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Approve the Miscellaneous Budget Ordinance Amendment to Adjust Various Fund Budgets for FY 2023-24.
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Staff: |
Department: |
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Amy Oland, Director |
Business Management |
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Matt Brinkley, Assistant Director |
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Overview: After the Council approves the annual budget, periodic changes require the Town Council to amend the current budget.
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Recommendation(s): |
That the Council:
• Enact the attached budget ordinance amendment to adjust the General Fund, Grants Fund, Debt Service Fund, Parking Fund, Vehicle Replacement Fund, and Transit Fund; and
• Enact the attached project ordinance amendments to adjust the Housing Capital Grants Fund, Transit Capital Grants Fund, Affordable Housing Fund, Capital Projects Ordinance Fund, and 2023 Two-Thirds Public Safety Bonds Fund.
Key Issues:
• General Fund
Friends of Chapel Hill Parks and Recreation Donations - The Friends of Chapel Hill Parks and Recreation donated a total of $36,451 for sporting equipment, supplies, Family Fun Day needs, programming costs at Hargraves Community Center, and for tree planting. Enactment of the attached budget ordinance amendment would recognize and appropriate the $36,451 from the Friends of Chapel Hill Parks and Recreation for the parks expenses described herein.
Parks Donations - The Chapel Hill Parks and Recreation department has received various donations this fiscal year. Maximus, Inc. has donated $2,500 for sports supplies and summer camp. University Ford has donated $2,065 for Youth in Action field trips and activities. Chapel Hill Country Club has donated $1,400 for game room equipment. There are also fees associated with donated items to be purchased and installed in the amount of $12,103. A donation was also received for the Strowd Rose Garden in the amount of $1,500. Enactment of the attached budget ordinance amendment would recognize and appropriate the $19,568 from Parks and Recreation donations for the parks expenses described herein.
Collaborative Outreach Program - Orange County established a Collaborative Outreach program (Sales Tax Article 46), making funds available for the Town of Chapel Hill’s Economic Development Department for marketing and business recruitment purposes. Orange County has allocated $38,082 in funding based on population for each county municipality. Chapel Hill intends to use the funds to increase community awareness and knowledge of department projects and initiatives through a print campaign. The campaign will focus on Chapel Hill livability and business resources available. In addition, the money will be used to sponsor a business recognition event that aligns with department goals for business recruitment and retention. Remaining funds will be used for additional business support efforts such as a Historically Underutilized Business (HUB) event. Enactment of the attached budget ordinance amendment would recognize and appropriate the $38,082 in Article 46 funds from Orange County.
• Grants Fund
Cybersecurity Grant - In 2023 the town was awarded $100,000 through the State and Local Cybersecurity Grant Program (SLCGP). The objective of the SLCGP is to assist state and local governments with managing and reducing systemic cyber risk. This funding will be used to mitigate the malicious activity inside the trusted network, both from external and internal threats through log analysis and monitoring by contracting with a managed service provider to gain better visibility into the activity on town systems. Enactment of the attached budget ordinance amendment recognizes and appropriates the $100,000 for the Cybersecurity Program.
Mobile Crisis Unit - The Crisis Assistance Response and Engagement Team (C.A.R.E.) is a partnership between the Chapel Hill Police Department and Orange County. It is a 2-year pilot program serving the Town of Chapel Hill, designed to provide immediate crisis intervention and support services to persons with the goal of promoting overall stability and minimizing interactions with law enforcement, emergency mental health hospitalization, and incarceration. Orange County will fund a Crisis Counselor for the duration of the 2-year pilot program. Enactment of the attached budget ordinance amendment recognizes and appropriates the $97,722 from Orange County for the C.A.R.E. team Crisis Counselor.
• Debt Service Fund & Parking Fund
In August 2021, the Town closed on the issuance of $39 million of limited obligation bonds (LOBS) for the East Rosemary Parking Deck project. The FY 2024 annual debt service for the LOBS was originally budgeted in the Parking Fund, but until the deck opens and generates revenue, the Debt Fund needs to cover the required principal and interest payment. Therefore, the total amount of debt service payments for FY 2024 in both the Debt Fund and Parking Fund have changed and need to be amended.
Enactment of the attached budget ordinance amendment will reduce the transfer to the Parking Fund by $1,162,399, increase the transfer from the Parking Fund to the Debt Fund by $328,043, and decrease the appropriation of fund balance by $1,490,442 to balance the Debt Fund.
