SUMMARY MINUTES OF A BUDGET PUBLIC FORUM AND HEARING
OF THE CHAPEL HILL TOWN COUNCIL
TUESDAY, MARCH 30, 1999 AT 7:00 P.M.
Mayor pro tem Joe Capowski
called the meeting to order at 7:00 p.m.
Council Members present were
Flicka Bateman, Joyce Brown, Pat Evans, Kevin Foy, Lee Pavão, and Edith
Wiggins. Council Member Julie
McClintock arrived at 7:05 p.m. Mayor
Rosemary Waldorf arrived a 7:30 p.m.
Staff members present were
Town Manager Cal Horton, Assistant Town Manager Florentine Miller, Assistant to
the Manager Ruffin Hall, Finance Director Jim Baker, Housing Director Tina
Vaughn, Long Range Planner Claudia Paine, Community Development Planner Loryn
Barnes, Long Range Planning Coordinator Chris Berndt, and Town Clerk Joyce
Smith.
Mayor pro tem Capowski explained
that Mayor Waldorf would arrive later in the evening, and then invited the Town
Manager to make a presentation.
Item 1—Presentation of the Budget and Related Items by the Manager
a.
Status Report on Development
of the 1999-2000 Budget
Mr. Horton gave a brief
review of the status of the 1999-2000 budget.
He explained that the Council had completed about half of the process,
having begun with a work session on January 16th and then a public
forum on January 27th. Mr.
Horton said that he would present the Manager’s Recommended Budget on April 26th,
prior to the Council’s scheduled budget work session on April 28th. He said that there would be a public hearing
on May 12th and that the Council would consider adopting a budget on
June 14th. Mr. Horton noted
that the schedule might vary, depending on the Council’s deliberations, and
recommended adding a work session during the week of April 5th or
April 12th.
Mr. Horton stated that the
General Fund tax rate was 49.8 cents.
He said that the cost of continuing present services in the General Fund
would be about $30,770,000, with no changes in the employee pay system. Mr. Horton explained that it would require
about 1/10th of a cent tax rate increase to sustain that. He pointed out that adding $50,000 for
landscape improvements on NC 86 and $710,000 for the new employee pay system
and correction of critical salary compression problems would add about 2.9
cents to the tax rate.
Mr. Horton noted, regarding
the Transportation Fund, that the 4.0 cent tax levy that was currently in
effect could continue if the Council were to eliminate the cross-town connector
route (which had not been performing well) and the Blue Line on Saturdays after
the Triangle Transit Authority begins its Saturday service. He said that the Town would not have to
raise fares in that case and would be able to continue all other services.
Mr. Horton stated that the
Town was working with County Manager John Link to prepare a landfill budget for
consideration by the County Commissioners as well as the Council. Noting that the County Commissioners would
take over responsibility for management of solid waste functions in the coming
year, Mr. Horton projected that all operations and services could be continued
with a $1.00 increase in tipping fees.
Mr. Horton pointed out that
the Housing Fund budget had already been adopted on March 1st, in
accordance with the federal development schedule. He said that the staff expected no major changes in any other
funds.
Mr. Horton reported that
base budget revenues continued to be strong, but were not strong enough to
cover all the additional costs that department heads had suggested for the
Council’s consideration. He stated that
those revenues totaled more than $1.5 million and were outlined in a table put
before the Council.
Mr. Horton said that he
looked forward to receiving the Council’s guidance and to hearing from citizens
at tonight’s public hearing.
b.
Preliminary Report on the
1999-2004 Capital Improvements Program
Claudia Paine, Long Range
Planner, presented a report on projects that were funded through the Town’s
Capital Improvements fund. She noted
that her report also included capital projects which are funded through bonds,
State and federal grants, and other sources. Ms. Paine noted that the plan proposed $704,000 to be allocated
for capital projects in the first fiscal year.
She said that the total amount proposed for the five-year period through
the Capital Improvements fund was $3,057,000.
Ms. Paine also pointed out that the total funds proposed for all capital
projects from all sources over the five-year period was $15,061,000.
c.
Proposed Community
Development Plan for 1999-2000
Chris Berndt, Long Range
Planning Coordinator, noted that the purpose of this evening’s public hearing
was to receive citizen comment on a proposed plan for the use of next year’s
Community Development funds. She said
that the amount available for 1999-2000 would be $434,000 in grant funds, plus
an additional $96,000 in program income, for a total of $530,000 for
1999-2000. Ms. Berndt noted that this
was the second hearing in a process aimed at an April 26th approval
date by the Council so that the staff could get an application in to the U.S.
Department of Housing and Urban Development by May 14th.
Ms. Berndt explained that
the federal program was designed to help low- and moderate-income families and
neighborhoods. She said that the
proposal for next year included public housing renovation and explained that
the Town hoped to complete the Craig-Gomains project (proposed at $150,000) and
to continue the refurbishing program ($80,000). Ms. Berndt said that the Community Development program had
allocated a potential $50,000 for neighborhood revitalization in Northside or
Pine Knolls. She also proposed
budgeting $75,000 to EmPOWERment, Inc. to pay a portion of the cost of
purchasing rental units in the Northside neighborhood.
Ms. Berndt requested an
additional $70,000 to continue the Scarlette Drive Homeownership Program. She proposed granting $15,000 to the
Literacy Council to help with computer literacy services in public housing
neighborhoods, and continuing the YMCA After School Day Care Program for
$20,000. Ms. Berndt also requested
$70,000 for administration of the Community Development program next year.
d.
Proposed 1999-2000
Comprehensive Grant Program for Public Housing Renovation and Resident Services
Tina Vaughn, Housing
Director, explained that the Town expected to receive about $399,000 in
Comprehensive Grant funds, plus about $150,000 from Community Development
funds, for a total of about $549,000 for the Public Housing Renovation and
Resident Services Program. She said
that the Town proposed continuing renovation work at the Craig Gomains
apartments. She noted that 30 of the 40
apartments were under contract and the remaining 10 would be completed in
1999-2000.
Ms. Vaughn reported that
$52,000 for Resident Activities would allow the Residents’ Council to provide
its staffing needs, including the addition of two part-time van drivers. She proposed $57,000 for general
administrative costs and architectural and engineering fees. Ms. Vaughn added that tonight’s comments
would be used to prepare a recommended plan for the Council’s consideration on
April 26th. She said that
the staff would prepare a final report to submit to the U.S. Department of
Housing and Urban Development by June 1st.
e.
