funding from the University prior to possible increases in current bus fares. Council Member Andresen stated that hazardous waste collection programs were quite expensive. She suggested that the Sierra Club might encourage area counties to cooperate in such a program. Mr. Gangi emphasized the need to address hazardous waste disposal prior to the selection of a landfill site.

Council Member Herzenberg noted that the Library Committee had held a meeting earlier in the day concerning design of the Town's proposed new library. He urged the Council to develop an understanding with Orange County concerning the Town's library services. Council Member Herzenberg noted that Orange County was not making any contributions toward the construction of the library facility. Council Member Andresen noted that the issue had been raised previously. She stated that if the Town didn't accept money from Orange County, the Town could charge higher fees to Orange County residents for use of the library. Mr. Baker noted that the Town currently received $142,000 per year from Orange County for library services. Council Member Herzenberg noted that the Town library's level of service was very high compared to the County's library services. He urged the Council to consider changing its policy concerning use of the library by County residents.

Council Member Andresen said that the library was an example of many services that the Town funded but received minimal County support. Council Member Brown inquired whether the $142,000 was received from the County solely in support of library services. Mr. Baker said yes, noting that $66,000 was also received for parks and recreation. Council Member Brown suggested that we need to address the citizens in municipal areas getting back return for taxes paid to the County and requested a comparative analysis of tax payments and services received by Town and County residents. She inquired whether there was a formal review process for tax rates and services received. Mr. Horton said there was no such formal review process. For example, he noted that the County had declined to provide assistance concerning initiation of a mosquito control program. Council Member Brown suggested that the matter be addressed. Council Member Andresen suggested that the subject could be explored at a future work session. Council Member Capowski noted that in good times, communities could afford to be philanthropic to their neighbors. He said in difficult times, the Town had to tighten its belt in area's where it was paying too much for use of facilities by non-Town residents. Council Member Capowski noted that in some areas, the Town might be receiving services for less than its fair share of cost. He also noted the need to begin thinking about the future use of the current library building. Mayor Broun noted that the issue of tax equity needed to be addressed.

Council Member Rimer said it would be useful to examine the transfer of budgets between the Town and County to determine possible tax and service inequities. Mr. Horton said the staff could provide additional background information on the matter. Mayor Broun suggested that the Town approach the matter by identifying areas of cooperation, exchange of services, areas of overlap and opportunities for better intergovernmental cooperation. Council Member Brown suggested that the Council examine the possibility of greater efficiencies as well. Council Member Herzenberg said he supported an overall examination of spending and taxation matters. He suggested that the Council focus on library services as a first step. Council Member Chilton said he agreed with Council Member Herzenberg's suggestion of focusing on library services in the short-term.

Council Member Brown requested that the staff follow-up on questions about recycling raised by Mr. Busby. She noted that some types of materials mentioned bring in revenues and wondered what alternatives there might be to accommodate Mr. Busby's requests within the commercial sector. She also requested that the staff follow-up on Mr. Brown's suggestion concerning refuse collection flags. Council Member Brown said she was interested in pursuing additional discussions with the University concerning funding of the bus system. Council Member Andresen said she liked the idea of possible joint cooperation in the development of the Southern Community Park.

Council Member Wilkerson suggested that the Council further discuss the proposal by the Housing Advisory Board to expand the scope of existing programs. Council Member Wilkerson said he hoped that the Council would adequately address the question of solid waste disposal and whether or not to restructure the current collection system. He also requested that the staff reexamine the Town's merit pay plan and health care costs. Mr. Horton noted that the cost of insurance coverage for families and individuals continued to escalate. Council Member Capowski noted that every company was facing this issue. He noted that it was becoming impossible to maintain the same kind of health insurance coverage. Council Member Capowski requested a comparison of insurance benefits offered by the Town and University, excluding the medical school. Mr. Horton noted that general employee groups were normally compared.

Council Member Capowski inquired about the status of Carrboro's and the University's funding contributions for the transit system. Mr. Horton said discussions were underway with both entities. He noted that the Town of Carrboro was currently in its budget development process. Council Member Capowski inquired whether transit service cuts might be proposed if revenue shortfalls continued. Mr. Horton said service cuts were not anticipated since operating expenses had been reduced and capital match programs had been eliminated. He noted that this scenario assumed that Carrboro and the University would be able to absorb cost increases.

Council Member Andresen inquired about the feasibility of a dedicated revenue source, such as an entertainment or prepared meals tax, to fund bus system or greenways program costs. Mr. Horton noted that the Town would need the support of the local legislative delegation to initiate such a revenue source. He noted that receiving authorization for a prepared meals tax might be more difficult to attain in the future. Citing authorization for the Town's hotel-motel tax, Council Member Andresen noted that such an effort could be successful. Council Member Rimer suggested that the Council might want to examine possibilities for home rule legislation. He noted the need to carefully examine the long-term impacts of fund transfers and deferral of capital expenditures for the bus system. Mr. Horton said a significant short-term challenge would be finding additional state or local funding for the bus system. Council Member Brown inquired whether other options existed as a result of the federal Intermodal Surface Transportation Efficiency Act of 1991. Mr. Horton said yes, noting that clarification of the act continued to occur.

