SUMMARY MINUTES OF A PUBLIC FORUM AND HEARING

ON THE 2001-2002 BUDGET BY

THE CHAPEL HILL TOWN COUNCIL

TUESDAY, JANUARY 23, 2001, AT 7:00 P.M.

 

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

 

Council members present were Flicka Bateman, Joyce Brown, 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 Stockard, Finance Director Jim Baker, Community Development Planner Loryn Barnes, and Town Clerk Joyce Smith.

 

Introduction by the Manager

 

Town Manager Cal Horton noted hat the county government had conducted its quadrennial revaluation of real estate this year.  He stated that the Town always calculates an “equalization rate” when that occurs.  That rate should produce the same revenues that would have been expected without the change in valuation, Mr. Horton said.  He added that the rate this year totals 48.2 cents for both the General and Transportation Funds, with a projected tax rate of 52.7 cents, which is 4.5 cents above the equalization rate.  Mr. Horton remarked that it was early in the budget process and that the staff always looks forward to discussions with the Town Council on how to cut costs. 

 

Mr. Horton pointed out that tonight’s meeting was an opportunity for citizens to comment on the budget and on programs, such as the Capital Improvements Program (CIP).  He noted that the staff had been developing a 15-year CIP, and said that about $1 million in additional funding could be available this year to help preserve and improve community assets. 

 

Mr. Horton explained that the funds available for the federally-granted Community Development programs would total about $442,000.  He added that the staff expected about $600,000 in the budget for the Housing Capital Fund and that the HOME Program was expected to have funds totaling $484,000 for next year.  Mr. Horton noted that the Town would need to provide its $45,000 matching share and that this should be available from the Housing Loan Trust Fund.  He said that Public Transportation grants, which provide a large portion of support for the Town’s bus system, should amount to $735,000 from the federal government and about $1 million from the State.

 

Mr. Horton pointed out that the Downtown Service District tax rate is at 6.2 cents.  He said that the equalization rate will be about four cents and that the program services that the Council had authorized would come up for reconsideration this year.  Mr. Horton noted that the staff invites comment on any legislative request.  He added that the Council could spend some of its February 12^th meeting discussing potential items for the legislative delegation to consider this year.

 

Comments by Citizens

 

Colin Bissett, Executive Director of the ArtsCenter, reported that the names of the ArtCenter’s three major sources of funding (Carrboro, Chapel Hill and Orange County) now appear on all its printed material.  He said that they had increased their board of directors by 100%, having broadened and diversified it ethnically, and had eliminated three full-time positions, thereby saving more than $54,000 a year.  Mr. Bissett stated that the ArtCenter’s first annual appeal had raised $14,000 and their first art and wine auction had raised more than $12,000.  He said that they also had increased their media coverage and diversified their programming.

 

Mr. Bisset pointed out that the ArtCenter has an old and unreliable HVAC system.  He noted that offices are without central heating, bathrooms need repair, and the roof leaks.  He announced that the ArtCcenter would begin a financial and facilities stabilization campaign this year.

 

Robert Dowling, executive director of Orange Community Housing (OHC) and the Community Land Trust, requested:

 

·        Operating funding for both Orange Community Housing and the Community Land Trust.  Mr. Dowling reported that the boards of these two organizations were discussing merging.  He asked for one allocation of $90,000, which would be slightly more than the $87,000 that had been allocated last year.

 

·        $80,00 from each of the HOME and Community Development Block Grant (CDBG)  funds for Meadowmont Town Homes.  Mr. Dowling said they should begin construction on these in the summer.

 

·        $50,000 of Housing Trust Fund funds for a potential tax credit arrangement with the Town.  Mr. Dowling noted that it was very preliminary, but explained that OCH might need some money for surveying, engineering, etc.

 

Lucy Lewis, Executive Director of the Orange County Literacy Council, reviewed how the Literacy Council had been helping low- and moderate-income Chapel Hill residents through computer-assisted literacy labs and one-on-one instruction.  She noted that the Literacy Council had requested CDGB money in 1999 to expand a pilot program at the South Estes Community Center.  She said that this program had been expanded with Town support.  Ms. Lewis explained that the Literacy Council would apply in February for additional funding for one more laptop and some additional General Education Diploma (GED) software so that they can continue their Internet access and also purchase supplies.

 

Council Member Bateman thanked Ms. Lewis for the work the Literacy Council had been doing. She asked if they had looked into providing the same program at the Hargraves Center as they were doing at South Estes Community Center.  Ms. Lewis replied that they had recently started a basic skills class and a GED class at Hargraves.  She said that their goal is to add an additional site every six months.

 

Nerys Levy, speaking on behalf of the Cultural Arts Group, asked the Town Council to consider supporting the next Annual Community Dinner early in 2001.  She also suggested that they consider including these annual dinners in the Town’s annual budget.  Ms. Levy noted that the Cultural Arts Group had tried to keep the cost of tickets down so that those who might not attend otherwise could come to the dinner.  She commented that a somewhat larger sum this year would be very helpful.

