SUMMARY MINUTES OF A PUBLIC HEARING AND FORUM

ON THE 2000-2001 BUDGET AND RELATED ITEMS

WEDNESDAY, MARCH 29, 2000 at 7:00 P.M.

Mayor Rosemary Waldorf called the meeting to order at 7:00 p.m.

Council members present were Joyce Brown, Flicka Bateman, Pat Evans, Kevin Foy, Lee Pavão, Bill Strom, Jim Ward, and Edith Wiggins.

Staff members present were Town Manager Cal Horton, Assistant Town Managers Sonna Loewenthal and Florentine Miller, Town Attorney Ralph Karpinos, Assistant to the Manager Bill Stoddard, Finance Director Jim Baker, Housing Director Tina Vaughn, Community Development Planner Loryn Barnes, and Acting Town Clerk Toni Pendergraph.

Introduction by Town Manager

Town Manager Cal Horton explained that the Town Council had been involved in the budget deliberation process since mid-January and would continue to work on developing a final budget until near the end of the fiscal year.  He listed the items to be discussed:

1.      Report on development of the 2000-2001 budget proposal.

2.      Preliminary report on the 2000-2005 Capital Improvements Program (R-1).

3.      Proposed Community Development Plan for 2000-2001.

4.      Proposed 2000-2001 HOME Program.

5.      Preliminary proposal for 2000-2001 Comprehensive Grant Program for public housing renovations and resident services.

6.   Proposed use of Transportation Grants in 2000-2001.

7.   Use of Downtown Service District tax funds in 2000-2001.

Mr. Horton said that the budget proposal would be presented to the Council on April 24^th.  He emphasized to the public that tonight’s material would be a report on the development of the budget, not the budget itself.  Mr. Horton called the Council’s attention to the spreadsheet summary, and pointed out that the recommended General Fund tax rate is 52.4 cents and the Transportation rate is 3.9 cents, totaling 56.3 cents. 

So far, Mr. Horton said, the staff predicts a change in the tax rate in the General Fund of about 3.1 cents, and if present services are maintained, an additional 4/10 of a cent for a total of 3.5 cents.  He asked the Council to consider a fare free bus service, which would cost about 6/10 of a cent more.

Mr. Horton noted that the staff had adjusted its revenue estimates because of the Council’s wish to consider adjustments in fees.  He said that some growth is expected in the property tax base and that annexation of the Inglewood Subdivision would make a contribution to the property tax base of about $128,000.  Mr. Horton reported that the Town may be able to make an adjustment in revenues expected from inspections permits of about $100,000, based on the current trend and on what the staff has forecasted for the next year.  He added that changes proposed—in engineering fees, privilege licenses, miscellaneous adjustments, and other fees—could add more than $150,000. 

Mr. Horton stated that the staff also believes that the Town may be able to adjust the Planning Department’s development fees, which would bring in an additional $80,000.  He recommended that the Council consider using $215,000 in interest earnings on bond proceeds to help pay next year’s debt service, thereby implementing the additional cost of that debt service in two stages.  Mr. Horton recommended reducing the amount estimated from parking fines, and noted that there would be an increase in the Transportation Fund indirect cost.  He said that, altogether, these changes in revenue would add about $600,000, which is equivalent to 2.0 cents on the tax rate.

Mr. Horton explained that some of the major items driving the recommended tax rate increase were: $430,000 in debt service, $789,000 in adjustments for employees, and an additional $100,000 for the Small Capital Improvements Program.  He recommended using installment financing to carry out some large projects and pay for them over a 10-year period of time.  Mr. Horton pointed out that the staff had included the cost of annexation for Inglewood ($15,700) and Southern Village ($99,000).   He recommended that the Council schedule at least one additional budget work session, or more, suggested during the week of April 17th.

Mr. Horton noted that the preliminary report on the Capital Improvements Program is a continuation of the staff’s effort to begin implementing the 15-year Capital Improvements Program as instructed by the Council.    He remarked that they had begun with enthusiasm, believing that it was worth the effort and that it will pay off greatly for the Town.  He added that the Capital Improvements Program would help identify needs that would not otherwise be identified, and would assist in determining how to meet those needs.

