Health initiative, park fixes and bonuses among major costs in Chapel Hill
By Kirk Ross
Staff Writer
Chapel Hill — Town Manager Roger Stancil released his proposed 2010-11 budget on Monday, noting that a hefty fund balance and savings built up after another year of belt tightening would help the town move ahead on some initiatives while avoiding a tax increase.
Stancil said that like the past two years, most unfilled vacancies would remain open and major equipment purchases would be delayed to save funds.
Savings from this year’s target of 6 percent of the total budget has yielded about $3 million. Stancil wants to use that and about $2 million of the town’s fund balance to cover costs ranging from a hike in health care premiums to a state-mandated jump in payments to the state pension plan. The $2 million represents the amount of the town’s fund balance in excess of 15 percent of the overall budget. Ken Pennoyer, the town’s director of business management, said that would still keep the fund balance healthy enough to maintain the town’s Triple A bond rating.
The budget proposal arrives ahead of county and state budgets, which could affect the town’s finances as well.
Stancil said town officials are keeping a close eye on how state and county financial woes are resolved.
“Whenever they sneeze,†he said, “we have a cold.â€
One major initiative Stancil said he wants to move forward with is a partnership with UNC Health Care on a possible on-site health center for town employees and improved wellness programs.
Pointing to last year’s 17 percent jump in health insurance costs and this year’s 13.9 percent increase, Stancil said the town could see solid savings down the road if it could reduce the number of claims from employees. A healthier workforce and reduced accidents would give the town added bargain power with insurers or make self-insurance more feasible. He said Hillsborough and Burlington had benefited from similar programs.
The start-up cost of the initiative is $340,000, and an additional $200,000 capital cost is projected should the town decide to open its own small health center.
That health center would likely be located at the Town Operations Center on Millhouse Road. Using a UNC site is also a possibility, he said, depending on how negotiations go with UNC Health Care officials. UNC, Stancil said, is interested in working with the town to develop pilot wellness programs.
The budget also continues a two-year freeze on raises, but includes a one-time bonus for all employees of $800 at a cost of about $453,000. The move is similar to one-time bonuses given to state employees during recent budget crunches. The flat-rate bonus equals about 2 percent of the average salary for town workers and would not be added to their base rate of pay.
The town’s overall budget would rise by 5.6 percent from $49,816,000 to $52,612,000.
Other major items in the proposed budget include:
• $300,000 for a new fire truck;
• $120,000 in maintenance on Fire Station #3;
• $100,000 for the town’s share in a fiber optic network for the traffic system;
• roughly $400,000 in maintenance and improvements to town parks and greenways; and
• $108,800 for additional in-car police cameras.
The council was scheduled to review the proposal at a work session on Wednesday that included a briefing on proposed route changes for Chapel Hill Transit. In addition to some changes in key campus routes, transit officials are considering the elimination of the M route, which serves the Chapel Hill Public Library.
The council will hold a public hearing followed by another work session on the budget proposal May 19 and could vote on the budget as early as June 7.