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File #: [21-0498]    Version: 1 Name:
Type: Discussion Item Status: Filed
File created: 5/27/2021 In control: Town Council
On agenda: 6/2/2021 Final action: 6/2/2021
Title: Final Update on the Development of the FY 2021-22 Budget.
Attachments: 1. Draft Staff Presentation, 2. Staff Presentation, 3. Council Questions with Staff Response
Related files: [21-0527]

Final Update on the Development of the FY 2021-22 Budget.

Maurice Jones, Town Manager
Manager's Office
Amy Oland, Director
Business Management

Key Topics

Budget Development:
The FY 2021-22 Manager's Recommended Budget restores funding needed to continue the high-quality core services to the Town's residents, businesses, and visitors. The budget also supports the Council's strategic goal areas from climate change to social equity and addresses critical workforce needs.

In an attempt to balance the needs of the community with the impact of the revaluation increase on property owners, the Manager's Recommended Budget proposed a tax rate of 52.4 cents per $100 assessed valuation to capture some of the natural increase in property values, while slightly lowering the tax rate.

At the May 12th budget work session, Council expressed an interest in lowering the proposed tax rate by an additional penny ($940,000) to 51.4 cents. We returned at the May 19th public hearing with a recommendation on where to cut a penny out of the proposed budget. After receiving additional feedback from Council, we will return before Council on June 2nd to provide a final recommendation for Council's consideration and adoption on June 9th.

Recommendation for One Penny Decrease:
* Increase in Inspections Permit revenue $ 300,000
* Increase in Fund Balance Appropriation 210,000
* Decrease in Street Repaving 50,000
* Decrease in OPEB Prefunding 250,000
* Decrease in Pay Go Capital 100,000
* Decrease in Climate Action 30,000
$ 940,000

One change was made between the recommendation presented at the May 19th public hearing and the recommendation above. Instead of reducing the street repaving budget by $350,000, we are now only recommending a $50,000 reduction. The $300,000 difference will come from additional inspections permit revenue.

Staff had previously examined all expenditures to determine if there were any additiona...

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