SUMMARY MINUTES OF A PUBLIC FORUM AND HEARING
OF THE CHAPEL HILL TOWN COUNCIL
TUESDAY, MARCH 26, 2002 AT 7:00 P.M.
Mayor Kevin Foy called the meeting to order at 7:00 p.m.
Council members present were Flicka Bateman, Pat Evans, Ed Harrison, Mark Kleinschmidt, Bill Strom, Dorothy Verkerk, and Jim Ward.
Council Member Edith Wiggins was absent, excused.
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, Senior Long Range Planning Coordinator Chris Berndt, Transportation Director Mary Lou Kuschatka, Housing Director Tina Vaughn, Principal Community Development Planner Loryn Barnes, and Town Clerk Joyce Smith.
Item 1 – Public Forum on Status of 2002-2003 Budget Preparations,
Preliminary Capital Improvements Program, Preliminary Grant Proposals,
and Other Budget-Related Items
Town Manager Cal Horton said that the purpose of the forum was to provide an opportunity for citizens to comment on the Manager’s status report on development of the 2002-2003 budget and on any aspect of the Town’s budget, including services which should be reduced, added, eliminated or changed.
The topics for this evening’s meeting:
· Status report on development of the 2002-2003 budget.
· Preliminary report on the 2002-2017 Capital Improvements Program
· Proposed Community Development Plan for 2002-2003.
· Proposed 2002-2003 HOME program for housing and community development programs in Chapel Hill and Orange County.
· Proposed 2002-2003 Housing Capital Grant program for public housing renovation and resident services.
· Proposed Use of Transportation Grants in 2002-2003
· Use of Downtown Service District tax funds for 2002-2003.
Referring to the General Fund, Mr. Horton said the cost of providing General Fund basic services next year would require different potential tax rates based on varying assumptions regarding revenues received from the State:
· Receiving the same State-shared revenues as in the current year would allow the Town to provide basic General Fund services with the present tax rate of 46.1 cents.
· Assuming retention of the reimbursement revenues of $680,000 by the State, a potential tax rate increase of 1.5 cents could be required to fund basic General Fund services.
· Assuming State retention of revenues from reimbursements, beer and wine, and franchise taxes of $2,930,000 could require a potential tax rate increase of about 7.0 cents to fund basic General Fund services.
· Providing compensation increases consistent with the labor market would require about a 2.0 cent tax rate increase in addition to any of the above scenarios.
Mr. Horton said that the Department Heads had cut their budgets to a one-tenth of one percent more than this year’s budget, including the pay increases. He said the mayors of North Carolina cities were attempting to convince the Governor and the Legislature to release funds, in the hopes of their being successful, and they would find a way that the cities were not harmed in the next year. He said there was hope that the State would not take the Utility Franchise Tax.
Referring to the Capital Improvement Program, Mr. Horton said two buildings were in a state of disrepair which needed immediate attention—the Chapel Hill Museum building and the Interfaith Council building. He said the staff regretted not being able to recommend money for many of the funds ordinarily seen, but they are optimistic that funding from the State might improve in two years. Notification from the Time-Warner franchise, Mr. Horton added, said that the Town would not receive the portion of the franchise tax, which it ordinarily received, but this will affect the revenues only by about $20,000. He said the Town had been informed that the North Carolina League of Municipalities Workers’ Compensation Risk Pool is going to have an across-the-board adjustment throughout the State of about 13%, which will cost the Town about $75,000.
Mayor Foy restated the essence of Mr. Horton’s presentation. He said the Town was attempting to limit its expenses next year to the same amount as last year. He said even holding to the budget level the Town is suffering a $3 million loss in revenues because of actions by the State, and that will prompt the necessity for a 7% property tax increase. Mayor Foy said that the citizens will have to expect a cut in services and capital improvements in addition to an increase in their property taxes.
Wayne Kuncl, Orange Community Housing Corporation and Land Trust Vice-Chairman, read a letter to the Mayor and Council requesting an $8,000 increase in funding from the previous year. He said the request was reduced to $9,000 allocation because the Corporation expected an increase in the development fee from the Meadowmont townhouses during the next year. He said attached to the letter was their proposed budget which was less than a 1% increase.
Nancy Milio, President of Affordable Rentals Incorporated, representing people in Orange County whose income is between 30% to 50% of the area median income. She said she was speaking to the proposed HOME program recommendation and thanked the Council for making it possible for the non-profit corporation to receive federal home monies for affordable housing, and the Home Consortium for accepting a project of affordable rentals for one of the upcoming proposed purchases. She urged the Council to accept the proposals of the HOME program.
Glen Greenstreet, Habitat for Humanity of Orange County representative, said he was speaking on behalf of the Community Development Program. He thanked the Council for its support. He emphasized the necessity to facilitate the Habitat’s efforts to move toward becoming a developer of property in the Chapel Hill area. He said the staff and the Town staff had been working toward the feasibility of drawing out the funding over a two-year period, rather than a one-year period for the Rusch Road property. Mr. Greenstreet said this would be very important, and the money available for this funding would go directly into the infrastructure of the development, making it easier to get off to a quick start.
Maxine Mitchell, representing Youth Creating Change, gave some background to this organization and her work with the young people. She said one of the solutions that the youth came up with was to create a business that catered to the young people. Ms. Mitchell said the business was a tool to train young African-American people with skills. She listed the various projects the youth had created. Ms. Mitchell said the youth had done fund-raising and requested that the Council give the youth the $9,000 they requested.
David Thompson, of the Youth Creating Change, read a statement from the group, regarding their purpose.
