Carrboro plans new library, bigger town budget, despite revenue hit from coronavirus
The town of Carrboro could spend more money — without a tax increase — next year, largely for greenways, renovations, and a building to house a new library and parks and recreation programs.
Town Manager David Andrews’ recommended fiscal 2020-21 budget is $12.8 million, or 22%, higher than this year’s $57.8 million spending plan.
The town’s tax rate would remain 59.94 cents for every $100 in property value, generating a $1,798.20 tax bill for the owner of a house valued at $300,000. Carrboro property owners also pay Orange County and Chapel Hill-Carrboro City Schools district property taxes.
Carrboro’s proposed $70.8 million budget does include a stormwater fee increase, however, from $75 to $90 for homeowners with less than 6,000 square feet of driveways and other impervious surfaces. The extra money will help hire stormwater staff, Andrews said.
The town’s cost for day-to-day town operations would increase only slightly, from $24.6 million to $25 million. The proposed capital budget, which pays for construction and big-ticket items, is $42.1 million.
The proposed budget also sets aside $338,000 for affordable-housing projects, paid for with an existing penny on the tax rate, plus $112,500 from the town’s operating budget.
Andrews postponed until next year a planned half-cent increase in the property tax rate to support affordable housing. Each penny on the town’s tax rate generates roughly $225,000.
Sales tax, budget challenges
The budget advances the town’s goals, while recognizing the challenges from the coronavirus-related economic shutdown, Andrews said.
Both Orange County and Chapel Hill have released no-tax-increase draft budgets that are largely unchanged from this year. Both anticipate a 10% drop in sales tax revenues, in addition to other revenue losses.
Carrboro could see a slightly smaller loss of 8.75% in sales tax revenues, or about $406,000, Andrews said. Other revenues also could dip, he said, but property tax revenues could increase about 1.4%.
“I don’t think it’s going to be any better, but it could be worse,” Andrews said. “We will monitor those numbers and make adjustments as needed.”
The council will hold a public hearing on the budget June 2, and could adopt the budget June 23.
Town staff, parking, climate change
The town budget also includes:
▪ Town staff: Carrboro enacted a hiring freeze in March. Employees will not get pay raises this year, although Andrews said some could see their salaries increase slightly to meet the Orange County living wage, which is $14.90, or $13.40 with employer-provided health insurance. Employee insurance and retirement costs are increasing.
▪ Parking fund: The town will create a new, $346,300 parking fund to pay for maintenance and upgrades, and short- and long-term parking leases. The fund eventually could become self-sustaining.
▪ Capital projects: The biggest expense will be the 203 S. Greensboro St. project, which includes a new Southern Branch Library and Parks and Recreation programs. Carrboro could pay $12 million toward the $25.8 million project; Orange County could pick up the rest.
Other capital projects include bike, pedestrian and bus shelter improvements, the town’s comprehensive plan, road paving projects, replacement vehicles and equipment, and playground equipment. The town is completing a facilities assessment and will need to plan for financing before deciding which town buildings should be renovated.
▪ Community Climate Action Plan: The town is moving ahead with a plan aimed at reducing carbon emissions and increasing conservation. That could include weatherization for low-income homes, solar projects, the Green Neighborhoods Initiative, organic waste collection and composting, EV charging station partnerships, and a greenhouse gas emissions inventory.