Mr. Horton listed five projects for consideration for installment financing: the IFC Shelter (located in the old Municipal Building), the old Post Office building, the Glenwood Fire Station, the Hargraves Center, and the A. D. Clarke pool and bathhouse.  Altogether, he said, those renovation would cost about $1,300,000.  Mr. Horton advised bringing those to the Council on a 10-year installment financing basis, which he said the staff thinks is favorable and would serve the best interests of the community. 

Mr. Horton noted that his report also included a listing of “much-needed but as yet unfunded capital improvements projects,” which would need to be considered in the near term.  He added that the report includes a summary of bond projects, a list of projects funded by grants from others (not including the Transportation improvement program), and a list of longer-range projects that would give the Council a sense of some of the things that department heads are beginning to be concerned about.

Mr. Horton pointed out that the Community Development Program involves $466,000 to be used mainly for renovation of public housing, to support the Meadowmont Affordable Townhomes Project, and for neighborhood revitalization.  He said that the proposed 2000-2001 HOME Program totaled about $536,550, with $438,000 coming from the federal government.  Mr. Horton said that there would be $130,000 set aside for the Abundant Life Center and for urgent repairs.  He added that $80,000 is recommended for further support of the Meadowmont Affordable Townhomes and $120,000 for support or rehabilitation of homes to be used by clients of the Orange-Person-Chatham Mental Health Agency.

Mr. Horton explained that the 2000-2001 Comprehensive Housing Grant Program would be devoted entirely to improving the public housing stock.  He recommended that all of those funds be allocated to improvement of the apartments on Lindsay Street.  Mr. Horton noted that Transportation Grants would total about $1.3 million for operating assistance next year, and that he would expect to use about $280,000 in federal funds for capital projects and about $158,000 to support transportation planning.

Mr. Horton said that the Downtown Service District tax was scheduled to remain the same, at 6.2 cents.  He noted that there was an opportunity for the Council and others to bring forward legislative proposals, adding that the legislative session would begin this year on May 8^th, and that bills need to be submitted to bill drafting by May 17^th and filed for introduction into the Senate or House no later than May 24^th.

Comments by Citizens

Geraldine Young, an Assistant Principal at East Chapel Hill High School, thanked the Council on behalf of the teachers, parents, students and others in the school community for the support that the school resource officers (SROs) had given the schools.  She said that having the officers present deters violence, crime, and inappropriate behavior.  Ms. Young added that the officers provide positive role models and a sense of safety.  She said they make referrals to teen court, and speak at school events and in classrooms.  Ms. Young asked the Council to continue funding the SROs because the schools needed that support.

Neil Pedersen, Superintendent of the Chapel Hill/Carrboro City Schools, noted that the Manager’s current recommendation was that the Town would not fund four resource officers next year.  He said that, in the past, the School System had contributed a $55,000 match to a federal grant that largely funded the two high school and two middle school resource officers.  Mr. Pedersen argued that few issues in the country were of greater concern than safety in the schools, and noted that this community had not been free of incidents.  He asked that the Town and the School System continue its partnership by each contributing to the funding of the officers. 

Mr. Pedersen noted that 9,000 of the Town’s citizens are in the fourteen schools each day, and stated that they deserve services from the Police Department on a consistent basis.  He said that they would not dare open the schools next year without a minimum of one resource officer in each of the high schools.  Mr. Pedersen noted that prior to receiving the grant, the Town and the School System had each paid half of the cost.  He suggested trying to maintain that type of historical participation.

Mayor Waldorf asked Mr. Pedersen if he was proposing a 50/50 arrangement where the School System and Town would pay for all of the officers at all four schools.   Mr. Pederson replied that he was not empowered to negotiate a deal but was suggesting that it would seem reasonable to fall back on the arrangement they had before receiving the grant, if the grant was not awarded next year.

