SUMMARY MINUTES OF A PUBLIC FORUM AND HEARING
OF THE CHAPEL HILL TOWN COUNCIL
WEDNESDAY, MAY 8, 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, Jim Ward, and Edith Wiggins.
Staff members present were Town Manager Cal Horton, Assistant Town Manager Florentine Miller, Town Attorney Ralph Karpinos, Assistant to the Manager Bill Stockard, Finance Director Jim Baker, Library Director Kathy Thompson, Police Chief Gregg Jarvies, and Town Clerk Joyce Smith.
Item 1 - Public Hearing on the Manager's Recommended 2002-2003 Budget,
2002-17 Capital Improvements Program, Proposed Use of
2002-03 Transportation Grant Funds, and the
2002-03 Downtown Service District Tax
Town Manager Cal Horton explained that he had just learned about the State's plan to impound Library Grant Funds for the months of May and June. He said that this would cost the Town $4,881 and raised the prospect of losing the entire amount next year. He explained that it was highly improbable that any of the funds the state had impounded this year would be made available to the Town. Mr. Horton expressed hope that the legislative delegation would take the lead in sponsoring and strongly supporting legislation that would prevent the Governor from impounding the franchise taxes and the beer and wine taxes next year.
Mr. Horton described this year's proposed budget as "about as dismal as anything I've ever had anything to do with." Operations costs were being held to the same level as this year, he said. Mr. Horton pointed out that there was no proposal for compensation increases and that the Town's Capital Improvements Program would be about one-third of what it might have been. He said that the ability to respond to unplanned contingencies would be challenged next year, adding that the reserves had been used to offset revenues that were withheld earlier this year and that the fund balance was at the minimum. Mr. Horton explained that the staff would continue searching for other sources of revenue, including additional parking revenues and changes in refuse collection practices. He recommended that Council members wait to see what the State legislature does before finally setting the tax rate. This could mean waiting until August 1st, Mr. Horton said.
1. Comments from Advisory Boards on the Preliminary Report on the 2002-17 Capital Improvements Program.
Library Board. Board Chair Bob Schreiner explained that he too had just learned about the cut in State library funds. The news was "distressing," he said, adding that it made his presentation even more difficult. Mr. Schreiner recommended that the Town Council establish as policy the use of Library Gift Funds for visible enhancements to the library rather than for operations and maintenance. He noted that a citizens' group and a Library consultant had both stated during the last few years that the Town Library was lacking in services for the community. Mr. Schreiner pointed out that the Town was using $108,000 of the Gift Fund for operations and maintenance even though Board members believe that donors intended those funds to be used only for enhancements. He commented that adhering to the guidelines in the consultant's report would result in a citizenry inclined to be generous now and in the future.
Mr. Schreiner reported that the Library Board had recommended spending $231,000 of Gift Funds to acquire an automated checkout system. This system would free staff to do more constructive and less monotonous work in the library, he said, and would save money in the long run. He explained that the automated system would allow Library staff to scan the shelves for incorrectly filed and missing books.
Mr. Schreiner asked that the items identified in the consultant's report be put on the CIP, at least as category six, and suggested that authorization be included in the CIP for 2006-2007. He said this would allow the Library Board to hire a building consultant to complete the plans and to make preparations for an architect to begin work when the Town's financial situation improves.
Mayor Foy asked Mr. Horton if the Library Board's specific requests in attachment #8 of Agenda Item #2 should be treated as a petition. Mr. Horton recommended that Council members consider the requests made by all of its advisory boards during their final deliberations. He explained that the staff would do likewise and that they might suggest adjustments in the CIP program prior to when the Council makes its final decision on the budget. Mr. Horton noted that the Library Gift Fund is about the only place in Town that will have money next year. He remarked that the Town Council would not be challenged by any other boards regarding gift funds because no other boards have them.
Council Member Bateman asked Mr. Horton to explain how the Town would eventually pay for expansion of the Library. Mr. Horton replied that there were few choices other than a bond issue or issuance of some form of installment debt. He noted that a bond issue would give the lowest interest rate for repayment and probably is what the staff would recommend. Council Member Bateman noted that Mr. Schreiner and the Board were asking for a certain date when the Town would commit to a process.
Council Member Wiggins asked if the Town had ever before used Library Gift Funds for operations. Mr. Horton replied that the Town makes a $35-45,000 allocation each year from those funds to provide additional support to the Library. Since this is an unusual year, he said, the staff had recommended using more than usual.
