Chapel Hill Review

Town of Hillsborough issued the following announcement on Mar. 21.

The Hillsborough Board of Commissioners discussed housing security and a proposed skate park among other topics during a budgetary planning retreat on Monday at the Town Hall Annex. 

As part of the retreat, the mayor and commissioners also received presentations on the current financial picture for the town and on the results of the 2021 Community Survey. They also discussed current budget requests, including restoring an assistant finance director position that had been eliminated in 2019.  

Budget topics may be added to upcoming board work sessions, which are the fourth Monday of the month at 7 p.m. If needed, the next budget retreat will be April 4. The town manager’s recommended budget will be presented in May, followed by a required public hearing. The board expects to consider adoption of the Fiscal Year 2022-23 budget on June 13. The new fiscal year starts July 1. This past Monday’s meeting can be viewed on the town’s YouTube channel. 

Community Survey

Administrative Services Director Jen Della Valle presented results of the biennial survey, which was mailed late last year to all Hillsborough residents with the option to complete the survey online. She noted there was good geographic representation throughout the town in responses, with respondents also reflecting the population of the town. Overall, the results show residents have a very positive perception of Hillsborough, with 95% of respondents rating Hillsborough as an excellent or good place to live and 88% stating they are satisfied with the quality of services provided by the town. Satisfaction ratings are similar to previous years, and satisfaction with town services is much higher than other cities when compared regionally and nationally. Respondents indicated they view the following as the top three priorities for town focus: Maintenance of town streets, quality of water and sewer services, and condition of sidewalks in neighborhoods. A news release and video summarizing the results will be available later.

Financial forecast

Budget Director Emily Bradford provided an overview of the financial forecast at this time, highlighting that property tax revenue projections are on target for this fiscal year despite Orange County’s revaluation last year and that sales tax collections are at unprecedented high levels. She cautioned there is concern about inflation and the possibility for a recession. Gas tax revenues ― which are allocated to the town from the State Street-Aid Program, also referred to as the Powell Bill ― have increased by 38% over the last fiscal year. Bradford noted the town is still awaiting final financial audit figures. She said the town’s fund balance ― or reserves ― is a key indicator of financial health.

Continuing current operations without any expansion requests shows deficits in each of the next three fiscal years for the General Fund, the town’s chief operating fund, which is primarily funded with property and sales tax revenues and pays for services such as police protection, residential garbage collection, and the building and maintenance of recreation facilities.

The budget director noted the cost of providing the same level of water and sewer service is increasing due to inflation and drastically higher prices for the chemicals used to treat drinking water and wastewater. Water and sewer rate increases are projected for each of the next three fiscal years. Bradford said American Rescue Plan Act funds are expected to be used for several needed water and sewer projects, with additional Building Resilient Infrastructure and Communities funds being sought from the Federal Emergency Management Agency.

No increase in stormwater fees is projected. The Water and Sewer Fund and the Stormwater Fund are enterprise funds, which rely on user fees to pay for the services provided.

Expansion requests

The mayor and commissioners spent time discussing a proposed skate park for Cates Creek Park while reviewing expansion requests they had questions about. Public Space and Sustainability Manager Stephanie Trueblood noted that Cates Creek Park was the second highest scoring location when the Hillsborough Parks and Recreation Board initially ranked sites for a potential skate park. Exchange Club Park narrowly emerged as the top location due to its central location in town. However, the current restroom and parking at the privately owned park as well as utility and stormwater issues would make development of the site much more costly. The Parks and Recreation Board determined it would be best to install a smaller-scale skate park at Cates Creek Park, which is a well-used park in the southern portion of town, with a bus line in use and additional homes expected nearby. The appointed board plans to continue to look at other places around town for skate parks or safe places for adolescents and teens to hang out, Trueblood said.

The board also discussed a request to restore the assistant finance director position before the end of this fiscal year, which ends June 30. Town Manager Eric Peterson and Finance Director Tiffany Long both noted the increased workload and complexity expected due to financing utility infrastructure needs and complying with grant and bond requirements. In addition, the position could lead contract management for the town, assist with procurement needs, and help with implementation of an enterprise resource planning system and an overhaul of the procurement policy to improve processes. The board was supportive of restoring the position.

Housing security

Assistant Town Manager and Community Services Director Margaret Hauth led a discussion about affordable housing and two related funding requests:

• Orange County Affordable Housing Coalition requests financial support from each jurisdiction in the county for new housing development, preservation of existing units, owner-occupied repair programs, rental vouchers, and other housing creation and preservation programs.
• Inter-Faith Council requests an interlocal agreement with financial support from each jurisdiction in the county for its sheltering programs.

Hauth said the board has continually identified affordable housing as a priority since at least 2016, the town has accomplished a lot in this area, and it commits about $20,000 annually to housing security. She noted she was using the term “housing security” because the assistance the town provides is for more than affordable housing. She noted a desire for clear direction from the board regarding the amount of effort and ongoing funding to put into housing security and a need to develop related requirements for builders.

The board discussed additional staffing or a dedication of a percentage of current staff time, a desire for short- and long-term goals, the addition of related requirements in the Unified Development Ordinance, and a dedicated funding stream. There was support for trying to increase the amount spent annually on housing security. It was noted that the Comprehensive Sustainability Plan which is currently being developed will address some affordable housing issues.

For additional information on the budget process, contact Budget Director Emily Bradford by email or at 919-296-9427.

 Original source can be found here.