Council Member Bateman asked Mr. Pedersen if he was requesting splitting the cost of four or two SROs.  He replied that if they maintain the funding that they have allocated for this purpose this year, they would only be able to afford two half-time officers, one at each high school.  Continuing to support all four with a 50/50 split, he said, would mean that they would have to come up with at least another $50,000.  

Council Member Foy asked if the School System would request that Carrboro and Orange County participate in the funding.  Mr. Pedersen replied that they had asked that before, and that Carrboro had submitted a grant application but was denied the grant.  Council Member Foy explained that he was referring to the high schools.  Mr. Pedersen replied that Carrboro was open to discussions on that issue.

Mayor Waldorf asked if it was correct that there had been no contribution from either Orange Country or Carrboro.  Mr. Pedersen replied that there had been none from the County but that Carrboro had contributed by having an officer in the schools.  He pointed out, however, that the officer was not dedicated to the schools and was not there on a full-time basis.

Mayor Waldorf suggested that Council members, the governmental bodies and the School Board all think about how to come up with the money to keep this important service going without having a large tax increase.  She suggested that the School Board determine what level they can support.

Council Member Bateman suggested that the Council “drive a nail through the heart” of the idea of eliminating SROs.  She noted that they serve an important need—especially at the two secondary schools—and encouraged the Manager to come up with alternatives to what she described as perhaps “the worst cut the Council could make.”

Council Member Ward asked what the process would be for investigating the level of funding that Carrboro and Orange County might provide.  Mr. Pedersen replied that the process probably would be to jump into the middle of their budget process as he was doing with Chapel Hill tonight.  He noted that the difference was that Chapel Hill had contributed and the others had not.  He commented that he would advocate more strongly with the other bodies if that would help the Town decide positively on this.  Council Member Ward verified that the County had never been asked for assistance.

Council Member Brown expressed appreciation to the Manager for trying to keep the tax rate down, and asked that he continue to look for other ways to do so.

Council Member Evans suggested that it would be more logical for the School System to apply for grants than the Town.  Mr. Pedersen said that he did not think the School System could apply to that funding source, and Mr. Horton agreed that only the Police Department could apply for the funds that the Town had been receiving.  Mr. Horton added, though, that he understood there were some School Violence Reduction Funds that the schools receive that could be used for this purpose.

Mr. Pedersen noted that they had received such funding from the State for “at-risk students and safe schools,” which was allocated in a general way and could be used for SROs as well as other needs.  He explained that that was the source of the $55,000 per year that they have used.  Council Member Evans asked how much they had received, and Mr. Pedersen said that he would get back to her on that.

Council Member Wiggins recalled that either the Town or the School Board would have to raise taxes to pay for this purpose.  She proposed that it would be more appropriate for the School System to make it a part of its budget.  Council Member Wiggins suggested that the Town add a symbolic amount to support the SROs, but not enough to impact the taxes.  She asked that the Manager find a way to reappropriate funds to this purpose so that citizens understand that the money is being taken away from another program rather than being added on to the tax burden.

Mr. Pedersen acknowledged Council Member Wiggins’ point, but noted that the Town once provided two DARE officers to the schools.   If that had remained the same, he said, then the School System would not be asking for any more than it had received in the past.  As it stands, Mr. Pedersen remarked, the School System was asking for less than the Town had provided in the past.  Council Member Wiggins commented that “times change,” and pointed out that she had not been on the Council when the Town perhaps had more money.  She also noted that she had not seen any cuts in the Manager’s preliminary budget, and said that re-appropriations and cuts should be identified along with the tax increase.

Mayor Waldorf asked it was correct that the DARE officers had been removed from the schools at the request of the School System.  Mr. Pedersen said that he recalled that the School System had not wanted to continue with the DARE program, but had requested that the officers remain.

Mayor Waldorf asked Mr. Horton if continuing at the present level of service and picking up the deficit in grant funding would cost $219,000 per year.  Mr. Horton replied that it would be about $220,000 if the School System were to pick up the remainder.  He said that the total cost would be $270,000-280,000.