Council Member Harrison ascertained that the last library bond issue was in 1994. He asked if the next bond could be in the 2006-2007 period. Mr. Horton replied that the Town Council had not yet made a decision to enlarge the Library. He added, though, that the Town is in the midst of a process that could easily come to that conclusion. The Council would then have to decide on size, Mr. Horton pointed out, and the Town staff would then give an estimated range of costs. After that, the Council would decide on timing, he said. Mr. Horton concluded that now was not the time to set the schedule. The Town was moving toward that, he said, and now is the time to put it on the list of issues that must be taken into account.
Mayor Foy asked how much money was in the Library Gift Fund. Mr. Baker replied that it had been about $540,000 at the beginning of the year. He said that the staff had recommended using $50,000 to address the shortcomings in revenue for the current year and an additional $50,000 for next year.
Council Member Bateman noted that there was a Library Endowment Fund as well. Mr. Horton explained that those funds were being managed independently and that the Foundation Board had indicated that it would make a contribution in support of a new library building at the appropriate time and would assist the Town Council in private efforts to raise funds.
Council Member Bateman asked if the Endowment Fund was being used for Library expenses. Mr. Horton replied that funds from the Endowment Fund were transferred to the Gift Fund each year.
Council Member Ward requested more information on the estimated $20,000 that could be saved through staffing with the new checkout system. Library Director Kathy Thompson said that they had been looking at the new radio frequency identification system (RFIS) in terms of how many staff members it takes to check materials in. She explained that the RFIS would automatically check books in at the return slot. Ms. Thompson explained that the figure in the Council's packet was an estimate based on the cost of the system and the savings in staff time that would result from not checking books in manually. In response to Council Member Ward's questioning, Ms. Thompson explained that the reduction in staffing would occur when the Library did not refill positions after employees resigned.
Council Member Kleinschmidt asked how much the Endowment typically gives to the Gift Fund each year. Mr. Baker replied that they give 3% of the Gift Funds, which is between $50,000 and $75,000, depending on what the principal is at any given time.
Downtown Commission. Commission Chair Robert Humphreys predicted that instituting parking fines would cause residents, students, visitors and guests to react against the Downtown area and to decide to spend their money and time somewhere else. He asked if the "meager" projected revenue was worth that risk. Mr. Humphreys asked the Council to treat all citizens fairly, adding that raising property taxes across the board would accomplish that. He praised the Manager and Town Council for their efforts to resolve the budget crisis.
Carrboro/Chapel Hill Chamber of Commerce. Chamber Director Aaron Nelson praised the Mayor and Council for their efforts to cope with the budget crisis. He asked Council members to consider the local business community and the local economy while developing the budget. Mr. Nelson stated that times were particularly difficult for retail business owners because of the stiff competition from the new shopping mall, revitalized downtown Durham, and the warehouse district in Raleigh. He asked the Town Council to be as nurturing and helpful as possible to the local business community and to lift any impediments to shopping and visiting the Downtown area. Mr. Nelson said that the Chamber would like to call a task force to study parking in the community, including the issue of fees. Regarding commercial trash collection, he asked that the Council continue to work with the business community on making decisions regarding that issue.
Item 2 - Postponement of Public Hearing to Amend the 2001-02
Community Development Program to June 10, 2002
Mr. Horton asked Council members to consider postponing this item so that the staff could come back with a better developed program. He said that this program had not met Community Development regulations.
Mayor Foy explained that the motion would be to move from today's agenda to the agenda on June 10th.
COUNCIL MEMBER HARRISON MOVED, SECONDED BY COUNCIL MEMBER EVANS, TO ADOPT R-1. THE MOTION WAS ADOPTED UNANIMOUSLY (9-0).
A RESOLUTION RESCHEDULING A PUBLIC HEARING TO AMEND THE 2001-2002 COMMUNITY DEVELOPMENT PROGRAM TO JUNE 10, 2002 (2002-05-08/R-1)
WHEREAS, on April 22, 2002, the Council adopted a process to amend the 2001-2002 Community Development program and scheduled a public hearing for May 8, 2002; and
NOW, THEREFORE, BE IT RESOLVED that the Council of the Town of Chapel Hill reschedules a public hearing to amend the 2001-2002 Community Development program to June 10, 2002.
BE IT FURTHER RESOLVED that the Council adopts the following process to amend the 2001-2002 Community Development program:
· Publish a notice in the Chapel Hill Herald on May 26, 2002 to announce the time and date of the public hearing and send a notice of the hearing to our Community Development mailing list (approximately 80 organizations and individuals);
· Review by the Housing and Community Development Advisory Board on May 28, 2002;
· Conduct a public hearing on June 10, 2002 to receive citizen comments;
· Return to the Council on June 24, 2002 for consideration of the proposal; and
· If the proposal is approved, submit a revised 2001-2002 Annual Update to the Consolidated Plan to the U.S. Department of Housing and Urban Development.
This the 8th day of May, 2002.
The meeting adjourned at 7:32 p.m.