Enactment of the attached budget ordinance amendment will reduce the Parking Fund debt service payment by $3,775,232 ($2,531,000 in principal and $1,244,232 in interest), reduce the transfer from the Debt Fund by $1,162,399, increase the transfer to the Debt Fund by $328,043, decrease UNC leased spaces budget by $1,500,000, decrease the daily parking at 125 East Rosemary by $933,333, and decrease the monthly parking rental at 125 East Rosemary by $444,466 to account for the delay in the opening of the East Rosemary Deck, and increase revenue projections for the Wallace Deck by $443,009 and interest income by $150,000.
• Vehicle Replacement Fund
Significant equipment failures and the age of the Town’s garbage trucks have resulted in service impacts and delays to residential solid waste services. The Town needs seven garbage trucks to run our seven residential collection routes each day. To ensure we have seven trucks in operation each day, we typically have an additional four backup trucks that can be rotated into operation when the primary trucks are out of service for repairs or maintenance. An 11-year-old rear loader is currently out of service due to a major engine failure and two additional 13-year-old back-up rear loaders are in poor condition and need to be taken out of service. The Solid Waste Services Division is frequently operating with no backup trucks available, along with one or more frontline trucks out of service for various repairs resulting in routine service delays. Enactment of the attached budget ordinance amendment would recognize $50,000 in interest income, $46,650 from sale of vehicles, and $213,350 in Vehicle Replacement Fund fund balance for the purchase of one rear-loader garbage truck in the amount of $310,000.
• Transit Fund
The adopted Chapel Hill Transit Capital Plan identifies the need to purchase at least seven replacement buses each fiscal year to maintain a reliable and efficient transit fleet. On April 19, 2023, the Chapel Hill Town Council recognized and appropriated $8,100,000 in installment financing proceeds for bus purchases. These funds were not encumbered before fiscal year-end and need to be reallocated from the Transit Fund fund balance in order to encumber the buses ordered. Enactment of the attached budget ordinance amendment would allocate $8,100,000 from Transit Fund fund balance for the purchase of buses.
• Housing Capital Grants Fund
The Capital Fund Program (CFP) provides financial assistance in the form of grants to public housing agencies (PHAs) to carry out capital and management activities. For the past three years, the U.S. Department of Housing & Urban Development (HUD) has made additional funds available beyond the anticipated annual allotment. In 2021, $935,260 was budgeted and an additional $4,269 was received. In 2022, $935,260 was budgeted and an additional $236,135 was received. In 2023, $1,168,203 was budgeted and an additional $3,677 was received. The additional allocation to the Town of $244,081 is committed to continued improvement and maintenance of public housing units. Enactment of the attached project ordinance amendment for the Housing Capital Grants Fund recognizes and appropriates the $244,081 in additional HUD funding towards housing capital maintenance.
• Transit Capital Grants Fund
On April 19, 2023, Town Council recognized a grant from NC Department of Environmental Quality (NCDEQ) and NC Department of Transportation (NCDOT) for a total of $2,708,000 for the purchase of five electric buses. Additionally, a local share of $2,542,000 from the Transit Capital Fund was committed for the purchase of the buses. The total appropriation for the purchase was $5,250,000. At that time, the estimated cost per electric bus was $1,050,000. After receiving formal pricing, the cost per electric bus came in at $1,136,194, causing a shortfall of $430,969. The Transit Fund will realize savings of $252,443 due to the lower than anticipated cost for three diesel buses. The Transit Fund fund balance will cover the remaining difference needed of $178,526. Enactment of the attached project ordinance amendment would transfer funds from the Transit Fund to the Transit Capital Grants Fund to cover the overage.
• Affordable Housing Fund
Loan Repayment Revenue - The Affordable Housing Fund has $39,463 in loan repayment revenue from repayment of a deferred second mortgage the Town supported for a low-income first-time homebuyer in 1990 using some CDBG and some Affordable Housing Funds. The Town received a loan payoff in 2022 in the amount of $78,609 when the home was sold from the homeowner’s estate. A portion was credited to the Town’s CDBG account as program income and the balance of the repayment was credited as Affordable Housing Fund revenue. The Town will use this funding to support the Employee Housing Program which provides rental assistance and downpayment assistance to Town employees to live within 5 miles of the Town. Enactment of the attached project ordinance amendment would recognize and allocate $39,463 in loan repayment funds to support the Employee Housing Program.
Interest Income - The Affordable Housing Fund has received $70,622 in interest income. These funds would be used to support the implementation of the Town’s Affordable Housing Plan. Enactment of the attached project ordinance amendment would recognize and allocate the $70,622 in interest income for the Town’s Affordable Housing Plan.
