MINUTES OF A BUDGET-RELATED PUBLIC HEARING HELD BY THE MAYOR AND

COUNCIL OF THE TOWN OF CHAPEL HILL, MONDAY, JANUARY 29, 1996

 

Mayor Waldorf called the proceedings to order at 7:00 p.m.  Council Members in attendance were Julie Andresen, Joyce Brown, Joe Capowski, Mark Chilton, Pat Evans, Richard Franck, Lee Pavão and Barbara Powell.  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 Waldorf welcomed all persons in attendance this evening.  She noted that the Town had received earlier in the day from Gorman Gilbert, the Town's representative on the North Carolina Department of Transportation Board, that the Town would be receiving an additional $25,000 in State funding for sidewalk projects in the Town.

 

Mr. Horton presented an overview of the budget development process.  He noted that overall budget projections were consistent with estimates made last spring.  Mr. Horton also said it would be possible for staff to present a no property tax increase budget based on current Town service levels, if there were no increase in landfill tipping fees.  He stated that a tax rate change of one-half cent would be necessary if the tipping fee were increased by $4 per ton.  Mr. Horton said that given anticipated reductions in federal operating subsidies for transit systems, it might be necessary to increase the Transportation Fund tax rate by 1.4 cents.  Mr. Horton also presented a brief overview of housing and community development related budget items, the Downtown Service District and legislative requests.

 

Mayor Waldorf noted that this evening's agenda had been structured so that citizens could make comment on any aspect of the budget all at one time.  She also stated that there would be several other opportunities for the Council to receive public comments and suggestions later in the budget development process.

 

Council Member Andresen asked whether it was correct that the Manager would present his preliminary budget recommendation on March 27th.  Mr. Horton said this was correct.

 

Council Member Andresen requested that the staff's preliminary budget recommendation include specific information about possible changes in service levels.  Mayor Waldorf inquired whether the Council could take this matter up at the end of this evening's meeting.  Council Member Andresen was agreeable to this arrangement.

 


Donna Dyer, Director of the Orange Community Housing Corporation (OCHC), noted that her agency was working on a number of projects to provide affordable housing opportunities for lower-income families and individuals.  Ms. Dyer stated that on average her agency brought in six dollars of federal funds for each dollar of local funding received.  She noted that OCHC was also working with the Knolls Development Association and the developers of Meadowmont on affordable housing projects.  Ms. Dyer requested that the Council give high priority to funding affordable housing programs and contact U.S. Congressional representatives to reinforce the importance of continued federal funding of these programs.

 

R.D. Smith said he encouraged the Council to join with the Town of Carrboro and Orange County in using some or all of the Greene tract for the development of affordable housing.  Mr. Smith also expressed concern that the Town was collecting an annual vehicle license tag fee of $15 per vehicle and that citizens received nothing in return for this outlay.  Mr. Smith also requested that the Town consider reducing or eliminating the fee assessed for the pick-up and disposal of bulky items.  Mr. Smith stated that the Town was not offering sufficient incentives for people to ride buses, rather than use their own automobiles.

 

Mr. Smith suggested that the Town concentrate on reducing bus operating expenditures by using smaller buses during non-peak periods.  He also suggested that a portion of the Northside complex  be set aside for affordable housing when the County's new gas and services complex is opened on Homestead Road.  Finally, Mr. Smith suggested that the Town consider having attendants staff the park and ride lot on Eubanks Road.  He stated that this lot was isolated and prone to acts of vandalism.

 

Marianne Chomen, representing the Orange County Middle School After Schools Program, said the program had been initiated two years ago and was being offered at the Culbreth and Phillips Middle Schools.  She stated that program assessment tools were being formulated so that funding agencies such as the Council could evaluate how funds were being utilized.  Ms. Chomen also said that the program provides a safe, nurturing environment for young adolescents.  She requested the Council's continued fiscal support of the program.

