The Hillsborough Board of Commissioners met Monday, April 14 at the Town Hall Annex. Following is a brief summary of noteworthy actions. It does not include all actions taken at the meeting and should not be viewed as official minutes. The meeting is available to view on the town’s YouTube channel. See the agenda packet for more information.

Loss of Funding

Town Manager Eric Peterson presented information on the potential loss of nearly $7 million in grant funding for two critical water and sewer projects.

The Federal Emergency Management Agency announced this month that it is ending its Building Resilient Infrastructure and Communities Program and canceling grants awarded over several years that have not yet been paid out. Proportionally, the loss to the town would be equivalent to Raleigh losing between $216 million and $245 million in grants, the manager said.

The grants for floodway mitigation and resiliency were awarded to the town in August 2023. The BRIC grants are to fund:

• Relocating and upsizing a sewer pump station away from the Eno River that experiences performance issues during wet weather.
• Building a water booster pump station that connects with the Orange Water and Sewer Authority water system to receive water during emergencies.

The board discussed potential impacts, including: 

• Greater risks during emergencies if the projects are delayed. 
• Greater water and sewer rate increases if the town has to borrow money to complete the projects. 
• Delays or cancellations of other capital improvement projects if funds are redirected to complete the grant projects. 
• A slowdown or pause in development due to limited sewer capacity. 
• Negative effects on the town’s financial status and bond ratings. 

Staff will prepare information to send to the town’s state and federal elected representatives this week for help in ensuring receipt of the grant funds.

Capital Project Priorities 

The town manager presented a proposed summary of the town’s top four priorities for capital project funding requests from legislators. The summary is intended to help Hillsborough’s elected leaders request assistance from federal and state representatives in securing funding for the projects. Each project addresses public safety and economic development needs. They are:

• Building a new fire station.
• Replacing an old and undersized water tank.
• Upsizing a sewer outfall in the Cates Creek area. 
• Changing the disinfection system for drinking water. 

Sewer Line Responsibilities 

The board heard a request from a resident to consider changes to the Hillsborough Code of Ordinances and Utilities Standards regarding ownership responsibilities for sewer lateral pipes within public rights of way. According to the current code, if no cleanout pipe is located at the right of way, the property owner is responsible for any repairs to the pipe that connects the property to the public sewer main. Staff will prepare proposed changes for the board to discuss at its June meeting. Older houses may not have cleanout pipes, which allow access to the sewer line for repairs and indicate the line between public and private property responsibility. Private property water and sewer services are subject to residential plumbing codes. 

Property Changes 

The board approved the following: 

• Ownership and maintenance of six bus shelters built by Orange County. 
• Annexation of a building owned by Orange County that houses the Piedmont Food Processing Center, 500 Valley Forge Road. 
• Rezoning property at 119 W. Orange St. to Residential 10, which could allow the property to be subdivided into three lots with minimum sizes of 10,000 square feet. 

Ordinance Changes 

The board approved several changes to the Unified Development Ordinance including: 

Planning Board — Removing a vacant extraterritorial jurisdiction seat due to consistent vacancy and greater representation compared to population. 

Dimensional Requirements — Aligning setback requirements for properties zoned as Economic Development District with that of other non-residential zoning districts for adjoining properties.  

Permissible Encroachment into Required Setbacks — Allowing swimming pools, hot tubs and spas to be located up to 5 feet from property lines in side or rear yards that are not adjacent to a street. The amendment does not specify setback requirements for related equipment. 

See the agenda packet for other ordinance changes and more detail.  

Special Events  

The board approved special event permits for: 

Uproar Festival of Public Art — Public art will be displayed Aug. 1-23 throughout Orange County. The board also approved signing a memorandum of understanding that outlines expectations for each municipality participating in the event. See the festival page. 

Last Fridays and Art Walk — The arts event is 6 to 9 p.m. the last Friday of the month in downtown Hillsborough. The town will provide sponsorship for garbage and recycling services and closure of Court Street for May-October events. See the Last Fridays page. 

Proclamation 

The board proclaimed next week, April 20-26, as Volunteer Appreciation Week to give thanks to individuals, groups, boards, committees and businesses who volunteer in Hillsborough. 

Resolutions 

The board approved the following resolutions: 

Sewer project funding — Accepting a state revolving loan to repair or replace 8-inch sanitary sewers and sewer services in the Lawndale sewer basin, including installing cleanout pipes at the right of way. The low-interest loan from the North Carolina Department of Environmental Quality would be for about $1.1 million, with $616,730 for the loan and up to $500,000 that does not have to be paid back. Closing costs are estimated at $22,235. See the project page. 

Reimbursement resolution — Declaring intent for the town to advance funds for the initial costs to renovate and improve the N.C. 86 North Facility and then reimburse itself from financing proceeds. This will allow the town to recover any initial cost incurred from the project before the debt is issued. The maximum amount of financing is estimated at about $4.5 million. 

Complete streets policy — Pledging to consider a complete streets approach to planning, designing and constructing local transportation projects to ensure safe access for all users. The resolution supports development of emerging guidelines from the state for planning and designing complete streets and pledges coordination with government departments and partner agencies. See the resolution. 

Native plants policy — Promoting the use of native plants and eliminating invasive plants on town-owned or -maintained property. The town also resolves to educate the public about the importance of native plants and the negative impacts of invasive plants. See the resolution. 

Work Session 

The board’s April 28 work session is expected to include a public hearing on the closeout of Coronavirus aid funding from the Community Development Block Grant Program and an update on the Building Resilient Infrastructure and Communities grants.