Council Member Bateman noted that splitting the SROs’ time between the two schools would cost about half of that.

Mayor Waldorf suggested that the School Board think about how it could pay a larger part of what the Manager had described as an “extraordinary service” for the Police Department.  Mr. Horton added that the Town would not abandon the schools and would continue to respond when called.  Noting that the School System has its own security staff, Mr. Horton pointed out that having SROs in schools was an unusual level of service and that it was reasonable to suggest that the School System pay at least a very substantial percentage of the costs.

Mr. Horton remarked that this was the type of difficult trade-off that the Council would be facing this year.  He said that changing to curbside service would be another.

Mayor Waldorf asked if Council Members Brown and Wiggins would acknowledge that what the Manager was proposing was a cut, and a hurtful one at that.  Council Member Brown encouraged the Manager to bring back suggestions for other cuts.  Mr. Horton replied that he would, but stressed that every one would hurt as much as this one, in some respect, in some part of the community.

Mr. Pedersen, noting that there would be about two months left of funding at the end of this school year, said the schools probably could get into October with an SRO at each of the high schools only.  Mr. Horton differed with that, noting that the Police Department’s recruitment plan would prohibit officers being in the schools for only a portion of a year.  Mayor Waldorf suggested that the staff discuss this again.  Mr. Horton stated that the staff and School System were not “at loggerheads,” adding that they had just reached different conclusions about who should pay.

School Board Member Gloria Faley also requested that the Council continue trying to find a way to help provide SROs in the schools.

Kim Grooms, a youth director with the Chapel Hill/Carrboro YMCA, spoke regarding Community Development funds for the YMCA’s after school programs for 24 children from the Pine Knolls neighborhood and 24 from the South Estes neighborhood.  She said that the children have benefited socially and academically from the two outreach programs, which include tutoring twice a week.   Ms. Grooms expressed appreciation for the help the Town had given the YMCA and asked for continued support for the programs.

Joan Page and Linda Cocchetta, co-chairs of the Chapel Hill Public Arts Commission, requested $14,300 in total funding for the year 2000-2001 to help meet expenses for ongoing and planned activities for art displays in public places.  Ms. Page broke the expenses down:  $300 for half of the exhibit expenses;  $3,000 for a sculpture on the green purchase award for the Town; $3,000 for the Pritchard Park Sculpture Garden development and planning; $1,000 for a Village People public art project; and continuation of  $7,000 for a part-time staff person.

Council Member Foy commented that the Pritchard Park portion was essentially a matching grant and that the Public Arts Commission was offering to raise the additional $3,000.  He added that the Council should take note of that commitment on the part of the Commission.

Miles Pressler, of EmPOWERment, Inc., spoke in favor of the staff’s recommendation for the HOME and the CDBG programs.  He noted that EmPOWERment had helped 24 families in two and a-half years.  He said that EmPOWERment appreciated the Council’s support “tremendously,” and asked that they continue funding at the current level so that EmPOWERment can continue to provide affordable housing to families in Chapel Hill.      

Susan Levy, representing Habitat for Humanity, spoke about the recommendation from the consortium staff regarding HOME funding.  She said that Habitat for Humanity had requested a total of $87,500 in HOME funds in order to build seven homes in the upcoming year, but that the staff had recommended allocating only $62,500 for five.  Ms. Levy acknowledging that the staff has had to make difficult choices.   She pointed out, though, that the not-for-profit organizations were again in the position of competing against one another for scarce resources.  Ms. Levy urged the Town Council and other elected bodies in Orange County to support affordable housing and to endorse, in particular, the One Penny for Affordable Housing proposal to create a housing trust fund. 

Ms. Levy noted that Habitat had just completed its community-wide initiative, Celebration 2000.  She said that they had received a total contribution of $1.5 million, adding that the Town of Chapel Hill had contributed an additional $200,000 in Community Development funds for purchase of the land.  Ms. Levy thanked the elected officials, and others who worked on the eleven new homes at Homestead Place, for helping to make Celebration 2000 a success.

