Budget talks continue to face public comment

The Chapel Hill Town Council welcomed citizen requests for next fiscal year’s budget at its Wednesday public forum.

But with the looming possibility of a 10 cent property-tax increase, it has been the council that has been looking for help.

Wednesday marked both the initial public hearing on the annual budget for the 2005-06 fiscal year and the first meeting of the budget review advisory committee.

Town Manager Cal Horton’s preliminary budget estimate suggests that the town’s costs for the next fiscal year could exceed its revenue by more than $5 million — a shortage that would require a 9.6 cent increase in the town’s property tax.

“We’ve known about this problem for a year now,” Mayor Kevin Foy said at the meeting. “Like a train wreck coming right at us.”

Foy and the majority of the council met with the citizen advisory committee to discuss ways the town could avoid such a shortage.

It has been more than a decade since a citizen advisory committee was formed to aid the council in developing a budget, Foy said.

 

Increasing debt service from voter-approved general obligation bonds, an increase in capital improvements and debt service related to the new town operations center are the primary reasons for the projected shortage.

The town had leased University-owned property on the Horace Williams tract for more than 20 years to use for the departments of public works and housing and transportation, which now will relocate to the new operations center.

With plans for the University’s satellite campus, Carolina North, moving forward, the town’s lease at Horace Williams was not renewed and is set to expire in 2006.

The town now will face an annual payment of $2 million for construction of the new center.

Committee member Joe Capowski asked if the town could delay construction on the operations center while the University tries to lift a rider placed by the General Assembly on the Horace Williams Airport.

Until the rider is lifted, University officials have been hesitant to proceed with plans for Carolina North.

Horton said the council has asked that question before.

But he explained that the town could lose much of the grants it has received for the center if construction is delayed.

Kenneth Murray of MAXIMUS Inc., the town’s budget consultant, said he did not know if the town could cut spending by $2 million.

“Typically, a community can save between 10 and 20 times (our consulting fee),” Murray said.

The town agreed to pay the firm $80,000 for its services.

Council member Bill Strom asked Murray if Capowski’s idea was a way that the town could maximize its savings.

“Many places will act too quickly without putting in the infrastructure,” Murray warned the committee. “You might have lower costs, but then work productivity goes down.”

The committee agreed to meet at least five more times before Murray’s final report to the council April 11.

Wednesday’s public forum was the first of three that will be held throughout the budget process and also offered citizens the opportunity to suggest capital improvement programs and request community development funds.

Requests included additional funds for the Chapel Hill Public Library, sewer service extension to areas around Rogers Road, increased lighting in western downtown and increased funding for Carolina Pros Inc. to improve The World’s Greatest Alumni Game.

Petitioner Robin Kutzin made more general requests.

“The council should use taxpayers’ money for basic necessities,” Kutzin said, asking the council to not fund public arts projects, to rein in its hiring of consultants and to eliminate council members’ full-time health benefits.

George Cianciolo, chairman of the town’s transportation advisory board, brought a list of requests to the council from both the transportation board and community design commission.

More bus shelters, increased signage and more sidewalk and bike facilities were requests of both advisory groups.

The budget advisory committee next meets at 7:30 a.m. Monday.

When asked if the budget situation is being given more attention because five council members, including himself, will up for election this year, Foy said the council just wanted to be careful.

“Every other year is an election year for us,” Foy said. “You do what you have to do.”

Contact the City Editor at citydesk@unc.edu.