SUMMARY MINUTES OF A BUDGET PUBLIC FORUM
OF THE CHAPEL HILL TOWN COUNCIL
WEDNESDAY, JANUARY 29, 2003, 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, Mark Kleinschmidt, Bill Strom, Dorothy Verkerk, Edith Wiggins and Jim Ward.
Council Member Ed Harrison 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, Police Chief Gregg Jarvies, Housing Director Tina Vaughn, Principal Community Development Planner Loryn Barnes, Transportation Planner David Bonk, Finance Director Jim Baker, and Acting Town Clerk Vickie Hackler.
Mayor Foy explained that immediately following tonight's forum on the budget, the Council would complete several items that were continued from the January 27th business meeting. He noted that the budget under discussion tonight would not be formally adopted until June.
Mayor Foy observed that some citizens present had come to speak about the potential location of a third high school at Southern Community Park, and noted that item was not on the Council’s agenda this evening. He said that the Council expected a report from the Manager regarding that item on February 10, 2003, and the Council would not hear comments on that issue this evening, but welcomed comment on the budget.
Agenda Item 1 - Initial Public Forum on the Annual Budget and Related Items
Mr. Horton described this meeting as an opportunity for citizens to comment on a number of budget issues, including the Annual Budget, Capital Improvements Program, Community Development Grant, Housing Capital Fund Program, HOME Grant, Transportation Grants, and Downtown Service District. He pointed out that it was also the time of year when Council members receive legislative proposals prior to meeting with the legislative delegation. Mr. Horton recommended that the Council determine which issues they and citizens want legislators to take before the General Assembly.
Mr. Horton explained that the staff had provided preliminary budget estimates during the Council's recent Planning Session. He expressed hope that these were consistent with instructions the Council had given on budget preparation. Mr. Horton indicated a table in the staff's memo showing that the staff expects costs of about $37.5 million in the General Fund, with revenues of about $40.3 million.
Mr. Horton pointed out that these estimates did not include employee compensation adjustments, grants to other agencies for human services or other purposes, changes in landfill tipping fees, additional debt service for issuance of bonds in support of capital projects, or additional funding for small Capital Improvements Programs. Those might add as much as $3.5 million, he said, noting that this would result in a shortage of about $800,000. Mr. Horton noted that Council members could expand or reduce services, create new services, or delete old ones.
Maxecine Mitchell, representing Youth Creating Change, requested Community Development Block Grant (CDBG) funds to reinstate the Town's economic development program for micro-enterprises. She also asked that funds be set aside for Youth Creating Change to develop a job program for youth during the next year.
Mayor Foy determined that Youth Creating Change had submitted a specific proposal that the Council could respond to during the budget allocation process.
Council Member Strom asked Ms. Mitchell if she had a specific amount of money in mind. Ms. Mitchell replied that she was asking for about $40,000. She pointed out that young people in her program would work to help the Town. Ms. Mitchell noted that the Cease Program in Durham had helped organize her program.
Mark Smith said that he, Etta Pisano and Ava Nackman had signed up to speak on the school at Southern Community Park issue. After discussion with Mayor Foy, the three agreed to hold their comments until the February 10, 2003 meeting.
Ralph Abrahams, a Chandler's Green resident, thanked Council members for their efforts to pursue his petition regarding increased funding for the Chapel Hill Fire Department. He asked, though, that the disability insurance part of the petition not be overlooked. Mr. Abraham stressed that under the current insurance policy, a disabled firefighter would not be able to support his family.
Delores Bailey, speaking on behalf of Northside, Pine Knolls and other neighborhoods, asked Council members to invest a portion of the CDBG funds in that community. The funds are needed for housing repairs, rehabilitation of buildings, and capital and public improvements, she said. Ms. Bailey thanked the Town Council for its plan to create a Neighborhood Conservation District (NCD). She noted, however, that the outsides of many homes mask how desperately they need repair inside. Ms. Bailey listed leaking roofs, broken furnaces, and ramps, rails and walkways for the disabled among the needed improvements.