 

Myles Presler, Program Director of the Interfaith Council, thanked the Council for their funding of the IFC's Employment Project.  Mr. Presler said the program had been able to leverage about $37,000 in Town funds to receive Community Development Block Grant (CDBG) funds of about $100,000.  Noting that the Employment Project helped homeless persons to rebuild their lives through job and substance abuse counseling programs, Mr. Presler stated that the greater majority of program participants were doing very well.  Mr. Presler requested that the Town provide funding of $30,000 during the next fiscal year for continuation of the Employment Project program.

 


Reverend J. Franklin Bowden asked that the Council not eliminate the Outdoor and Nature Program.  Reverend Bowden said programs of this type kept young people off the streets and out of trouble.  He also requested that the Council consider allocating additional funds to the Public Works Department for the snow and ice removal.  Reverend Bowden also recommended that the Council provide a four percent raise to the Town's Public Works employees.  Finally, Reverend Bowden asked for the Town's assistance in removing cars from his neighborhood's streets which did not have current license plates.

 

Pauline Dodd, 196 Essex Drive, asked that the Council give strong consideration to providing more annual funding for sidewalk projects.  Noting that the new high school would be opening in the fall, Ms. Dodd requested that sidewalks along Weaver Dairy Road be put near the top of the priority listing.  Ms. Dodd stated that the provision of sidewalks in this area would help to enhance the safety of students and other pedestrians along Weaver Dairy Road.

 

Susan Levy, Executive Director of Orange County Habitat for Humanity, noted that her agency primarily used volunteer labor to construct affordable new homes.  She noted that there were currently two Habitat for Humanity homes in Culbreth Park, with a third home planned for the Knolls neighborhood.  Ms. Levy requested the Council's financial assistance in acquiring additional lots in the Culbreth Park neighborhood.  She noted that Town residents Blanche and Henry Clark had recently established a $50,000 challenge grant for Habitat for Humanity housing programs.  Ms. Levy said that Habitat for Humanity fully intended to meet the challenge and build new homes using these funds.  Council Member Brown inquired whether any of Habitat for Humanity's local homes were solar-based.  Ms. Levy said that Habitat for Humanity was very interested in constructing homes which were passively solar.

 

Jim McEnery said he would likely be the only citizen addressing the Council this evening not requesting funding for a specific program.  Mr. McEnery requested that the Council give consideration to adopting a budget with a property tax rate decrease.  Mr. McEnery said he estimated that over the past twelve years, the Town had built up a deficit of $1,412,000 in inadequate fire protection funding from the State of North Carolina.  Mr. McEnery also said he hoped that the State Legislature would take up this matter during its next session.

 

Sharon Saunders-Reid, representing the Knolls Development Association (KDA), requested that the Town provide grant funding of $20,000 as soon as possible to assist with continuation of KDA's affordable housing program.  A copy of Ms. Saunders-Reid's remarks are on file in the Clerk's Office.

 


Myles Presler of the Interfaith Council said a major community challenge was transitioning people out of poverty and into self-sufficiency.  Noting that there was currently no halfway house for men in the community, Mr. Presler said that the Interfaith Council was proposing the construction of two homes to house twenty-four persons on a site donated by Freedom House.  Mayor Waldorf inquired whether it was correct that Orange County had earmarked $166,000 of State Criminal Justice Partnership funds for this proposed capital project.  Mr. Presler said this was correct.

 

Mayor Waldorf asked that Mr. Presler provide the Council with projected operating figures for the proposed program.  Mr. Presler said he would do so.  Council Member Powell asked whether the majority of program participants were Orange County residents.  Mr. Presler said this was correct.  Council Members Andresen and Powell requested that Mr. Presler provide additional information to the Council about the proposed program.  Mr. Presler said he would do so.

 

Stating that roll cart trash cans were not incompatible with a "pay as you throw" refuse collection system, Art Dodd asked that the Council adopt a roll cart trash collection system as soon as possible.  Mr. Dodd stated that the Town could have saved about $1 million over a three year period if it had implemented such a system in 1993.

 

Maxecine Mitchell, speaking on behalf of the Children of the Future Resource Center, said the center provided enhanced opportunities for children to achieve success. She noted that the center emphasized family/child safety and related programs.  Ms. Mitchell requested that the Council provide community development funds to support the Children of the Future Resource Center and other similar programs.

