SUMMARY OF A BUDGET PUBLIC HEARING HELD BY THE MAYOR AND COUNCIL OF THE TOWN OF CHAPEL HILL, NORTH CAROLINA, TUESDAY, JANUARY 27, 1998

Mayor pro tem Joe Capowski called the hearing to order at 7:02 p.m., noting that Mayor Waldorf had a prior obligation this evening. Council Members in attendance were Julie Andresen (arrived at 7:06 p.m.), Flicka Bateman, Joyce Brown, Pat Evans, Kevin Foy, Lee Pavão and Edith Wiggins. Also in attendance were Town Manager Cal Horton, Assistant Town Manager Florentine Miller, Finance Director James Baker and Town Attorney Ralph Karpinos.

Public Hearing on Town Budget and Related Matters

Mr. Horton presented brief introductory comments regarding this evening’s public forum on budget-related matters.

Walter Britt, representing the Chapel Hill-Carrboro YMCA, requested that the Town continue to provide funding support for the Pine Knolls After School Program. Mr. Britt said that the program had been in existence for four years and offered a number of structured after-school programs for young people.

Nancy Cox, representing the Junior League of Orange and Durham Counties, requested the Council’s continued funding support of the Middle School After School Programs for Culbreth and Phillips Middle Schools. Ms. Cox said that the programs met an identified community need and provided very worthwhile resources for many young people and their parents.

Pat Connolly, representing Orange-Person-Chatham Mental Health Authority, requested that the Council allocate a portion of the Town’s HOME program funds to support the housing needs of very low-income persons with disabilities.

Robert Dowling, Executive Director of Orange Community Housing Corporation (OCHC), requested additional funding for OCHC for the current fiscal year and for the next fiscal year. He stated that the Corporation currently had a $42,000 funding deficit. Mr. Dowling stated that OCHC was requesting the assistance of all local governments in Orange County to make up this unanticipated shortfall from the Magnolia Place development.

Myles Presler, Director of EmPOWERment, Inc., requested that the Town of Chapel Hill consider becoming a partner in a proposal to develop a small business incubator on Graham Street. He stated that discussions were underway with local lenders regarding this proposed project. Mr. Presler said that EmPOWERment, Inc. anticipated that approximately $150,000 in Town funds would be needed to proceed with this project. Referencing the community’s affordable housing needs, Mr. Presler said that EmPOWERment, Inc. was requesting $120,000

in HOME funds for next fiscal year to purchase land for the purchase and renovation of homes in Orange County.

Kim Hoke, a member of the Middle Schools After School Steering Committee, thanked the Council for its past and current support of the After Schools Program. Ms. Hoke said that the program provided a variety of excellent programs for young persons. She requested the Council’s continued support of this vital program. Ms. Hoke also read a letter from Christina and Gordon Flake requesting the Council’s continued funding of the After School Program.

Rich Dingleby said that the Middle School After School Program provided excellent resources and programs for his exceptional son.

Edwin Caldwell, Jr., Co-President of the Northside Community Association, said that the Association had been working for many years to save its neighborhood for families. Mr. Caldwell said that the Northside Community Association was working with EmPOWERment, Inc. to put a comprehensive program in place. Mr. Caldwell stated that federal neighborhood revitalization funds were vital to meeting the needs of the Northside community and its residents. Mr. Caldwell thanked the Council for their consideration of Northside’s funding requests.

David Rankin, said that he resided in the same home as his grandfather had lived in during the 1920’s. Mr. Rankin expressed concern that outside investors were in the process of converting grass-covered front yards into gravel-covered parking lots and single-family homes were being converted to student housing. Mr. Rankin said that he and his neighbors in the Northside community were very concerned about these changes. Mr. Rankin also said that the Northside Community Association was requesting as much of the Town’s funding assistance as possible to preserve the integrity of the community.

Mildred Council requested the Council’s assistance in providing extended transit services to all public housing residents, especially young people, access to the Hargraves Community Center and Park. Referencing the Knolls Housing Program, Ms. Council expressed concern that a lot of money was being expended for this project, with very little to be shown in the way of completed affordable houses.

John Tyrrell, President of Orange County Habitat for Humanity, said that his organization would dedicate its fiftieth home in the area in the near future. Mr. Tyrrell presented an overview of the proposed Millennium project on Rogers Road. He also stated that Habitat for Humanity would request some Community Development Block Grant funds this year and next fiscal year. Mr. Tyrrell stated that the Millennium project would cost an estimated $1 million to complete. He also said that Habitat for Humanity was requesting $60,000 in HOME funds for second mortgages for six homes to be constructed by Habitat for Humanity during the fall of 1998.

Sue Field expressed her support of the Middle Schools After School Program. She also requested the Council’s continued funding of these programs.

Mayor pro tem Capowski thanked all citizens for their comments on budget-related matters.

Potential Legislative Requests

Mr. Horton presented an overview of the Town’s potential legislative requests package.

Council Member Brown said it was her understanding that non-controversial bills which were “still in the hopper” could be considered during the legislative short session. She inquired whether any of last year’s requests were eligible under these criteria. Mr. Horton said he believed that the entertainment tax and inclusionary zoning proposals were no longer considered viable in the short session. He also stated that the recommendations of the Transit 2001 Committee might possibly be taken up the long session in 1999. Mr. Horton said that Town staff could check into the viability of the status of these three items.

