SUMMARY MINUTES OF A BUDGET PUBLIC FORUM
OF THE CHAPEL HILL TOWN COUNCIL
WEDNESDAY, JANUARY 25, 2006, AT 7:00 P.M.
Mayor Kevin Foy called the meeting to order at 7:00 p.m.
Council members present were Laurin Easthom, Sally Greene, Ed Harrison, Cam Hill, Mark Kleinschmidt, Bill Strom, Bill Thorpe, and Jim Ward.
Staff members present were Town Manager Cal Horton, Deputy Town Manager Florentine Miller, Assistant Town Manager Bruce Heflin, Town Information Officer Catherine Lazorko, Finance Director Kay Johnson, Principal Community Development Planner Loryn Clark, Library Director Kathy Thompson, and Town Clerk Sabrina Oliver.
Council Member Ed Harrison arrived at 7:31 p.m.
Item 1 – Initial Public Forum on the Annual Budget and Related Items
Mr. Horton noted that this was the first of the public forums on development of the proposed budget for the coming fiscal year. He said other opportunities for the public to comment on development of the budget included another public forum on March 10, and a public hearing on the recommended budget on May 10.
Mr. Horton stated that this initial public forum was to provide an opportunity for citizens to comment on the development of the annual budget, the Capital Program, the Community Development Grant, the Housing Capital Fund Program, the HOME Grant, public transportation grants, the Downtown Service District, and potential Legislative proposals.
Bob Schreiner, Chair of the Library Board of Trustees, noted the key challenges had changed little from last year, which was too few staff, too few books, and too little space, including book space, meeting room space and parking space. He stated the following priorities for 2006 as noted in the Library Master Plan:
Mr. Schreiner said their specific recommendations for the coming fiscal year were for the Council to provide funding to hire an additional children’s/teen librarian, a Librarian II, and a materials processor. He briefly discussed the growth in children’s services over the last five years, noting this area had experienced the greatest increase.
Mr. Schreiner stated the Board’s recommendations beyond 2006 as follows:
Mr. Schreiner noted the following funding sources:
Mr. Schreiner noted that the Chapel Hill Public Library leads the State in per capita circulation, at 13.7 compared to a State average of 4.4. He said the Library spent 29 percent less than the State’s average per circulation cost, and enjoyed a patron use increase of 2 percent to 4 percent annually. Mr. Schreiner said the Library’s 2005 accomplishments included a greatly improved website, a new and enhanced on-line catalog, and email notices for overdue and reserve books. He said also during 2005 the Library Building Committee began its work, the Library Foundation launched its capital campaign for collection development, and the Friends of the Library started two book groups and funded additional children’s programs.
Brooke Hayes yielded her time to Robin Cutson. There was no objection from the Council.
Robin Cutson stated that the Finance Director had indicated that because of the debt incurred with the new Town Operations Center, bond rating agencies have noted that the Town’s ratio of debt service to total expenditures would increase above the average rate for similar governments with similar bond ratings. As well, she continued, the Finance Director had stated that the debt service payments were high in comparison with total expenditures.
Ms. Cutson said that high debt payments meant less money available for expenditures on basic services, especially since with the higher bond debt ratio more money must be kept sitting unused in savings in order to maintain a healthy bond rating. She stated this was important in terms of public housing because it was expected that Chapel Hill would be receiving a reduced subsidy for public housing, and that reduced subsidy would not be known until the second half of the fiscal year.
Ms. Cutson said that it was obviously a wise move to forego incurring additional debt, yet the Town was still considering even more debt by issuing yet another bond for $7.75 million in the fall of 2006-2007. She said that the sale would require a payment in the spring of 2007 of about $200,000 just on the interest from the borrowed money. Ms. Cutson said in the interest of fiscal responsibility she suggested that no additional bonds be issued until the tax base was increased, and use the $2.8 million surplus already in the budget to repair and maintain facilities already in existence.
Regarding contributions to non-profit agencies, Ms. Cutson remarked that if the same grants were made as in the past it would total over $700,000. Yet in 2004-2005, she said, Chapel Hill granted only $500 to the Piedmont Wildlife Center. Ms. Cutson stated that in that same year the Town donated $135,000 for public art including $500 for just one cultural arts dinner.
