With the implementation of the local half-cent sales tax last month and unexpected revenue from the state, Chapel Hill is proposing putting much of the surplus money toward improving town property, public safety and other town services.
The proposed amendment to the 2002-03 Capital Improvements Program budget includes $815,000 to go toward renovations and repairs for the Inter-Faith Council homeless shelter, the Hargraves Community Center and two local fire stations.
The amendment also calls for new generators for the Town Hall and the Chapel Hill Police Department, which would allow lighting, telephones, computers and heating to remain operational in case of a power outage.
After the December ice storm, parts of the community's most vital infrastructure, including the Police Department and Town Hall, were without power for days, and the new generators will help decrease the effects of another outage.
The council addressed the issue at its Monday night meeting and deferred further discussion until its Friday planning retreat.
Council member Mark Kleinschmidt said the CIP usually is used for "big-money operations." But the council trimmed the budget last year because members anticipated that the state would withhold the revenue from utility and franchise taxes and beer and wine taxes that it withheld in the last budget.
"We didn't budget it because we weren't sure we'd get it," Kleinschmidt said.
That unexpected state revenue, combined with the anticipated funds from the half-cent sales tax increase, is estimated to reach $1.63 million but could reach $2.6 million, officials said.
The town will have more certainty after Gov. Mike Easley reviews the state's fiscal condition in February. After the N.C. General Assembly passed legislation protecting revenues that were withheld from municipalities last year, the council was presented with more opportunities for the CIP.