David Oldham, of the Youth Creating Change, financial manager of the business, said that they needed the funds from the Town.
Harvey Reid, for the Youth Creating Change, said the goal eventually for the group was to be self-sufficient, and they had done all the procedures which they had been told to do. He asked the Council to invest in the youth, and recommended that it approve their request for funding. Mr. Horton said the Council had considered the matter previously and did not allocate funding of $9,000, but had requested that the organization bring back a business plan based on the conditions of the Community Development Program. He said the organization could bring this to the staff and the staff could bring back to the Council a recommendation for allocation of funds from the Community Development Program or to use funds from residual funds, or the Council could enter into an agreement using General Funds. Mr. Horton said the staff could receive this at any time, and it would be a matter of modifying this year’s program, but it was not a large process. He said the application was for this year, and if it met the federal legal requirement, the staff could bring this forward to the Council with a positive recommendation. Mr. Horton said it was not a question of filling out forms, but now, the staff needed to receive the information that it met the federal legal requirements, formally review the information and bring it for the Council’s consideration.
Council Member Strom recommended that those principals involved in the request get together shortly and try to put something together for consideration.
Council Member Harrison asked what part of the Government the organization needed to interact with and where the business plan would go for evaluation. Mr. Horton responded that the two key staff people would be Chris Burnt and Loryn Barnes.
Aaron Nelson, Executive Director of the Chapel Hill-Carrboro Chamber of Commerce, thanked the Council for the long hours it had put into consideration of the budget. He discussed a survey of the cross-county shopping habits of Orange County residents, 77% of whom had shopped in Durham in the past 30 days. He said that one of the ways to help the financial crises in the present and the future would be to support the local businesses. Mr. Nelson said he understood that commercial trash collection was on the list for cutting back in service areas. He said that by charging for the first collection each week and increasing the charges for any more collections each week could generate $350,000. He said, if the Town discontinued any commercial trash collection at all, the Town could save about $820,000, if three employees were laid-off. Mr. Nelson said the Chamber felt that was a bad direction to go, and would cost the Landfill much money. He said less than 50% of the commercial trash collection last year were businesses, the others being churches and the multi-family units. He said this would create unequal charges for these commercial trash collection places, while the single-family units would receive the trash collection paid for by their taxes.
Lucy Lewis, of the Orange County Literacy Council, thanked the Council for its continuing support of the Literacy Program which was critical, and addressed a need in the community. She asked the Council to continued funding a Program Coordinator. Ms. Lewis said the goal was to support a program to prepare those people who wished, to take the GED test successfully.
Robert Humphreys, Director of the Chapel Hill Downtown Commission, said we all share in the trickle-down effect of the economic slow-down, and he applauded the Manager, the Mayor and the Council for trying to manage the short-falls of this year’s Town budget. He asked that these be done equally. He said that cutting commercial trash collection or charging for it would have a serious affect on the multi-family units, especially the affordable housing units. Mr. Humphreys said it would also effect the small businesses seriously. He cited what the additional costs would mean to those who would have increased charges. He asked that all taxpayers be treated equitably.
Joann Shirer-Mitchell, staff director for the Resident Council representing public housing in the community, said the needs that the residents have brought to their attention were:
· Need for a traffic light at the intersection of New State Road and Airport Road.
· Excavation of the creek that runs on South Estes Drive to prevent flooding and to put a fence parallel to the creek to keep children from playing in the creek.
· Re-pattern the traffic light to delay at the intersection of South Estes Drive and Fordham Boulevard
· A stop sign at the 15-501 Highway intersection and Estes Drive to delay a right turn until after the car stops.
Lesley TwoBear said she was present on behalf of the children as well as the Residents Council, for funds to start a Rites-of-Passage program, especially the young men, to teach them skills. She said she worked for the Residents Council for the children of public housing. Ms. TwoBear said she hoped to get some funding for this program.
Harvey Reid, of H.R. Consultants, said they provided the service of counseling for people who buy housing through EmPOWERment, and the consultants are on the Governor’s list as a financial literacy resource. He said they wanted to offer a service that had found success in this community, as well as, other communities, and they wanted to provide that success down into housing ownership through financial literacy.
Mayor Foy reminded those present that there would be another hearing April 22, when the Manager brings a preliminary budget, and another hearing on May 8.
Council Member Harrison asked if the recommendations by Joann Shirer-Mitchell should be brought to the Council and referred to the Manager as a petition. Mr. Horton said the staff intended to follow-up on each of the issues, which were intended as service requests, and report to the Council on each.
Council Member Kleinschmidt asked about the Time-Warner fee increases and when it would come into effect, what impact that would have on the budget, and when the municipalities would have to pay back the monies. Mr. Horton said the staff had reviewed the FCC ruling, and the Town has a competent legal consultant to advise the Town. Mr. Horton said as soon as he knew the facts on this issue he would let the Council know.
Council Member Strom asked for clarification of the agenda for the next Wednesday’s work session on the budget. Mr. Horton said it would include review of any issue that the Council desired, for any on the operation budget of any of the funds. He said it would also include discussion, as much as the Council desired on the Capital Improvement Program proposals, and several working papers requested by the Council. He said a key thing would be any options the Council would like the staff to work on. Mr. Horton said there would be options put on the table, even though the staff did not think they were good and Department Heads will be present at the work session to answer any questions.
Mayor Foy commended the staff on their work on Agenda #1a, which he found very useful, especially the graphics. Mr. Horton cited Jim Baker, Kay Johnson, Jeanne Tate and Jeanne Erwin for their work in preparing the graphics, and said they hoped to extend those into the formal budget considerations.
The meeting adjourned at 8:01 p.m.