Chapel Hill “Stancils” In 11% Increase in Town Taxes, Will Town Council Ask for Town Property Transfer Tax?

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Chapel Hill “Stancils” In 11% Increase in Town Taxes, Will Town Council Ask for Town Property Transfer Tax?

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After two years of raising debt and raiding a “rainy day surplus” fund (asw well as enjoying rising property values) to avoid raising ad valorem property taxes, Chapel Hill Town Manager Roger Stancil has nowhere else to turn and now proposes raising the town ad valorem rate by 11% for FY 2008-2009 (adding 5.9 cents per $100 of assessed value, for a town total of 58.1 cents) to keep existing services intact. This 11% increase includes sucking $2,800,000 out of the town “rainy day” fund balance. Demonstrating keen foresight in municipal management practices, Mr. Stancil said “I don’t think we will stand alone this year. Tax increases of 3 to 10 cents in local jurisdictions will not be uncommon.” The town fund balance stands at $18,000,000 but only $6,300,000 has not being previously committed. Upon seeking to spend $2,800,000 of the $6,300,000, Mr. Stancil says “At this point, it is depleted as low as it can get.”. Meanwhile, town debt payments are at an all-time high and climbing, doubl