Alex Asbun, director of Affordable Rentals and former director of El Centro Latino, explained that Affordable Rentals had received $70,000 from HOME funds last year. He said that they had used those funds to acquire a duplex on McMasters Street. This had enabled Affordable Rentals to secure a bank loan for $137,000 to carry that project, he said. Mr. Asbun asked Council members to allocate funds this year to create additional affordable units. He requested $374,000 to acquire 13 rental units and for rehabilitation of these units as needed.
Nerys Levy, representing the Cultural Arts Group, invited Council members to the Sixth Annual Community Dinner, planned for February 9, 2003. The event will celebrate local cultural diversity and community interaction, she said, describing it as a testimony of the multi-cultural goodwill of a large segment of the very diverse community. Ms. Levy noted that 7,000 people had attended the 2002 Community Dinner, adding that Town support for that had been important to the many people involved. She pointed out, though, that the Town had not supported the 2003 Community Dinner, since the Human Services Committee had rejected the application. Ms. Levy expressed understanding of the budgetary constraints that the Town faces, but stated that most groups, despite their hardships, had managed to give at least something to the event. She asked the Town Council to support, through a performance agreement, the Seventh Annual Community Dinner to be held in February 2004. Ms. Levy pointed out that such financial support enables the Cultural Arts Group to absorb the cost of tickets for people who would not otherwise be able to attend. She asked the Town Council to approve a contribution of $500.
Estelle Mabry spoke in support of the Police Department's request for funding. She expressed gratitude for the Police Department's efforts in the Northside Community, explaining that they had helped eliminate drug dealing, had made the streets safer for children, and had improved safety at the Hargraves Center. Ms. Mabry asked the Town Council to fund the Department at whatever level it requests.
Charles House, Chair of the Downtown Commission, noted that the Commission had hired University Retail Group last year to study the Downtown area and to recommend ways to enhance that district. The Commission will formally bring a report forward at later time, he said, and the results will demonstrate that this had been a worthwhile project. Mr. House asked Council members to consider items such as parking, street lighting, streetscape, and the loitering/panhandling issue during budget deliberations. He also recommended reconfiguration of Lot #5, creating larger and more distinct signage for parking, consider reverting back to old parking rates, implementing new pedestrian lighting soon (including Rosemary Street), build new sidewalks on Rosemary Street, and make panhandling illegal after dark.
Robert Dowling, Executive Director of Orange Community Housing and Land Trust (OCHLT), explained that he would not ask for operating monies at this meeting because he had been invited to address the Council regarding that at a budget work session in March. He said that OCHLT did not currently have a project in Chapel Hill that required CDBG funds. Mr. Dowling recommended that the Council support Delores Bailey's request for funding in Northside. Regarding HOME funds, stating that they had received $77,000 last year to work with two developments that had been delayed, so OCHLT had not yet used that money but they expect to use most of it by September.
Mr. Dowling pointed out that the Meadowmont units are “just affordable”, and suggested using some funds to widen that window of eligibility. He said that a particular 20-24-unit development in Carrboro would require a subsidy of about $20,000 per unit, and noted that there were another seven units in Carrboro as well. Mr. Dowling explained that the Carrboro Board of Aldermen had not yet approved either of those projects but that he wanted to make the Council aware of them for next year.
Barry McLamb spoke in support of the Fire Department's petition for additional staffing. He pointed out that Chief Jones' report had stated that the Department needed 15-20 personnel on the scene to achieve the best possible outcome at an incident. Without this, said Mr. McLamb, fire attack is compromised. He explained that firefighters had recently been able to save two properties that might otherwise have been destroyed. They had been able to achieve this, Mr. McLamb explained, because they were “overstaffed” due to the ice storm. He asked Council members to provide for firefighters' and citizens' safety.
