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Approve the Miscellaneous Budget Ordinance Amendment to Adjust Various Fund Budgets for FY 2023-24.
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Staff: |
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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 and Vehicle Maintenance Fund.
• Enact the attached project ordinance amendment to adjust the 2015 Streets and Sidewalks Bond Fund, the American Rescue Plan Act Fund, and 2018 Affordable Housing Bond Fund.
Key Issues:
• General Fund
Occupancy Tax - The performance agreement between the Town of Chapel Hill and the Chapel Hill/Orange County Visitors Bureau states that the Town will pay the Visitors Bureau 50% of any occupancy tax revenues received greater than $1,000,000. In FY 2023, the Town received $1,514,877 in occupancy tax receipts. Fifty percent of $514,877, or $257,439, is therefore due to the Visitors Bureau. Enactment of the attached budget ordinance amendment would reflect the additional payment of $257,437 to be made to the Visitors Bureau from appropriated fund balance from the General Fund.
Durham Technical Community College (DTCC) partnership - The Chapel Hill Fire Department has recently engaged in discussions with Durham Technical Community College (DTCC) to explore innovative ways of mitigating the costs associated with basic firefighter training. DTCC receives funding from the state based on a per-hour-per-student rate for the training provided. Through strategic partnership discussions, DTCC has expressed their commitment to contributing a portion of these funds toward the cost of our academy training. This initial contribution from DTCC for this program is $8,000. Enactment of the attached budget ordinance amendment would recognize the contribution of $8,000 from DTCC and allocate those funds towards training needs.
Parks Donations - The Town received a donation of $3,000 from Dick’s Sporting Goods for the purchase of athletics supplies that would be used for the Extreme Sports Summer Camp as well as youth baseball and softball equipment. Enactment of the attached budget ordinance amendment would recognize the $3,000 donation from Dick’s Sporting Goods and allocate those funds for athletic supplies.
• Vehicle Maintenance Fund
The anticipated costs for fleet maintenance in the current year are anticipated to exceed the budget allocation for FY 2024. The aging fleet along with the increased cost of parts and outsourcing repairs have contributed to the overall budget shortfall. End of year projections are that the Vehicle Maintenance Fund will need an additional $140,500 in order to adequately maintain the fleet. Enactment of the attached budget ordinance amendment appropriate $140,500 in Vehicle Maintenance Fund balance towards the cost of fleet maintenance.
• 2015 Streets and Sidewalks Bond Fund
Payment-in-lieu - Public Works and Planning staff determined the best course of action concerning the Bridgepoint developer’s requirement to provide pedestrian signals and crosswalk improvements at the intersection of Weaver Dairy Road and Homestead Road was to accept an in-lieu-of payment due to the Town’s ongoing Homestead Road Improvements project interfering with the timing of the aforementioned requirements installation. The developer’s payment of $75,000 will be used to pay the Town’s general contractor to install these NCDOT approved pedestrian signals and crosswalk improvements at the intersection of Weaver Dairy Road and Homestead Road. Enactment of the attached project ordinance amendment to the 2015 Streets and Sidewalks Bond Fund recognizes the $75,000 payment in lieu and allocates those funds to the Homestead Road Project.
Community Project Funding - The Town was awarded $2,000,000 in federal funds from the Community Project Funding for the Downtown Mast Arms project. These reimbursable funds will be used to design, permit, and undertake the construction of new mast arms, curbing, and sidewalk improvements on Franklin Street and Rosemary Street, and the streets in between from Merritt Mill Road to Henderson Street in downtown Chapel Hill. To be able to receive these funds a Municipal Agreement with NCDOT will be executed. Enactment of the attached project ordinance amendment to the 2015 Streets and Sidewalks Bond Fund recognizes the $2,000,000 in Community Project Funding and allocates those funds to the Downtown Mast Arms project.
• American Rescue Plan Act (ARPA) Fund
Tanyard Branch Trace received $1.5M Community Project Funding award from the federal government in 2024. The Community Project Funding allows the Town to reallocate affordable housing funding. An additional $500,000 in ARPA funding was set aside for a 2023 LIHTC project. Staff selected Weavers Grove for the $2,000,000 in available funds because the ARPA funding has a tight spending deadline and we are about to execute a funding agreement with Habitat for Humanity and the project is already under construction. Enactment of the attached project ordinance amendment would repurpose $2,000,000 in ARPA funding for the Weavers Grove Project.
• 2018 Affordable Housing Bond Fund
In April 2024 Town Council allocated $1,550,000 in bond funding from the 2018 Affordable Housing Bond Fund for the Weavers Grove project. The movement of ARPA funds to the Weavers Grove project frees up $1.55M in bond funding for other affordable housing projects. Council approved the allocation of that funding to the following projects in April 2024.
Enactment of the attached project ordinance amendment would repurpose $1,550,000 in 2018 Affordable Housing Bond funds for the projects in the projects listed above.
Where is this item in its process?
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Attachments: |
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• Budget Ordinance |
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• Project Ordinance - 2015 Streets and Sidewalks Bond Fund |
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• Project Ordinance - American Rescue Plan Act Fund |
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• Project Ordinance - 2018 Affordable Housing Bond Fund |
AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2023” (2024-06-12/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 12th day of June, 2024.
AN ORDINANCE TO AMEND THE 2015 STREETS AND SIDEWALKS BOND FUND FOR CAPITAL IMPROVEMENT PROJECTS (2024-01-24/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, that the following capital project is hereby amended for Streets and Sidewalk Improvements funded from 2015 General Obligation bonds approved by the voters in November 2015:
“SECTION I
The capital projects as authorized by bond referenda approved in November 2015, and as determined by the Town Council, includes streets and sidewalks capital improvements 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 Town Manager is hereby 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 12th day of June, 2024.
AN ORDINANCE TO AMEND THE AMERICAN RESCUE PLAN ACT FUND (2024-06-12/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 American Rescue Plan Fund Ordinance provide funding for projects related to recovery from the COVID-19 pandemic funded from the U.S. Treasury is hereby amended to read as follows:
“SECTION I
The projects as authorized by the Town Council include various recovery and economic projects funded from the American Rescue Plan Act, for a variety of projects related to recovery from the COVID-19 pandemic.
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 12th day of June, 2024.
AN ORDINANCE TO AMEND THE 2018 AFFORDABLE HOUSING BOND FUND FOR CAPITAL IMPROVEMENT PROJECTS (2024-06-12/O-4)
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 established for affordable housing projects funded from the 2018 General Obligation Bonds approved by the voters in November 2018.
“SECTION I
The capital projects as authorized by bond referenda approved in November 2018, and as determined by the Town Council, includes affordable housing projects.
SECTION II
The Manager of the Town of Chapel Hill is hereby directed to proceed with the 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 amended as follows:
SECTION V
The Town Manager is directed to report annually on the financial status of the projects 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 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 12th day of June, 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 and Vehicle Maintenance Fund. By enacting the project ordinance amendments, the Council adjusts 2015 Streets and Sidewalks Bond Fund, American Rescue Plan Act Fund, and 2018 Affordable Housing Bond Fund.