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
‹
The Evening News: Chapel Hill Vehicle Break-Ins, UNC Football
In today's news: Chapel Hill police warn residents to secure their vehicles after a string of 60 break-ins over the weekend.
The Morning News: Local Government, Vehicle Break-Ins, Football Wins
Andrew Stuckey fills in for Aaron Keck with the morning news, including: A busy day in the local government meeting schedule including Orange County Commissioners, two area school boards, and the Pitssboro Board of Commissions. We hear from Pittsboro Mayor Kyle Shipp, NC House Minority Leader Robert Reives, and get an update on weekend crime news. In sports, the UNC Football team wins big, and more.
Local Government Meetings: September 14-18, 2026
This week in local government: a greenway network in Chapel Hill, and busing concerns and elementary school redistricting for CHCCS.
Chapel Hill Police Investigating 'About 60' Vehicle Break-Ins Early Saturday Morning
The Chapel Hill Police Department is investigating a spike in vehicle break-ins around town early Saturday morning. Police reported “about 60” break-ins which occurred between 3 a.m. and 4:30 a.m. along major routes like Martin Luther King, Jr. Boulevard and Raleigh Road. Most of the break-ins reportedly happened in hotel and apartment complex parking lots, […]
The Evening News: LUMO Discussions, Carolina Covenant, Football Preview
The Hill's Andrew Stuckey presents the afternoon news. Included in this edition of the news, we hear Chapel Hill Mayor Jess Anderson on the initial council discussion of the Land Use Management Ordinance (LUMO). We hear from Chancellor Lee Roberts on how many Carolina Covenant scholars are in this year's freshman class, and more. In sports, women's soccer opens ACC play with a win, football prepares for their home opener, and more.
The Evening News: Poet Laureate Applications, School Bus Assignments, College Basketball
The Hill's Andrew Stuckey presents the evening news. Included in this edition of the news we hear a story on the open application for Chapel Hill Poet Laureate. We also hear more on the CHCCS School Bus assignment saga to start the school year. A missing person is located injured near the Haw River just outside of Pittsboro, and more. In sports, we hear from UNC head basketball coach Michael Malone, update results from fall sports, and more.
Chapel Hill: LUMO, Football Home Opener, Shaq
Chapel Hill Mayor Jess Anderson joined 97.9 The Hill's Andrew Stuckey in studio on Thursday, September 10, discussing town news and events. She discussed the upcoming football home opener, which features a pre game concert by Shaquille O'Neil (as DJ Diesel) on campus at 10 a.m. on Saturday. She also talked about the town council's return to regular meetings, with Wednesday night's work session focused on specific aspects of the LUMO document, and more.
Nonprofit Buys Chapel Hill Space, Announces Plans for New B3 Clubhouse
A popular, and growing, nonprofit is taking a major step to provide a space for its Chapel Hill community and supporters: building a clubhouse. B3 announced on Tuesday its purchase of space at 308 West Rosemary Street as the future home of the B3 Clubhouse, a “third space” for adults with and without intellectual and […]
Chapel Hill Accepting Applicants for Its Next Poet Laureate, Donovan Livingston Reflects on His Term
Chapel Hill is currently seeking applicants for its next Poet Laureate to help inspire creativity and celebrate the community through poetry.
What's Open or Closed on Labor Day? Holiday to Impact Local Government Services
Monday marks the observance of Labor Day, which is meant to celebrate the contribution of workers and employees across the United States. With that, the local governments in Orange County will be giving many of their employees the day off, which will affect certain local government services. Ahead of the holiday on Monday, Sep. 7, […]
›