Proposed 1999-2000 HOME
Program
Loryn Barnes, Community
Development Planner, noted that the purpose of the public hearing was to receive
citizen comment on how to spend the 1999-2000 HOME Program funds that the Town
would receive as part of the Orange County Home Consortium. She informed the Council that the Town would
receive approximately $437,000 of federal HOME Program funds to use for a
variety of affordable housing projects.
Ms. Barnes noted that the Consortium was required to contribute a 25%
local match and explained that Chapel Hill’s portion of that match was
approximately $40,000. She said that
the staff proposed using the local Housing Loan Trust Fund to meet this match
requirement.
Ms. Barnes pointed out that
the Consortium planned to use a total of $535,325 for projects. She said that the Consortium staff had
proposed to budget $147,625 for rehabilitation of owner- and renter-occupied
housing throughout the County, adding that a portion of these units would be
located in Chapel Hill. Ms. Barnes said
that the Consortium also proposed budgeting $100,000 to EmPOWERment, Inc. to purchase
a building in the Carr Court neighborhood in Carborro, $74,000 to the Orange
Community Housing Corporation for a project on Scarlette Drive, and $60,000 to
the Orange-Person-Chatham Mental Health Association to purchase condominiums
for mentally disabled residents in Orange County.
Ms. Barnes added that the
Consortium had also proposed $50,000 to Habitat for Humanity for land
acquisition and $60,000 to the Orange County Community Housing Corporation for
urgent repair. Ms. Barnes said the
remaining $43,700 would be appropriated to the Orange County
Department of Housing and Community Development for administration of the HOME
Program. She noted that the Housing and
Community Development Advisory Board had reviewed the proposal on March 23rd
and recommended it to the Council.
f.
Schedule and Process for
Hotel/Motel Tax Grant Funds for 1999-2000
Mr. Horton estimated that
about $28,000 would remain from hotel/motel tax proceeds to be allocated
through the grant program. He stated
that the Town already had begun advertising the possibility of grants under
this program. Mr. Horton said that
anyone who was interested could receive information from the Parks and
Recreation Department or from the Town Clerk’s Office.
g.
Proposed Downtown Service
District Map Amendment and Use of Downtown Service District Tax Funds
Ruffin Hall, Assistant to
the Manager, informed the Council that the Downtown Service District tax rate
was currently 6.2 cents per $100 of property value. He said that this generated about $46,000 per year for services,
such as supplemental sidewalk cleaning, promotion of the downtown area,
operation of a Welcome Center, and assistance in communication with downtown
businesses. Mr. Hall explained that the
Downtown Commission operated and performed these services through a performance
agreement with the Town.
Mr. Hall proposed a boundary
change that would remove the lot to the east of the former Andrews House lot
from the Downtown Service District. He
explained that the property, located on West Rosemary Street near Breadmen’s,
was under construction to become an apartment complex. He pointed out that changing the boundary to
take that property out of the district would be consistent with past Council
action of removing residential-only uses in the Downtown Service District.
Mayor pro tem Capowski,
noting that there were about 25 people signed up to speak, asked Council
Members if they had any clarifying questions for the Manager.
Council Member McClintock,
regarding the hotel/motel tax, requested a breakdown on money that the Town received
and how much the Town was required by law to spend on cultural activities. Council Member McClintock also asked if a
plan for Southern Park improvements would be reflected in the Capital budget. Mr. Horton replied that the Council would
have an opportunity to consider that.
He added that the only source of funding available for Southern Park
right now was that set aside by the Orange County Commissioners. Mr. Horton noted that no funds had been set
aside from the General Fund for that purpose.
Council Member McClintock
asked if spending HOME Program funds on Scarlette Drive would mean that
Meadowmont Affordable Housing could not be done. Mr. Horton replied that the Town had received a request from the
Orange Community Housing Corporation, which came in after other budget
materials had already been received. He
said that the staff had started examining that, and were trying to find a way
to fund the $50,000 request, but did not yet have a proposal.
Item 2—Public Forum on the 1999-2000 Budget and Related Items
a. Petition by Nancy Preston and Betty Cloutier, Co-Chairs of the Chapel Hill Public Arts Commission
Ms. Preston and Ms. Cloutier
petitioned the Council to include the Chapel Hill Public Arts Commission as a
line item in the 1999-2000 budget.
Mayor pro tem Capowski asked
if there was anyone attending the meeting who wanted to speak before the
Council on this line item. There was no
response.
b.
Petitions by Others
Richard Leber spoke on
behalf of Habitat for Humanity concerning the Consortium’s recommendation that
Habitat receive $50,000 from the 1999-2000 HOME Program fund. He explained that
Habitat hoped to receive $500,000 in private funds to be used for the purchase
and development of building lots. Mr. Leber, noting that land was scarce in
Chapel Hill and in southern Orange County, explained that the Habitat Board
hoped to purchase 17 lots to replace those that they would build on in
1999. He expressed confidence in
Habitat’s ability to purchased several tracts of land within the next three to
six months, and explained that the $50,000 in HOME funds would be used for land
purchases and later converted to deferred payment second mortgages to Habitat
homebuyers. Mr. Leber added that
Habitat anticipated using $10,000 in HOME funds per home for a total of five
homes completed and sold.
Steve England, of the Black
Public Workers Association (BPWA), expressed appreciation to the Council for
responding in the past and identified three remaining issues that he said
needed serious attention: housing,
unfair treatment in the workplace, and salary compression.
Mr. England said that the
BPWA believed that being able to live in the town where one worked should be
the right of every American. He asked
the Council to funnel a dedicated source of funds for this purpose every year,
and argued that the Town should supplement the diminishing federal funding for
affordable housing. Mr. England
explained that Council Member Brown had told him about an Inclusionary Zoning
resolution that she had put before the Council. He said that he supported that, but noted that this would not be
the first time that the idea had been supported by the Council or taken to the
State Senate. Mr. England asked what
the BPWA could do in conjunction with the Council’s efforts to influence the
Senate.
