Manager calls for 3.23 cent tax increase
by Kirk Ross
Staff Writer
The town is cutting expenditures by close to 6 percent, but taxes are headed up under a budget proposal detailed for the Carrboro Board of Aldermen at Town Hall Tuesday night.
Town Manager Steve Stewart outlined a $18,476,375 budget that delays vehicle purchases and uses part of the town’s fund balance to help make up for increased costs and lackluster revenue projects.
Stewart is recommending that the town raise property taxes 3.23 cents, putting the total tax rate at 68.60 cents per $100 of assessed value. For the owner of a $200,000 home, the increase would be about $65.
In presenting the new budget, Stewart told the board he was not happy to recommend another tax increase, but given only a 2 percent growth in the tax base and a continuation of weak local sales tax receipts, he said he had no choice.
“I don’t recall in recent history a more dim outlook for revenue,†Stewart said early on in his presentation to the board.
He noted that this year’s expansion budget contains only three items — a $77,313 request to fund two new police officers, $4,000 for support for the Orange County Land Trust and $4,800 for six new flushless urinals at the Century Center. The new urinals are expected to pay for themselves within six years and save the town about $128 per year each year after that.
One of the additional police officers would be assigned to the department’s community division and the other to investigations as part of the department’s effort to step up its narcotics enforcement.
A grant from the Federal Emergency Management Agency (FEMA) is assisting the town in covering the costs for three new firefighters who will be added in anticipation of the opening next year of the new northern fire station on Homestead Road. That will bring the number of new firefighters to nine over the past three years. The town plans to add 15 firefighters in all by the time the station opens, allowing for round-the-clock crews at both stations.
The FEMA grant absorbs 90 percent of the cost of the three new hires the first year, with the federal percentage gradually phasing out over three years. Stewart said the town plans to apply for a similar grant this year as well.
Key changes in the budget include:
• Savings on vehicles
One major area in which the town cut costs for this year could have long-term implications. Clayton Hearne, who manages the vehicle fleet, said a hard look at the town’s vehicle replacement policy led to a shift from a 6 year/60,000 mile standard to a 10 year/100,000 mile standard. That, along with better maintenance record keeping, which allows the department to better pick and choose which vehicles are costly, will save the town $77,000 this year in debt service on new vehicle purchases.
• Capital improvements
The biggest capital project highlighted in this year’s budget is $260,000 for the Weaver Street reconstruction project. The project, which includes extensive excavation and replacement of the street bed and infrastructure, is expected to start next year.
Other major capital projects include $13,230 for tennis court resurfacing at Wilson Park and $10,500 for dog park fence renovations at Anderson Park, including creating separate large- and small-dog spaces.
• Cost increases
One bright spot in the budget was a smaller than expected increase in health insurance costs. Last year, the town grappled with an increase of 13 percent. But Stewart said that this year, thanks to increased participation in wellness programs and reduced claims, the cost would rise 8 percent.
Alderman Dan Coleman praised the town’s effort to keep the increase in single digits and noted that rocketing health care costs for local governments were another reason to push for broad reform to the health care system.
• Fee increases
One indicator that the economy has slowed down considerably is a projected drop in town income from permits and fees. Stewart said he expects the town to end this fiscal year in June having issued only about 50 certificates of occupancy for residences.
“The last time that number was that low was 1981,†he said.
The budget calls for a $10 automobile fee increase, raising the annual cost from $20 to $30.
The town has scheduled a public hearing on the budget for May 27 and another budget work session for the board of aldermen on June 3. The final budget is scheduled for adoption on June 17.
The complete budget proposal is available on the town’s website at www.townofcarrboro.org/docs.htm