Ms. Levy stated that Habitat would be building ten homes throughout the County, including the seven for which they had requested funds.  She said that the requested $87,500 represents about 10% of the completed value of the homes, adding that it would help Habitat to leverage about $400,000 in new private funding.  She said that families for the seven homes had already been approved, had begun putting in their “sweat equity hours” on other Habitat homes, and were eager to start their own homes, which, she pointed out, would free up some public housing units.  Ms. Levy again expressed hope that Habitat’s request could be fully funded.  She asked that funds be reallocated to Habitat if the Abundant Life proposal does not work out. 

Ann Kaplan, director of the Orange County Arts Commission, discussed the Hotel/Motel Tax Fund.  She noted that the portion allocated to Arts Fund had decreased from $31,500 to $22,000, primarily because the Carrboro ArtsCenter’s $20,000 building fund allocation.  Ms. Kaplan said that the Arts Commission offers two grants per year and that 75% of those funds end up in Chapel Hill.  She requested that the Fund be structured as it was before, with the ArtsCenter building fund amount listed separately.  She also asked to have a citizen committee make the grants.  Ms. Kaplan also asked that these things be made officials so that they could not be manipulated.  She noted that the Orange County Arts Commission had five times the requests that they were able to grant.   She pointed out that the Hotel/Motel Tax exists to bring people to the area, and argued that the Arts is one of the main reasons people come.

Council Member Strom asked how Ms. Kaplan’s group worked with the Chapel Hill Public Arts Commission.  She replied that hers is a County agency that works with many organizations, the Chapel Hill Public Arts Commission being one of them.  Ms. Kaplan said that they had supported the Sculpture on the Green exhibit, and stated that the Orange County Arts Commission had worked in partnership with the Chapel Hill Public Arts Commission on programs.  She stated they had offered grant funds to them in the past and currently.

Mayor Waldorf asked the staff when the Town’s 10-year commitment to the ArtsCenter would end.  Mr. Horton replied that it was about half way through.  Mayor Waldorf asked if it was a Council resolution.  Mr. Horton replied that it was, adding that it was clear at the time that the Council adopted the resolution that it would not be binding on future Councils.

Allison Weiner, speaking on behalf of the Community Land Trust, requested continued support in 2000-2001.  Ms. Weiner said that Orange Community Housing had requested $18,000 ($10,000 more than last year) on behalf of the Land Trust in order to support a full-time employee in addition to its part-time employee.  She reviewed the history of the Land Trust and noted that its potential is extraordinary, listing several places where the Land Trust is either being used or considered.   Ms. Weiner noted that the Land Trust is non-profit, is a good steward of the land, is part of the National Land Trust network, and has been recognized with a HUD economic development grant.

Robert Dowling, representing Orange Community Housing, commented that the Land Trust was becoming a victim of its own success.  He explained that many private developers had been approaching the Land Trust and asking how to work with it.  Mr. Dowling noted that the work has become time-consuming, and asked for funding for a full-time employee.

Ms. Weiner said that the Board of Directors had recognized how critical it was to have sufficient resources and staff to successfully complete the tasks ahead.   She said that the Board was willing to provide half the funds required for the increased staffing, using its HUD grant.  Ms. Weiner explained that the additional funding from the Town would allow the Land Trust to effectively partner with other organizations, developers, local governments, and especially with the people who live and work in the community.

Council Member Bateman asked Mr. Horton how much of the requested funds he recommended allocating to the Land Trust.  Mr. Horton replied that the Town does not have the additional $10,000 that they have requested.  He added that funding would be taken from General Funds rather than HOME Funds.  Council Member Bateman asked if any of it would qualify for the federal housing grants.  Mr. Horton replied that he was not sure but would check on that.

Council Member Foy, noting that the Meadowmont Townhomes would be part of the Land Trust, asked if it would be possible for Meadowmont to pay some of the overhead for the Land Trust through a fee that would be part of the development cost.  Mr. Horton replied that the proposed grant would be to Orange Community Housing rather than the Land Trust.  Mr. Horton also said that he did not have a closed mind about anything, such as what the Housing Corporation might do, but did not know whether this would be permissible under federal rules.

