Chapel Hill reviews 2025 audit, surplus fund allocation

15 August 2026. [AI first draft. Verify every fact against the source before publishing.]

On Wednesday, the Chapel Hill Town Council held a work session to review the 2025 fiscal year audit and updates on the Land Use Management Ordinance rewrite. The audit, presented by Mauldin & Jenkins senior associate Chad Jackson, showed the town accumulated nearly three million dollars in excess general funds during the 2025 fiscal year. The audit process, which typically concludes in December, was delayed this year due to a federal government shutdown in October. Jackson noted that the audit involved full cooperation from the town's management and staff throughout the multiphase review process.

The town's excess funds came from decreased personnel spending and increased sales tax revenue. Recommendations for allocation of the surplus included street maintenance equipment purchases, fire station demolition, and downtown funding needs. Mayor Jess Anderson questioned the criteria used for these allocation recommendations, and further discussion on fund appropriation is planned for a future date. Town Long-Range Planning Manager Tas Lagoo outlined the LUMO rewrite timeline, indicating that staff will receive the first full draft in spring 2026 for technical and legal review. Public drafts are expected in summer 2026, followed by opportunities for community input through the town council and Planning Commission. Final deliberations are scheduled for fall and winter before adoption.

A team from the UNC School of Government, led by professor Carl Stenberg, also presented a draft town manager evaluation form with ten performance categories. The evaluation process is intended to clarify mutual expectations between elected officials and the town manager. Chapel Hill residents can monitor future council agendas for scheduled votes on fund allocation, LUMO adoption timelines, and town manager performance review processes.

Read the original reporting: The Daily Tar Heel.