Chapel Hill Town Council Meeting - June 10, 2026: Budget Adoption and MSD Hearing
Chapel Hill Town Council Meeting - June 10, 2026
The Chapel Hill Town Council met on June 10, 2026, at 6:00 PM in the Council Chamber. The meeting opened with proclamations for Pride Month and National Immigrant Heritage Month. Council members made announcements regarding upcoming stormwater open houses, a Juneteenth celebration, and the next council meeting. The council adopted the FY 2026-27 budget with no property tax increase and held a public hearing on the Downtown Municipal Services District (MSD) contracted services contract. All votes were unanimous (8-0), with Council Member Sharp absent.
Consent Calendar
- Authorization to Execute Development Contracts with CASA for the Horizons Building and Supportive Housing Building in the Homestead Gardens Affordable Housing Development (R-1).
- Authorization to Execute a 99-year Ground Lease with CASA for the Horizons Building (R-2).
- Authorization to Execute a 99-year Ground Lease with CASA for the Supportive Housing Building (R-3).
- Extension of Historic District Commission Member Term for Josh Gurlitz by one year to support quorum (R-4).
- Extension of Planning Commission Member Terms for Jonathan Mitchell and Elizabeth Losos by one year to support completion of the LUMO rewrite (R-5).
- Approval of Past Work Session Minutes from 2014-2016.
- Approval of May 13 and 20, 2026 Meeting Minutes. All consent items were approved by a unanimous 8-0 vote.
Public Comments & Testimony
- Jasmine Catherine (Ms. Chapel Hill's Teen) spoke about her community service initiative "Film Mentality," which uses film to discuss mental health. She expressed gratitude for the proclamations and support for her upcoming competition for Miss North Carolina's Teen.
- Tisha Abdul (Miss Chapel Hill 2026) , an immigrant and recent UNC graduate, thanked the council for the Immigrant Heritage Month proclamation. She expressed pride in representing Chapel Hill.
- Alexandra Sheeves spoke on behalf of a group of neighbors from Kingsmill, Morgan Creek, and Highland Woods neighborhoods. She presented a petition with approximately 175 signatures requesting safe multimodal access at Odi's Road at Fordham. She asked the council to have staff work with regional planners and NCDOT to identify solutions and to learn how the town prioritizes improvements. She noted the crossing aligns with the Everywhere-to-Everywhere plan and Vision Zero goals.
Discussion Items
10. Consideration of the Final Budget and Related Items for FY 2026-27
Town Manager Ted Voorhees and staff presented the final budget totaling $170,013,308, a 3.6% increase over the prior year. Key features included no property tax increase (rate remains $0.50 per $100 assessed valuation), a 4% market pay increase for employees, $2.4 million in council focus areas, and three new positions. The budget reduced reliance on fund balance to $500,000. Two additional grants were incorporated: $20,000 from AARP for a Vision Zero crosswalk project and $274,500 from the 5303 grant for the MPO.
- Council Member Miller-Foushee asked about using fund balance for greenway projects. The manager responded that approximately $3 million in unassigned fund balance could be allocated to "quick win" greenway connections and potential park/trail lands south of town, to be proposed after the summer hiatus.
- Mayor Pro Tem Berry asked about the town's response to potential Orange County funding cuts for the library and parks. The manager stated the budget was sufficient for now but contingency plans include fees for non-town residents, service hour reductions, and deferring the new library historian position. The town would wait for the county's final budget before acting.
- Council Member Ryan expressed support for the budget but noted she did not personally support the library historian FTE, citing mission creep and inadequate acquisition funding. She voted in favor nonetheless.
- The budget ordinance (O-1) was adopted unanimously (8-0).
11. Public Hearing: Downtown Municipal Services District (MSD) Contracted Services
Economic Development Director David Putnam presented the proposed contract for enhanced cleaning services in the MSD. The district covers Franklin and Rosemary Streets between Henderson and Merritt Mill, generating $427,000 annually from a special tax rate of $0.00055 per $100 valuation. Stakeholder engagement identified priorities: safety, cleanliness, activation, landscaping, and town coordination. The proposed contract awards $220,000 to the Downtown Chapel Hill Partnership (with subcontractor Block by Block) for cleaning, sanitation, and reporting. The remaining funds support downtown police patrol ($127,000), landscape maintenance ($65,000 via Parks & Rec), and operations. The contract is for one year with four renewal options.
- Council Member Nollert asked why contracting is cheaper than in-house. Staff cited full-time presence, equipment, and flexibility.
- Council Member Ryan expressed desire for a broader downtown vision and noted the contract only covers cleaning, not other stakeholder priorities like activation. She suggested a larger policy discussion in the fall.
- The public hearing was opened and closed with no public comment.
- The council unanimously approved opening and closing the hearing (8-0), allowing the town manager to execute the contract.
Key Outcomes
- FY 2026-27 Budget adopted (O-1) by 8-0 vote. Total budget $170,013,308; no property tax increase.
- Consent agenda approved unanimously, including contracts with CASA for affordable housing, ground leases, and board term extensions.