Council Member Brown
commented that she could not take credit for Inclusionary Zoning. She pointed out that she and Council Member
Bateman had put forth a proposal for a mixture of housing and that the staff
was working on that. Mr. England
replied that he had meant only to recognize the fact that Council Member Brown
had introduced the concept to him.
Roy Atwater, a member of the
BPWA, noted that Town policy in some Town departments differed from that
outlined in the policy handbook. He
said that some of his Department’s policies were impossible for him for various
reasons. Mr. Atwater said that he had
been penalized for leaving messages on voice mail when he would be late for
work, and asked the Council to compare the Town’s actual departmental policies
with those specified in the handbook.
Sim Burnett, a member of the
BPWA, asked that the Town put someone in the Personnel Department who was more
fair-minded.
Police Officer Melvin Smith
expressed concern about procedures and policies at the Chapel Hill Police
Department, which he said seemed to negatively affect African-American police
officers. He passed out an article
entitled “Glass Ceiling for Black Officers” which he said indicated that the
Town was not hiring African-American police officers. Officer Smith explained that he had been through several Town
Police Department promotion procedures and that they had been different each
time. He asked for “a level playing
field” and stressed that he meant that for white officers as well.
Officer Smith suggested that
the Council bring in someone from outside the Town to examine the Police
Department’s promotional process over the last 10 years and to come up with a
program that would give all officers a chance for promotion. Officer Smith,
noting that there was not an African-American in the command program, suggested
that it would improve the Police Department to have an African-American help
develop policies for the Black community.
Lonnie Degraffenreidt, a
member of the BPWA, said that newer, less experienced employees were making
more money than some who had been employed by the Town for five to ten
years. He reasoned that because of
this, new employees could live in Chapel Hill when long-time employees could
not. He said that this situation saps
the ambition of long-term employees, and asked the Council to examine the new
pay plan and the effects of compression.
Sam Ronn, a member of the
BPWA, who has been working for the Town for nearly six years, described how he
had to carry the workload for new employees who were making as much, if not
more, money than he was. He asserted
that new employees were able to negotiate their salaries, while others were
not. Mr. Ronn expressed pride in
working for Chapel Hill, but asked for fairer treatment for himself and his
co-workers.
Mr. England stated that Town
employees had not seen evidence of their own input into the new pay plan, such
as their wish for an across-the-board raise system. He stated that the 75% plan was a good idea, but cautioned that
it would lead to “a glass ceiling” which would worsen compression
problems. Mr. England argued that the
only solution, in addition to the 75% plan, was to give every employee with
five years of service a 1% increase above the normal raise. He explained that employees with 5, 10 and
15 years service would receive 1%, 2%, and 3%, respectively, under the plan,
until the 20th year. Mr.
England added that compression was leading to a morale problem among employees
who do not feel appreciated.
Mr. England asked the
Council to make Town policy toward employees more uniform, rather than letting
each department draw up its own policies.
He added that the BPWA would like to see someone on the personnel staff
who identified with minorities. Mr.
England concluded that the BPWA was asking for equal opportunity, clear
criteria for advancement, and policies that were enforceable.
Council Member Wiggins noted
that the Manager had taken past requests from BPWA and calculated the
costs. She asked if he was planning to
do that this time. Mr. Horton replied
yes.
Council Member McClintock
asked Mr. England to explain exactly which policies were lacking in
uniformity. Mr. England replied that
they ranged from unreasonable on-call issues to disciplinary policies that
varied greatly from department to department.
Council Member McClintock
asked the Manager to provide the Council with a copy of all departmental
policies. Mr. Horton agreed to do that.
Council Member Brown asked
if it was correct that the BPWA had three areas of concern: work policies, advancement, and concern over
evaluation policies. Mr. England
replied that these were areas that they had been talking to the Council about
for the last three years. He noted that
the BPWA brought eight issues before the Council in 1995, explaining that the
Council had addressed the other five.
Council Member Brown said
that she wanted to know if general work, evaluation, and advancement policies
were covered in each department’s written policies, and, if not, how they were
carried out.
Mr. England added that
disciplinary policy should be looked at as well.
Mayor Waldorf asked for
clarification of what was being requested.
Mr. Horton replied that the Council was asking for a copy of all of the
general work rule policies, evaluation policies, disciplinary policies, and
advancement policies for every department.
He said that the staff would be happy to provide that.
Mayor pro tem Capowski said
that he was still confused about what Mr. England wanted concerning the
compression issue. He asked Mr. England
how he would divide additional money up among Town employees if it were his
decision. Mr. England replied that the
BPWA would like to see a percentage applied to wages across the board, plus the
1% per five years idea which he had just outlined. Mr. England said, acknowledging that people with the higher
paying jobs would get a bigger sum, he thought everyone would be happy if everyone
were given a decent increase.
Lucy Lewis, Director of the
Orange County Literacy Council, explained that Community Service dollars would
help the Literacy Council expand the computer literacy project that it had
begun at the South Estes housing neighborhood.
She explained that those funds would go toward buying portable computer
equipment, educational software—GED, pre-GED, basic skills and keyboarding—and
some volunteer expenses such as copying, mileage and postage. Ms. Lewis stressed that these funds would
help the Literacy Council to improve the economic self-sufficiency of Orange
County residents.
Council Member Foy asked Ms.
Lewis to explain what the Literacy Council was doing at both South Estes public
housing and the Skills Development Center.
Ms. Lewis explained that they were working in a computer lab that had
been set up there and were teaching people who had not had any opportunities to
work with computers before how to use them.
She added that the Literacy Council was integrating computers with
literacy by using them for reading, writing, and basic math skills. Ms. Lewis explained that the Literacy
Council helped adult learners at the Skills Development Center by matching them
with tutors and providing space for them to work on basic skills.
Ms. Lewis pointed out that
having portable equipment would enable the Literacy Council to reach people who
were not able to come to the Skills Development Center. She added that the strength of the Literacy
Council had been that it was as flexible as possible in order to meet the
non-traditional needs in the community.
Council Member McClintock
asked if many teens took advantage of what the Literacy Council offered. Ms. Lewis replied that the Literacy Council
had focused on people who are 18 and older, because the schools had taken responsibility
for those under 18. She explained that
the Literacy Council had been talking with the School System about working with
parents so that they could better help their children.