 

Marion Lyde, Jr., representing the Black Public Works Association, said his organization was in the process of trying to correct a number of disparities.  He requested that the Council examine the Town's merit system and reclassification decisions, inconsistencies in promotions, and the Town's overtime and compensatory time policies.  Mr. Lyde also said he believed that there were racial disparities relative to disciplinary matters.  Mr. Lyde asked for the Council's support in rectifying these problems and noted that he would present specific proposals at a later date.

 

Steve England, a member of the Black Public Works Association, said a number of the concerns outlined by Mr. Lyde were budget-related. Mr. England also said it should be possible for anyone who worked in the Town to live in the Town without having to have two or three jobs.  Mr. England stated that one way for people to escape from poverty was through education and asked for the Town's support of employee teaching opportunities.

 


Mr. England said he would like to see a commission set up to examine solid waste management and collection methods.  He stated that an earlier study had concluded that roll-cart and curbside refuse pick-ups would result in savings to Town taxpayers.  Mr. England said it was very important for Town employees to receive a living wage.  He urged the Council to stop the contracting of services in order to provide more jobs within the framework of the Town's structure.  Stating that some Town employees with 20-25 years experience were making less than persons with 5-6 years on the same job, Mr. England also said it was important to prevent the compression of Town salaries.  He also stated that the Black Public Works Association was working on a number of specific proposals to present to the Council in the near future.  Mr. England challenged the Council to come together with the Black Public Works Association to formulate ideas to bring about changes.  Mr. England said he believed that the Council could implement some of these ideas.

 

Calvin Cunningham said one of the greatest challenges facing the Council this year was transportation-related matters.  Noting that approximately two-thirds of Chapel Hill Transit's ridership was student-based, Mr. Cunningham said it was important to create incentives for bus ridership.  Mr. Cunningham suggested that one option would be for the Town and University to approach the State of North Carolina about transit system funding concerns.  Requesting that the Council not raise bus fares, Mr. Cunningham urged the Council to ensure that the costs of running the transit system were being distributed equitably.

 

Tiffany Price said the Family Resource Center on Johnson Street was established in October, 1994.  She noted that a portion of the Center's funds for the development of healthy children came from Smart Start funds.  Ms. Price requested that the Town allocate a portion of its Community Development grant funds to support the Family Resource Center's job training program.  (Ms. Price said the Center currently provided adults with computer, interviewing and resume writing training.)  She added that the Center wished to provide child care for parents wanting to participate in the classes.  Ms. Price also said it would be desirable to have paid internships for persons completing the Family Resource Center's job training program.

 

Marion Brooks said the establishment of the Family Resource Center was one of the best things to happen in the Pine Knolls community in recent times.  Stating that a lot of single parents were raising their children in Pine Knolls, Ms. Brooks said it was important for the Family Resource Center to be able to offer job-related training programs.  Ms. Brooks requested the Council's support in furthering the Center's computer and job training programs.

 

Pat Connolly said it was very difficult to find decent and affordable housing for severely and persistently mentally ill persons.  She requested that the Council provide a portion of HOME funds to support the provision of housing for these persons.

 


Shannon Saunders, a freshman at Chapel Hill High School, urged the Council to strengthen and improve programs at the Town's community centers as a means of reducing crime.  Mr. Saunders also said that the summer youth employment program funded through JOCCA taught young people the value of hard work.  Council Member Andresen inquired whether Mr. Saunders had specific suggestions for program improvements.  Mr. Saunders suggested the possibility of establishing a summer league youth basketball program.

 

Chris Baumann of the Coalition for Economic Justice said his organization supported the proposals outlined by the Black Public Works Association earlier in this evening's meeting.  Stating that some public works employees were working two or three jobs in order to make ends meet, Mr. Baumann said it was important for local governments to take a stand on offering good-paying jobs.  Noting that the City of Baltimore, Maryland had recently adopted a "living wage" ordinance, Mr. Baumann suggested that the Town take a lead role in North Carolina by adopting a similar ordinance.  Mr. Baumann also requested that the Council no longer contract out services such as housekeeping of the Town Hall facility.

