MINUTES OF A BUDGET WORK SESSION HELD BY THE MAYOR AND COUNCIL OF

THE TOWN OF CHAPEL HILL, WEDNESDAY, MAY 27, 1992 AT 7:30 P.M.

Mayor Broun called the work session to order. Council members in attendance were Julie Andresen, Joyce Brown, Joe Capowski, Mark Chilton, Joe Herzenberg and Alan Rimer. Council Members Arthur Werner and Roosevelt Wilkerson, Jr. were absent. Also in attendance were Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Parks and Recreation Director Michael Loveman and Finance Director James Baker.

Mr. Horton noted that the Council had set its 1992-93 goals at the January 11th planning and reporting session, including a no tax increase budget. Mr. Horton stated that the Council's willingness to increase cablevision franchise and other fees would generate an estimated $190,000 in additional revenues during the 1992-1993 fiscal year. He briefly reviewed options for expending the additional funds, as outlined in a budget options worksheet to the Mayor and Council. Mr. Horton said the Landfill Owners Group had recommended increasing the landfill tipping fee from $21.00 to $21.50 per ton, to cover the cost of additional recycling services. He also noted that one other project, funding of $3,500 for the Town's contribution for airport relocation mediation services, also needed to be considered.

Council Member Capowski inquired about funding for library service maintenance of effort. Mr. Horton said funds would be set aside for library collection development. He noted that the Town intended to appeal the State's regulations in this matter. Council Member Capowski requested additional information on the proposed increase in tipping fee to $21.50 per ton. Council Member Rimer reviewed the proposal, noting that the Landfill Owners Group (LOG) had asked staff to identify reductions landfill operating costs or new revenue sources. He said staff had identified $105,000 in additional revenue and $33,000 in operating cost reductions. Council Member Rimer noted that the liner for the new landfill would cost an estimated $4 million. He said the proposed $0.50 increase would fund increased recycling services such as tin, plastic and cardboard recycling programs. Council Member Rimer said collection of motor oil would occur monthly and collection of pesticides would take place six times per year. He also stated that a waste paint exchange program and $10,000 in grants for waste reduction programs would be initiated.

Council Member Rimer said the Landfill Owners Group (LOG) would continue to develop plans, including a waste study, for attaining for future waste reduction and recycling goals. He expressed concern that the State had been unsuccessful in providing leadership in this area. Council Member Rimer cited Davie County's independent initiative to reduce landfill waste volume by prohibiting dumping of wooden pallets. He suggested that the LOG might request the assistance of an Environmental Protection Agency employee to assist in solid waste matters. Council Member Andresen inquired about estimated program costs. Council Member Rimer reviewed the costs, noting that they totalled approximately $130,000. Council Member Andresen requested additional information on the paint exchange program. Council Member Rimer said persons would be able to exchange unwanted paint. He added that any unused paint would be made available to groups such as Habitat for Humanity.

Noting that typical tire disposal costs at the landfill facility were $0.45 per tire, Council Member Rimer noted that the LOG was exploring the reinstitution of $1 per tire for disposal. He stated that there was currently no charge for tire disposal. Council Member Andresen inquired about the possibility of receiving input from the LOG earlier in the budget process. Council Member Rimer noted that Orange County and the Town of Carrboro had other interests which precluded an earlier report. He noted that the LOG had begun work on the budget in early February. Council Member Capowski inquired about the estimated additional revenue which would be generated by the fee increase. Council Member Rimer said approximately $13,000 per year.

Council Member Brown inquired about the estimated cost per acre of the landfill site and liner. Mr. Horton said there was no way to make this determination until a specific site was determined. Council Member Brown asked whether costs might be higher because of new Federal regulations. Mr. Horton said although this was likely, there was no way to actually estimate the figure. Council Member Brown inquired about the amount of reserve for the landfill liner. Finance Director Jim Baker said the amount set aside in the current year was $650,000. Mr. Horton added that approximately $1.2 million was currently reserved for the liner.

Council Member Andresen requested an overview of the Town's fund balance. Mr. Baker briefly reviewed the Town's fund balance. Mr. Horton noted that the Council had previously expressed concern about the fund balance's level. He noted that he proposed increasing the balance from $1.21 to $1.295 million. Council Member Andresen inquired about the view of the Town's auditor in this matter. Mr. Horton said the auditing firm realized the difficulty of increasing fund balance in the current economic climate. He noted that the Town's fund balance was in the middle of the recommended range of similarly-sized communities.

