UNC, Town Strive to Maintain Fiscal Equity

The fiscal equity agreement involves services, namely fire management, provided by the town for the University.

Chapel Hill receives $800,000 from the state to provide fire management for the University, but town officials say this amount doesn't cover the entire cost of the city-provided services.

The town provides these services free of charge to the University and also waives property taxes on land the school owns, as mandated by state law.

Because the University is expected to expand in the future and take up more services and property, including two new buildings on Franklin Street, town officials have mixed feelings about UNC's part in the fiscal relationship.

Chapel Hill Town Council member Flicka Bateman said the relationship between the University and town is a complicated one.

"I think that it's a very intricate relationship that has been maintained for a long time," Bateman said.

Chapel Hill Town Council member Mark Kleinschmidt believes services provided by the town are compensated by the benefits UNC brings to the town.

"It's a balancing act," he said. "UNC's presence in our town enhances our way of life, but the fact that UNC is in a town like Chapel Hill also enhances its effectiveness as a university."

Bill Stockard, assistant to the town manager, said UNC's role as the largest single employer in Chapel Hill plays a big part in the town's economic well-being.

"UNC provides a large student population and employment base that contributes to the vitality of the community," Stockard said.

Jonathan Howes, special assistant to Chancellor James Moeser, said the fiscal relationship between the University and town emphasizes an equal partnership.

"The University offers the town a great deal," Howes said. "Along with a whole variety of cultural aspects, UNC also lets residents use their libraries, parks and recreational centers."

But Kleinschmidt said with the recent budget shortfalls, the town could find it more difficult to provide enough money for University services.

"With the University growing so much, finding enough money to cover all of these services could become a problem," Kleinschmidt said.

He also said that although the University does cater to some Chapel Hill residents, many members of the community do not reap the benefits.

"These services are being paid for by citizens on the city and state level," Kleinschmidt said. "Unfortunately, these citizens aren't involved with and don't benefit from the University."

Bateman said she also is concerned about the University's duty to Chapel Hill.

"There are areas that the town would like to see the University maintain a greater sense of responsibility in," she said. She cited clean-up after celebrations following major athletic wins as an example.

But Howes believes the University and town have a strong relationship that should continue into the future. "The University and the town are so closely tied together," Howes said. "Their relationship will only grow stronger as far as I can see."

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