The budget also combines the Transportation Fund tax rate with the General Fund tax rate to form a total tax rate of 50.4 cents for the 2001-2002 fiscal year, which is 7.4 cents lower than the current rate of 57.8 cents.
But these numbers can be deceiving. This year the county assessor determined that Chapel Hill homes increased an average of 25 to 30 percent in value. So, even though the tax rates are lower than in previous years, residents will pay 2.2 percent more per $100 valuation in property taxes because their homes are worth more.
This additional revenue will raise the salaries of town employees, allow for the addition of 22 new town personnel including police officers, firefighters and public works crews and help provide for free Chapel Hill Transit service.
Seventy percent of student-voters supported a tuition increase in a February referendum to subsidize the implementation of fare-free busing. Instead of paying over $200 for a bus pass, students now will only have to fork over a mere $17.
"The students really wanted this," Council member Kevin Foy said. "The University said it really wanted it and was willing to put up the money. It'll help them deal with the loss of parking spaces on campus in the next two years as growth goes on."
Carolyn Elfland, associate vice chancellor for auxiliary services said the University will experience parking deficits as the bond-financed construction and renovation program unfolds over the next few years.
"We will sacrifice 500 spaces in the fall and in four years lose up to 2,700 spaces during the height of construction," Elfland said. "We're not looking at temporary solutions, we're looking at permanent demand."
The 75-cent-per-ride fare will cease beginning Jan. 1, 2002 and the hours of four routes, the C express, the S, the F, and the North-South Express will be extended until 8 p.m. starting this fall.
A new route including Meadowmont and Southern Village will be added to prepare for Chapel Hill's annexation of the large neighborhoods. Two other added routes will include a new park and ride lot off Jones Ferry Road and an express shuttle to the Friday Center and the Hendrick building, two UNC facilities off N.C. 54.
