By Kirk Ross
Staff Writer
Whether the town should pay health care stipends or offer coverage to its part-time employees and how to set the fee structure for use of the Town Commons are two of the main sticking points in this year’s budget.
The Carrboro Board of Aldermen ran through a short list of changes to Town Manager Steve Stewart’s proposed 17.3 million budget Tuesday night.
Stewart sent the board two versions of the budget last week, one without a tax hike and another that calls for a 2.86-cent increase in the tax rate to 65.3 cents per $100 valuation. That would add about $57 to the annual tax bill for a home valued at $200,000. The bulk of the increase would go to maintaining the town’s capital improvement program.
After their two-hour work session Tuesday, the board agreed to not hold a second work session and wait to hear from residents at a May 22 public hearing before suggesting any further changes.
With few questions coming from the board on how the capital program could be restructured, the tax increase option appears more likely.
Alderman Randee Haven-O’Donnell said that while she is not pleased to see taxes go up, it does not make sense to delay projects.
“I’ve been thinking a lot about the big picture. There’s not going to be any quick fix,†she said.
Reducing the town’s building plan, she added, including sidewalk work through a $4.6 million bond offering approved by voters in 2003, doesn’t make sense. “I’d rather start dealing with the problem today.â€
At last week’s session, the board asked Stewart to follow up on insurance for part-timers, fees for the Town Commons, improving recycling at town parks, lowering the lowest tier of the privilege license fee for small businesses and the impact of joining with the county and Chapel Hill on a strategic plan to end homelessness.
At Tuesday’s meeting, Stewart and department directors presented a rundown of the costs of the ideas and additions. The cost of adding a $1,500 health care stipend for the town’s seven part-timers would be $10,500. Stewart recommended that the town not try to add the employees directly to the insurance policy, saying that having part-timers on the policy would limit the number of companies the town could look to for coverage. The new budget factors in a 13 percent increase in the town’s health insurance costs.
Stewart said even though the cost of going with a stipend was lower than the roughly $18,000 it would cost to add the employees, the plan had problems. Health care access laws would prevent the town from requiring that individuals use the money for health insurance. The stipend would also be taxable income.
Alderman Jacquie Gist said she thought the town ought to cover its part-timers, but acknowledged that it would be costly.
She reminded Mayor Mark Chilton that he’d agreed to draft a letter to North Carolina’s congressional delegation outlining Carrboro’s struggle to pay for health care and calling for universal health care.
Chilton said he agreed that the real solution would come at the federal level, and said he would get the letter out soon.
“They’re just waiting for it,†he said dryly.
Alderman John Herrera said he preferred to follow Stewart’s suggestion that the town not pursue coverage.
Alderman Joal Hall Broun said while she would like to see part-timers get coverage, she thought the town shouldn’t change its policy until there’s been a more comprehensive look at the benefit system.
“If we’re going to make this change, we should look at the benefits for everybody,†Broun said.
The board also reviewed a new tier structure aimed at opening up the Town Commons to more groups and lowering the fees for events that do not require on-site staffing or electricity.
At present, the town charges $100 for use of the Town Commons for events lasting up to four hours and $150 for four or more hours.
Under a proposal from the town’s Recreation and Parks Department, events would be free if no money is exchanged, no electricity is used and no town staff are required.
The board briefly reviewed a proposal from Alderman Dan Coleman to restructure the town’s privilege license fee for small businesses, but did not lock in any changes. Coleman, who said he wants to keep any change “revenue neutral,†was asked to draft a proposal for the board to consider.
Easiest to sort out was a pilot recycling program for the town’s parks. Public Works director George Seiz said his department will soon roll out nine recycling carts left over from a previous project. The town will also add recycling to the cleanup checklist for groups using the parks.