David Sasser, representing the Chapel Hill Firefighters Association and the Chapel Hill Fire Department, expressed support for the proposal to add more firefighters. He pointed out that the job is more dangerous when firefighters have many varying responsibilities. Mr. Sasser asked the Council to improve the safety of firefighters and Town residents by adding the needed positions.
Major Geer, representing residents of the Parton Hills and Piney Mountain Road area, stated that he and his neighbors had met with Orange Water and Sewer Authority (OWASA) last year concerning a sewer problem in their neighborhood. About 60 families do not have city sewer, he explained, and their septic systems are failing. OWASA told them that it would cost about $1 million to put sewer in their area, and asked the Town Council for any funds that they could provide to replace those septic systems. Mr. Geer pointed out that all of the newer subdivisions around his neighborhood have city sewer.
Mr. Geer said Long Range Planning Coordinator Chris Berndt had told him that $192,000 allocated for the Morgan Creek subdivision had not been used. Ms. Berndt advised him to come before the Council and ask for some of those funds, he said. Mr. Geer pointed out that the sewers could be replaced in stages. He noted that six of those houses were within 300 feet of an OWASA-maintained pump, on Apple Street. Mr. Geer wondered if those six houses could hook up to that pump. He asked Council members to think about the future because the other systems will fail eventually.
Council Member Strom asked Mr. Geer if he and his neighbors had approached OWASA with a formal request for an assessment. Mr. Geer replied that they had met with OWASA twice and were beginning the assessment. Council Member Strom pointed out that it was difficult to know the level of funding needed before the formal assessment had taken place.
Mayor Foy asked Mr. Horton how the Council could respond in such a way that Mr. Geer would know what its response was. Mr. Horton recommended that the Council ask the staff to bring back a report on this particular case. The situation involves many issues of policy, he said.
Council Member Bateman confirmed that the sewer money was no longer designated for the Morgan Creek neighborhood and that his neighborhood was eligible to apply.
Council Member Wiggins noted that the OWASA pump on Apple Street was very loud. She commented it is too bad that people in those six houses have to live with the noise but cannot be connected to the sewer.
Lucy Lewis, Executive Director of the Orange County Literacy Council, thanked Council members for the CDBG funds over the past two years to support intensive work with residents of low-income and public housing. She described the program as slow and labor-intensive, but said they were making steady progress. Ms. Lewis urged the Council to support the Literacy Council's request for $11,500 to continue providing computer-based General Education Diploma (GED) classes in public housing neighborhoods and at Hargraves Community Center. She pointed out that obtaining a GED and literacy skills gives citizens economic opportunities that they would not otherwise have.
Kit Stanley, GED Coordinator for the Literacy Council, also asked Council members to support the program. She requested that it remain in place so when more residents begin to notice and respond to it, the funding will be available to support it.
John Hill, representing a group of small contractors and homeowners, asked whether the funds that Ms. Bailey had requested would go directly to homeowners who demonstrate a legitimate need or be given to an organization that would disburse them. He also asked if Northside homeowners would be able to choose their own contractors or if they would be required to use contractors recommended by specific organizations. Mr. Hill stated that he was one of many small contractors who were eligible to work on funds disbursed by HUD, but said he had been told that the Council had stipulated that general contractors must be used. He stated that he and other small, skilled, and experienced contractors would like an equal opportunity to bid or they would like a certain part of the funds to be set aside for small businesses.
Council Member Wiggins requested that the staff respond to Mr. Hill's questions. Mr. Horton offered to meet with Mr. Hill and follow up on his request. Council Member Wiggins urged Mr. Hill to schedule an appointment with Mr. Horton.
Council Member Strom expressed hope that the Town would achieve some type of electronic pay and display, or pay system, for parking this year. He noted that the Council had recently passed the 2025 Transportation Plan, which includes plans for fixed guideways. Council Member Strom wondered what funds would be available to begin a feasibility study for those projects. He requested a list of what other communities were doing to increase revenues, such as fees for services and other approaches that put charges directly on users and lowers the tax burden in Town.
