Carrboro Budget Revealed

But some town officials are disappointed with the recommendations, fearing that the state's budget crisis could keep the town from expanding services.

Carrboro's recommended budget, which totals $12,687,714, focuses on basic services and includes a recommended increase in property taxes.

Town Manager Robert Morgan and Assistant Town Manager Bing Roenigk presented the proposed budget at a press conference Friday morning. The budget contains contingency plans in case the state legislature decides to use local funds to help eliminate the state's nearly $800 million budget deficit.

The Carrboro Board of Aldermen will consider the recommendations at the May 1 meeting and at a May 8 public hearing.

Morgan said the budget is disappointing because it does not address many of the needs town officials would like to address. "I'm not happy with this budget," Morgan said. "I'm sure the Board of Aldermen is not happy with this budget."

The bad news for Carrboro could be from the state legislature, he said. The state budget crisis could mean the General Assembly will keep funds from municipalities they would ordinarily return.

These funds make up 27 percent of Carrboro's proposed budget, which would have to be cut from public works expenditures such as street resurfacing.

Morgan said one option is for the town to pass an interim budget and wait for the state budget until the legislature completes its budget this summer. "Our preference is to go ahead and adopt a budget and make contingency plans," he said.

Sen. Ellie Kinnaird, D-Orange, a former mayor of Carrboro, said the state will have to keep the money or raise taxes. "I am hoping we will get some leadership (in the state legislature) that will enable us to return these reimbursements," she said.

The town's residential tax base increased, meaning the tax rate can be cut. But to meet rising municipal needs, the proposed budget will call for an increase in taxes overall.

"Your bill is going to go up," Morgan said. "From some of the phone calls from some of the more affluent neighborhoods, their values have gone up considerably."

Some new expenses in the recommended budget are $172,000 for a 2.5-percent cost-of-living adjustment for town employees to address the problem of employee turnover. The budget also maintains full insurance benefits for all town employees and a 50 percent subsidy for covering dependents.

"Average town employees make $35,000," Morgan said. "They need that (cost of living adjustment) to pay for insurance-dependent costs."

Morgan said there is no money for new police officers in spite of existing vacancies in the department, but it will be dealt with outside of the budget.

"At the town meeting I will make a recommendation on retention issues, and there will be a workshop on retention issues."

The City Editor can be reached at citydesk@unc.edu.