Instead, the council members decided that the festivities would be a scaled-down version of the traditional celebration, which typically involves a fireworks display at Kenan Stadium. This decision could save the town at least $20,000.
The change is designed to save Chapel Hill money and help with this year's unusually tight budget.
The state's $900 million budget shortfall has greatly restricted town spending this year. Because of the dollar crunch, state officials might withhold money from numerous towns across the state.
"This budget has been the most difficult that we have ever worked on together," said Town Manager Cal Horton.
For Chapel Hill, this would mean a $1.4 million loss, and council members are searching for all possible ways to cut corners and save money. The Fourth of July celebration is one way in which the town's money can be conserved, officials decided Wednesday.
Parks and Recreation Director Kathryn Spatz estimated that a scaled-down version of the Fourth of July celebration this year could save the town $20,000 to $25,000.
Costs for last year's celebration were about $32,000. These projected savings mean that the reduced celebration would cost the town only $7,000 to $12,000.
Spatz said Wednesday that the elimination of the fireworks alone would reduce town costs by $20,000 to $22,000.
But council member Flicka Bateman said she doesn't think that the changes are permanent or that the festivities will be the only thing the council tapers down.