Local leaders seek transit funds

The leaders of Chapel Hill, Carrboro and Orange County governments discussed Friday the area's mutual interest in alleviating rising costs in its fare-free transit system

Growth in the area has caused demand for public transportation to climb -- a trend that is the stimulus for several potential legislative requests from the municipalities.

"Demand for transit has increased exponentially," Carrboro Mayor Mike Nelson said following a meeting with Chapel Hill Mayor Kevin Foy and Moses Carey Jr., chairman of the Orange County Board of Commissioners.

Carrboro intends to submit a formal legislative proposal to increase its motor vehicle tax by $10 to meet that rise in demand.

Foy said he thinks the towns' bus system should be expanded to serve residents who do not have access to free transit.

"You can't ignore the fact that we are being crippled by a lack of good transportation," he said, adding that traffic congestion is lessened by public transit services.

While no formal agreements were made Friday, both Foy and Nelson shared enthusiasm about increasing the towns' motor vehicle tax to stimulate funding.

They agreed that a joint effort by both towns might carry more weight with the General Assembly.

Foy also said he is interested in pursuing other possible revenue raising options such as levying a 2-cent gasoline tax or a sales tax increase.

"We all have limited ways of raising money," he said.

Carey said public transit is a primary concern for other cities as well. He said people all over the Triangle are discussing alternative funding for transit costs.

The Chapel Hill Town Council also is considering a $1 luxury tax on event ticket sales at the University in its legislative requests.

If passed, the tax would be earmarked for public transit.

High-profile events such as UNC men's basketball games, with ticket prices exceeding $35, would be targeted.

Some University officials have opposed this tax in the past on the grounds that it undermines their rights to determine ticket value.

"The University has always opposed it, and I don't see any difference in the current situation," said Jonathan Howes, special assistant to the chancellor and former mayor of Chapel Hill.

Donald Luse, director of the Carolina Union, said the tax would force ticket prices up.

"Obviously, an increase in performance price would increase the cost of production. It's simple mathematics," he said.

Director of Athletics Dick Baddour said he thinks the town already profits from visitors attending sporting events.

"This core group of people that have a positive impact on the community would be further exploited by this tax," he said.

But Baddour said University approval of the luxury tax is not required for implementation.

Although that is the legal reality, Foy said, University support is key to the success of the luxury tax.

Proponents of the tax argue that it would help reduce the burden of high transit costs for both the University and Chapel Hill.

"Some tickets are on a seller's market for hundreds of dollars. A $1 increase wouldn't increase event cost," said Roland Giduz, a resident of Chapel Hill and longtime supporter of the luxury tax.

Giduz has advocated for the idea for about 25 years.

Contact the City Editor at citydesk@unc.edu.