by Rich Fowler
Staff Writer
With little debate, the Chapel Hill Town Council passed a $86.2 million budget for 2008-2009 at its meeting Monday at Town Hall.
The budget includes an 11.3 percent property tax increase, from 52.2 cents per $100 valuation to 58.1 cents. It is the first time the town has raised taxes in two years.
Top reasons cited for the increase are rising debt payments, employee costs and operating costs driven by the opening of new facilities. The cost of paying for the town’s debt has gone up from $5.5 million last year to $6.4 million for the coming year. The town is also giving all of its employees a three percent pay raise and absorbing a 10 percent rise in health care costs.
The council also changed its health insurance coverage rules extending coverage to council members after they leave office.
Under the old law, council members could get health insurance through the town, but coverage ended when their term ended. Now, once a council member serves two full terms, or eight years, that person will be able to get health insurance coverage from the town after leaving the council. The town will pay for 75 percent of the cost of the insurance and the former council member will pay the other 25 percent.
According to the council committee’s report, both Durham and Orange county commissioners already get 100 percent of the cost of their health insurance paid for when they leave office after serving two full terms, or eight years. The town of Cary starts subsidizing its council members’ health insurance at 50 percent after two terms, 75 percent after three terms and 100 percent after four terms.
In other action the council approved a plan to purchase two more 60-foot-long articulated hybrid buses and another nine 40-foot-long diesel buses.
The two hybrid buses will serve UNC’s North Chatham park-and-ride lot. The other nine buses will improve the town’s 98-bus fleet by replacing older buses and adding extra capacity. The total cost of the buses is $4.57 million, most of which will be paid for with federal and state grant money. The town’s share for the purchase is $457,000.