Chapel Hill Town Council Reviews 2025 Audit, LUMO Rewrite

The council discussed excess general funds, a timeline for rewriting the Land Use Management Ordinance, and a new town manager evaluation form.

Published on Feb. 16, 2026

Got story updates? Submit your updates here. ›

During a recent Chapel Hill Town Council meeting, officials reviewed the results of the 2025 fiscal year audit, which showed the town had accumulated nearly $3 million in excess general funds. The council also received an update on the status of rewriting the Land Use Management Ordinance (LUMO) and discussed a new town manager evaluation form being developed by the UNC School of Government.

Why it matters

The excess general funds and LUMO rewrite are significant for Chapel Hill, as the town must decide how to allocate the surplus funds and complete the complex process of overhauling its land use regulations. The new town manager evaluation form is also important, as it will shape how the council assesses the performance of the town's top administrator.

The details

The 2025 audit results, presented by Mauldin & Jenkins, showed Chapel Hill had accumulated nearly $3 million in excess general funds due to decreased personnel spending and increased sales tax revenue. The council discussed potential uses for the funds, such as purchasing street maintenance equipment, demolishing a fire station, and covering downtown funding needs. Regarding the LUMO rewrite, Chapel Hill's Long-Range Planning Manager Tas Lagoo provided a timeline for the project. Staff are expected to receive the first full draft in spring 2026, followed by public review and feedback over the summer. Further work sessions and formal deliberations will occur in the fall and winter before the document is adopted. The UNC School of Government also presented a draft town manager evaluation form that includes 10 performance categories. The goal is to use the evaluation process to clarify expectations and encourage conversation about the town manager's performance.

  • The 2025 fiscal year audit results were presented on February 11, 2026.
  • The first full draft of the LUMO rewrite is expected in spring 2026.
  • Public review and feedback on the LUMO draft is planned for summer 2026.
  • Further work sessions and formal deliberations on the LUMO rewrite will occur in fall and winter 2026.

The players

Mauldin & Jenkins

A senior associate accounting firm that conducted the 2025 fiscal year audit for Chapel Hill.

Tas Lagoo

Chapel Hill's Long-Range Planning Manager, who provided an update on the status of the LUMO rewrite.

Carl Stenberg

A professor at the UNC School of Government who led a team presenting a draft town manager evaluation form.

Colt Jensen

An assistant professor at the UNC School of Government who worked on the town manager evaluation form.

Jess Anderson

The mayor of Chapel Hill who questioned the criteria used to decide on allocations for the excess general funds.

Got photos? Submit your photos here. ›

What they’re saying

“This is an invasive and complex process that goes over the course of several months, pretty much half the year, and we received full cooperation from the Town's management and staff.”

— Chad Jackson, Senior Associate, Mauldin & Jenkins (dailytarheel.com)

“It's really important for staff to have meaningful time to review a full, technical document.”

— Tas Lagoo, Chapel Hill Long-Range Planning Manager (dailytarheel.com)

“It is really essential to use the process as a way to get out expectations, mutual expectations, around what do the elected officials on the council expect of the manager, and through the manager, the managers of the departments and agencies of the local government.”

— Carl Stenberg, Professor, UNC School of Government (dailytarheel.com)

What’s next

The Chapel Hill Town Council is expected to hold further discussions on how to allocate the $3 million in excess general funds at a later date.

The takeaway

The Chapel Hill Town Council's review of the 2025 audit, LUMO rewrite, and new town manager evaluation form highlights the town's efforts to maintain financial responsibility, update its land use regulations, and ensure effective leadership - all important priorities for the community.