Council Member Brown said the Manager had done a good job of keeping expenses down. She expressed concern about expenses over the next one or two years, including those for new roadway, landfill and library facilities. Mr. Horton noted that a five-year summary of estimated revenues and expenses and tax rate equivalents was included in the budget document. He said the level of services provided would depend on future Council decisions on programs and policies. Mr. Horton said he doubted that there would be revenue changes by the State's General Assembly and local governments would be doing well to have revenues restored. Council Member Brown emphasized the importance of the Council establishing priorities and thinking about essential services first. She emphasized the importance of carefully examining all expenses.

Council Member Andresen inquired about the estimated interest rate for the sale of open space bonds. Mr. Horton said 6.5 percent. Council Member Andresen inquired whether the estimated first year debt on $900,000 of bonds was $103,500. Mr. Horton said this was correct. Council Member Andresen said the provision of parking improvements at Cedar Falls Park were very important. Mayor Broun noted that the Manager was recommending the sale of $900,000 of bonds for open space, with specific priorities to be identified in the future.

Mr. Horton noted that the Town was currently negotiating the possible purchase of a facility with ball fields. Council Member Herzenberg said although the Council could make some decisions earlier concerning specific projects for the bond funds, he did not favor making decisions about the entire $900,000 this evening. Council Member Andresen expressed concurrence, suggesting that the Council discuss the matter further this evening. Council Member Capowski suggested that the Parks and Recreation Commission identify project priorities. Council Member Brown suggested that the Greenways Commission also provide recommendations. Council Member Rimer said he concurred with Council Member Capowski's suggestion.

Council Member Andresen suggested that the Council consider prioritizing open space projects. Council Member Rimer suggested that the Parks and Recreation Commission provide a matrix of alternatives to the Council. Council Member Capowski concurred, suggesting that the Commission make recommendations of the expenditure of bond funds. Council Member Andresen noted the importance of receiving recommendations from advisory boards and commissions. Council Member Brown suggested that the Parks and Recreation and Greenways Commission work together on the recommendations. Mayor Broun said the Council was creating a process for decision-making. Council Member Chilton suggested that the Council consider whether or not it wished to develop the NC 86 park site during the next fiscal year. Council Member Chilton said although he was willing to consider alternatives at the NC 86 site, he was not certain whether it was prudent to spend all recommended bond funds on this single project.

Council Member Andresen inquired whether the Manager's recommendation was to provide an additional $50,000 for greenways projects. Mr. Horton said this was correct. Council Member Andresen emphasized the importance of providing funds for the Cedar Falls Park project and additional ball fields around the Town. Council Member Capowski inquired which greenways projects should be considered by the Council. Council Member Andresen suggested that the Council receive recommendations from the Greenways Commission on this matter. She inquired about the staff's recommendations on greenways projects. Mr. Horton noted that his recommendations were including in the budget priority listing provided to the Council. Council Member Andresen said she favored expending $60,000 for Phase II of the Bolin Creek greenway project. Council Member Capowski inquired about State funding for the Bolin Creek greenway projects. Parks and Recreation Director Michael Loveman said approximately $300,000 of State funding would be available in FY 94-95 to augment the Bolin Creek Phase II greenway project. Council Member Capowski inquired about the staff's priorities for greenways projects. Mr. Loveman said that Phase II of the Bolin Creek greenway was the highest priority. In the event that State grant funding were unavailable, Council Member Capowski inquired whether staff recommending proceeding with the Booker Creek project or waiting for grant funding for the Bolin Creek greenway. Mr. Loveman said he suggested that the Town wait for Bolin Creek grant funding to complete the trail. Mr. Horton concurred that the Bolin Creek would be of far greater benefit to the community.

Council Member Andresen inquired whether the Council should strive to achieve consensus on the expenditure of open space bond funds this evening. Council Member Rimer said rational decisions would require advice from the Town's Parks and Recreation and Greenways Commissions. Council Member Andresen said the Council clearly needed additional information to recommend a package of open space projects. Council Member Andresen said she was attempting to promote discussion of the matter by the Council. Council Member Andresen stated that she felt uncomfortable about approving a vague package of projects. Council Member Brown said it was a good idea to set aside a decision on specific projects until recommendations were received from the Parks and Recreation and Greenways Commissions.