Ms. Cutson noted that the Executive Director of the Piedmont Wildlife Center had indicated that one of the goals of the Center was to establish an educational summer camp for children ages 4 through 11. She said this camp program would only require $60,000 seed money and then would be self-sustaining through fees and tuition, adding there was also hope for an educational center. Ms. Cutson stated that money donated to the Wildlife Center would not only benefit local wildlife but money donated towards the summer camp would also contribute to the educational, psychological and emotional development of children and young adults.
Ms. Cutson remarked that attention had recently focused on raising educational scores of at-risk youth, of preventing violence and gang activity, and curbing underage drinking and drug use. She said most programs merely reiterated the use of more funds for counseling or diversionary activities such as teen centers or recreational facilities. Ms. Cutson said that research had shown that:
Children with symptoms of attention deficit hyperactivity disorder were better able to concentrate after contact with nature.
Children with views of and contact with nature score higher on tests of concentration and self-discipline.
Children exposed to animal education programs display enhanced empathy for humans compared to children not exposed to such programs.
Simply being in the presence of a wild animal can be renewing and revitalizing. Studies support that the presence of animals in a safe setting or even pictures of animals that appear safe can relieve stress.
Ms. Cutson noted that in 2005 the Wildlife Center took in 2,390 animals, and volunteers to the Center logged in 18,000 hours. She asked the Council to consider increasing the funding to the Center.
Ms. Cutson stated she had three legislative requests:
Ms. Cutson said that research labs working on bio-defense and vaccinations handle some of the deadliest pathogens known to man, such as SARS, anthrax, plague, Ebola, and smallpox that are being genetically reconstructed to new unseen forms.
Ms. Cutson quoted from a report on UNC’s track record on biohazards, noting that the report stated that UNC’s Institutional Biological Safety Committee needed to “actively monitor and manage biological risks on campus, and demonstrate institutional control. Failure to do so risks public health, adverse publicity and additional scrutiny by external agencies.” She stated that according to the report, 60-100 hazardous spills occur at UNC each year, yet UNC does not fully comply with OSHA standards. Ms. Cutson said that UNC researchers and staff routinely ship laboratory samples and other regulated materials, yet few of those shipments fully complied with complex DOT, FAA, and IATA rules for transport of hazardous materials.
Ms. Cutson said that Duke University and UNC were not part of a consortium that had been awarded funding for bio-defense work and plan to begin this fall. She said at the least this put the public at risk, and public discussion was warranted.
Regarding animal cruelty laws, Ms. Cutson remarked that although our State had joined with the vast majority of other states in making some forms of animal cruelty a felony offense, the punishment for abusers in our State was the weakest of all save for Mississippi. She said there was a small group of citizens working to prepare a document with suggested changes to the laws to send to the General Assembly. Ms. Cutson suggested that the Council review the specific materials at [email protected]. She also stated she would email each Council member with more information.
Ms. Cutson said regarding her request for legislation prohibiting eminent domain for economic gain, she suggested that the Town adopt a local ordinance prohibiting this action. She said many towns across the nation were doing this, because it was being used primarily against small businesses, and lower and middle class neighborhoods and people.
Whitney Kahn, Youth Director for the Chapel Hill-Carrboro YMCA, noted that for the past 12 years the Town had provided funding for their Outreach programs through Community Development funds. She said that funding had provided activities for children from two low-income neighborhoods, Pine Knolls and South Estes Drive. Ms. Kahn stated that all of Outreach participants were integrated into the existing after-school programs at the YMCA, and that tutors were provided to increase success among the Outreach children.
Ms. Kahn said these children also were provided the opportunity to participate in specialty activities, such as cheerleading, cooking, drama, art, basketball, soccer, and other clinics throughout each month. She said they made every effort to surround these children with positive role models, children from other schools, and activities to enrich their lives in a positive manner.
Ms. Kahn said the YMCA and its Board of Directors were dedicated to addressing community needs through its Outreach programs. She said with the Town’s continued support, these programs would continue to be a positive influence and would continue to build strong children, strong families, and strong communities.
Mayor Foy stated that the YMCA activities were a good example of how decisions being made in Washington were affecting us locally. He asked Mr. Horton to update the Council on what was happening with the Community Development Block Grant funding. Mr. Horton responded that the Town had been notified that its Community Development funding would be reduced by about $68,000, a little more than 10 percent.
Mayor Foy stated that would mean that the Town may not be able to continue full funding of a worthy program, and the public needed to understand that. He said the Town was receiving cuts in funding because of the choices that the federal government was making.