Council Member Foy stated that it might be possible to arrange things so that Orange Community Housing would pay a fee to the Land Trust, which would provide funding that would not come out of the General Fund.

Mayor Waldorf added that because Orange Community Housing is subsidized by Orange County, Carrboro and Chapel Hill, this would be a way to cover costs from all three entities.  She ascertained from Ms. Weiner that the Land Trust had approached Carrboro and the County for funding as well.

Council Member Ward asked whether there was a mechanism in place for the Land Trust to eventually become self-sustaining.  Mr. Dowling replied that, ultimately, it should have some measure of self-sustainability because every time a house sells the Land Trust should be in a position to take a fee.  Mr. Dowling pointed out that there were no homes in the Land Trust yet, but noted that there would be 19 one year from now, and they would make fees when they resell.  He noted that in ten years there may be 50 or 60 homes in the Land Trust and when those sell on a periodic basis the Land Trust anticipates taking a $2,000 fee.  In addition, Mr. Dowling said, the Land Trust gets monthly lease fees, which are insubstantial at the beginning but will become a source of ongoing revenue over time.

Council Member Ward asked if the speakers had a sense from looking at other communities of how much revenue a mature land trust might generate.  Mr. Dowling replied that Durham, which is an “adolescent” 12-year land trust, still gets support from the City of Durham.  But, he said, Durham does not have many homes, has only resold one in 12 years, and is doing lease-to-purchase deals with no turnover as a result.

Michael Ullman, representing Community Cuisine, asked the Council to support the recommendation in the Community Development Grant to fund Community Cuisine in the amount of  $22,000.  Noting that this is below its original request, Mr. Ullman said that if additional funds become available Community Cuisine would hope to come back and request full funding.  He discussed various new programs, including two that serve at-risk children whose families earn below the median income.

Council Member Bateman asked what percentage of Community Cuisine’s budget goes for programs for at-risk children.  Mr. Ullman replied that about two-thirds of its projected programming is geared towards children, and that one-third typically goes towards adults.  Council Member Bateman asked Mr. Ullman if he had asked the School System for funds.  Mr. Ullman replied that Community Cuisine’s first two at-risk programs were done on an informal contractual basis, and stated that he hoped the School System would start to cover the majority of the cost of programs at the schools.  Council Member Bateman asked if Community Cuisine had asked the School Board, specifically, and Mr. Ullman replied that they would do so after the completion of this phase of the program because they wanted to see how the pilot programs went before approaching the School Board about a long-term relationship.

Mary Wynne Sherwood, representing the Chapel Hill Housing and Community Development Advisory Board, said that the Board enthusiastically supported the proposed use of Community Development funds, particularly for neighborhood revitalization.  She said the Board strongly supported the use of funds for second mortgages, property acquisition and renovation, public improvement, and community services.  Ms. Sherwood urged continued support for programs such as EmPOWERment, Inc., which she said keeps people in their homes by preserving already existing low-income neighborhoods.  She commented that it makes sense to continue supporting the low-income housing that already exists.

Ms. Sherwood stated that the Board particularly supported funding of the after-school day programs for children living in the South Estes Drive and Pine Knoll neighborhoods, adding that the Board sees a need for all housing neighborhoods to have such programs for the children.  Noting that it probably is too late this year to find programs that would apply for any additional funding available, Ms. Sherwood stated that the Board would be proactive in searching for programs that could apply for these funds.

Ms. Sherwood said that the Board supports proposals for the HOME funds as well, particularly for community revitalization.  She noted that there was a continuing need for housing residents to have more options to move into housing that they can afford.  Ms. Sherwood said that the only development proposal that can be reached by these residents is Habitat for Humanity’s, so the Board supports Habitat’s request for funding.  She pointed out the greater need for smaller one bedroom and efficiency units, and said that residents would benefit from subsidized transitional rental housing in the private market as a step toward homeownership.  Ms. Sherwood recommended that that be part of the affordable housing mix.