 

Questions and Comments by Council Members

 

Council Member Powell requested more information about living wage ordinances.

 

Council Member Andresen inquired about the status of a recent request by former Council Member Art Werner about sidewalks.  Mayor Waldorf noted that the proposed project was being considered within the context of the Town's current year budget.

 

Referencing her proposal at the outset of the meeting, Council Member Andresen said it was important for citizens to know of proposed Town service levels as early as possible in the budget development process.  Mayor Waldorf inquired whether Council Member Andresen was requesting staff to put together a summary of proposed service levels.  Council Member Andresen said this was correct.  She added that it was important for citizens to have an opportunity to comment on proposed service levels.  Mr. Horton said Council could possibly hold another session to accommodate these comments.

 

Mayor Waldorf asked whether the Council wanted such a document.  Noting that most taxpayers were cognizant of current Town service levels, Council Member Evans said such a document could focus on any possible service level reductions.  She suggested that the Council's advisory boards and commissions and Town staff develop recommendations for decreasing budgets by three percent.  Council Member Evans said she thought it might be worthwhile to pursue this approach.  Council Member Evans also said she would be curious to know about the total amount of white goods collected by the Town.

 


Mayor Waldorf inquired about the viability of staff pulling together the brief document suggested by Council Member Andresen.  Mr. Horton said staff could highlight and summarize possible service level changes in the budget message or some other part of the budget document such as the Services Catalogue.  Noting the complexity of the items involved, Council Member Andresen suggested that the Council not decide on her or Council Member Evans' proposals this evening.

 

Council Member Pavão said he thought Council Member Andresen's suggestion was a good one which might help to clarify possible reductions in some Town services.  Mayor Waldorf said it was important that the proposals not necessitate a lot of staff time.

 

Council Member Powell inquired why Council Member Evans was suggesting a three percent reduction.  Council Member Evans said she did not have any particular rationale.  Council Member Capowski said he thought such an undertaking could be quite time-consuming if staff and advisory boards knew that they would be committed to the results.  Mr. Horton said he would have to require that department heads could live with their proposals for service level reductions.  He added that although a significant amount of work would be involved, it could be done.

 

Council Member Brown suggested that the Council needed to be very careful about what might be acceptable in this matter.  She urged the Council to give serious thought and consideration to the fact that staff might have different ideas from the Council about possible areas to reduce in the budget.

 

Council Member Chilton said he had a number of questions about how to word the Council's instructions to the staff.  He noted that a large portion of the Housing Department's budget was controlled by HUD, while a portion of the library's funding was tied to State library funding.  He also said it was inconceivable that the Landfill Owners Group partners would agree to a reduction in the landfill tipping fee.  Council Member Chilton also noted that potential cuts in one small Town program had recently occupied a tremendous amount of the Council's time.  He urged the Council to be realistic about information requested from staff relative to possible reductions.

 

Council Member Powell said it was unfair to ask the staff to recommend cutting budgets by certain percentages without a firm decision and direction from the Council.

 

Noting that inflation and population growth factors needed to be taken into account, Council Member Capowski stated that a reduction of three percent could actually be a per capita reduction of about ten percent when these factors were taken into account.  He added that although money could be saved by reducing maintenance, this was not a worthwhile exercise for staff.

 


Council Member Andresen suggested that the Council might wish to initiate a discussion with faculty members at the Institute of Government about the structure of Town budgets.  She also said it was important to provide incentives for staff to be more efficient with their departmental and division budgets.

 

Council Member Brown suggested that the formation of a Council Budget Committee might be one of the best ways to deal with the issues raised this evening during the Council's discussion.  Mayor Waldorf said she was open to this proposal.  Noting that she was not a three percent across the board increase or decrease type person, Mayor Waldorf suggested that the Council examine Town services across the board.  Mayor Waldorf also said she thought that the Town was well behind the times in technology at Town Hall and that money would be needed to correct that.