Patricia Saylor, President of the Friends of the Chapel Hill Public Library, said that through their books sales, the Friends had been able to purchase books and other items for the Library including the meeting room conference table, a dishwasher and ice maker for the kitchen, and outfitted the staff lounge. Ms. Saylor said the Friends had purchased TV/VCR/DVD equipment, a collator/copier and a movie license that had greatly expanded the Library’s summer programming. She said they were pleased and delighted to have been able to provide these items, but realistically they should have been a part of the Library’s ongoing budget.
Ms. Saylor described adult programs that were sponsored by the Friends, including Meet the Author teas. She stated that these various events were fast outpacing the available meeting space, noting that many times the number of participants exceeded the capacity of the space. Ms. Saylor said these examples proved the need for more space and more funding.
Ms. Saylor remarked that the Friends had actively supported the recent bond issue to expand the Library, and they were requesting that the expansion move forward as soon as possible. She said they also requested that additional staff be added to support adult programs.
Karen DeHart, representing the NC High School Athletic Association, stated they were housed in Chapel Hill and had been for 92 years. She said as a result, they had had a significant economic impact on the Town. Ms. DeHart said they bring many visitors into Town, and provided a series of statistics of the impact of those visitors. She noted that over the last seven years that impact had amounted to over $8.1 million.
Ms. DeHart thanked the Council for its past support, and asked that the Town continue that support.
Nerys Levy, representing the Cultural Arts Group, asked the Council for its support of the 10th Annual Community Dinner to be held in March, 2007. She said the event was supported by many organizations, businesses, and persons throughout the community including other local governments. Ms. Levy said at the dinner held in 2005, over 600 people of varying ages and cultures had sat down together to enjoy food and entertainment provided by several cultural groups.
Ms. Levy said that this year’s dinner to be held on March 5 had been generously supported by the Council, and promised to be equally successful. She said the financial and material support they had obtained made it possible for them to reach out and include persons who may not otherwise have been able to participate due to financial reasons. Ms. Levy said they would be pleased to have the Town continue its support in the amount of $500, noting that events such as this brought the community together. She invited the public to volunteer their services to the dinner, noting that many attendees looked forward to seeing members of the Council participating at the dinner, either by serving or by sharing the meal.
Michelle Lewis, President of the Chapel Hill Public Library Foundation, noting they were different from the Friends in that the Friends focused on day-to-day needs of the Library and the Foundation focused on long-term capital needs which included books. She commended the Council for its support of $500,000 for technology improvements as well as the $16 million in bond funding for Library expansion. However, Ms. Lewis noted, the 2003 Library Services Master Plan which called for significantly augmenting the collection to meet the needs of the population had not been funded.
Ms. Lewis noted that the last time the Town had made a significant contribution to augment the Library collection was over 10 years ago. She remarked that using the population numbers in the 2003 Master Plan, by the year 2010 the Library collection needed to expand by over 60,000 items. Ms. Lewis said those items were estimated to cost over $2 million dollars.
Ms. Lewis said the Foundation asked that the Council to decide whether and to what extent it would fund the collection improvements contained in the 2003 Library Master Plan. She said the Foundation would do its best to raise private funds to reduce the shortfall between what the Town intended to fund and the $2 million it would cost to fully fund those collection improvements.
Ms. Lewis noted that the Library was capable of holding an additional 9,300 books. She said the Foundation asked that the Council decide whether and to what extent it would fund the addition of 9,300 items to the existing Library collection. Ms. Lewis said that was estimated to cost $250,000. In this way, she said, the Town could begin funding of the improvements noted in the 2003 Library Services Master Plan. Ms. Lewis said the Foundation would attempt to raise private funds to reduce the shortfall between what the Town intended to fund and the estimated $250,000.
Ms. Lewis announced that the kick off of their One Community, One Book program was fast approaching. She said they were holding a “what really happened” contest regarding the book that was selected. Ms. Lewis said they had learned that a local 5th grader had decided to write a play and have her enrichment group put on that plan. She said that was proof that this program was touching lives in many ways. Ms. Lewis said if you could imagine what this one book would do for the community, imagine what 9,300 would do.
David Sasser, representing the Chapel Hill Firefighters Association, expressed that he and his colleagues took their jobs seriously and that was the reason he was before the Council this evening. He thanked the Council for its past support to meet their needs, which resulted in increased State funds and improved equipment. Mr. Sasser said they wanted to work side by side with the Council to continue to provide exceptional emergency services and to be a department that other communities would model. He asked the Council for its continued support.