Council Member Brown asked
how those who had received training had used those skills. Ms. Lewis replied that the needs of those
whom the Literacy Council had trained had varied, ranging from learning basic
computer skills to learning how to use spreadsheet programs. She added that they mostly teach keyboarding
and basic writing skills.
Mayor pro tem Capowski asked
why the Orange County Literacy Council was asking for funds from Chapel
Hill. He also asked what portion of
their budget came from Orange County.
Ms. Lewis replied that the funds they were requesting from Chapel Hill
would be used for Chapel Hill residents.
She added that the Literacy Council had asked for increases from all its
funding sources, noting that Orange County contributed about $10,000 of the
Literacy Council’s $117,000 budget.
Mayor Waldorf asked how much
the Literacy Council would ask from the County this year and what it would be
used for. Ms Lewis replied that they
were asking for $15,000 to help increase staff hours. She added that what the Literacy Council provided was consistent
with what Community Block Development money was intended for in terms of
reaching the needs of low-income communities and targeting those in Chapel
Hill’s public housing and low-income neighborhoods. Ms. Lewis said that the Literacy Council saw this as a one-time
expense for portable equipment and educational software.
Robert Dowling, executive
director of Orange Community Housing Corporation (OCHC) asked for $50,000 from
Community Development Block Grant (CDBG) funds and/or the HOME Fund to pay
engineers and architects. He explained
that OCHC anticipated submitting a Special Use Permit for 32 Meadowmont
townhomes, and hoped to have the building permits a year from now. Mr. Dowling said that OCHC was also asking
for an additional $8,000 in the operational budget so that it could take on the
Land Trust administration as the Council had requested. He said that OCHC also needed more than CDBG
and HOME money to produce housing that would allow Town employees to live in
Chapel Hill. He pointed out that
affordable housing needed both subsidy and density.
Curt Coomes, representing
Abode, a local coalition of housing service providers including OCHC, Habitat
for Humanity, InterFaith Council, EmPOWERment, Orange-Person-Chatham Mental
Health, Freedom House, KDA, and the Caremore Community, emphasized Mr.
Dowling’s point that there was a need for greater funding for affordable
housing. He said that Abode and the
Martin Luther King Coalition had been discussing the need for a dedicated
revenue source and would like to propose an idea that had been endorsed by
EmPOWERment, OCHC, Habitat and the Martin Luther King Coalition.
Mr. Coomes proposed that the
Town allocate an amount equal to one penny on the property tax rate to
establish a permanent fund for affordable housing in Orange County. He said that this would be roughly estimated
at $245,000 for Chapel Hill. Mr. Coomes
explained that Abode would make similar requests to Carrboro, Hillsborough, and
Orange County. He said that this plan
could yield $650,000 which could be put into the Home Consortium, which already
was an established vehicle for distributing funds on a County-wide basis.
Mr. Coomes said that Abode
had begun talking with the Legislative Delegation about legislation to allow
the County to levy a special tax for this fund. He noted that this would not occur before the fiscal year begins,
and explained that Abode was coming to Chapel Hill and other towns now for a
good faith commitment.
Alison Weiner, a member of
the Steering Committee for the Community Land Trust of Orange County and the
Board of Directors of Orange Community Housing, expressed support for Abode’s
proposal. She said that the Town was
falling short of its goal of providing affordable housing for everyone who
lived and worked in Chapel Hill. Ms.
Weiner asked the Council to take the lead in actively creating funding
resources, such as the penny proposal just described.
Gloria Williams, executive
director of JOCCA, Inc., asked for continued support for the Title 3C
Congregate Nutrition program for senior adults. She explained that JOCCA, Inc. had been located in the old
Northside building for 33 years. Ms.
Williams said that the Northside Senior Center served an average of 45-50
seniors each day and invited Council Members to visit.
Rosa Preyloe, an 86-year-old
resident of Chapel Hill, petitioned the Council to continue the Senior
Nutrition Program, which she attended every day. Ms. Preyloe stated that seniors should be recognized because they
were the ones who helped build the Town.
She stressed that the Nutrition Program was vital to their health and
wellbeing, and commented that without the Council’s help some seniors would not
eat a hot meal each day.
Betty Foushee petitioned the
Council to continue funding the JOCCA program, which she said was very
important to seniors like herself.
Robbie Borgesi, a Chapel
Hill firefighter, asked the Council to support the proposal before them for an
additional fire truck and manpower because it would increase safety levels and
response to the community. He said that
there were certain parts of Chapel Hill that were not covered at some times
during the day without having to depend on mutual aid. Mr. Borgesi said that since 1982 services
and emergency responses had increased up to 600%, dwellings had increased by
42%, and the University had increased by 37% in square footage.
Council Member McClintock
asked Mr. Borgesi to elaborate on his remarks about the Town not being covered
at various times. Mr. Borgesi explained
that if his department received a call from a local street, four trucks would
respond. He said that, if there were
another fire on another street during that same time, the Fire Department would
have to call Durham, New Hope, or Carrboro for help. Mr. Borgesi noted that it might take 7-10 minutes for those
firefighters to arrive, and when they did arrive they would not know the Town
as well as local firefighters did.
Mayor Waldorf asked the
Manager to provide the Occupational Safety and Health Administration
requirement in writing as well as a comparison of the numbers of firefighters
per capita in Chapel Hill and other communities. Mr. Borgesi responded that the ratio was one firefighter per 416
residents in other communities and roughly one per 865 resident in Chapel Hill.
Mayor Waldorf noted that she
also had been asked how Chapel Hill’s fire insurance ratings compared to those
of other communities and what, if anything, that said about the Town’s Fire
Department and its staffing levels. She
added that obtaining this information would help the Council to make a decision
on Mr. Borgesi’s request.
Kevin Elvin, a Chapel Hill
firefighter, asked for a quick attack pumper and two additional personnel per
shift. He also pointed out that the
information Mayor Waldorf requested was included in the Firefighters Report to
the Town.
Council Member McClintock
asked the Manager to also determine the increase in the number of units served
since 1982.