 

Stating the importance of finding funding for new technology, Council Member Evans said staff and boards and commissions could outline their budget priorities for consideration by the Council.

She added that the Transportation Board had never submitted programs for service reductions, despite such requests from the Council in recent years.  Council Member Evans said the Council also needed to hear from citizens about possible funding cuts in order to fund capital projects.

 

Mayor Waldorf inquired about the possibility of forming a small committee of Council Members on budget matters.  Council Member Powell said she did not think so, noting that she did not place the same high priority on capital improvements as Council Member Evans.

 

Noting that she was simply trying to offer suggestions for process purposes, Council Member Brown said the Council could possibly examine whether or not the Town's organizational structure was top-heavy.  She added that other Council Members might also have suggestions.

 

Mayor Waldorf suggested that the Council could possibly schedule a discussion at a meeting in the near future to give additional guidance to the Manager regarding budget development.  Council Members Andresen and Chilton said this was an excellent suggestion.  Noting that practically all managers had been asked to make budget reductions at one time or another, Council Member Pavão suggested the Council schedule a work session on this matter as soon as possible.  Council Member Chilton said the Council might take this matter up as the second part of its February 5th work session.  Mayor Waldorf requested that Council Members attempt to get their ideas in writing to share with other Council Members prior to the February 5th work session.  Council Member Powell requested that Public Works employees be made aware of the February 5th work session on the budget.  Mr. Horton said staff would do so.

 

Council Member Andresen said it would be desirable at some point for some Council Members to possibly give feedback to the Black Public Works Association about reaching their goals.  Mayor Waldorf said she concurred that this was a good idea.


Council Member Brown inquired about the possibility of receiving draft minutes of this evening's meeting prior to the February 5th work session.  Mr. Horton said staff would do so.

 

Council Member Brown inquired about the status of JOCCA funding for the youth summer jobs program.  Mr. Horton said he was uncertain about the status of this funding.

 

Referencing Mr. Smith's earlier remarks about small buses, Council Member Brown requested that Town staff contact the City of Boulder, Colorado to find out more information about the cost effectiveness of using smaller buses.

 

Council Member Capowski inquired about the anticipated future stability of federal housing funds.  Mr. Horton said the future of this funding mechanism was uncertain and likely would not clear up until the next national election.  Council Member Capowski inquired whether Mr. Presler was requesting HOME program funds for the proposed men's shelter.  Mr. Horton said he believed that Mr. Presler was suggesting that General Fund money be used for this proposal.  Council Member Capowski asked whether the Town was becoming "addicted" to federal housing money.  Mr. Horton said this appeared to be correct.  Council Member Capowski asked whether or not it was a good time to start new projects tied to federal funds.  Mr. Horton said he would not recommend starting new projects dependent on federal funding.

 

Noting that he had recently received several complaints about the awkwardness of having bulky items picked up at curbside, Council Member Capowski requested a follow-up staff comment on this matter.  Council Member Capowski also said he thought it was delightful that Dr. Clark and his wife had initiated a funds challenge for Habitat for Humanity.  Council Member Capowski asked whether there was anything that the Council could propose to the legislature this session short of inclusionary zoning to encourage developers providing more affordable housing opportunities.

 

Council Member Capowski also inquired which greenway project was referenced in line item LA 4 of the capital project listing before the Council.  Ms. Loewenthal said this funding was for the Northern Booker Creek greenway project.  She noted that the Council had agreed to shift these funds ($30,000) from the Morgan Creek greenway project.  Council Member Capowski said he would hate to stall the Morgan Creek greenway trail project for the sake of $30,000.   Noting that development money for the Morgan Creek trail would also be needed, Mr. Horton said the Council might wish to schedule this matter for discussion with the Greenways Commission in the future.  Council Member Capowski said he encouraged the Council to earmark $10,000 during 1996-97 for bicycle lane improvements.

 


Council Member Andresen suggested that inclusionary zoning be one of the topics of discussion at a future Assembly of Governments meeting.  She also inquired about the status of skateboarding.  Noting that $25,000 had been allocated in capital funding for skateboarding in the current year budget, Mr. Horton said staff would be making a recommendation to the Parks and Recreation Commission in the near future about a possible skateboarding facility site.

