Chapel Hill Town Council to Consider Balanced Budget Proposal, No Tax Increases

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.

‹

Our Town: The Story of Bike Month in Chapel Hill

This month, Alyson West from the Office of Mobility and Greenways and Brennan Bouma from Chapel Hill's Sustainability team, tell the story of Bike Month in Chapel Hill. 

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.

With Federal Funding Losses and Revaluation, Orange County's Governments Weigh Difficult Tax Rate and Budget Choices

The annual budgeting process is typically an exhaustive one for Orange County’s local governments and staff – but this year, it may be even more so

Chapel Hill Cuts Ribbon, Opens Fully Inclusive Playground at Community Center Park

Chapel Hill leaders, parks and recreation staff, and families in the disability community gathered to open the new playground on Wednesday.

Chapel Hill: Balancing Budget Shortfall with Adjusted Property Taxes + Opening An Inclusive Playground

Chapel Hill Mayor Jess Anderson joins 97.9 The Hill News Director Brighton McConnell in-studio on Thursday, April 17.

Chapel Hill Council Moves Toward November Bond Vote, Holds Budget Public Comment

The Chapel Hill Town Council held a public hearing on the budget and considered a resolution to have a bond referendum in November.

Chapel Hill: The Latest on Legion Pond, Budget Discussions and Downtown Projects

Chapel Hill Mayor Pam Hemminger speaks with 97.9 The Hill on Thursday, May 18 about the previous night's council work session.

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.

Town of Chapel Hill Passes $116.8 Million Budget, Two-Cent Property Tax Increase

The Chapel Hill Town Council unanimously passed its budget for the upcoming fiscal year during its Wednesday night meeting. Coming after weeks of deliberation and public comment, the decision sets the Town of Chapel Hill’s operating budget as $116.8 million for the 2021-2022 fiscal year. It represents a slight increase in the budget compared to […]

Chapel Hill Town Council to Consider Balanced Budget Proposal, No Tax Increases

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 […]

›