Chapel Hill Review

Town of Hillsborough issued the following announcement on June 8.

The Hillsborough Board of Commissioners is expected to adopt a budget ordinance for Fiscal Year 2023 at its June 13 meeting.

The board conducted a public hearing and discussed the proposed Fiscal Year 2022-23 budget at its May 23 work session. The proposed budget makes no changes to property tax rates or stormwater fees. It increases water and sewer rates to address capital infrastructure and meet payments for previous revenue bonds. It decreases the monthly minimum usage for water and sewer.

The May 23 meeting is available for view on the town’s YouTube channel. The June 13 meeting will be at 7 p.m. at the Town Hall Annex, 105 E. Corbin St. It also can be viewed live from Hillsborough’s YouTube channel.

Public hearing

During the budget public hearing, one resident spoke regarding the Water and Sewer Fund and a representative from the Fairview Community Watch advocated for additional funding for Phase I facility and programming implementation at the Dorothy N. Johnson Community Center. The town formerly used the building as a police substation and now leases it to the organization.

Budget work session

During the budget work session, the board discussed items brought forth on the proposed budget. It directed staff to:

• Meet the community reinvestment funding requests submitted by the Hillsborough Exchange Club for $7,633 and Hillsborough Arts Council for $16,000.
• Set aside $43,000 of previously unfunded resources to meet the full request of the Orange County Partnership to End Homelessness, with the expenditure deferred until August to allow referral first to the Fiscal Year 2021 financial audit when it has been received.
• Budget an additional $35,000 to meet Fairview Community Watch’s funding request for Phase I building maintenance and renovations at the community center in the Fairview neighborhood.

Proposed FY23 budget

The town’s three budgetary funds are the General Fund, Water and Sewer Fund, and Stormwater Fund. The General Fund is primarily funded with property and sales tax revenues, while the other two funds are enterprise funds that rely on user fees. No profits are made in enterprise funds, and the revenue is used for no other purpose.

Under the proposed plan for Fiscal Year 2022-23 — which starts July 1 and runs through June 30, 2023 — the town’s operating expenses would total about $25.76 million, with:

• $13.5 million in expenses in the General Fund.
• $11.5 million in expenses in the Water and Sewer Fund.
• $762,302 in expenses in the Stormwater Fund.

Rates and fees

Recommended are:

• Maintaining the property tax rate of 58.7 cents per $100 of assessed value.
• Increasing water rates 4.5% to help pay for debt service on the reservoir expansion and upcoming capital projects; to comply with covenants for revenue bonds sold to pay for the reservoir expansion; and to keep the water fund in a fiscally sound position.
• Increasing sewer rates 2% to help pay for the upcoming replacement of the Eno River Pump Station and for wastewater collection system maintenance and projects.
• Decreasing the monthly minimum usage for water and sewer from 2,375 gallons to 2,250 gallons.

General Fund projects

Some projects and initiatives proposed for funding in Fiscal Year 2023 are:

• Passenger rail and multi-modal station ― To begin design for a proposed rail station in town. Estimated $716,000 for design, paid for with North Carolina grants and GoTriangle transit tax revenues.
• Public works facility and relocation ― To move staff and equipment to the N.C. 86 North facility and construct storage buildings. Estimated $100,000 for design.
• Greenway south system ― To plan and develop a pedestrian-friendly transportation infrastructure in the southern parts of the town. Estimated $150,000 for feasibility study, paid for with a mix of Metropolitan Planning Organization grant and local match funds.
• Fire protection ― To help address personnel challenges for contracted fire protection services. Estimated $67,021 (5%) increase in annual payments for fire protection.
• Public safety ― To help address current and future needs. Estimated $75,000 to facilitate Police Department reorganization; $90,000 to replace two police vehicles; and $50,000 to build savings for future police station debt service payments.
• Fire station ― To build funds for construction of a fire station at 604 and 618 N. Churton St. Estimated $150,000.
• Street resurfacing ― To reestablish the town’s priority of resurfacing 5% of town streets each year. Estimated $180,000.

Water and Sewer Fund projects

Some projects and initiatives proposed for funding in Fiscal Year 2023 are:

• Maintenance, repair, and replacement of equipment ― To include fire hydrant replacement and valve installations; recoating of clarifiers at Wastewater Treatment Plant; various water main replacements; and rehabilitation of the Lawndale Avenue sewer basin. Estimated total: $1.97 million.
• Sewer pump station relocation and upgrade ― To design and build first phase of construction. Estimated $3.02 million.
• Pump Station connection ― To connect sewer line services with adjacent service area of Orange Water and Sewer Authority. Estimated $90,000 for design costs.

The proposed budget is available on the Budget Division page.

Original source can be found here.