AGENDA #4b

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Budget Amendment for Additional State Transportation Revenues

DATE:            April 10, 2006

The attached budget ordinance would approve an increase in the Transportation Department’s Capital Reserve, Operations and Maintenance budgets based on an increase in state operating assistance.

BACKGROUND AND DISCUSSION

The Town has received $896,290 in additional State transportation funds for transit operations this year because of the increased ridership since the system became fare-free.  The increased revenue allows us to pay for operations, and at the same time make a transfer to reserve.  The attached budget amendment would authorize a transfer to a reserve and allow the representatives of the Public Transit Committee (from the University, the Town of Carrboro and the Town of Chapel Hill) to consider alternative uses for the funds at a future meeting. 

RECOMMENDATION

That the Council authorize the proposed budget amendment to the Transportation Department’s Transportation Fund and Capital Reserve Fund.