Council Member Chilton suggested that operators of single-occupant vehicles should bear greater fiscal responsibility for operating the bus system. He noted that there was currently no mechanism to attribute this responsibility more directly. Council Member Chilton suggested that the university could play a role in redistributing costs for operating the transit system. He said that costs for operating the transit system needed to be borne by drivers other than university parking permit holders.

Council Member Capowski inquired whether the Town owned the wetlands area in which mosquito breeding occurred. Mr. Horton said some of the land was privately-owned. Mr. Horton stated that a map of the area could be provided to the Council. Council Member Capowski said he did not understand why the provision of athletic fields had to be an expensive undertaking. Mr. Horton said there were some areas of the Town in which grassy areas informally served as playing fields. Council Member Capowski inquired about the nature of Mr. Peet's earlier request. Mr. Horton said Mr. Peet was seeking funding and support for Triangle Housing Partnership programs. Council Member Capowski said it appeared that the Town would be able to adopt a no tax increase budget for 1992-93. He noted that it was quite likely that County taxes would increase significantly and that there is an upcoming school bond referendum. Mayor Broun emphasized the need to examine the budget to assure that problems were not being deferred to the future. He requested that options be provided for inclusion of mosquito control program funding in the proposed budget.

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

Proposed 1992-1993 Community Development Plan

Housing and Community Development Director Tina Vaughn noted that the Council had previously received public comment on the proposed plan at a hearing on January 22nd. She briefly reviewed the proposed allocation of Community Development funds for fiscal year 1992-93. Ms. Vaughn requested that comments from this evening's hearing be referred to the Manager, Housing Advisory Board and Human Services Advisory Board. She indicated that the two advisory boards and Town staff would prepare a proposed final spending plan for consideration at the Council's April 27th meeting. Council Member Andresen inquired how many elderly persons were directly served by the public housing program. Ms. Vaughn said forty-seven senior citizens were currently served directly. Noting that the community's needs in this regard were greater, she requested that the boards and staff examine this matter in greater detail. Ms. Vaughn noted that input had already been requested from the Housing Advisory Board.

James Brittain, representing Midway Development Corporation, briefly reviewed a proposal to provide aid to Black-owned businesses in the Chapel Hill-Carrboro area. Mr. Brittain distributed a copy of a proposed resolution to Council Members and requested that a copy of the resolution be entered into the record of the hearing. A copy of the resolution is on file in the Town Clerk's Office.

Johnny Williams said an agency in Raleigh provided seed money, technical assistance and programs similar to the ones being proposed by the Midway Development Corporation. Mr. Williams said the corporation was requesting that a portion of Community Development funds be allocated to revitalizing Black-owned businesses in the Midway area. He also noted that area banks could play an important role in the process.

Harvey Reid, editor of the Village View newspaper, said his publication served as vehicle for making people aware of positive events in the community. Mr. Reid requested that the Council provide funding to expand circulation of the newspaper to more people in the area.

Allan McSurely, attorney for Midway Development Corporation, said there had historically been a lack of strategic thinking about the use of Community Development funds. Mr. McSurely said that the Black business community in the Midway development area had been drained of its economic vitality. He said a number of meetings had been held to develop a strategy for redevelopment of the area. Mr. McSurely said the corporation hoped that the Council would also provide strategic direction for the corporation.

Council Member Andresen requested further elucidation of the corporation's vision. Mr. McSurely said a number of broad strategies had been discussed to start up an economic center for Black-owned businesses. He stated that implementation of the proposed plan would raise area property values significantly.

Mr. Williams said the highest and best use of property in the Midway area was for commercial and office/institutional uses. He suggested that economic development funds be used to recruit tenants to occupy vacant buildings in the area. Mr. Williams stated that capitalization was the key to revitalization.

Mr. Reid said a Black cultural center would provide a centralized place to share knowledge about state and local governments and small business information. He added that information about organizing, leadership and fundraising could be provided through the cultural center.

Council Member Andresen noted that the Town of Carrboro had a program with elements similar to those proposed by the Midway Development Corporation. She requested that the staff examine the feasibility of developing a revolving loan fund program for minority-owned businesses. Council Member Wilkerson noted that preliminary work was underway with local banking institutions to develop funds for a business incubator program. Council Member Andresen asked whether a report on this matter would be presented to the Council. Council Member Wilkerson said yes. Mayor Broun said it would be useful for Town staff to meet with representatives of Midway Development Corporation.

COUNCIL MEMBER HERZENBERG MOVED, SECONDED BY COUNCIL MEMBER CAPOWSKI, TO REFER THE MATTER TO THE HOUSING ADVISORY BOARD, HUMAN SERVICES ADVISORY BOARD AND TOWN MANAGER. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).

The hearings concluded at 10:06 p.m.