Ms. Sherwood said that the Board had approved the proposal for the Comprehensive Grant Program for Public Housing for Renovation and Services, as written.  She gave her opinion, as a private citizens and not representing the Board, that the “Achieve” self-sufficiency program is a “jewel in the Department of Housing’s crown.”  She noted that it has had great success in involving other agencies in its programming and in being able to pull residents from housing to get involved and participate in the program.  She suggested extending that program in the future, adding that it would be a good investment for the Town.  Ms. Sherwood suggested escrowing the increased rent that people in public housing pay when they receive an increase in salary.  This would give them money for a rental deposit or a mortgage, she pointed out.

Robert Dowling, speaking for Orange Community Housing regarding the HOME and CDBG funds, referred to what Ms. Levy had said about the difficulty of splitting up money when there is more demand than supply.  Mr. Dowling noted that OCHC had asked for $160,000 each from the HOME Fund and CDBG.  He stated that he understood the recommendation that they receive only $80,000 from each, and did not want to suggest taking funding away from some other program.  He stressed, though, that OCHC needs subsidy in order to happen.

Mr. Dowling pointed out that CDBG funds for Meadowmont were for site work, not for construction.  He stated that they would not be able to start construction if they do not have the money to do the horizontal site work—clearing, grading, sewage, sidewalks etc.  Mr. Dowling noted that one of the options the Manager had raised was that $80,000 from the Housing Loan Trust Fund could be allocated to doing that site work, thus allowing them to commence the Meadowmont project prior to July 2001.

Blair Pollock, speaking as a member of the Bicycle and Pedestrian Advisory Board, asked the Town to fund a full-time bike and pedestrian coordinator.  He mentioned that he had also approached the Carrboro Board of Aldermen with a request for partial funding.  Mr. Pollock said that his other two key priorities would be filling in the gaps in the sidewalks around Town and public education, which would be an integral part of the bike coordinator’s responsibilities.  He said that other bike and pedestrian coordinators around the country make about $40,000 annually.

Mr. Pollock, speaking as a Tax Watch member, suggested foregoing paving the trail on the upper Booker Creek Greenway and the streetscape on Franklin Street.  He said that all of the needs expressed tonight were more important than making Franklin Street prettier.  Council Member Bateman said that she had once been told that greenways needed to be paved to make them ADA compliant, which was the only way that one could get funding from the State or the federal government.  Mr. Pollock pointed out that if you don’t do anything then you don’t need any money to do it.

Council Discussion

Council Member Wiggins asked if the $219,000 that would come from eliminating the police officers at the schools was grant money.   Mr. Horton replied that it was General Fund money, adding that the grant, which had expired about 25% per year, had caused the Town to assumed more and more of the cost.  He explained that there would be no more grant funding next year for this purpose.  Council Member Wiggins remarked that she could now see that this would be a big savings from the budget.

Council Member Foy, noting that there were references to the Consortium in the HOME Fund grants, asked the Manager to elaborate on the Consortium staff and who administered the funds.  Mr. Horton replied that the lead agency for the Consortium is Orange County because the governing bodies of the four communities decided that several years ago.  He said that it is required to be a County-wide program and that the County provides the staffing.  Mr. Horton said that Tara Fikes is the lead staff.

Council Member Foy inquired about the process.  Mr. Horton explained that the Town finds out how much money will be available and then puts program ideas forward.  He said that there are public hearings required and that all information is referred back to the staff, which then makes a final recommendation for each of the governing boards to consider.  Mr. Horton added that the Consortium plan can not be sent forward until all of the partners agree on it.

Council Member Foy asked if the percentage for the Arts proposal were implemented under the Comprehensive Plan, would all of the items be part of the proposal.  Mr. Horton replied that it would depend upon the Council’s instructions on what was to be covered.  He added that, typically, a percent for the Arts is limited to larger developments and aimed principally at construction of buildings or other major public facilities.  Mr. Horton said that it would not be unusual to have a percent for the Arts set aside in every major building project, nor would it be unusual for such a percentage to be included in a major park project.

