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Approve the Miscellaneous Budget Ordinance Amendment to Adjust Various Fund Budgets for FY 2020-21.
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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 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, Downtown Service District Fund, Library Gift Fund, Vehicle Maintenance Fund, Transit Fund, Transit Capital Reserve Fund, and Debt Management Fund; and
• Enact the attached project ordinance amendments to adjust the Affordable Housing Fund, 2015 Streets and Sidewalks Bond Fund, Capital Projects Ordinance Fund, American Rescue Plan Act Fund, and 2021 Limited Obligations Bonds Fund.
Key Issues:
• General Fund
Criminal Justice Debt Relief Project - The Criminal Justice Debt Relief Project provides criminal justice-related debt relief to low-income residents who are taking steps to successfully reintegrate into the community but whose ability to do so is hampered by this debt. The program is administered by the Chapel Hill Police Crisis Unit with support from an advisory board made up of representatives from the criminal justice and services provider community in Orange County. The program began as a pilot program and was provided $20,000 to start. The program recently expanded to Carrboro through a $7,500 contribution by the Town of Carrboro to be used for their residents. Most recently, the Orange County Bail/Bond Justice Project contributed $6,000 to the program to be used towards Orange County residents outside Chapel Hill and Carrboro. Enactment of the attached budget ordinance amendment would recognize and appropriate the $6,000 from the Orange County Bail/Bond Justice Project for the Criminal Justice Debt Relief Project.
Collaborative Outreach Program - Orange County established a Collaborative Outreach program (Sales Tax Article 46), making funds available for economic development programs that aid in job creation, drive economic growth, support existing businesses, recruit new businesses, and promote other activities such as innovation and entrepreneurial growth, agri-tourism and agriculture in Orange County. Orange County has allocated $39,816 in funding based on population for each county municipality.
As the Town considers a major redevelopment on East Rosemary Street, this project may present significant parking and construction impacts to local businesses. The Economic Development Office, in collaboration with the Chamber and Downtown Partnership, plans to offer a grant program to businesses to mitigate construction impacts. The Economic Development Office will create an application process and will review applicants in collaboration with the Chamber and Downtown Partnership. Micro grants will then be issued by the Downtown Partnership to businesses with demonstrated need ($30,000 total funding available). Additionally, in collaboration with community partners, a marketing campaign for Downtown businesses will be created during the construction period. This program will advertise and publicize that businesses will remain open for business, parking alternatives, and wayfinding ($9,816 total funding available). Enactment of the attached budget ordinance amendment would recognize and appropriate the $39,816 in Article 46 funds from Orange County.
• Downtown Service District Fund
The FY 2020-21 budget included a budget of $382,000 for ad valorem tax revenues based on valuation numbers provided by Orange County. Based on year-to-date receipts, we estimate that property tax revenues will fall short of that estimate by $15,000 for a total of $367,000. Upon completion of an analysis of anticipated expenditures through year end, it is expected that an additional $10,000 will be needed from fund balance for the Downtown Service District Fund to break even. Enactment of the attached budget ordinance would allocate $10,000 in fund balance to ensure that the fund is balanced at year end.
• Library Gift Fund
On February 26, 2019, the Friends of the Chapel Hill Public Library presented a donation of $185,000 to the Town to expand parking at the library. Construction began in June 2020 and was completed in January 2021. The project added sixteen new parking spaces and a stormwater bioretention basin filled with native plants. The project came in under budget by $7,501. Enactment of the attached budget ordinance amendment would reduce project revenues and expenditures by $7,501 in the Library Gift Fund.
• Vehicle Maintenance Fund
Fuel Dispensers - The fuel dispensers at the Town Operations Center fuel island are past their useful life. Maintenance costs continue to increase, and replacement parts are becoming harder to source. The staff recommendation is to replace the six fuel dispensers for a total cost of $50,000 using fund balance from the Vehicle Maintenance Fund. Enactment of the attached budget ordinance amendment would appropriate $50,000 of Vehicle Maintenance fund balance towards the purchase of fuel dispensers.