Miles Presler, of
EmPOWERment, Inc. stated that EmPOWERment had helped 13 families to buy their
first homes over the last 11 months. He
said that they would help about five more over the coming three months. Mr. Presler explained that EmPOWERment, Inc.
wanted to purchase two multi-family units (in Northside and in Carr Court) and
hoped to help finance this with $175,000 in Community Development funds and
$200,000 in HOME funds. He expressed
appreciation to the Town for recommending funding for both projects. Mr. Presler noted, though, that this would
not fully fund the project. He added
that EmPOWERment might lose both buildings if they could not move quickly
because they would have to depend on bond money alone.
Council Member Wiggins asked
if receiving $200,000 less than they had requested was going to prevent EmPOWERment,
Inc. from proceeding with either project.
Mr. Presler replied that there was a risk of losing both properties, but
added that EmPOWERment was trying to purchase one this summer with an option to
purchase the other later on. He
suggested that the Town might reallocate funds so that Orange Community Housing
Corporation would receive the $75,000 in Community Development funds currently
earmarked for the EmPOWERment project at Northside and EmPOWERment would
receive the $74,000 currently earmarked for Orange Community Housing
Corporation’s project on Scarlette Drive.
Council Member Foy asked if
any of the purchase money would come from private sources. Mr. Presler replied that at least half of
the purchase funds would come from a local lender, mentioning BB&T in
particular.
Council Member Wiggins asked
the Manager about the trade with OCHC funds that Mr. Presler had
suggested. Mr. Horton replied that the
staff needed to work with each of the agencies to see what they could put
together to solve the problems.
Kim Hoke, representing the
Middle School After School Steering Committee, noted that the Council had
previously supported the Committee’s programs at Phillips and Culbreth Middle
Schools, but had encouraged the Committee to seek grant funding as well. She explained that the Committee had applied
for a federal grant, and she asked the Council to continue funding the Program
as a separate line item. Ms. Hoke
stressed that the Program, which was growing, served a disproportionate number
of low-income children whose parents did not have any other resource.
Council Member Bateman asked
what the Middle School After School Program’s total budget was. Ms. Hoke replied that, County-wide, for
personnel alone, it was close to $70,000.
She said that the appropriation last year was $35,000, noting that did
not include what the School System provided—such as facilities, equipment, and
two late buses for transportation home at the end of the day.
Council Member Bateman asked
about the amount of the requested federal grant. Ms. Hoke replied that it would be about $200,000, and would
support programs at both ends of the County.
Council Member McClintock
asked what percentage of the overall population comes from Chapel Hill. Ms. Hoke estimated that it was about 90% for
Phillips and Culbreth, pointing out that the Town’s money was restricted to
those two schools.
Mayor pro tem Capowski,
stressing that he did not want his question to sound derogatory, asked why the
Town should fund a school program. Ms.
Hoke, referring to written information that she had provided earlier, explained
that the School System’s budget was restricted to programs that ran between
8:00 a.m. and 3:00 p.m. She said that
the School System supported the after school program by providing facilities
and buses. Ms. Hoke pointed out that
the Middle School After School Program addressed a community need and was
initiated by community representatives because of concern about the whereabouts
and alternatives and resources for young adolescents after school hours. Ms. Hoke, quoting the saying “it takes a
whole village...,” noted that the
Schools System could not do everything by themselves.
Harvey Goldstein, speaking
on behalf of the School Board, noted that the community’s awareness of the
problems of at-risk youth had recently heightened. He cautioned that this was not the season to cut back on programs
for at-risk teens. Mr. Goldstein stressed
that the School System did take responsibility for the issue, pointing out that
it had recently started Phoenix Academy for students who were at great risk for
dropping out of school and would be requesting funding for preparatory
academies to help struggling elementary school students gain grade level
proficiency.
Mr. Goldstein pointed out
that the School System did not receive funding for after school programs. He said that it was spending considerable
resources on trying to prevent students from dropping out, and asked the
Council, in the spirit of working together as a partnership, to continue
funding the Middle School After School Program. Mr. Goldstein suggested taking the $35,000 out of Human Resources
and including it in a separate line item so that funds would remain dedicated
to this program.
Bob Seymour argued that many
children in the community needed after school care but could not afford
it. He stated that the Council’s
commitment of $35,000 would be a good step toward providing care for every
child in the community whether they could afford it or not. Mr. Seymour suggested keeping this as a line
item in the budget so that it would not have to compete with other agencies in
future years.
Michael Ullman, volunteer
Executive Director of Community Cuisine (CC), asked the Council to think of CC
as an economic development program at the first level. He explained that it served a niche which
was not being covered by other programs.
Mr. Ullman told the Council that CC had been in existence for 2-1/2
years and had never before asked the Town for support. He said that CC had originally submitted a
request for $35,000 under the CDBG, but had come before the Council with a
request for $10,000. Mr. Ullman said
that CC had a strong need for the $10,000, having submitted about 24 grants
last year and receiving four or five in various amounts.
Council Member Evans asked
if CC was seeking support from the County as well. Mr. Ullman replied that they had not, noting that about 95% of
the people CC served were from Chapel Hill.
Council Member Bateman asked
where, besides the InterFaith Council, CC got referrals. Mr. Ullman suggested that the next speaker
answer that question.
Will Alexander stated that
CC’s model was based on core values of education and self-sufficiency in the community. He explained that referrals come from
parents of students that CC had taught or from friends of adults whom they had
trained. Mr. Alexander added that he
also worked at the Community Shelter and recruited clients from there. He said that CC had worked with 24
individuals in 1998 and had about a 40% placement rate. He pointed out that emphasis in the Youth
Program was on summer enrichment, rather than job placement, because clients
return to school in the fall.
Mr. Alexander added that CC
had begun its own catering business and should soon have some direct employment
within their own organization for the people they train. He noted that they had more business than
they could handle with the small amount of catering that they already were doing.
Council Member Foy asked if
CC also generated revenues. Mr.
Alexander said that they were beginning to, adding that they recently hired an
executive chef to plan the catering business.
He explained that the goal was to have the executive chef generate
enough catering for CC to hire their own in-house people for direct
employment.
Council Member Foy asked if
CC planned to have 24 people in the program again this year. Mr. Alexander replied that they would work
with more than 50 people in the year 2000, probably graduating between 24 and
30.