 

Kelly Welch, Executive Director of Community Cuisine (CC), explained that CC promotes self-sufficiency for disadvantaged and unemployed low-income adults, at-risk youth, and students with disabilities by teaching basic culinary skills as a context for approaching other issues that affect their lives.  She thanked the Town Council for its previous support of CC’s six programs and asked that they continue that support next year when there will be eight programs.

 

Council Member Brown requested a report on the placement of CC-trained people and on how those jobs had worked out.  Ms. Welch replied that 61% of their adult graduates had been placed in permanent employment the last time they checked.  She said that she did not know how many had retained that employment at one-year follow-up, but acknowledged that some had dropped off.  Ms. Welch explained that CC is addressing the drop-out problem, some of which seems related to drug issues.  She noted that they had not had an adult program in nearly a year. 

 

Dorothy Verkerk, Chair of the Bicycle and Pedestrian Advisory Board, commented on some of the issues that she had given the Council in a packet earlier in the week.  She said that the Board had identified 100,000 linear feet of sidewalks that would take 25 years to repair under the Capital Improvements Plan.  Ms. Verkerk reported that Chapel Hill averages four auto accidents with bicycles and pedestrians per month and one to two fatalities per year.  She stressed that the Town cannot wait 25 years for sidewalks and intersections.

 

Ms. Verkerk pointed out that there are additional means available for funding sidewalks, adding that the Board was trying to identify ways of obtaining federal grants.  She asked the Council to consider tripling its budget for sidewalks and intersections, to $300,000 for years one and two, and $375,000 for years three, four and five.   Ms. Verkerk pointed out that this does not include desperately needed sidewalks, which are not on the Board’s priority list.  Nor does it include intersections, she said.   Ms. Verkerk also requested $11,800 for pedestrian education. 

 

Maureen St. John-Breen, President of the Culbreth Park Homeowners Association, asked Council members to consider building a small play structure in the Culbreth Park area.  She said that many who had moved into the neighborhood with the understanding that a Town playground would be built there.  They had recently been told that although this had been discussed there was never an official plan to build one, Ms. St. John-Breen said.  She explained that the Parks and Recreation Department had advised the neighborhood to petition the Town Council for a play structure within their neighborhood.

 

Alison Weiner, Chair of the Board of Directors for the Community Land Trust in Orange County, requested $100,000 from Community Development funds to purchase property that would be developed through the collaborative efforts of non-profit organizations, such as Habitat for Humanity, EmPowerment, and Orange Community Housing.  She said the funds would be used to find appropriate properties to purchase for permanently affordable development. 

 

Ms. Weiner noted that these non-profit groups frequently lose properties because they do not have money readily available to purchase them.  She explained that $100,000 would allow them to purchase small, undeveloped pieces of land that would require infrastructure.  Ms. Weiner added that the groups might be able to combine other funding sources if a chance to purchase a larger, more expensive piece of property presented itself.  The Land Trust will own the land and therefore be able to guarantee that the homes will be permanently affordable, Ms. Weiner said.

 

Frances Hargraves, Co-chair of the Appearance Committee of the Northside neighborhood, asked that the area in front of the Northside Senior Center be cleared of trash, brush and tall trees.  She thanked the Town for keeping the area as clean as it is, noting that the housing projects looked clean and beautiful.

 

Mayor Waldorf asked the Manager if this matter was a budget item or something the Town could look into under current operations.  Mr. Horton replied that it could be a current operation, but noted that the property owner might be willing to help out.  Mr. Horton said that he would address the matter immediately.

 

Questions by the Mayor and Council Members

 

Council Member Foy requested that the staff bring a report on what the structure of a First Option Fund would be.  Mr. Horton explained that it would be a fund used by a neighborhood development corporation that would allow them to purchase properties that come on the market and to preserve them for residential use in neighborhoods.  Mr. Horton added that there would be options, and there would be a role for neighbors to play to make it work. 

 

Council Member Strom asked to see a menu of different financing options that are available to the Town to accelerate capital improvement issues.  Mr. Horton replied that there were several options available under North Carolina law and that the staff would describe all of them for the Council’s consideration.

 

Council Member Foy inquired about the re-appropriation amount of $371,000 on the bottom of page 24 of the materials under approved projects.  Mr. Horton explained that it was money that was carried over for specific projects, some of which were in progress and some of which were done this year because the Town had not been able to do them last year.  Mr. Horton added that the money was still there and could be allocated to specific projects.  He added that the money could be reappropriated to whatever purpose the Council desires if it is not already under contract for a particular purpose

 

Council Member Foy inquired about how the items had been prioritized.  Mr. Horton explained that the staff always publishes a set of priority categories and that they evaluate each proposed project according to how it fits into one of the priority categories.  He mentioned categories such as a legally bound programs, Council mandates, contracts, maintenance, enhancement or improvement projects.  Mr. Horton added that the Council had established the categories and could change them if it wishes. 