Mayor Foy remarked to Mr. Sasser that last when he had appeared before the Council to advocate for State funding, that Fire Chief Dan Jones had been an eloquent, forceful and tenacious advocate for that funding and had been successful. He said that the Council was thankful for Chief Jones’ efforts. Mr. Sasser responded the firefighters were thankful as well, and hoped that future efforts would be as successful.
Harvey Reid said he was an advocate of funding for education and literacy throughout our community. He said one way that the community could receive benefit from was a State-wide movement to fund literacy programs. Mr. Reid said that literacy could assist persons who were homeless to transition into homes through education, as well as assist persons living in public housing to transition into homeownership. He remarked that groups such as EmPOWERment, Inc. and Orange County could assist through homebuyer education in finding persons to participate in such programs.
Mr. Reid said now was a good time for Chapel Hill to become part of that effort by providing funding. He asked the Council to consider that when making budget decisions, noting that many groups would benefit from such programs. Mr. Reid asked the Council to join in the effort to make financial literacy and financial education a part of the Town’s commitment to the community.
Delores Bailey, Executive Director of EmPOWERment, Inc., petitioned the Council to provide the funding necessary to hire a property manager to collectively manage the 58 affordable rental properties overseen by EmPOWERment, Orange Community Housing and Land Trust, Habitat for Humanity, Affordable Rentals, Inc., and the Chrysalis Foundation.
Ms. Bailey said while each of them was committed to providing management of their rental properties, it was a large time commitment and required much energy. She proposed that one person be hired to provide this management at an estimated cost of $50,000 for the first year. Ms. Bailey said the best part was their request was that because they were also requesting funding from Orange County and the Town of Carrboro, they were asking for funding of only $14,000 from Chapel Hill. She noted that this funding was projected to increase over the next five years, since the total cost was estimated to increase from $50,000 to $80,000 in five years. Ms. Bailey said that a property manager to handle all of the rental units would provide for more efficiency and consistency.
Robert Dowling, Executive Director of the Orange Community Land Trust, thanked the Council for its long-time support. He said that Chapel Hill and the Land Trust model was becoming a model community for other towns and cities throughout the Southeast. Mr. Dowling provided information regarding recent activities of the Land Trust, including receipt of an award in Washington regarding the Northside Initiative.
Mr. Dowling said regarding budget matters, the Council currently provided funding to their operating budget in the amount of $110,000, noting their total operating budget was $350,000. He said that level of funding had remained steady for several years, and although his Board had not yet revised his budget projections, he would be asking the Council for an increase in that funding level for the coming year.
Regarding Community Development Block Grant funds, Mr. Dowling said they were currently working with Town staff to look at the Northside Initiative to determine if there were additional properties for purchase in the Northside neighborhood, specifically in the Sykes Street and Nunn Street areas. He said that the former price of $50,000 to purchase such properties had increased, but they would continue to try to determine if others were available. If any were located, he said, they would request Community Development Block Grant funds for the purchase.
Mr. Dowling said that Crosland Properties were proposing 32 tax credit units at Dobbins Hill II, and Crosland currently had submitted an application for those tax credits to the NC Housing Finance Agency. He said that application would be enhanced if local funding was present, noting it would cause Crosland to score higher on its application for tax credits. Mr. Dowling said that Crosland had asked about the possibility of providing $160,000, which was $5,000 for each of the 32 affordable units. He said he was not sure how that might happen, but he would be meeting with Crosland soon to discuss it.
Mr. Dowling expressed his support for the request made by Ms. Bailey for funding for a property manager. He noted that the various agencies had struggled with the management of rental housing, and the proposal to place the management in the hands of one organization under one manager would enhance services to citizens.
Council Member Thorpe noted that Orange Community Housing and Land Trust had received an award from the Chapel Hill-Carrboro Chamber of Commerce, and congratulated Mr. Dowling. He said he and Council Member Easthom, as the two new members of the Council, had been visiting various departments and receiving information on the workings of the Town. Council Member Thorpe requested that Mr. Dowling contact the Manager or the Town Clerk to set up a time when they could meet together and discuss the services and work of the Land Trust. Mr. Dowling agreed to do so.
Mayor Foy said he had spoken to Liz Parham, Director of the Downtown Partnership, and she had asked him to tell the Council that her absence should not be construed as a lack of interest. She was out of town, he said, but had asked him to convey her continued support of the Downtown District tax.
ALL COMMENTS WERE REFERRED TO THE MANAGER BY CONSENSUS OF THE COUNCIL.
The meeting was adjourned at 7:53 p.m.