Council Member Brown asked
if CC followed up to see how long graduates remained employed. Mr. Alexander replied that CC committed to a
year of ongoing communication with their graduates. He noted that this commitment was critical because many of their
students were in and out of drug relapse and needed ongoing case management
support.
Council Member Evans asked
where the classes were held. Mr.
Alexander replied that CC had a Faith
Community partnership with the University United Methodist Church and used
their kitchen facilities.
Council Member Bateman
praised CC’s truffles.
Mayor Waldorf added that she
had been a taste tester at one of their cook-offs and thought the food was
great.
Charles DeBose, Chairman of the Housing and Community Development Advisory Board, said that after reviewing the Comprehensive Grant proposal, the Board had suggested that the Council change the current item listing from Residents’ Council Activities (funded at $52,000) to Residents’ Activities, in order to keep open the possibility of funding another more far-reaching project or activity.
Mr. DeBose said that the
Board believed that their funding should be higher than was currently stated
because a project proposed by the Good Works Program had been funded for two
years but no funds had been drawn for it.
He said that if this were true, the Board would request that those funds
be reappropriated for projects such as Community Cuisine. Mr. DeBose’ also suggested that the Town
look at using Capital Improvements funds to provide sidewalks in neighborhoods
surrounding the Hargraves and Northside communities, which was becoming a
connector route between Carrboro and Airport Road.
Council Member Brown asked
Mr. DeBose to further explain what he meant by broadening Residents’
Activities. He replied that the Housing
Board has had discussions with the Residents’ Council about looking for outside
funding and concentrating more on community organization. He noted that if the Residents’ Council
followed the Board’s advice these funds could then be used for other worthy
programs in the community.
Council Member Brown asked
if he was talking about the fiscal year 2000-2001, and Mr. DeBose’ replied that
he was, adding that he was not questioning the $52,000 in the budget for the
Residents’ Council this year.
Council Member Bateman asked
if some of the $52,000 covered educational programming and development. Mr. DeBose’ replied that it did not. He said that it all went toward staffing.
Council Member Evans asked
the Manager to check on the Good Works funding that Mr. DeBose’ said had not
been used and see if it could be allocated to Community Cuisine.
Marshall Eisenhour, speaking
on behalf of Tax Watch, asked the Council to be sensitive to the property
burden that had already reached a painful level for many permanent residences
and businesses. He asked the Council to
resist pleas from special interest groups who would use public funds to fulfill
their desires rather than the needs of the general public. He urged them to remember that the Town’s
role was to provide services that others could not reasonably provide. Mr. Eisenhour claimed that the cost of
government in Chapel Hill had outpaced by a large margin both the Town rate of
growth and the rate of inflation. He
said that the Council needed to cut costs, diversify the tax base, and get its
fair share from the University and the County.
Ruby Sinreich, coordinator
of the Martin Luther King Coalition of Chapel Hill, expressed support for the
one penny for affordable housing proposal.
She suggested that this proposal not be viewed as a new request for
affordable housing, which the Town had been working on for a long time, but as
a new proposal for how to resolve it.
Ms. Sinreich, noting that the Town had done a lot to leverage funds from
State and federal sources, said that it was important to have a dedicated local
source for affordable housing.
COUNCIL MEMBER PAVÃO MOVED,
SECONDED BY COUNCIL MEMBER EVANS, TO ADOPT RESOLUTION 1, REFERRING THE DRAFT
CAPITAL IMPROVEMENTS PROGRAM TO TOWN ADVISORY BOARDS. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
A RESOLUTION REFERRING THE PRELIMINARY REPORT ON THE 1999-2004 CAPITAL IMPROVEMENT PROGRAM TO TOWN ADVISORY BOARDS FOR REVIEW AND COMMENT (99-3-30/R-1)
WHEREAS, the Capital Improvements Program is
developed annually to provide funding for capital and infrastructure projects
for the Town; and
WHEREAS, this Preliminary Report is the initial
stage in the process to develop a Capital Improvements Program for fiscal years
1999-2004; and
WHEREAS, the Council annually invites Town advisory
boards to provide comments and recommendations on the Capital Improvements
Program for the upcoming five-year program period;
NOW, THEREFORE, BE IT RESOLVED by the Council of the
Town of Chapel Hill that the Council refers the Preliminary Report on the
1999-2004 Capital Improvements Program to the following Town advisory boards
for their recommendations: Community Design Commission, Greenways Commission,
Historic District Commission, Housing and Community Development Advisory Board,
Library Board, Parks and Recreation Commission, Planning Board, and the
Transportation Board.
This
the 30th day of March, 1999.
Mayor Waldorf asked if the
Council had any questions on the content of the public hearing.
Council Member McClintock
asked the Manager to make a list of all the requests that the Council had
funded last year where the funds were not entirely used. She also asked if the Council would consider
having some of the new subsidized projects, such as Scarlette Drive, offer a
package that would make it attractive to Town employees. Council Member McClintock asked for more
information on why Workers’ Compensation expenses were so high. She also said
that she was interested in seeing a budget with options. Council Member McClintock requested a
freestanding list of grants and projects that the Town funded that were not
reviewed by the Human Services Advisory Board.
Council Member Wiggins asked
if there were any funding requests in addition to what was in the Council’s
packet. Mr. Horton replied that there
were not. Mayor pro tem Capowski asked to see the value of in-kind contributions
added to the list.
Mayor Waldorf said it seemed
reasonable to ask OCHC to make an outreach effort to Town employees. She asked Council Member McClintock if she
had any ideas about what else the Council could do. Council Member McClintock replied that she wondered if there was
a way to structure it so that Town employees would be favored over other
applicants for affordable housing, if they fall into the same guidelines.
Mayor Waldorf asked whether
or not the Council wanted to do any more than having the staff inform Town
employees about housing opportunities as the come available.
Council Member Evans noted
that it was difficult to subsidize some but not all.
Council Member McClintock
said that she was merely proposing an idea to be explored and asking for more
information about how it might work if implemented.
Council Member Evans
recalled that the Council had once discussed having police and firefighters
live in the communities where they provided coverage.
Council Member Wiggins said
that she was interested in the idea but questioned the timing, asking if it
would be related to this year’s budget.
Council Member McClintock
said that it could be done without added expense to the Town, and would not
pertain to the budget. She explained that
she was responding to the Black Public Workers Association’s concerns.
