The $100.7 million proposed budget for the Town of Chapel Hill is calling for an 11 percent increase in sales tax revenue, but the North Carolina General Assembly may have something to say about that.

The Town Council got their first look at the proposal from Town Manager Roger Stancil on Monday night.

“The recommended [2015-2016] budget does not include a tax increase,” Stancil says. “There is revenue growth from other sources, such as sales tax and permit fees.”

Stancil says following several lean years after the recession, sales tax revenue has been riding an upward trend. But proposed legislation among state lawmakers regarding the redistribution of sales taxes may have a negative impact on Chapel Hill.

Cost of employee medical insurance is down 8.5 percent in the proposed budget. That seemed to make Mayor Mark Kleinschmidt very happy.

“8.5 percent decrease in health insurance cost?!” he asked. “I know I have to hear more about that because it’s almost unbelievable on its face.

“When has any American heard about that without some kind of change?”

Stancil says the lowering of cost does not include a reduction in benefits. He attributes the savings to wellness programs for town staff including increased number of those who have quit smoking.

Other items in the proposed budget include a four percent raise for town employees to be broken up with two percent in July and another two percent in January.

The Parking Fund also has a balanced projection for the first time in six years.

A $40 million bond that will not require a tax increase is also scheduled to be on the November ballot. That money would go toward funding capital improvement projects.

You can view the recommended budget here.

A public hearing will be held on May 18, before Budget Work Sessions are held June 1 and 3. The hopeful date to adopt a budget in June 8.

Related Stories
‹
Victim Identified in Chapel Hill House Fire; Investigation Into Cause Still Ongoing
The Chapel Hill Fire Department said one person died in a house fire on the corner of Redbud Lane and Honeysuckle Road Monday morning.
NCDOT Warns of Traffic Delays as Pedestrian Work Continues on Highway 54
The North Carolina Department of Transportation is cautioning motorists to be aware of potential traffic delays along North Carolina Highway 54. The delays come as the NCDOT works with a contractor to install pedestrian infrastructure at three key intersections along the highway. As was first reported in January, crosswalks with traffic signals will be installed […]
During Bike Month, Chapel Hill Highlights Resources to Expand Bicycle Use and Improve Safety
Alongside the town's Vison Zero efforts through Vision Zero, Chapel Hill Transit offers trip coordination using its bus routes and greenways.
UNC Reports More Than $17 Million in Direct Economic Impact from Savannah Bananas Visit
According to a release from UNC, the recent visit from the Savannah Bananas to Chapel Hill generated an estimated $17.1 million.
Al's Burger Shack Hailed as 'Best Cheeseburger in North Carolina'
The website Fast Food Club named Al’s Burger Shack in Chapel Hill as the best cheeseburger in North Carolina in a new list, which sought the best cheeseburger in every state. “The beef is locally sourced, the toppings are creative and seasonally inspired, and every burger is cooked with the kind of attention usually reserved […]
Chapel Hill-Headquartered Insurance Agency Earns Statewide Award, Top 3 Recognition
The local property and casualty insurance agency All About Insurance was recently awarded the Sapphire Agency Award by Auto-Owners Insurance.
No Tax Increases and Increased Spending Featured in Chapel Hill Staff's Proposed FY27 Budget
Following a year with improved revenues and a new town manager at the helm, the Town of Chapel Hill may go into the next fiscal year without a tax increase or significant cuts.
Chapel Hill: Budget Priorities, Timelines, and Feedback
Chapel Hill Mayor Jess Anderson spoke with 97.9 The Hill's Andrew Stuckey on Thursday, May 7, discussing town news and events. She talked about the recent budget presentation from town manager Ted Voorhees. She talked about there being no tax increase, and highlighted some key areas where there may be funding increases. She also previewed that the town would be providing more feedback opportunities, and more. She also discussed commencement weekend in Chapel Hill.
On Air Today: Small Business Week 2026 in Chapel Hill
This week is Small Business Week, and the town of Chapel Hill is encouraging you to get out and support local businesses!
Town of Chapel Hill Names Alicia Arnold as Next Director of Housing & Community Development
The Town of Chapel Hill has named Alicia Arnold as its next Director of Housing & Community Development. Arnold’s first day on the job will be June 8. Arnold has spent the last 12 years working in the Wake County government, where she currently serves as the county’s Deputy Director of Housing Affordability and Community […]
›