Council Member Brown suggested that the Council work with its fellow governments in Orange County to develop joint legislation for the General Assembly’s long session in 1999. She also suggested that the Council consider discussing these matters with the Orange County Board of Commissioners at the joint meeting on February 2^nd.

Council Member Evans suggested that the Council consider the possibility of a bottle/can bill for the General Assembly’s long session in 1999. She further suggested that the Council be proactive with the members of the legislative delegation in this regard.

Council Member Brown said it would be helpful for the Council to receive copies of the Council’s legislative memorandum distributed last year (1997). She noted that a bottle/can bill had been drawn up in 1993 and had proven to be controversial. Council Member Brown stated that proceeding with such a bill would require a concerted effort of local governments. Council Member Evans said she believed that a lot of things had changed in the last five years, principally regarding the economic aspects of this proposed bill.

Council Member Andresen concurred that the Council should collaborate with its neighboring governmental entities as a group regarding possible legislative requests. She suggested that the local government bodies, including Durham City and County, get together on matters such as inclusionary zoning. Council Member Andresen also said that she fully supported the concept of a bottle bill as suggested by Council Member Evans.

Comments by Council Members

Council Member Bateman presented the Council with a proposal to subsidize the provision of sewer service to in-Town neighborhoods which did not currently have such services. Council Member Andresen suggested that the Council establish a committee to draft a more comprehensive sewer assistance program for the Town, OWASA and Orange County.

Council Member Bateman said that she and Council Member Andresen were requesting that Town staff develop a follow-up report on sewer subsidies for the Council’s consideration. Mayor pro tem Capowski suggested that Council Members Andresen and Bateman work with Town staff on this matter.

COUNCIL MEMBER BATEMAN MOVED, SECONDED BY COUNCIL MEMBER EVANS, FOR COUNCIL MEMBERS ANDRESEN AND BATEMAN TO WORK WITH TOWN STAFF IN THE DEVELOPMENT OF A FOLLOW-UP REPORT ON SUBSIDIES FOR THE PROVISION OF SEWER SERVICES FOR IN-TOWN NEIGHBORHOODS WHICH DID NOT CURRENTLY HAVE SUCH SERVICE. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).

Council Member Evans requested additional information from Town staff about estimated operating costs for streetscaping. Mr. Horton said that these were principally costs for the maintenance of street lighting.

Council Member Andresen said it was important for the Town to stay on top of maintenance issues.

COUNCIL MEMBER WIGGINS MOVED, SECONDED BY COUNCIL MEMBER FOY, TO REFER COMMENTS FROM THIS EVENING’S HEARING AND FORUMS. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).

Referencing the question of the Town’s merit pay system, Council Member Andresen inquired about the best way to proceed with study of this matter. Mr. Horton said that the Town would be seeking proposals from individuals and organizations to improve the Town’s pay system during the 1999-2000 budget process. He noted that a report would be coming before the Council during the next two months.

Council Member Brown said that although changes to the Town’s pay system had been discussed a number of times during the past few years, no changes had been made. Council Member Brown also said that she favored moving ahead on the matter this year. Mr. Horton stated that it would take a fair amount of time to make changes to the Town’s pay system. Stating that the matter of changes to the pay system were a complex undertaking, Council Member Evans said that she favored having the matter handled next budget year, rather than during the current year.

Council Member Foy suggested the possibility of the Council having a deadline to receive a follow-up report from Town staff. Council Member Andresen said that this was a good idea. She noted that making such changes would take political will on the part of the Council. Council Member Andresen also said that it was very easy to get mired down in details and not deal with changes to pay systems. Mr. Horton said that his proposal was to bring options for the Council’s consideration regarding possible changes to the Town’s pay and benefits program.

Council Member Wiggins said that she thought that the issue of pay was a very important one. Council Member Wiggins inquired whether the Council would receive options to proceed regarding consulting services for the Town’s pay system. Mr. Horton said that this was correct. Council Member Foy inquired whether or not staff knew how long it would take to undertake an analysis of the Town’s pay system. Mr. Horton stated that this work could be completed by the early Fall.

Council Member Bateman asked whether or not the Town gathered information from other local governments about their merit pay programs. Mr. Horton said that this was correct. Council Member Bateman requested that staff provide follow-up information to the Council on this matter. Mr. Horton said that staff would do so.

Council Member Brown requested that copies of the February 10, 1997 memorandum regarding the Town’s possible legislative program be forwarded to the Council and to the Orange County Board of Commissioners. Mr. Horton said that staff could do so.

Council Member Bateman inquired about the proposed operating costs for Northern Community Park during the current fiscal year. Mr. Horton stated that staff could furnish this information to the Council.

Mayor pro tem Capowski noted that there would be public forums on next year’s budget on April 6^th and May 13^th.

COUNCIL MEMBER EVANS MOVED, SECONDED BY COUNCIL MEMBER PAVÃO, TO ADJOURN THE MEETING. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).

There was no need for a closed session.

The meeting stood adjourned at 8:20 p.m.