Mr. Horton suggested that
the Council request the housing agencies to comment on this idea. He added that he would appreciate that
because the staff was working hard on budget issues and it would help not to
have to take on a policy exploration at the same time.
Council Member Brown asked
what housing agencies Mr. Horton recommended, other than OCHC. He replied that Habitat for Humanity,
EmPOWERment, Inc., OCHC, and any others who produce housing would be familiar
with the laws and could estimate the impact of incentives or restrictions that
might be imposed.
Council Member McClintock
expressed interest in obtaining the Housing Commission’s opinion as well.
Mayor pro tem Capowski asked
if the Manager would be proposing the budget before or after the work
session. Mr. Horton replied that the
Council would receive a budget proposal from the Manager on April 26th. He stressed that it would be helpful if the
Council could make progress in their deliberations before the staff began
putting down their final set of numbers for the Council’s consideration. Mr. Horton added that this was why he
suggested scheduling an additional budget discussion the week of April 5th
or 12th.
Mayor pro tem Capowski
pointed out that this might not be a good year for activities that did not
directly relate to the Town’s fundamental mission. He suggested that groups whose work was outside of Chapel Hill,
especially those who were actually providing County functions, be funded on a
competitive basis rather than as line items.
Mayor pro tem Capowski also argued that the Town’s 336 units of
affordable housing should take priority over others and asked the Manager to
summarize in a memo how all of the U.S. Department of Housing and Urban
Development money was being spent. He
remarked that it was not a good idea to require tax increases of citizens in
order to put money in the bank.
Council Member Brown
requested information about the funds that had not been used.
Council Member Evans asked
if there were Council requests for funding that could be put off for six months
so that they would incur the cost for only six months. Mr. Horton replied that the only two
requests that the Council had made so far were $100,000 for the sewer
assistance fund and $50,000 in matching funds for NC 86 landscaping. He added that both of those items were
discretionary to the Council.
Mr. Horton noted that one
option would be to let NCDOT finish NC 86, see what it looked like, and then
get citizens from that corridor involved in figuring out how to use additional
funding, rather than having NCDOT or Town staff make the decision
exclusively. Mr. Horton added that
doing that probably would cause the Town to miss the next planning session and
would put it off to another budget year.
Mr. Horton explained that the Council had expressed the desire to build
the sewer assistance fund. He said that
putting that off would mean changing the policy that the Council had set.
Council Member Evans asked
if the Town would be in danger of losing the matching funds from NCDOT if it
were to put off the landscaping along NC 86.
Mr. Horton replied that they would not be in any worse position, since
they did not now have a guarantee of getting funds. He added, though, that one never knew how things might change in
a succeeding year.
Council Member Evans asked
if an additional fire crew could be added for six months rather than a
year. Mr. Horton replied that it could
be done for a portion of a year, adding that six months probably was at the
edge of what the Fire Chief would consider without reservation.
Council Member Evans asked
if the allocated $440,000 was the amount needed to renovate 10 units at
Craig-Gomains. Housing Director Tina
Vaughn replied that those funds would be for the actual renovation work plus
architectural fees.
Council Member Evans
requested a report back on the other 30 units to determine whether the
allocated amount was consistent with those.
Mr. Horton replied that he would provide a budget recast.
Council Member Wiggins
recalled that the Manager had once told her that it made sense to reallocate
resources during lean times. She noted
that considering a substantial tax increase
indicated lean times and asked the Manager to suggest how to reallocate
funds. Council Member Wiggins also said
that she differed philosophically from Mayor pro tem Capowski in that she would
not want Human Services to be the first place looked at for cuts because
everyone benefited when everyone could enjoy a certain standard of living.
Council Member Foy asked
what the natural growth in revenues would be without a tax increase. Mr. Baker replied that it would be about the
same as in prior years. Mr. Baker estimated
about $60 million in assessed value in the tax base, which he said was a little
higher than the estimated value for last year and a little less than it
actually turned out to be. He estimated
about the same increase in State-shared revenues as in prior years—about 5% in
sales tax, 4% in franchise tax, and 3% in Powell Bill, for example.
Mr. Baker explained that all
other revenues showed about the same amount of growth as in past years. He added that building permit estimates were
a little higher than last year and about the same as the Town expected to
receive this year. He stated that he
would not classify this year as one with tighter than normal revenues, adding
that it was a year with a lot more requests on the expenditure side.
Council Member Foy asked
about the total increase in revenues in the General Fund. Mr. Baker pointed out that the property tax
increase was $225,000, licensee and permits was a little less and State-shared
revenues was $375,000. He said that the
comparison in the grants category between this year and next was less because
the Town had received increased federal funds for additional police officers.
Mr. Baker said that the bottom line looked like it was only about a $300,000
increase, but there were two categories where there was about a $600,000
increase and it was only the grants line item where there was a significant
change.
Council Member Foy asked for
the amount of the Town’s contribution to the Capital Improvements Fund. Mr. Baker replied that $300,000 went to the
Capital Reserve Fund and $300,000 went to the Capital Improvements Fund.
Council Member Foy inquired
about base budget costs on page 5, Section A:
$100,000 in operating costs and $30,000 for property and liability
insurance. He asked if they were normal
increased costs. Mr. Horton replied
that they were.
Council Member Foy noted
that the Community Development Grant part of the budget showed about $150,000
for renovations to Craig-Gomains, then another $440,000, and then another
$80,000 for refurbishing. He asked if
the second two amounts were for Craig-Gomains as well. Mr. Horton replied that refurbishing funds
could be for refurbishing all units on a five-year schedule.
Council Member Foy asked if
the $150,000 and the $400,000 was for ten units. Mr. Horton replied that he thought it was for landscaping and
stormwater work. Mr. Horton added that
the full cost would be clearer when he presented the recommended budget.
Council Member Bateman,
referring to the cost of the pay plan on page 8, asked if the additional four
funds would generate enough revenue to cover that. Mr. Horton replied that the Town already earmarked funds to cover
the cost of the parking, housing, landfill, and transportation funds. He explained that he had identified them separately
so that the Council would know how much was earmarked in that regard.
Council Member Bateman asked
if the recommendation for the employee pay plan is a 3% Cost of Living
adjustment, a 4.75 average merit and $710,000 General Fund for implementation
of the pay consultants recommendation.