- Public hearing on MSD contracted services opened and closed unanimously; manager authorized to execute the cleaning contract.
- Council expressed interest in a future strategic discussion on downtown vision and funding, potentially using fund balance.
Meeting Transcript
Good evening, everyone, and welcome to the June tenth meeting of the Chapel Hill Town Council. We're very glad to have you join us. Um, as a note to the clerk, um, Councilmember Sharp will not be joining us tonight. Um, this evening we have two items on our agenda for discussion or action. The first is to consider adoption of the final twenty twenty-six, twenty twenty-seven budget and related items. The second is to hold a public hearing related to the downtown municipal services district contracted services. Um to get us started this evening, we have two proclamations to announce. The first is for Pride Month, and I'd like to invite members of the town's LGBTQ plus employee resource group and members of the LGBT plus community to please join me up front for the announcement and to receive this year's proclamation. Each June, we join communities across the nation in celebrating Pride Month, a time to honor the courage, resilience, and contributions of LGBTQ plus people, reflect on the progress made since the Stonewall Uprising of 1969, and recommit ourselves to the work that remains. Chapel Hill has long been committed to fostering a welcoming and inclusive community where all people are treated treated with dignity, respect, and belonging. This year, we are pleased to join with our neighbors in Carborough to celebrate small town pride and the vibrant LGBTQ plus community that helps make our town stronger, more diverse, and more welcoming places to live. Tonight, we'd like to take a moment to recognize June as Immigrant Heritage Month in Chapel Hill. Our community is enriched by residents from many different countries, cultures, and backgrounds. Immigrants, refugees, and newcomers contribute every day to our schools, businesses, health care systems, neighborhoods, and civic life, helping make Chapel Hill the vibrant and welcoming community it is. This month is an opportunity to celebrate their contributions, honor their resilience, and reaffirm our commitment to inclusion, dignity, and belonging for all residents. As such, we encourage everyone to join in recognizing and celebrating the rich heritage and lasting impact of immigrant communities in Chapel Hill. Now, if our immigrant neighbors and friends and supporters want to come up here, we will read a proclamation making June immigrant heritage month. Whereas the town of Chapel Hill recognizes that immigrants and their descendants have contributed significantly to the cultural, civic, economic, and social fabric of our community, bringing diverse languages, cultures, skills, perspectives, and traditions that enrich our shared identity, and whereas immigrant communities have helped shape and sustain local institutions, including schools, universities, businesses, healthcare systems, and civic organizations. And whereas refugees, asylum seekers, and other newcomers who have come to the United States in search of safety, freedom, and opportunity embody resilience and determination and contribute meaningfully to the life of our community. And whereas Immigrant Heritage Month provides an opportunity to recognize and celebrate the journeys, resilience, and enduring impact of immigrants, while reaffirming reaffirming our commitment to inclusion, dignity, and belonging for all residents. And whereas the town of Chapel Hill remains committed to fostering a welcoming community that values equity, mutual respect, and cultural diversity. Now, therefore, we, the Chapel Hill Mayor, and Town Council do hereby proclaim June twenty twenty-six as immigrant heritage month and encourage everyone to recognize and celebrate the rich heritage experiences and lasting impact of immigrants in our community. Thank you. Thank you all for joining us tonight. And you are such an important part of our community. We are grateful you are here, and we are very proud to celebrate with you. Up next, uh that brings us to announcements. Um I have three quick things to share. Um, first is that the town will be holding um two stormwater open houses next Tuesday, June 16th at the Chapel Hill Library. This is an opportunity to learn about our stormwater management plan, find out what stormwater projects are happening around town, and share your ideas. Um building resilience starts with community involvement. So we encourage residents, businesses, and neighborhood leaders to attend, share their experiences, and help guide efforts to mitigate future flooding throughout Chapel Hill. Uh, please check out our weekly Our Town e-newsletter or the town calendar for more information. Um, second is an invitation to join us for Juneteenth, um, which is a celebration on Friday, June 19th, um, from four to eight at the Hargraves Community Center. This year's event will feature live performances, history exhibits, local food, art vendors, music, dancing, and activities for children. Um, please come out to honor black history, culture, and freedom while celebrating the spirit and diversity of our community. And third, our next town council meeting is scheduled for Wednesday, June 17th, here in town hall at 6 p.m. Um, this will be our last council meeting of the spring session. We will be discussing our complete community implementation along with the land use management ordinance rewrite. Um both will shape how the town grows and changes in the future, and we encourage members of the community to join us in person or virtually and to be engaged in these important conversations. Uh council members, does anyone else have something to share? Uh Mayor Pro Temberry. Thank you. Thank you, Mayor. I just want to do an underscore for Juneteenth. It is not just black history, it is our history. It is when the enslaved folks in Texas finally learned that they were indeed free. And we'll take that meeting loosely there. But I I want to underscore that that is all of our history, and we share it just as we share today's um proclamation for LGBTQ month and also for immigrant month. We are really proud to be in a part of this community.
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