The Schools Adequate Public Facilities Ordinance would affect schools in both the Chapel Hill-Carrboro City and the Orange County school systems.
The measure must be approved by the two districts' school boards, the council, the Carrboro Board of Aldermen and the Orange County Board of Commissioners before going into effect.
Both school boards already have given a nod to the proposal.
At Monday's public hearing, the council opted to refer the proposal to the Chapel Hill Planning Board, which will consider the measure and offer recommendations to the council.
Chapel Hill Planning Department Director Roger Waldon gave a presentation outlining the goals of the proposal to the council.
Waldon told the council that the primary purpose of the ordinance is to alleviate the problem of overcrowding in local public schools.
After hearing Waldon's presentation, the council listened to comments from 15 citizens.
Libby Lovington, a teacher at Frank Porter Graham Elementary School, urged the council to put the ordinance in place as quickly as possible.
Several residents echoed Lovington's sentiments and requested that the council quickly approve the ordinance, which they said would relieve the long-standing problem of overcrowding.