AGENDA #4g

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Budget Ordinance for a 2003 Transportation Capital and Planning Grant

DATE:            June 12, 2006

PURPOSE

The attached budget ordinance would decrease the budget of the FY 2003 Section 5307 federal grant by $28,136.

BACKGROUND & DISCUSSION

The Town of Chapel Hill’s application for FY 2003 Section 5307 funds was submitted in July 2003 and awarded on August 19, 2003, by the Federal Transit Administration.  The original budget was prepared in May 2003 so that funds could be available beginning July 1, 2003.  When the budget was approved by Council the FY 2003 federal apportionment had not been confirmed. When notice of the final apportionment was received, the FY 2003 Section 5307 allocation had been reduced by $28,136.  The attached amendments would reduce total expenditures for the grant to cover the shortfall.

RECOMMENDATION

Town Manager’s Recommendation: That the Council adopt the attached budget ordinances [2006-06-12/O-1a and 2006-06-12/O-1b].