For Chapel Hill, the headaches stem from the University. Two issues recently popped up: a fiscal equity policy and UNC's Development Plan.
Last week, the Chapel Hill Town Council perused a memorandum of understanding between the town and UNC about who should pay what.
As UNC expands, it will require greater municipal services from the town, such as police and fire protection. The University -- owned by the state -- doesn't have to pay the property taxes which cover these costs.
Town officials have long complained about the University's lack of financial assistance, and they think it's time UNC pay its fair share. UNC protests, saying that a major research institution pays the community back in many ways.
They have a point. A lot of what makes Chapel Hill such a unique town (the people, intellectual climate, downtown vibrancy) can either directly or indirectly be tied to the University.
Many UNC faculty and administrators call Chapel Hill "home," providing a wealthy tax base for the town. After all, the average price of homes in the town is well over $300,000 - resulting in lucrative tax revenues.
And just this week, Oliver Smithies, a UNC researcher and professor of pathology, won the Albert Lasker Award for Basic Medical Research. The Lasker Award is considered "America's Nobel." Such national achievements bring attention and prestige to the town itself.
But as UNC brings in more students and expands the campus, awards can only go so far. The strain on municipal services will increase.
It would be best for UNC to agree to shoulder some of the costs. The bill should not be split 50-50, but UNC should help alleviate some of the problems it exacerbates.