The Town of Chapel Hill recently heard a proposal from its Town Manager of a balanced budget, but one that reflects the losses of revenue the town will likely face from the coronavirus.

Chapel Hill Town Manager Maurice Jones proposed a budget 2.2 percent less than the current budget at last week’s Chapel Hill Town Council virtual meeting. The decrease takes into account the estimated $2 million in projected revenue the town will likely lose as an outcome of the coronavirus pandemic, according to Jones.

The proposal is a balanced budget, meaning the town will not borrow more than it will make, and it does not create any increase in taxes for Chapel Hill property owners. The proposal also avoids staff layoffs and furloughs, according to Jones, but it will freeze any new hirings by the town for a year and will make the government unable to issue any raises to employees.

Chapel Hill Mayor Pam Hemminger spoke with 97.9 The Hill’s Aaron Keck in the days after the council meeting. She shared some of the elements of how the town functions that create complications when finding ways to downsize the budget.

“70 percent of our budget is actually our employees” said Hemminger, “and we need our employees. So how do you all make it all work when you know your revenues are going to be down, the state keeps different information on funds they won’t be sending fully, we know our sales and hotel taxes are way down and our parking revenue is gone since we’re offering free parking downtown. It’s just very interesting trying to figure out a budget with all that going on.”

This initial proposal indicates cuts would be made from departments like parks and recreation, the public library, police, fire and public works in order to create the decrease in spending.

But it’s not just departments that will lose some funding. Hemminger said capital improvement funds as well as building and road maintenance will be frozen for the time being until a clearer picture of economic outlook is possible.

“[It’s largely] things that don’t have to happen in the first six months of the next fiscal year when we have a better handle on what the revenues are going to look like,” the mayor said of what will be delayed. “Those are the kinds of things the [town] manager takes a look at until we know exactly what we’re going to get from stimulus funds from the state or federal government and how we make best use of those dollars we do get.”

The Chapel Hill Town Council will be further discussing the budget proposal at its virtual work session on Wednesday.

Photo via Town of Chapel Hill.

Chapelboro.com does not charge subscription fees. You can support local journalism and our mission to serve the community. Contribute today – every single dollar matters.

Related Stories
‹
Yard Waste, Bulky Item Collection Resumes in Chapel Hill
The Town of Chapel Hill resumed normal operations for weekly yard waste and bulky item collections on Monday. A release from the town on Friday alerted residents of the changes, which will be the first time such collections are available since mid-April when they were stopped due to COVID-19. In its message, the town said […]
Chapel Hill Transit Adding CW Route to Reduced Service Starting Monday
Chapel Hill Transit will restart its CW route again on Monday, adding another route to its reduced services. A release from the transit system on Friday said it received many requests from the community to restore the route over the last few months. Chapel Hill Transit has been working under reduced operations in an effort […]
Chapel Hill Mayor Launches Mask Campaign, Town to Distribute Free Coverings
Chapel Hill Mayor Pam Hemminger launched a new campaign on Wednesday to promote wearing masks and protecting others’ health. The Safer for Everyone in Chapel Hill campaign is a non-legislative extension to the Orange County orders regarding masks in Phase 2. While the county and towns are requiring business owners to wear face coverings when […]
'Begins to Feel Real': Southern Season Demolition Means Future is Here for University Place
The start of Southern Season's demolition at University Place represents the turning of a new leaf, says the mall's ownership.
Chapel Hill: Graduation Weekend, Budget Season and Live Music
Chapel Hill Mayor Pam Hemminger joins 97.9 The Hill's Brighton McConnell on Thursday, May 5 to discuss recent news around town. She details the proposed budget the town council saw last night, as well as Chapel Hill's priorities to bring people together for events like concert series.
Report: Orange County Tourism Data Shows Drop in Visitor Spending, But Potential for Rebound
A recent report from Visit North Carolina reveals a 48% drop in local visitor spending for Orange County during the COVID-19 pandemic. But as businesses reopen and tourism returns to the area, members of the Chapel Hill/Orange County Visitors Bureau say Chapel Hill is poised for a vibrant comeback. As the pandemic forced […]
Chapel Hill Transit Unveils Bus Honoring Frontline Employees
If driving, riding or walking around the greater Chapel Hill community, you may see some familiar faces on the side of a bus. Chapel Hill Transit recently unveiled its new bus wrap, honoring some of the transit system’s and Town of Chapel Hill’s frontline employees. Chapel Hill Transit Director Brian Litchfield shared photos from the Friday […]
Indoor Venues of Chapel Hill Respond to Challenges Introduced by Pandemic
Indoor venues in Chapel Hill have pursued changes in appearance and operations in response to the challenges introduced by the COVID-19 pandemic. Now, these venues are preparing for an ease in certain COVID-19 restrictions as more of the country becomes vaccinated. Since the Chelsea and Lumina theaters were forced to close last March, each have […]
Orange County Emerges as a Leader of Preventing Homelessness During Pandemic
Amid the COVID-19 pandemic generating a near-unprecedented economic downturn and increased risk of homelessness in the U.S., Orange County has emerged as a leader in the fight against evictions and homelessness over the last year. Although the U.S. Centers for Disease Control and Prevention suspended evictions for tenants that meet certain income requirements through March 31, […]
COVID-19: Need Help? Here's Where To Start
The COVID-19 pandemic has created and exacerbated many needs in our community. More and more folks are in need of food, financial support, and physical and mental health services; local businesses are seeking funds to get them through the downturn; and all of us are looking for information to help us better understand what’s going […]
›