 

Council Member Bateman asked if she had understood correctly that there was enough money in the budget to expedite improvements at the Hargraves Center.  Mr. Horton explained that the table before them was a five-year table.  He said that the fifteen-year table would show debt payment for the Hargraves Center project spread over a 10-year period.  Finance Director Jim Baker added that the amount available was approximately $500,000.

 

Council Member Bateman asked if the Hargraves Center’s #4 rating meant that improvements would occur in the next year or two.  Mr. Horton replied that it did, adding that a #4 rating is for maintenance of a public asset.  He pointed out that the Council would make the decision about when it would be done, adding that the Council already had made the decision to fund it.

 

Council Member Strom inquired about a strategy to get the three percent increase back.  He asked for a specific proposal on revenue producing activities, noting that there should be a relationship between increasing operating costs and increasing fees.  Mr. Horton agreed that the Town must adjust fees.  He added, though, that half of the Town’s income was tax-based rather than fee-based, meaning that there are limits to the extent that this can be done.  Mr. Horton stressed that he understood Council Member Strom’s objective and would be pleased to address it. 

 

Council Member Ward asked about the wisdom of putting money into WPI as outlined on page 24 of the materials.  Mr. Horton agreed that such investments eventually become someone else’s land and property.  He noted, though, that the Town is scheduled to vacate the WPI land on December 31, 2006, and that the staff is developing a proposal for an alternate site.  Mr. Horton said that some of the expenditures were related to OSHA requirements.  He added, however, that the Town could reasonably consider postponing some improvements.

 

Mayor Waldorf, noting that the Town Council is constantly longing for new revenue sources, pointed out that Chapel Hill was missing out on some federal grants.  She reported that the city of Charlotte had retained a federal lobbying firm, adding that such firms had brought a lot more money into some of the communities than the communities had paid out for the service.  Mayor Waldorf asked if this was something the Town of Chapel Hill should look into if it wants to raise more revenues without raising property taxes.

 

Council Member Strom expressed interest in finding out more and in identifying certain areas where the Town could use this money.

 

Council Member Evans commented that various groups had come before the Council saying that the Town was missing out on a lot of money.  She said this was worth taking a look at.

 

Mayor Waldorf pointed out that the Town does not have enough staff to go after those grants.  She emphasized that she was not pushing the idea but merely offering it as something to consider.

 

Mayor pro tem Pavão said it was worth looking into and gathering information about what it would cost.

 

Mayor Waldorf pointed out that it was not cheap, but suggested that the Council send a letter to other North Carolina municipalities asking if they have a federal lobbyist and asking for information on the process, cost, and their success rates.  Mr. Horton remarked that things being done in larger cities might not be productive in Chapel Hill, but agreed with the suggestion to send a letter to town managers from Asheville to Wilmington to find out.  Mr. Horton also suggested inquiring about full time grant seekers as well as lobbyists.  Mayor Waldorf agreed.

 

MAYOR PRO TEM PAVÃAO MOVED, SECONDED BY COUNCIL MEMBER EVANS, TO REQUEST THAT THE MANAGER WRITE TO OTHER COMMUNITIES TO FIND OUT IF THEY HAVE A PERSON WHO IS HIRED TO LOOK FOR GRANTS OR TO LOBBY FOR GRANTS IN WASHINGTON D.C.

 

Council Member Ward proposed a friendly amendment to ask for Congressman David Price’s input.

 

Council Member Strom proposed picking out some key grant categories, such as neighborhood revitalization, pedestrian/green infrastructure, parks and recreation, and housing.  Mayor Waldorf recommended being open to anyone who knows where the money might be.

 

Council Member Strom again suggested being specific about the type of grant money they were looking for, but several Council members spoke against narrowing the inquiry down in that way.

 

Mayor pro tem Pavão stated that Council Member Strom’s request was more than a friendly amendment, adding that he wanted to know what communities were doing and how much it costs before focusing on individual areas.

 

Council Member Evans also objected to narrowing the request for information at this point.

 

Mayor Waldorf expressed agreement with Council Member Strom that certain areas were more important than others, but noted that the motion was only for sending a letter out to gather information.

 

Council Member Brown wondered about focusing on Washington when there were other grant sources available too.  Mayor Waldorf replied that she was merely throwing out an idea, not offering a comprehensive plan.    

 

Mayor pro tem Pavão restated his motion.

      

MAYOR PRO TEM PAVAO MOVED, SECONDED BY COUNCIL MEMBER EVANS, TO REQUEST THAT THE MANAGER WRITE TO OTHER COMMUNITIES IN NORTH CAROLINA TO FIND OUT IF THEY HAVE A DEDICATED PERSON WHO IS HIRED TO LOOK FOR GRANTS OR TO LOBBY FOR GRANTS IN WASHINGTON D.C., AND TO ASK FOR CONGRESSMAN DAVID PRICE’S OPINION REGARDING THIS MATTER.  THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).

 

The meeting adjourned at 8 p.m.