CHAPEL HILL — Town Manager Cal Horton's recommended budget for the 2006-07 fiscal year calls for no increase in the property tax rate.
The rate of 52.2 cents per $100 of assessed property value would stay the same if the Town Council approves it as is, despite $2.9 million more in spending than in the current fiscal year.
The owner of a $200,000 house would pay $1,044 in town property taxes under the plan.
Downtown property owners would pay more under Horton's proposal, however.
The manager wants a 3.8-cent increase in the extra tax levied in the downtown commercial district, bringing the tax rate to 9.1 cents per $100. The increase would offset a loss in revenue from free on-street parking on Saturdays and pay for a groundskeeper dedicated to downtown.
Horton recommends using a $2 million windfall, which occurred because of an accounting change, over the next three fiscal years to help balance the budget. Sales tax revenues also are expected to be $455,000 higher than the estimate for this year.
The council will consider the proposal Monday night. A public hearing is scheduled for May 10, and the council is scheduled to approve a final budget June 26.