Council Member Strom asked if the money budgeted for police positions which were left open gets carried over to the next year or if it gets absorbed. Mr. Horton replied that the money gets carried over. Council Member Strom requested that this be highlighted in the staff report. He also inquired about the feasibility of Chapel Hill developing a volunteer firefighter auxiliary to help address the personnel shortage issues.
Council Member Wiggins said she was looking forward to the February 11th work session on housing. She pointed out that the Town would have more money than it has had in the past for projects, and she hoped the Town would be able to address the entire spectrum of housing needs in the community.
Council Member Wiggins added that funding for fire and police services was at the top of her list for community health and safety. She asked Mr. Horton for an assessment of how calls for active military service would impact the Fire and Police Departments. Mr. Horton replied that one person had already gone or was ready to go and that at least three others were about to be called. He offered to bring a more formal survey back to the Council.
Council Member Bateman questioned whether the meeting on February 11th was actually a work session on housing. Mr. Horton determined that it was a meeting for the OCHLT to make its presentation. He said the housing meeting had not yet been scheduled, but that the Council might choose to schedule that on February 17th. After discussion, Council members determined that the regular budget hearing would be on February 12th.
Mayor pro tem Evans expressed support for the issues that Mr. House had raised on behalf of the Downtown Commission.
Mayor Foy stated that he had met with local mayors about getting General Assembly approval for a common funding source for transportation infrastructure needs. He pointed out that there would be a several billion dollar shortfall for this region. Mayor Foy said the mayors had been discussing ways to get about $50 million dollars on an annual basis to supplement the insufficient funding. He explained that the mayors would attempt to get their councils and commissioners together to approach the General Assembly for that amount of money, which would be split equitably, probably per capita.
Mayor Foy pointed out that Orange County was more interested in developing public transportation than it was in building roads, and asked if Council members wanted to lobby for that.
Mayor pro tem Evans inquired about using property taxes. Mayor Foy replied that there had been a lot of proposals, such as gasoline tax, auto registration fees, and real estate transfer tax. He suggested that the Council obtain information on how much revenue those taxes or fees might raise and then see what it is willing to support.
Mayor Foy said the business community was willing to support certain things and that Raleigh and Durham were also willing to support certain things. The goal, he said, was that all come together and form a consensus. Mayor Foy remarked that Mecklenburg County had received permission for a half cent sales tax, and this had given them enough money to begin their public transportation system.
Council Member Kleinschmidt argued that it was not equitable for Orange County to continue subsidizing "third world readiness" for public transportation in other counties.
Mayor Foy agreed that Orange County residents had been subsidizing the Durham County and Wake County rail systems. This had been part of the deal the County had made to get the project going, he said. Mayor Foy noted the risk was that Phase I would be completed partly at Orange County's expense and that there would be no Phase II. He stressed that Orange County should be vigilant in making sure that funding for Phase II comes relatively soon and that it is not entirely on our backs. He agreed that Wake County was not as prepared for public transit and wants to spend their share on widening roads.
Council Member Verkerk asked how the shortfall was being determined. Mayor Foy explained that it was based on a public/private study that the Town had done a couple of years ago to determine how much money the area would need.
Mayor pro tem Evans noted that there were summaries of the study available.
Mayor pro tem Evans asked the Manager to bring back a list of projected fees and increases that the community would face over the next 5-10 years. Mr. Horton pointed out that the staff forecasts for at least five years when it prepares the budget. He offered to identify what the service issues might be, though, and to attempt to forecast the costs of those.
Council Member Bateman asked when Mr. Geer and the Piney Mountain Road neighborhood could expect a response from the Town. Mr. Horton said that it would be no longer than 30-45 days.
COUNCIL MEMBER STROM MOVED, SECONDED BY MAYOR PRO TEM EVANS, TO RECEIVE AND REFER COMMENTS TO THE MANAGER AND ATTORNEY. THE MOTION WAS ADOPTED UNANIMOUSLY (8-0).
The public forum was adjourned at 9:05 p.m.