Reallocation of Excess Fund Balance - In March 22, 2023 Town Council allocated $360,000 from FY 2022 General Fund excess fund balance for the Green Tract Master Plan and a possible neighboring property acquisition. The Town of Chapel Hill has paid Orange County (project is in collaboration with Orange County & Town of Carrboro) for the development of a master plan and community engagement work. This leaves $185,000 available for reallocation. This funding will support the Town’s Affordable Housing Loan Fund, which supports the development and preservation of affordable housing. Enactment of the attached project ordinance amendment would transfer $185,000 from the General Fund to the Affordable Housing Fund.
• Capital Projects Ordinance Fund
Several multi-year capital projects are complete and require a budget amendment to close out the projects. Revenues related to some of these projects came in higher than expected (federal bridge grant and OWASA reimbursement). Other revenues came in lower than expected (variable message system federal grant, traffic system state grant, hazard mitigation federal and state grant funds, UNC contributions, Friends of P&R grant, proceeds from PW land financing). Several projects were completed under budget while a few came in slightly over budget. The excess revenue and additional budget available from projects and additional interest income is $103,375. These funds will be used for our ongoing annual commitment to Rogers Road. Enactment of the attached project ordinance amendment would recognize the receipt of unbudgeted revenues and remaining funds from closed capital project budgets and appropriate those funds for Rogers Road.
• 2023 Two-Thirds Public Safety Bonds Fund
In-car Police cameras - There is $245,831 available in the account designated for the Public Safety 2/3 bond remaining after the full radio equipment invoice was paid. This surplus presents an opportunity to further enhance our public safety initiatives, particularly equipment needs and upgrades. These surplus funds will be dedicated to addressing the pressing need to replace our aging in-car camera system within the Police Department. Enactment of the attached project ordinance amendment would transfer $245,831 in unspent funds towards the replacement of in-car cameras.
FY 2022 Excess Fund Balance Reappropriation - On March 22, 2023, Town Council allocated an additional $250,000 of FY 2022 General Fund excess fund balance to cover an anticipated overage in the cost of public safety radios. The radios came in significantly less than anticipated, therefore the $250,000 in excess fund balance is no longer needed and eligible to be reallocated. $75,000 of these funds will cover a project where we will hire a consultant to review our existing pay structure, pay ranges and pay policies, and make recommendations to revise them. The interest is to make us more flexible and adaptable to market changes, be more competitive both with peer agencies as well private sector roles and establish career ladders for all of our job families that are sustainable and adaptable for the future. The remaining $175,000 is for the design of a new Town website and rebranding. The new Town website that will create a better user experience and increase findability of timely, relevant, factual information. We have completed the “discovery” phase of this project with existing funds and this funding will move us into design and development of the new site. Rebranding efforts will allow us to work with a creative agency to solidify our brand promise and create a visual representation of that promise, including a “family of brands” that will connect all Town departments and consistently represent our work. Enactment of the attached project ordinance amendment would transfer the $250,000 to the General Fund for the pay study and website redesign/rebranding project.
Where is this item in its process?
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Attachments: |
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• Budget Ordinance |
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• Project Ordinance - Housing Capital Grants Fund |
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• Project Ordinance - Transit Capital Grants Fund |
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• Project Ordinance - Affordable Housing Fund |
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• Project Ordinance - Capital Projects Ordinance Fund |
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• Project Ordinance - 2023 Two-Thirds Public Safety Bonds Fund |
AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2023” (2024-04-17/O-1)
BE IT ORDAINED by the Council of the Town of Chapel Hill that the Budget Ordinance entitled “An Ordinance Concerning Appropriations and the Raising of Revenue for the Fiscal Year Beginning July 1, 2023” as duly adopted on June 7, 2023, be and the same is hereby amended as follows:
ARTICLE I
ARTICLE II
This the 17th day of April, 2024.
AN ORDINANCE TO AMEND A CAPITAL FUND PROGRAM (CFP) PROJECT ORDINANCE (2024-04-17/O-2)
BE IT ORDAINED by the Council of the Town of Chapel Hill that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following project ordinance is hereby amended as follows:
“SECTION I
The project authorized is the Housing Capital Fund Project budget as approved by the Council on September 8, 2014.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation with the project within the terms of the Contract document(s), the rules and regulations of the U.S. Department of Housing and Urban Development, and budget contained herein.
SECTION III
The following revenue is available to complete the project:
SECTION IV
The amounts appropriated for the project are amended as follows:
SECTION V
The Finance Officer of the Town of Chapel Hill is hereby directed to maintain within the Project Fund sufficient specific detailed accounting records to provide the accounting to the U.S. Department of Housing and Urban Development as required by the Annual Contributions Contract and federal regulations.
SECTION VI
Funds may be advanced from General funds for the purpose of making payments as due. Reimbursement requests should be made to HUD in an orderly and timely manner.
