Chapel Hill Town Council Meeting - May 6, 2026

The Town Council met on May 6, 2026, at 6:00 PM (local time) in the Council Chamber. The meeting included proclamations, announcements, a public hearing on a drainage easement closure, and the presentation of the FY 2026-27 Manager's Recommended Budget. The order of discussion items was flipped from the printed agenda: the public hearing (Item 7) was heard first, followed by the budget presentation (Item 6). The meeting concluded with a closed session and adjournment at 8:35 PM.

Proclamations & Announcements

• Proclamation: National Police Week – Council proclaimed May 10–16, 2026, as National Police Week and May 15, 2026, as Peace Officers Memorial Day. Council Member Nollert presented the proclamation to the Guardians of the Hill, expressing appreciation for officers and their families.
• AAPI Month Proclamation – Deferred to a later meeting.
• Municipal Clerk's Week – Mayor Anderson recognized May 3–9, 2026, as Professional Municipal Clerk's Week, thanking the Clerk's Office for ensuring government transparency and continuity.
• Announcements – Mayor Anderson highlighted Small Business Week, Bike Month activities (bike-themed movie night May 8, Bike to Work Week May 11–17, Roll Fest May 16), and upcoming budget meetings (May 13 work session, May 20 public hearing). Council Member Rivers delivered prepared remarks expressing concern about proposed Charter amendments (council size and mayor's term), emphasizing rising costs, the need for responsive government, and the importance of community engagement in addressing fiscal challenges.

Consent Calendar

• Unanimously approved (motion by Mayor pro tem Berry, seconded by Council Member Sharp):
  • Resolution R-1 approving the Interim Town Attorney employment contract for James Baker.
  • Meeting minutes for April 8, 15, and 16, 2026.
  • 2013 work session minutes (March 6, September 11, October 23).

Public Comments & Testimony

• None.

Discussion Items

Public Hearing: Drainage Easement Closure at 1301 Fordham Blvd (Item 7)

Engineer III Robert Gehris presented the request to close a public drainage easement (approx. 95 ft by 14 ft) at 1301 Fordham Blvd, now the site of the Atlas Blue Hill apartments. The easement, acquired in 2015, once contained a pipe that drained Ephesus Church Road into a ditch along Fordham Blvd. The pipe was removed during redevelopment (approved in 2021), and the area is now occupied by the building. Staff recommended closing the easement after determining no remaining public need; NCDOT and OWASA had no interest. Council members asked about past flooding at the intersection (notably during a severe storm in 2025) and current stormwater management. Mr. Gehris explained that drainage is now handled via the NCDOT roadside ditch and that the easement vacation was part of the 2021 development approvals. The Council unanimously: - Opened the public hearing (motion by Council Member Ryan, seconded by Council Member Nollert). - Closed the public hearing (motion by Council Member Miller-Foushee, seconded by Council Member McCullough). - Adopted Resolution R-2 approving the closure (motion by Council Member Ryan, seconded by Mayor pro tem Berry).

Presentation of the FY 2026-27 Manager’s Recommended Budget (Item 6)

Town Manager Ted Voorhees presented the recommended budget via a pre-recorded video. Key points:

• No tax increase – Property tax rate held at $0.50 per $100 valuation.
• Total budget: $169.7 million (3.4% increase over FY2025-26). General fund: ~$100 million; enterprise funds, debt fund, CIP, and other funds: $69.7 million.
• Revenue: Property tax revenue expected to increase 6.9% (+$3.5 million for general fund, +$1 million for debt service/transit) due to fewer appeals. Sales tax collections currently 5% above projections, with an anticipated 3% increase next year.
• Strategic investments aligned with Council priorities: complete community (LUMO rewrite, greenway feasibility study, economic development along BRT route), environmental resiliency (climate action plan update, fleet electrification, stormwater master plan), housing (nearly $0.03 of tax rate dedicated to affordable housing), and organizational/fiscal sustainability.
• Employee compensation: 4% market pay increase, mandatory state retirement increases, 10% medical insurance cost increase. Three new positions: fleet technician, library experiences assistant, destination coordinator.
• Inflationary pressures: Examples cited: basketball cost rose from $59 to $99 since 2022; CO2 for pools doubled; road salt up 38% in four years; hardware costs up 32% with potential doubling by fall. An additional $544,000 allocated to cover rising operational costs.
• Capital and sustainability: $250,000 additional for facility needs (HVAC, roofs, repairs); $250,000 more for street resurfacing (2–3 additional streets); six additional vehicle replacements beyond the 17 already planned; fire capital funding doubled from $500,000 to $1 million.
• Enterprise funds: Transit fund decreases slightly; parking fund decreases 1% (balanced by debt service transfer); public housing increases 4%; stormwater fund increases 23% (including a fee adjustment for system mapping and critical infrastructure).

Council members discussed the importance of public engagement, especially given the prior year's tax increase and ongoing county/school budget concerns. Specific ideas included: informal community conversations at libraries, adding to existing events (e.g., Chinese school), coffees with council, and a town talk letter. Manager Voorhees confirmed an engagement plan is already underway and would incorporate suggestions. Council members also requested accurate information about county funding for the library. The budget process will continue with a work session on May 13 and a public hearing on May 20.

Key Outcomes

• Consent Agenda – Approved unanimously.
• Drainage Easement Closure – Resolution R-2 adopted unanimously after public hearing.
• Budget Presentation – Received; the budget process moves to work sessions and public hearings. No vote taken.
• Closed Session – Council entered closed session at 7:01 PM under NCGS §143-318.11(a)(6) (legal matters) and adjourned at 8:35 PM.

Vote Tallies

• All votes during the meeting were unanimous (9-0).