 

Council Member Andresen said she believed that funding for greenways and bikeways should be priority items.  Council Member Andresen added that it was important for the Council to keep in mind the "big ticket" costs of stormwater management items.  She also suggested that the Council might brainstorm about possible new revenue sources.

 

Mayor Waldorf noted that all but one of the Stormwater Management Committee's recommendations had been adopted by the Council.  She stated that Town staff was in the process of attempting to secure

grant money from the Corps of Engineers for a study of the Town's northwest area and the University's Horace Williams property.  She noted that staff was also examining possible flood mitigation techniques.

 

Council Member Capowski said this matter was urgent since the Town of Carrboro was approving residential development projects further upstream.  Mayor Waldorf said it was important for an overall study of the matter to occur.  Mayor Waldorf said she had contacted the University, Orange County and Town of Carrboro about this matter.  Mayor Waldorf noted that to date, she had only received a response from the University.

 

Council Member Pavão requested staff to respond to the figures cited by Mr. McEnery earlier in the meeting.  Noting that he would be glad to bring a brief report to the Council in the future, Mr. Horton noted that on several occasions the Town had almost lost all fire protection funds from the State.  Mr. Baker presented an overview of the history of State fire protection funding to communities, noting that funds were originally allocated based on the amount of State properties in various communities.

 

Council Member Powell noted that she had heard from a very vocal citizen last evening who had requested that fees for pick-up of bulky items be reduced or eliminated.  She asked staff to look into this matter further.  Noting that she had also heard from the same citizen, Council Member Brown suggested that the Council discuss this matter at its February 5th work session.

 


Mayor Waldorf asked staff to prepare a follow-up information report regarding funding of the Orange County Criminal Partnership program.  She noted that this program offered an alternative to prisons in local communities.  Mayor Waldorf also asked staff to provide information about the criteria used for determining whether bikeway and sidewalk projects were handled by Town staff or were contracted out.  Mr. Horton said staff could provide this information.

 

COUNCIL MEMBER CHILTON MOVED, SECONDED BY COUNCIL MEMBER PAVÃO, TO ADOPT RESOLUTION 1.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

 

A RESOLUTION REQUESTING COMMENTS AND RECOMMENDATIONS FROM BOARDS AND COMMISSIONS REGARDING THE 1996-97 BUDGET (96-1-29/R-1)

 

BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council:

 

1. Requests that interested boards and commissions provide to the Council their comments and recommendations on budget issues for 1996-97 in the context of both current needs and long range plans.

 

2. Requests that boards and commissions make recommendations concerning:

 

a.   Options for adding or expanding services;

b.   Options for reducing services which are least needed;

c.   Methods for increasing efficiency, quality and effectiveness of services;

d.   Adjustments in service fees;

e.   Other matters as the board or commission deems appropriate.

 

3. Refers comments and questions from the public forum and hearing of January 29, 1996 to all interested Town boards and commissions and to the Manager and Attorney.

 

4. Requests that comments on the budget and capital program be provided to the Council by May 15, 1996.  However, comments and recommendations are encouraged earlier in the budget process when practical, so that the Town Council and staff can consider the recommendations as the budget is developed.

 

5. Requests that interested boards make recommendations regarding the use of the Community Development, Comprehensive and HOME grants no later than April 22, 1996. However, comments and recommendations are encouraged earlier in the budget process when practical, so that the Town Council and staff can consider the recommendations as plans for using grant funds are developed.

 


6. Requests that the Public Housing Residents' Council make comments and recommendations to the Council by April 22, 1996 or earlier regarding use of the Comprehensive Grant for public housing purposes.

 

BE IT FURTHER RESOLVED that the Manager shall cause copies of the minutes of the January 29th meeting, when adopted, to be distributed to boards and commissions and to the Public Housing Residents' Council.

 

This the 29th day of January, 1996.

 

The meeting concluded at 9:38 p.m.