Engine 35 Replacement - Fire Engine #35 had an engine failure on April 29, 2021. Investigations performed by Town staff, along with a third-party vendor, determined that the fire truck’s engine must be replaced. The cost is $68,842. This amount exceeds the remaining available operating funds in the Vehicle Maintenance Fund budget by $58,500. Enactment of the attached budget ordinance amendment would appropriate $58,500 of Vehicle Maintenance fund balance to cover the cost of the vehicle repairs.
• Transit Fund
Chapel Hill Transit would like to move $500,000 from lapsed salaries in the Transit Fund to the Transit Capital Reserve to provide the required matching funds for a Federal Transit Administration (FTA) transit-oriented grant and an electric purchase grant. Both grants have been awarded; however, due to the volume of grant activity the FTA is processing, the grant letters have been delayed. The Chapel Hill Transit Partners have approved setting aside some of the current year funding to assist with the required matches for these grants. Staff will return to Council in the fall to adopt the grants. Enactment of the attached budget ordinance amendment would transfer $500,000 from the Transit Fund to the Transit Capital Reserve Fund.
• Debt Management Fund
The Town of Chapel Hill is working on the issuance of Limited Obligation Bonds (LOBS) for the East Rosemary Parking Deck and the Blue Hill Phase II - Elliott Road Reconstruction projects. The closing for the financing is not scheduled until August 12th. There are project expenditures that will be incurred before closing. Advance expenditures for the East Rosemary Parking Deck include the land swap ($1.74 million), North Street property acquisition ($600K) and construction management ($750K) for a total of $3,090,000. Advance expenditures for the Elliott Road Reconstruction project include construction, engineering, & inspection (CEI) services ($193K), right of way acquisition ($122K), and construction costs ($980K) for a total of $1,295,000.
Enactment of the attached budget ordinance amendment would appropriate $4,385,000 of the Debt Management fund balance to transfer to the 2021 Limited Obligations Fund to provide the necessary funding for initial project expenditures that will be incurred before the Town closes on the LOBS in August.
• Affordable Housing Fund
Revenue in Lieu - The Town has received the final $50,000 payment of a $250,000 revenue-in-lieu of affordable housing from UNC as part of the Carolina Square development project. This funding is used to support affordable housing development and preservation projects that serve households earning less than 80% of the area median income. There are no specific projects identified at this time for use of these funds and the Council approved guidelines for this fund has authorized the Manager to approve specific projects. Enactment of the attached project ordinance amendment would recognize the revenue in lieu and allocate the funds towards affordable housing efforts.
Emergency Housing Assistance - The Town has received $1,925 from community donations for the Emergency Housing Assistance Program. Enactment of the attached project ordinance amendment would recognize the community donations of $1,925 and would appropriate the funds to provide support to town residents experience a housing crisis.
• 2015 Streets and Sidewalks Bond Fund
At the May 26, 2021 meeting the Town Council awarded a bid and authorized the Town Manager to execute a contract for construction of the Estes Drive Bike-Ped Improvements. The low bid came in just under the engineer’s estimate, at $4,809,529.95. The Town was recently awarded an additional $1,229,455 in federal funds ($800,000 CMAQ and $429,455 COVID Relief) that are needed to execute the construction contract. The Town was awarded $230,884 in federal funds for additional Construction Engineering & Inspection (CEI) services. Enactment of the attached project ordinance amendment for the 2015 Streets and Sidewalks Bond Fund recognizes and appropriates the $1,460,339 in federal funds towards the project.
• Capital Projects Ordinance Fund
The Coal Ash Remediation project at the police station property on 828 MLK Jr. Blvd. has additional charges for work that is required to finalize the Interim Measures report, a report out to Town Council, and oversight and review of the Risk Assessment Report. The FY 2020-21 adopted budget included $62,500 in the General Fund to implement the interim remedial actions based on the results of the ongoing assessments of coal ash remediation at the police station property. Enactment of the attached project ordinance amendment would transfer the $62,500 from the General Fund to the Capital Projects Ordinance Fund for project costs.