SECTION VII
The Manager is directed to report annually on the financial status of each project in Section IV and on the total revenues received.”
This the 17th day of April, 2024.
AN ORDINANCE TO AMEND A TRANSIT CAPITAL PROJECT ORDINANCE (2024-04-17/O-3)
BE IT ORDAINED by the Council of the Town of Chapel Hill that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, that the transit capital projects ordinance for various capital projects funded from a variety of sources is hereby amended to read as follows:
“SECTION I
Transit capital projects as authorized by the Town Council are capital projects funded from Federal Transit Administration (FTA) grants and grants from the State of North Carolina.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these transit capital projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town to complete the project are hereby amended as follows:
SECTION IV
Amounts appropriated for capital projects are hereby amended as follows:
SECTION V
The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the council informed of any unusual occurrences.
SECTION VI
Funds may be advanced from General funds for the purpose of making payments as due. Reimbursement requests should be made to FTA in an orderly and timely manner.
SECTION VII
Copies of this amended projects ordinance shall be entered into the minutes of the Council and copies shall be filed within five days of adoption with the Manager, Business Management Director and Town Clerk.”
This the 17th day of April, 2024.
AN ORDINANCE TO AMEND THE AFFORDABLE HOUSING FUND ORDINANCE (2024-04-17/O-4)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the Affordable Housing Fund Ordinance to provide funds to support affordable homeownership opportunities is hereby amended as follows:
“SECTION I
The Affordable Housing Fund Ordinance as authorized by the Town Council provides funds to purchase properties to create permanently affordable homeownership opportunities.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town are hereby amended as follows:
SECTION IV
Amounts appropriated to create permanently affordable homeownership opportunities are hereby amended as follows:
SECTION V
The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the council informed of any unusual occurrences.
SECTION VI
Copies of this amended projects ordinance shall be entered into the minutes of the Council and copies shall be filed within five days of adoption with the Manager, Business Management Director and Town Clerk.”
This the 17th day of April, 2024.
AN ORDINANCE TO AMEND THE CAPITAL PROJECT ORDINANCE FOR VARIOUS CAPITAL PROJECTS (2024-04-17/O-5)
BE IT ORDAINED by the Council of the Town of Chapel Hill that pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the capital project ordinance for various capital projects funded from a variety of sources is hereby amended to read as follows:
“SECTION I
The capital projects as authorized by the Town Council include various capital projects funded from grants, the Capital Improvements Program funds, and other miscellaneous sources of revenues for a variety of projects extending beyond one year.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town to complete the project are hereby amended as follows:
SECTION IV
Amounts appropriated for capital projects are hereby amended as follows:
SECTION V
The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the council informed of any unusual occurrences.
SECTION VI
Copies of this amended projects ordinance shall be entered into the minutes of the Council and copies shall be filed within five days of adoption with the Manager, Business Management Director and Town Clerk.”
This the 17th day of April, 2024.
AN ORDINANCE TO AMEND A CAPITAL PROJECT ORDINANCE FOR PUBLIC SAFETY EQUIPMENT PROJECTS FUNDED FROM 2023 TWO-THIRDS BONDS (2024-04-17/O-6)
BE IT ORDAINED by the Council of the Town of Chapel Hill that pursuant to Section 49 of Chapter 159 of the General Statutes of North Carolina, the following capital project is hereby amended for public safety equipment projects funded from the 2023 Two-Thirds General Obligation Bonds.
“SECTION I
The capital projects as authorized by the General Statute, and as determined by Town Council, includes the capital costs of public safety.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with implementation of these projects within terms of funds appropriated here.
SECTION III
Revenues anticipated to be available to the Town to complete the project are hereby amended as follows:
SECTION IV
Amounts appropriated for capital projects are hereby amended as follows:
SECTION V
The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Budget, and shall keep the council informed of any unusual occurrences.
SECTION VI
Copies of this amended projects ordinance shall be entered into the minutes of the Council and copies shall be filed within five days of adoption with the Manager, Business Management Director, and Town Clerk.”
This the 17th day of April, 2024.
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The Agenda will reflect the text below and/or the motion text will be used during the meeting. |
presenter
By enacting the budget ordinance amendment, the Council adjusts the General Fund, Grants Fund, Debt Service Fund, Parking Fund, Vehicle Replacement Fund, and Transit Fund. By enacting the project ordinance amendments, the Council adjusts the Housing Capital Grants Fund, Transit Capital Grants Fund, Affordable Housing Fund, Capital Projects Ordinance Fund, and the 2023 Two-Thirds Public Safety Bonds Fund.