Noting that the Council was scheduled to consider final budget adoption on June 8th, Mr. Horton noted the need for Council guidance on the amount of open space bonds to be sold. Council Member Herzenberg noted that no council members had disagreed with the proposed $900,000 figure. Council Member Andresen noted that the provision of $103,500 for debt service for the bonds would not require a property tax increase.

Council Member Herzenberg said he only had one point of disagreement with the Manager's recommendations. Council Member Herzenberg said he favored the continued provision of rollout refuse collection in areas currently receiving this level of service. He noted that most residents of the area were willing to have a lower level of service. Council Member Herzenberg said there was a long-term benefit to continuing the pilot project. Council Member Brown inquired about the possibility of instituting a curbside bag system, in the event that the rollcart system were discontinued. Noting that the two systems were significantly different, Mr. Horton said it would be necessary to research the matter further. He noted that any such change would require a public hearing process. Council Member Herzenberg noted that there would be costs associated with maintaining the rollcart program.

Council Member Andresen noted that Council Member Werner had previously argued that it was better to have the same level of service throughout the Town. Council Member Andresen asked how Council Member Herzenberg would respond to this observation. Council Member Herzenberg stated that residents of the pilot area would be subjected to at least one additional change in refuse collection methods. Council Member Rimer said it was inconceivable that front-yard refuse collection was more expensive than rear-yard collection. Mr. Horton noted that the curbside program required the lease of rollcarts for the short-term experiment. Council Member Rimer stated that if rollcart service were interrupted, participation rates in recycling would likely decrease. He said that continuation of the rollcart program might yield some additional useful information. Mr. Horton noted that rollcarts used in the pilot program would have cost $36,000 if they had been purchased outright, rather than leased.

Council Member Capowski asked whether extending the curbside rollcart program would yield significant additional information beyond that already gathered. Mr. Horton said it would be interesting to have information on smaller carts and service during warmer weather. Council Member Capowski said it appeared ironic for the Town to spend an additional $14,000 to provide less service. Council Member Herzenberg reiterated that most area residents were pleased with rollcart collection. Citing phraseology used in the recently completed Public Pulse poll, Council Member Andresen said it was difficult to determine whether citizens Town-wide would favor a rollcart refuse collection system. Council Member Brown said additional information on different sized roll carts would be very valuable. She recommended that funding not be provided for the July 4th fireworks celebration and cablecasting of budget work sessions.

Mayor Broun said he was torn on the matter of rollcart refuse collection. Mayor Broun stated that he favored continuation of the program, with funding derived from contingency funds. Mr. Horton said continuation of the program could be included in the final recommended budget document for consideration by the Council on June 8th. Mayor Broun said this was a good idea.

Council Member Rimer suggested that funding for the proposed fireworks celebration could possibly be collected from attendees at the event or contingency funds. He emphasized the importance of celebrating the nation's birthday on July 4th. Council Member Andresen said there had historically been a charge for musical entertainment at the July 4th celebration. Mr. Horton suggested that a one dollar donation per family could possibly be requested. Council Member Brown said this sounded like a good idea. Mayor Broun said it did not seem unreasonable to request a one dollar per family donation. Mr. Horton said funding for the event could be included as a line item in the budget for contingency purposes.

Council Member Andresen said that once weekly rear-yard refuse collection had been suggested by a number of citizens. She requested that the Council consider the possibility of providing once per week residential refuse collection. She noted that the Landfill Owners Group might suggest a collection system which would necessitate future changes. Mayor Broun inquired about the Council's feelings on Cleanscape's funding request. Council Member Andresen said she supported funding the organization with at least a portion of their request. She requested that the Manager review Cleanscape's funding request. Mr. Horton said he would do so.

Council Member Andresen said it had not necessarily been suggested that all budget work sessions would be covered. Mr. Horton noted that work sessions had generally not been cablecast in the past. Council Member Chilton inquired how many budget work sessions would be proposed for cablecasting. Council Member Andresen suggested cablecasting two out of six work sessions. Council Member Capowski said $1,050 was a reasonable expenditure for citizens to see how $30 million would be expended. Mayor Broun said it was not practical to determine which budget work sessions would be cablecasted. Mayor Broun briefly reviewed the Council's discussions and recommendations this evening. He inquired about possible funding sources for continued rollcart refuse collection and mediation services for airport relocation. Mr. Horton said the funds could be drawn from contingency funds or the Town's fund balance. Mayor Broun noted that it did not appear necessary to hold another work session on June 1st. He stated that the Council's next meeting would take place on Monday, June 8th.

The work session concluded at 9:15 p.m.