Mr. Horton explained that the total cost for everything was $710,000 in
the General Fund.
Mayor Waldorf explained that
the costs of the pay plan, if it were implemented in the other funds, would be
covered by projected revenues. She
added that the pay plan recommendations were not more expensive than anything
the Town had done on salaries in the past.
Mayor Waldorf said that if
Council Members had suggestions regarding programs or services which they
thought were less useful, they ought to make them.
Council Member Evans asked
what the anticipated revenue for next year and the following year was. Mr. Horton replied that information was
provided in the five-year projection given to the Council in January.
Council Member Evans asked
if it included the anticipated increase in the number of permits. Mr. Horton replied that it did not, adding
that the Town has never been able to find any useful correlation between a change
in permits that were issued and paid for and a change in the tax base.
Mr. Horton said that the
staff had been able to figure out, through observation, whether a change in the
permit receipts in a particular year was anomalous or consistent with what one
would expect. He explained that when it
was anomalous they discount it and do not consider it the next year. Mr. Horton added that it was easier to make
predictions with regard to the tax base because it had grown at a fairly steady
pace in Chapel Hill for a long time.
Council Member Bateman asked
the Manager to provide a pie graph showing what the tax increase would be used
for. Mr. Horton replied that the staff
would show where the costs have changed.
Council Member Brown asked
how delaying some requests would fit in with the annexation of Southern Village
and the income from the housing there.
Mr. Horton replied that he did not think it would be possible for the
Town to annex Southern Village unless it employed at least six firefighters
during the next year. Mr. Horton
explained that, if the Town authorized the additional fire personnel, Southern
Village could be annexed by July 1, 2000.
He said that training 12 new firefighters this year would compromise the
culture and traditions of the Fire Department and recommended hiring six this
year and six next year.
Council Member Brown asked
if property taxes from Southern Village would cover the cost of services there,
such as fire and police. Mr. Horton
replied that he thought so, but added that he would do a detailed service plan
and a detailed revenue and cost estimate if the Council wanted to proceed with
annexation.
Council Member McClintock,
noting that she did not need answers to these questions now, asked if the Town was budgeting anything for
Northern Community Park. She added that
it would be useful to see in writing what the Town was spending—including
federal, local and State funds—for affordable housing. Council Member McClintock commented that she
thought leaf collection was important.
She asked if the Manager thought that present in-house employment of
folks on street crews to build sidewalks is still a good idea. Council Member McClintock also said that it
would be helpful to gather data on UNC’s growth and on how that affected
services the Town provided.
Mayor Waldorf asked Mr.
Baker when the Town was scheduled to sell the next batch of bonds. Mr. Baker replied that it would be after
January 1, 2000. Mayor Waldorf noted
that the $318,000 additional principal and interest payments on bonds would
reflect that sale as well as the increasing debt service costs on the bonds
that the Town issued about a year and a half ago. Mr. Baker replied that if the Town sold the bonds after January 1st
there would be no additional debt service due to the new bonds in 1999-2000.
Council Member Bateman
remarked that speakers at an Erosion Control Workshop had said there could be a
savings in not building state-of-the-art sidewalks. She asked for a response from the Manager on lowering the Town’s
standards in this regard.
Mayor Waldorf noted that the
Town had put asphalt paths along Weaver Dairy Road and Estes Drive. She said she agreed with Council Member
Bateman, adding that she was an advocate of those paths but wondered if they
complied with the Americans with Disabilities Act.
Mr. Horton recommended
discussing this after the budget process because it might be a way of
stretching dollars but was not essential to the budget process.
Council Member Wiggins
inquired about the stagnant water standing in a deep ditch on Kingston
Road. She asked if that needed special
allocation or if it could be addressed out of the Public Works budget. Mr. Horton replied that the Public Works
Department had done some work on it from time to time. He said that he did not know the details but
could get a fuller report. Council
Member Wiggins noted that the area was becoming a health hazard.
Mayor Waldorf reminded the
Council that there had been a suggestion to schedule another budget work
session. She urged Council Members to decide what to focus on and asked the
Manager what he had in mind in terms of timing. He suggested a few hours during the week of April 5th
or 12th. After discussion,
the Council agreed to meet on April 15th.
Council Member Foy
recommended putting requests on a list in terms of the tax rate if the goal was
to identify how much they would have to raise taxes.
Mayor Waldorf suggested that
the Council eliminate the things that they know they would not be able to do,
perhaps by putting the tax rate beside each item. She said, acknowledging that the choices would be hard, that it
would become obvious that there were a number of things on the list that the
Town would not be able to fund. Mayor
Waldorf pointed out that making a list would get some things out of the way so
that the Council could focus on what it really needed to grapple with.
Mr. Horton commented that
Council Member Wiggins’ suggestion that the staff try to reallocate funds was a
reasonable one, but noted that the Council might not be satisfied with the
staff’s recommendations. He suggested
that the Council indicate to the best of their ability the things which they
thought would not be worth the community’s money given the difficulties that
the Town faced this year.
Council Member Wiggins asked
Mr. Horton if he could indicate how much would be saved on the tax rate next to
programs that could be given up. She
added that she was going to ask a staff person to do the calculations for her. Mr. Horton agreed to run out all of the tax
rate equivalents.
Mr. Horton said, in response
to Council Member Foy’s inquiry, that the staff would give the Council a list
of every request that had come in which had not received funding, and how it
had been dealt with.
Mayor Waldorf noted that
there had been several memos given to the Council which they had not discussed,
such as garbage collection and leaf collection. She asked if they wanted to discuss those items on April 15th.
Council Member McClintock
asked the Manager for information regarding the Town Attorney’s request for an
additional attorney. She expressed
interest in knowing what other Towns were doing and whether it was important to
have legal representation at Town advisory committees, other than the Board of
Adjustment. Mr. Horton noted that if
the Attorney were present he probably would note that the Board of Adjustment
was a quasi-judicial board, which made that one a little bit different.
Council Members agreed to
add an extra budget session on April 15th at 7:00 p.m.
The meeting was adjourned at
10:30 p.m.
The minutes of
March 30, 1999 were adopted on the 24th day of May, 1999.
__________________________________________
Joyce A. Smith, CMC