Council Member Evans asked for more information on the fare free bus service, such as which routes the Town would be paying for.  Mr. Horton said that he had planned to do that.  He also suggested that the Council schedule more work sessions.

Mayor Waldorf said that four Council members may miss the next work session and suggested rescheduling that.  Mr. Horton recommended having a few alternate dates as well.  The Council agreed by consensus.

Mr. Horton commented that discussions with the University and Carrboro regarding transportation issues had been going on for more than a year.  He said that University representatives had pointed out that ridership increased on campus when bus service was changed to a fare free system.  Mr. Horton said that they had debated for a long time while trying to find other options.  But in the end, he said, they had concluded that they could not offer a service that would allow University-affiliated people to ride free while charging everyone else, because the technology does not exist to recognize UNC 1 cards.

Mr. Horton explained that they had concluded that they would have to offer the service to everyone in the community and divide the cost.  He said that the University agreed to pay the cost of all the routes that are essentially serving the University.  Mr. Horton noted that this had not been included in the budget recommendation at this point, but was an option that the Town might want to consider.  He projected that the end product would be about a 5%-10% increase in ridership, and argued that it was worth considering because it might attract people to use the system.  

Mayor Waldorf said that Carrboro’s Mayor Mike Nelson had called her because his Board had asked him to find out if the Chapel Hill Town Council would meet with them to talk about transportation issues, including free fare service and extended service in Carrboro.  Council members agreed to do so and Mayor Waldorf asked Mr. Horton to work with the Carrboro staff to set a date for that meeting before budgets for this year are decided.  Mr. Horton suggested inviting University representatives to the meeting as well, and Mayor Waldorf agreed.

Council Member Wiggins asked Mr. Horton what the nature of the additional information would be.  He replied that it would primarily be more exact numbers on costs and on the routes that would be affected.  The bottom line, Mr. Horton said, would still be about 6/10 of a cent more on the tax rate.

Mayor Waldorf noted that it would be substantially more for Carrboro.

Council Member Wiggins asked how other Council members felt about this issue.

Council Member Foy said that he was in favor of it, and commended Mr. Horton for negotiating a deal which would be great for the community.

Council Member Strom added that it seemed like a bargain, given the overall budget, and added that his first reaction was highly supportive.

Council Member Evans said that she was in favor of it as well, because people would be more inclined to use buses if they are free.

Council Member Ward asked what the 10% increase would mean for the cost of fare free service in the future, and Mr. Horton replied that he would provide that information as best he could.  Mr. Horton added that as the ridership increases on a few key routes it would be the University that would pick up those costs, since they have agreed to fund the cost of the routes that serve principally University-affiliated persons. 

Mayor pro tem Pavão said it was an intriguing idea, but he was not ready to endorse it.  He remarked that he did not know for sure whether the entire community would be in favor of it.

Mayor Waldorf added that it would need to be explained to the community, and to her as well.  She said that fare free service would improve ridership, but good bus routes and frequency would improve ridership as well.  Mr. Horton agreed.

Council Member Bateman added that better posting of schedules would improve ridership, and Mr. Horton agreed but noted that this would be expensive. 

Mr. Horton explained that there would be about 120 police officers on duty for the UNC men’s basketball game in the NCAA Final Four on Saturday evening, plus 75-100 others on duty.  Pointing out that the Town was very concerned about safety, he asked that people persuade others not to body surf and throw people up in the air because that is a dangerous practice and someone may be injured.  Mr. Horton noted that if Carolina wins the game then it will cost about  $75,000-$100,000 to manage the event that will follow on Monday evening.

Council Member Wiggins stressed that Townspeople should know that the amount spent for students is high, and gave the Halloween celebration as another example.

Mayor Waldorf commented that they could add that information in an insert in the tax bill.

MAYOR PRO TEM PAVÃO MOVED, SECONDED BY COUNCIL MEMBER FOY, TO REFER TONIGHT’S COMMENTS TO THE MANAGER AND ATTORNEY.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

The meeting was adjourned at 8:55 p.m.