• American Rescue Plan Act (ARPA) Fund
On March 11, 2021, President Biden signed into law a $1.9 trillion stimulus plan known as the American Rescue Plan Act of 2021. Local governments will receive $130.2 billion in aid, known as the Coronavirus State & Local Fiscal Recovery Fund, which will be split among counties, metropolitan cities, and non-entitlement units of government. The Town of Chapel Hill was allocated an award of $10,668,497. One half, $5,334,248, was received in May 2021 and the other half will be received in May 2022.
The federal ARPA funds are restricted in use to a prescribed list of four categorical uses:
1. To respond to the COVID-19 public health emergency or its negative economic impacts on households, small businesses and nonprofits.
2. To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers.
3. For the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent fiscal year prior to the emergency.
4. To make necessary investments in water, sewer, or broadband infrastructure.
Town staff will return to Council in the fall for a more in-depth discussion for planned uses of the ARPA funds.
Enactment of the attached project ordinance amendment would recognize the $5,334,248 in federal ARPA funds and appropriate $650,000 for ReVive as discussed at the June 2nd work session and the remainder of $4,684,248 in a reserve account for future project designation.
Where is this item in its process?
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Attachments: |
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• Budget Ordinance |
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• Project Ordinance - Affordable Housing Fund |
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• Project Ordinance - 2015 Streets and Sidewalks Bond Fund |
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• Project Ordinance - Capital Projects Ordinance Fund |
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• Project Ordinance - American Rescue Plan Act Fund |
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• Project Ordinance - 2021 Limited Obligations Bond Fund |
AN ORDINANCE TO AMEND “THE ORDINANCE CONCERNING APPROPRIATIONS AND THE RAISING OF REVENUE FOR THE FISCAL YEAR BEGINNING JULY 1, 2020” (2021-06-23/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, 2020” as duly adopted on June 24, 2020, be and the same is hereby amended as follows:
ARTICLE I
ARTICLE II
This the 23rd day of June, 2021.
AN ORDINANCE TO AMEND THE AFFORDABLE HOUSING FUND ORDINANCE (2021-06-23/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 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 23rd day of June, 2021.
AN ORDINANCE TO AMEND THE 2015 STREETS AND SIDEWALKS BOND FUND FOR CAPITAL IMPROVEMENT PROJECTS (2021-06-23/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 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 23rd day of June, 2021.
AN ORDINANCE TO AMEND THE CAPITAL PROJECT ORDINANCE FOR VARIOUS CAPITAL PROJECTS (2021-06-23/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 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 23rd day of June, 2021.
AN ORDINANCE TO ESTABLISH THE AMERICAN RESCUE PLAN ACT FUND (2021-06-23/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, 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 established 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 established as follows:
SECTION IV
Amounts appropriated for capital projects are hereby established 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 23rd day of June, 2021.
AN ORDINANCE TO ESTABLISH THE CAPITAL PROJECTS ORDINANCE FOR PARKING AND PUBLIC ROADWAY IMPROVEMENTS FUNDED FROM LIMITED OBLIGATION BONDS (2021-06-23/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, that the capital projects ordinance for parking and public roadway improvements funded from limited obligation bonds is hereby established as follows:
“SECTION I
The capital projects as authorized by the Town Council include Rosemary Street Parking Deck and Ephesus Fordham Phase II - Elliott Road Reconstruction funded from the 2021 Limited Obligation Bonds for 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 herein.
SECTION III
Revenues anticipated to be available to the Town to complete the project are as follows:
SECTION IV
Amounts appropriated for capital projects are 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 23rd day of June, 2021.
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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, Downtown Service District Fund, Library Gift Fund, Vehicle Maintenance Fund, Transit Fund, Transit Capital Reserve Fund, and Debt Fund. By enacting the project ordinance amendments, the Council adjusts the Affordable Housing Fund, 2015 Streets and Sidewalks Bond Fund, Capital Projects Ordinance Fund, American Rescue Plan Act Fund and 2021 Limited Obligation Bonds Fund.