Business Management Director Amy Oland and external auditor Chad
Jackson of Mauldin & Jenkins presented the results of the Town's FY25
audit and provided a financial update for FY26. Mr. Jackson reported an
unmodified, or “clean,” opinion on the Town’s financial statements,
confirming compliance with generally accepted auditing standards and
Government Auditing Standards. Mr. Jackson noted compliance testing for
federal and state programs showed the Town received approximately
$20.4 million in federal funds and $6.9 million in state funds, with no
issues identified.
Ms. Oland reviewed FY25 fund balance results, noting that the General
Fund increased overall and unassigned balances. She stated approximately
$3 million in excess fund balance was available for one-time uses while
maintaining the Town’s 22% policy target. She proposed allocating these
funds to the Greene Tract MOU, FEMA administrative support, street
maintenance equipment, downtown improvements, Fire Station 4
demolition, and an infusion to the Debt Fund to keep the referendum
schedule on track.
Ms. Oland shared mid-year FY26 trends including: property tax collections
were on target following revaluation, sales tax collections were higher
than the prior year, and inspection revenues exceeded projections.
Expenditures were at 48.6% of budget, with personnel costs at 47.1% and
operating costs at 58.7%, projecting approximately $2 million in personnel
savings for the year.
Council members requested additional details regarding a breakdown of
downtown funding needs, historical data on excess fund balance
appropriations, and clarification of prioritization criteria. Council members
also requested analysis of the parking fund's performance and strategies
for revenue generation, information on hiring and retention levers for
hard-to-fill positions, updates on public safety equipment and fire
apparatus needs, public housing capital needs, and support for families
displaced by storms.
This matter was received and filed.
2.
[26-0034]
Planning Director Britany Waddell and Long-Range Planning Manager Tas
Lagoo presented an update on the Land Use Management Ordinance
rewrite. Mr. Lagoo outlined a timeline that includes completing a
consolidated draft and technical review in the spring, releasing the draft
for public review in the summer with plain-language guides and
educational sessions, and beginning formal legislative hearings in the fall.
Council members emphasized the need for materials that clearly connect
proposed changes to shared goals and themes such as housing diversity,
complete community, environmental resilience, and small-scale
TOWN OF CHAPEL HILL
Printed on 3/5/2026
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